NFIP to extend grace periods
In light of the financial hardship policy holders may face in the coming months due to the COVID-19 crisis, the National Flood Insurance Program (NFIP) has extended the premium payment grace period from 30 to 120 days.
Property owners with NFIP flood policies normally have a 30-day grace period after the policy expiration date to pay their premium in full and avoid a lapse in coverage.
If a policy has an expiration date between February 13, 2020 and June 15, 2020, then the NFIP must receive the renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between February 13, 2020, and June 15, 2020, then the NFIP must receive the additional premium amount requested within 120 days of the date of the notice.
This extension will allow additional time for policyholders who may be struggling financially to pay their insurance premiums and prevent their policies from being cancelled for nonpayment of premium due to circumstances beyond their control.
We hope all our members and stakeholders are healthy and safe. Please reach out with any questions. See a link to the NFIP bulletin HERE