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#2233936 - 03/30/20 08:41 PM FEMA Extends Grace Period for Flood Ins Renewals
gonetobeach Offline
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gonetobeach
Joined: May 2004
Posts: 132
near Dallas
Hope we get Guidance soon:

FEMA Extends Grace Period for Flood Insurance Renewal Premiums
Release date:
March 29, 2020
Release Number:
HQ-20-040

WASHINGTON – FEMA continues to take proactive steps to address the COVID-19 pandemic. To help serve its National Flood Insurance Program (NFIP) customers who may be experiencing financial hardships, the agency is extending the grace period to renew flood insurance policies from 30 to 120 days. This extension applies to NFIP flood insurance policies with an expiration date between February 13-June 15, 2020.

To avoid a lapse in coverage, there is typically a 30-day grace period to renew policies. However, due to the widespread economic disruption arising from this pandemic, FEMA recognizes that flood insurance policyholders may not meet the standard policy renewal deadline.

“FEMA understands the sense of urgency related to financial hardships and wants to be proactive,” said David Maurstad, deputy associate administrator of FEMA’s Federal Insurance and Mitigation Administration, who oversees the NFIP. “We want to make sure that policyholders don’t have to worry that their policy will lapse during the spring flood season or into the start of hurricane season. We hope this extension will give policyholders some peace of mind and allow them extra time to renew their policies to ensure they are covered should a flood loss occur.”

For more information about renewing flood insurance policies or resolving an underpayment, policyholders can contact their insurance carriers or call the National Flood Insurance Program Call Center at 1-877-336-2627.
Last edited by gonetobeach; 03/30/20 09:58 PM.
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Flood Compliance
#2233948 - 03/31/20 12:11 AM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
GuitarDude Online
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GuitarDude
Joined: Nov 2004
Posts: 5,924
So Cal
I hope we get guidance too. It would be helpful to be able to delay force-placement without fear of a violation.
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#2234041 - 04/01/20 02:30 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
COMPL101TX Offline
Member
Joined: Apr 2018
Posts: 77
I really don't see how this extension affects force-placement requirements. We still have to force-place, in my opinion. The borrower may never pay to renew the policy, even with the time extension, so if we wait to force-place there will be a lapse in coverage.

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#2234049 - 04/01/20 03:24 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
I agree and if they do renew - then the force placed insurance will be retroactively cancelled.
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#2234339 - 04/07/20 02:13 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
Soccer Offline
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Joined: Jan 2010
Posts: 1,005
Utopia
Can I ask a point of clarification. So you would still proceed as normal should the need to force place arise and charge the borrower as normal?
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#2234343 - 04/07/20 02:37 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
I don't think you have a choice. It is no different than them not getting you a new declaration page. Until that happens, you have no idea if they actually renewed or not even with a payment grace period. If they get a declaration page - it will be backdated to their last renewal and you will have to retroactively cancel the force placed insurance.
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#2234349 - 04/07/20 03:54 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
Soccer Offline
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Joined: Jan 2010
Posts: 1,005
Utopia
RC, thank you
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#2234453 - 04/08/20 08:23 PM Re: FEMA Extends Grace Period for Flood Ins Renewals gonetobeach
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Put another way -- The borrower gets a grace period extension for doing his part. You don't. The unfortunate thing is that the borrower may feel he has some extra time, but you will be after him to get the renewal done. I see an increase in FP coverage coming, as borrowers will be cash-starved.
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