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Significant Flood Insurance Changes On the Way

Jim Slaughter

If you or your association are required (or wish) to have flood insurance, big changes are coming. For years, the National Flood Insurance Program (NFIP) has looked at ways to better charge specific properties for their specific risks. At present, flood insurance rates are mostly based on a property’s location and elevation. That may not be the case much longer.

On April 1, the Federal Emergency Management Agency (FEMA) announced its first major flood insurance pricing updates in half a century. During 2021-2022 the Agency will begin basing premiums on a property’s value, risk of flooding, and other factors. The new rates will take effect October 1, 2021 for new policies and on April 1, 2022 for all others. The Agency says such changes are needed, as the NFIP is currently over $20 billion in debt.

The National Flood Insurance Program provides coverage to almost 5 million properties in the US. FEMA believes that some 200,000 policies will see a “significant increase” in premiums. (Because premiums will be calculated on home value and flood risk, more expensive homes will cost more to insure.) On the other hand, about 1 million owners will see a decrease. Broken down, the agency believes that 23% of policyholders will see decrease in premiums; 66% will see an increase of up to $10 a month; 7% will see increases between $10-$20 a month; and 4% will see larger increases.) Only time will tell.

Thanks to Cliff Treece, who always keeps me updated with insurance changes. The following two insurance posts may also be of interest:

New Appellate Case: “Must Our Condo Association Buy Flood Insurance?”

North Carolina HOA & Condo Association Insurance Requirements & Considerations


For HOA/condo questions involving any North or South Carolina community associations, contact one of the attorneys at any of our four Law Firm Carolinas offices.

Author: Jim Slaughter
Articles have been Reprinted with permission from Black, Slaughter, Black.

* These articles and related content on this website are provided without warranty of any kind and in no way constitute or provide legal advice. You are advised to contact an attorney specializing in Association Management for legal advice related to your specific issue and community. Some articles are provided by thrid parties and online services. Display of these articles does in no way endorse the products or services of Community Association Management by the author(s).

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