Hey there, insurance enthusiasts!
We’ve got some exciting news from the National Flood Insurance Program (NFIP) that could change how you think about flood insurance. On November 8, 2024, FEMA announced a groundbreaking update – introducing an Installment Plan for flood insurance payments. Here at LWG Insurance, we’re thrilled to dive into how this new option can benefit you, and why now is the perfect time to secure your property against the unpredictable forces of nature.
What’s the Big Change?
For over 55 years, NFIP has required policyholders to pay their premiums in one lump sum at the start of the policy term or upon renewal. But times have changed, and so have the payment options. Now, you can choose to pay your flood insurance premium in 12 manageable monthly installments. Here’s what you need to know:
- Flexibility: Whether you’re a new customer or renewing your policy, you can choose between paying annually or spreading the cost over the year.
- Eligibility: This plan is for those who pay their premiums directly, not through escrow. You’ll need to set up automatic, electronic payments for ease and consistency to be eligible.
- No Additional Fees: The standard fees, surcharges, and assessments still apply, but there’s no extra charge for choosing monthly payments. However, note that all annual fees are collected with the first installment.
How Will This Help You?
- Budget-Friendly: Monthly payments mean you can better manage your cash flow without the pressure of a large upfront payment.
- Increased Accessibility: Flood insurance becomes more accessible to those who might have found the annual cost prohibitive, ensuring more properties are protected.
- Peace of Mind: Knowing your coverage is in place without a financial strain can give you a sense of security and preparedness.
When Can You Start?
FEMA is currently working with all insurers to get this new system up and running smoothly. The final rule was published to the Federal Register on November 1, 2024, and we’re expecting the installment plan to be fully operational soon.
- For New Policies: Agents and insurers will offer this option at the time of application as soon as systems are updated.
- For Renewals: Existing policyholders will receive information on how to opt into the installment plan at their next renewal date.
How to Prepare
- Stay Informed: Keep an eye on updates from FEMA and your insurance provider. We’ll keep you posted here at LW&G Insurance as well.
- Set Up Electronic Payments: If you’re interested, ensure your payment details are up to date for automatic debits.
- Consult with Us: Our team is here to help you understand how this impacts your policy. Contact us for a personalized review of your flood insurance needs.
Why Flood Insurance?
Even if you don’t live in a high-risk flood zone, floods can happen anywhere. This new payment plan makes it easier than ever to protect your home, your belongings, and your peace of mind. Don’t wait for the next big storm; let’s get you covered now.
At LW&G, we’re committed to making flood insurance as straightforward and affordable as possible. With this new installment plan from NFIP, we’re one step closer to ensuring that every homeowner can feel prepared, secure, and resilient against natural disasters.
Let’s navigate these changes together. Get in touch with us today to discuss how we can safeguard your future, one month at a time.
Stay safe, stay covered!
