FEMA has published a final rule on the long-awaited installment payment plan for policyholders.  Included in the Federal Register on November 1, FEMA is revising NFIP’s regulations to offer NFIP policyholders the option of paying annual flood insurance premium in monthly installments.  The rule is effective on December 31, 2024.  The option was required by Biggert-Waters Act of 2012, and “monthly” was specified by Homeowner Flood Insurance Affordability Act of 2014.

Installment Plan FAQs may be reviewed on FEMA’s website.  NFIP insurers and agents will offer the monthly installment option to existing policyholders at the time of renewal and to new policyholders upon application, “once FEMA is certain that all the conditions are in place to provide policyholders with a safe, secure and seamless process to pay by monthly installments.”  FEMA “anticipates the implementation of an installment payment plan will result in greater retention of policyholders and incentivize greater participation in the NFIP.”