FEMA releases refund guidance

On June 26, the Federal Emergency Management Agency (FEMA) released guidance related to providing refunds to property owners that overpaid for flood insurance. Section 3 of the Homeowners Flood Insurance Affordability Act requires FEMA to restore Pre-Flood Insurance Rate Map (FIRM) subsidized rates and issue refunds of excess premiums collected above the subsidized rate for:

Pre-FIRM properties not insured when the Biggert-Waters Flood Insurance Act of 2012 was enacted.

Pre-FIRM properties purchased after Biggert-Waters was enacted.

Policies for Pre-FIRM properties that were rated full-risk under Biggert-Waters due to a lapse in coverage, but only for policies where the lapse was due to a property owner no longer being required to purchase flood insurance.

The issuance of refunds will begin on October 1, 2014, and must be completed by December 31, 2014.