FEMA Extends Grace Period for Flood Insurance Premiums
In response to the COVID-19 pandemic, the Federal Emergency Management Agency (FEMA) issued Bulletin W-20002 announcing an extension of the premium payment grace period from 30 to 120 days. The bulletin applies to Write Your Own and Direct National Flood Insurance Program (NFIP) policies.
The Bulletin provides that policies renewing with an expiration date between February 13, 2020 and June 15, 2020 will have a 120-day payment grace period from the expiration date. Additionally, policyholders who receive an underpayment notice dated between February 13, 2020 and June 15, 2020 will be have 120 days from the date of the notice to pay the additional premiums.
Although the Bulletin provides relief to policyholders in the making of flood insurance payments during the COVID-19 pandemic, at this time there has been no direction from federal regulators on whether lenders are permitted to postpone the force placement of flood insurance or the required borrower notifications. Until directed otherwise by federal regulators, if Proctor is providing letter services for your organization, Proctor will continue lender placement and letter notification activity for flood insurance.
If you have any questions, please contact your client representative.