TO:                 State and Local Government Association Executives

FROM:           NAR Government Affairs

RE:                 National Flood Insurance Program Rules Begin May 1

DATE:            30 April 2014

NOTE:           This Update was sent to State and Local GADs earlier today


Effective May 1, 2014, all buyers of older properties (“pre-FIRM”) will see a premium rate reduction under the Homeowner Flood Insurance Affordability Act of 2014.

Instead of jumping to “full cost” for flood insurance, buyers will assume the seller’s Oct-2013 rate for a pre-FIRM property.


NAR prevailed upon FEMA to implement this provision seven months early.  FEMA also extended the rate relief so all pre-FIRM properties

(including the second homes and businesses) will begin paying Oct-2013 rates when they purchase or renew their flood insurance afterMay 1, including:

  • ALL buyers of a pre-FIRM property, not just those whose seller has an existing policy;
  • ALL recent owners who apply for a new flood insurance policy on a pre-FIRM property;
  • ALL recent owners who reinstate an old pre-FIRM policy that previously lapsed for any reason;
  • ALL recent owners who renew a policy on a pre-FIRM property bought or newly insured after the 2012 Biggert-Waters law.


While expediting the rate relief, FEMA must still issue refunds to all those who paid more than their Oct-2013 rate.

NAR will continue working with FEMA and Congress to quickly issue these refunds to anyone overcharged for flood insurance under Biggert-Waters.


NAR Flood Insurance Resources on the Web

NAR Flood Insurance Webpage:


FEMA Bulletin W-14014 (dated April 15th):


FEMA Bulletin W-14016 (dated April 24th):


NAR Implementation Survey:


NAR Frequently Asked Flood Insurance Questions:


NAR Legal Guidance on what to tell clients:



John DiBiase

Communications Director

Government Affairs

National Association of REALTORS®

500 New Jersey Avenue, N.W.

Washington, D.C. 20001

202-383-1037 Direct Line

202-701-0407 Mobile