National Flood Insurance Program May 1, 2006, Rate and Rule Changes:
A Summary
Premiums will increase an average of 4.1% for policies written or renewed on or after May 1, 2006. This premium increase varies by zone as described below.
V Zones (coastal high-velocity zones)
Larger rate increases are being implemented again this year as a result of the Heinz Center Erosion Zone Study, which clearly indicates that current rates significantly underestimate the increasing hazard from steadily eroding coastlines.
Post-FIRM V Zones: Premiums will increase 6%.
Pre-FIRM V Zones: Premiums will increase 9%.
A Zones (non-velocity zones, which are primarily riverine zones)
There will be modest increases that will keep our Post-FIRM rates at actuarial levels and that will slightly decrease the amount of subsidy in our Pre-FIRM rates.
Post-FIRM AE Zones: Premiums will increase about 2½% as indicated by our actuarial rate model.
Pre-FIRM AE Zones: Premiums will increase about 6%.
AO, AH, AOB and AHB Zones (shallow flooding zones): No change. Experience continues to be favorable in these zones.
Unnumbered A Zones (remote A Zones where elevations have not been determined): Premiums will increase about 5%. These increases are designed to keep rates in line with Post-FIRM AE Zones.
A99 Zones (approved flood mitigation projects, e.g., levees still in the course of construction): Premiums will increase about 6%.
AR Zones: Premiums will increase about 7%.
X Zones (zones outside the Special Flood Hazard Area)
Moderate increases are being implemented.
Standard Risk Policy: Premiums will increase about 6%.
Preferred Risk Policy (PRP): No changes.
Miscellaneous Items
Optional Deductibles: Deductible relativities are unchanged.
Emergency Program: No changes.
Mortgage Portfolio Protection Program (MPPP): Revised to keep in line with increases to A and V Zone policies.
Provisional Rating: No changes.
