The Homeowners Flood Insurance Affordability Act of 2014 requires FEMA to clearly communicate full flood risk determinations to individual property owners. Currently, the NFIP is reviewing flood risk and underwriting information for all its policyholders. FEMA will then send each policyholder a letter outlining their known flood risk and how it relates to their premium.

According to FEMA, starting this month, policyholders will receive the letters approximately two months after their flood policy renews, or after they purchase a new flood policy. The letter will outline relevant details, such as whether an elevation certificate was used for rating and, if not, whether using one would help in understanding flood risk. 

As a result of this review, the NFIP identified seven categories of policyholders to receive unique information based on their flood risk and current premium rates. Each category corresponds with a letter of the alphabet which describes an individual policyholder’s flood risk determination.

FEMA notes that risks differ from property to property, and each letter it mails encourages policyholders to contact their agent or company to discuss their policy and learn about their specific coverage options. FEMA's bulletin includes talking points and frequently asked questions, which provide more details about the risk determinations.

Jen McPhillips is Big “I” vice president of federal government affairs.