On Friday, U.S. Reps. Andrew Garbarino (R-NY) and Vincente Gonzales (D-TX) asked the Federal Emergency Management Agency (FEMA) to address monthly payment plans for National Flood Insurance Program (NFIP) policyholders.
The letter to FEMA Administrator Deanne Criswell requested that the agency update its installment payment system to allow all NFIP policyholders to pay premiums monthly instead of annually.
“As you know, flood insurance is an essential tool for homeowners, renters, and communities to proactively protect against flooding. Those with flood insurance are able to recover quicker and more comprehensively in the wake of a flood, making flood insurance a commonsense financial choice,” the lawmakers wrote. “A simple step toward ensuring broader flood insurance affordability would be to allow premiums to be paid in monthly installments, rather than on an annual basis…FEMA’s implementation of an installment payment system is long overdue, and we seek to understand what has contributed to the delays in carrying out this statutory directive.”
In 2021, the Office of Flood Insurance Advocate recommended FEMA offer monthly premium payment options to help provide potential relief to homeowners, the Congressmembers said. Additionally, the Homeowner Flood Insurance Affordability Act of 2014 required FEMA to give policyholders the option of paying either monthly or annually.
Garbarino and Gonzales asked FEMA respond to several questions about the agency’s plan to implement monthly premiums, and what the agency’s timeline is to implement the system updates.