On November 4, 2024, the Federal Emergency Management Agency (FEMA) issued a final rule revising the National Flood Insurance Program’s (NFIP) regulations to offer NFIP policyholders the option of paying their annual flood insurance premium in monthly installments. The NFIP is a voluntary program in which interested persons can purchase flood insurance for their property if it is located in a community that participates in the NFIP by adopting and enforcing a set of minimum floodplain management requirements to reduce future flood damages.
Traditionally, policyholders paid their annual flood insurance premiums solely on an annual basis, but FEMA is in the process of allowing NFIP policyholders the choice to pay their annual flood insurance premiums via monthly installments. Installment plans allow policyholders to split one annual payment into a series of smaller, recurring payments. According to FEMA, the final rule will reduce barriers to purchasing flood insurance by increasing policyholders' budgetary flexibility by alleviating cash flow pressure.
The Final Rule can be found here.
The Installment Plan FAQs can be found here.