Just ask Fidelity/Wright Flood:   

FEMA Clarifies Non-Primary Residence

 

Agent Kim Carso, ACSR, Personal Account Manager at Dean and Draper of Houston, TX asks:

 

"Relating to the 25% increase on pre-firm homes in A or V zones       (HR 5740 Decrease subsidies on non-primary residences in Pre-FIRM A or V Zones) ... a few quick questions about properties owned by an entity and/or business:

• If the property/policy is in the name of an entity, (ie family partnership, trust, LLC, etc ) will they be subject to the rate increase?
• What about those in the name of the business but the individual uses it as secondary home?" 

Thanks Kim for asking for clarification and allowing us to publish your question and our answer:

 

As a result of your question FEMA has further clarified, and even simplified, the method to determine a non-primary residence:

 

Regardless of the named insured on the policy:

To determine that a building is the non-primary residence of an individual, you must rely on the building occupancy, condominium unit indicator, and applicant's answer to the principal residence question on the Application form; or, in the case of a renewal, on the files generated from that original application form.   Therefore a non-primary residence is identified considering the following answers:

• The principal residence answer is 'No',
• The building occupancy is:
• single-family dwelling, or
• residential condominium unit located in 2-4 family dwelling, or other residential building.

At this time there has been no request to provide any documentation other than the applicant's answer to the principal residence question on an application or endorsement.  The NFIP has historically defined a principal residence as being occupied 80% of the calendar year and further verification of principal residency can be made, if necessary, at time of claim.