Volume 8 Issue 13  March 31, 2014

NFIP sets all renewals of Pre-FIRM homes to non-primary  As of June 1, 2014
The NFIP requires all WYO companies upon renewal after June 1, 2014 to:
  • Generate all pre-FIRM residential policy renewals as non-primary/secondary  residences
  • Include the 25% premium increases for non-primary Pre-FIRM residences as enacted underBW12 Flood Reforms.

Primary Residence Definition Revised:

NFIP has newly defined primary residence for rating purposes on Pre-FIRM policies as occupied by the insured or the insured's spouse more than 50% of the 365 days following the renewal date of the policy.   (This was revised from an 80% occupancy threshold as enacted by BW12).


To establish Primary Residence designation and avoid billing with 25% premium increase:
  1. Modify any policy that meets the revised definition of Primary Residence, mentioned above, to answer the Percentage of Residency information using the link to the right of the policy on the Primary Residence Tab.
  2. Primary Residence policies require documentation be submitted.  Please upload ONE of the following required acceptable documents to the policy file.  (Possibly available from the insureds' agency files) 
  • Drivers' License
  • Proof of Insurance for a vehicle 
  • Automobile Registration 
  • Documents where children attend school
  • Voter Registration
  • Homestead Tax Credit Form for Primary Residence
How Wright Flood can help


Wright Flood will include a Wright Flood Cover letter to alert policyholders to respond to NFIP requests.


Wright Flood has generated a new tab, Primary Residence, to list affected policies on the main page of www.wrightflood.com agent portal with links to meet the percentage of residency requirement.


For best result: 

Agents should Verify the Percentage of residency question and upload no later than 60 days before renewal to assure original renewal billings sent to the payee include the correct residency.  However, policy maintenance transaction is available to establish the percentage of residency any time during the policy term. 

Primary Residence Tab

See the graphic below displaying the Primary Residence Tab that shows a listing of the affected Pre-FIRM policies that should be verified as the primary residence.  Using the link under the Verify Percentage of Residency column answer the Percentage of Residency question and upload the required document.   


To clarify:
  • Policies appear on the Primary Residence Tab 90 days prior to the renewal billing date, to alert the agent to verify the percentage of residency and upload the required documentation. 
  • If the percentage of residency has not been verified, the renewal billing will be generated using the non-primary residence designation and the transaction to modify it will be changed to Policy Maintenance. 
  • Once the percentage of residency is verified, the policy will be dropped from this listing. 
  • Thirty days after the renewal has been paid, a non-primary residence policy drops from the report.   


Agent Action Items  


Verify Percentage of Insured Residency on Pre-FIRM Homes to establish Primary Residence for renewal billings.


What changed?


FEMA will revise all Pre-FIRM single family rated policies to non-primary residence unless verified as inhabited by the insured or the insured's spouse 51% or more of the 365 days following the policy renewal date. Documentation will be required.


Why is this important?


Renewal premiums will increase 25% for Pre-FIRM non-primary homes.


List of my affected policies?


A new tab, entitled Primary Residence, will be located on the main page of www.wrightflood.com next to existing tabs for Products and Pending Policies.  This listing will include affected Pre-FIRM policies 90 days before renewal and will drop those policies once the % of residency info is established and documents uploaded or renewal is paid.


What do I do?


Verify the Percentage of Residency by answering the % of Residency question and upload acceptable documentation to establish primary residence at the policy location (See revised definition).  Use the document listing under Primary Residence to identify policies requiring this verification.  Be sure to answer both the percentage of residency question and upload ONE of the required documents to establish primary residences.


What is my timeline?


Best if transaction is completed 70 days prior to the renewal term, to allow a correct renewal premium bill to be generated  

originally and sent to the payee.  However, transactions can be performed at any time during the policy term.  Any refund due the policyholder will be refunded.


What if I miss this?


Renewal premium bills will generate showing a 25% increase as for a non-primary residence.  Policies may be endorsed mid-term if policy effective date is on or after June 1, 2014.


How will policyholders be notified?


FEMA Notice to Residential Policyholders-Primary Residence will be sent 90 days prior to renewal date with WF Residential Cover Letter-Primary Residence See links to view the sample notice and cover letter.

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