On 7/20/2020, FEMA published a final rule in the Federal Register updating the National Flood Insurance Program rules. This release is the final rule from FEMA’s 7/16/2018 Notice of Proposed Rulemaking that proposed to make several non-substantive changes to the flood program regulations to improve their readability, uniformity, and clarity. In addition, FEMA planned to include certain requirements of the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014. In the final rule, FEMA states that specifically, the proposal planned to:
(1) increase the maximum coverage amount for multi-family properties to the same amount as that allowed for commercial properties;
(2) establish a minimum deductible amount for NFIP polices;
(3) stop denying payment to policyholders for damage or loss to a condominium unit under the Dwelling Form based solely on the fact that the condominium association has inadequate flood insurance coverage on the entire condominium; and
(4) review, among other things, the processes and procedures for making flood in progress determinations.
The NPRM also proposed to codify HFIAA's requirement that FEMA offer a high deductible option of $10,000. In their release, FEMA explained that they received 3 comments related to the rulemaking, one of which was anonymous.
The final rule can be found here.