October 1, 2013 marks another phase in changes to the National Flood Insurance Program and flood insurance rates as a result of the Flood Insurance Reform Act of 2012. In July 2012, the U.S. Congress passed the Biggert Waters Flood Insurance Reform Act of 2012, which calls on FEMA and other agencies to make changes to the way that the National Flood Insurance Program (NFIP) is run.

Some of these changes have already been put in place, and others will be implemented in the coming months. Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders.  The changes will mean premium rate changes for some – but not all – policyholders over time.

The new law encourages Program financial stability by eliminating some artificially low rates and discounts. Most flood insurance rates will now move to reflect full risk, and flood insurance rates will rise on some policies. Buying a property, allowing a policy to lapse, or purchasing a new policy can trigger rate changes.

Not everyone will be affected immediately by the new law – only 20 percent of NFIP policies receive subsidies.

  • Owners of subsidized policies on non-primary/secondary residences in a Special Flood Hazard Area will see 25% increases annually until rates reflect true risk – began January 1, 2013.
  • Owners of subsidized policies on property that has experienced severe or repeated flooding will see 25% rate increases annually until rates reflect true risk – beginning October 1, 2013.
  • Owners of subsidized policies on business/non-residential properties in a Special Flood Hazard Area will see 25% rate increases annually until rates reflect true flood risk – beginning October 1, 2013

Primary residences in Special Flood Hazard Areas will be able to keep their subsidized rates unless or until:

  • the property is sold;
  • the policy lapses;
  • you suffer severe, repeated, flood losses, or;
  • a new policy is purchased.

Learn more about flood reform via the FEMA website, Floodsmart.gov, and the special section of the FEMA website regarding the Flood Reform.

Source:  FEMA

Read Other Blog Posts

Halloween Safety Tips with a Side of Insurance Wisdom

Halloween Safety Tips with a Side of Insurance Wisdom

Because spooky surprises are only fun when they’re part of the costume. From tripping hazards on dark walkways to costume mishaps and party liability, Halloween fun can come with hidden risks. Murphy Insurance Agency shares practical safety and insurance tips to help you keep your night frightfully fun and claim-free.
October is Cybersecurity Awareness Month Are You Cyber-Smart at Home and at Work

October is Cybersecurity Awareness Month: Are You Cyber-Smart at Home and at Work?

October is Cybersecurity Awareness Month — the perfect reminder to stay vigilant about your digital safety. From phishing scams to hacked home devices, cyber threats can affect anyone. Learn practical tips to protect yourself at home and work, and see how personal cyber insurance can help safeguard your finances and identity.
Cybersecurity Awareness Month How Businesses Can Stay Protected in a Digital World

Cybersecurity Awareness Month: How Businesses Can Stay Protected in a Digital World

October is Cybersecurity Awareness Month—a reminder that cybersecurity is more than an IT issue; it’s essential to business survival. From phishing scams to ransomware, digital threats can disrupt operations and erode customer trust. Murphy Insurance helps businesses strengthen defenses and recover quickly with customized cyber liability insurance coverage.
Candle on table

Candle Safety Considerations

Candles provide a warm ambiance for an intimate dinner, a sparkling decoration for a birthday cake or a nice scent for your home. Ambiance aside, candles can be a fire hazard if they are left unattended or placed where they can start other objects on fire. If you enjoy candles, be sure to follow these tips to use them safely.
Introducing the Murphy Insurance Condominium Owner’s Manual Your Guide to Preventing Costly Condo Repairs & Damages SMM

Introducing the Murphy Insurance Condominium Owner’s Manual: Your Guide to Preventing Costly Condo Repairs & Damages

Murphy Insurance Agency has launched a new Condominium Owner's Manual designed to help you prevent costly home repairs and avoid common insurance claims. Backed by decades of real-world experience, this practical guide provides seasonal tips, safety advice, and a comprehensive maintenance checklist to protect your home—and your wallet—all year round. Download your copy today!
Pollution Liability

Pollution Liability: The Most Overlooked Coverage Your Business Might Need

Many business owners assume their general liability or property insurance covers everything, but pollution-related risks are often excluded. Pollution liability insurance helps fill that gap, covering cleanup costs, lawsuits, and damages from environmental incidents. From contractors and manufacturers to auto shops, property owners, and agricultural businesses, many industries face hidden pollution exposures. Without this protection, a single spill, leak, or contamination event could cost hundreds of thousands of dollars.
Deer Sign

Road Safety and Wildlife: What Drivers Need to Know

Every year, countless accidents occur because drivers aren't prepared for unexpected encounters with animals on the road. Whether it's a deer darting across a rural highway or a stray dog wandering into city traffic, these moments can be dangerous for both humans and animals. Staying alert and understanding how to respond in these situations can make a critical difference in preventing harm and keeping roads safer for everyone.
Quest for the Best 2025

We Did It Again! 5-Time Gold Winners in Quest for the Best

We’re proud to announce we’ve won Gold in MyFM 101.3’s Quest for the Best – Insurance Category for the 5th year in a row! Thank you to everyone who voted and continues to support us. If you're a client, we’re grateful for your trust. If you’re looking for a second opinion, we’d love the chance to earn your business.
Insurance Audits

How to Make Workers’ Comp Audits Less Stressful: Tips from Our Business Account Managers

Workers’ Compensation audits don’t have to be overwhelming. With some simple year-round preparation, you can avoid unexpected costs and reduce stress. Our Business Account Managers share practical tips to help you stay organized, document subcontractor details properly, and keep your policy up to date—so audit time goes smoothly.

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.