FEMA-Funded Group Flood Policies to Expire

Following Hurricane Katrina, more than 6,000 Mississippi residents received a three-year, FEMA-funded group flood insurance policy. Each applicant that received federal assistance following Katrina was issued a certificate of insurance for the total amount of disaster assistance received up to a maximum of $26,200. The Group Flood Insurance Policy (GFIP) will expire on Oct. 28, 2008.

Applicants who received federal disaster assistance for damage to their uninsured home, business or other personal property were automatically issued coverage under the GFIP. They received notification of the coverage at the time payment was received. Because a GFIP is non-renewable, grant recipients were also notified that they must purchase an individual flood insurance policy upon expiration of the GFIP. The policies were funded by FEMA and administered by the State of Mississippi.

Group policy certificate holders will find the expiration date of their policy listed on the certificate of insurance they received upon qualifying.

Under the Mandatory Purchase of Flood Insurance Guidelines, recipients of federal disaster assistance who sell their home are required to inform the buyer of the requirement of maintaining continuous flood insurance coverage. If the homeowner received assistance from FEMA and the current homeowner does not continue their coverage, they will not qualify for future federal disaster assistance, including federal loans and FEMA Individuals and Households Program awards.

The Group Flood policy can be transferred to the purchaser by notifying the NFIP Direct facility at 1-800-638-6620.

Renters who received the group policy and then moved to another rental unit on the same or another property are exempt from this requirement.

Policies are available through the National Flood Insurance Program for homeowners, renters and businesses.

Premiums are set by the National Flood Insurance Program and are determined by risk. Contact your insurance agent to obtain an insurance quote and to help you decide what type of flood protection is best for you.

Questions regarding flood insurance may be directed to the NFIP Call Center in Biloxi at 866-925-8789.