FEMA-Funded Group Flood Insurance Policies Expiring
Release Date: October 23, 2008
Release Number: 1604-684
» More Information on Mississippi Hurricane Katrina
BILOXI, Miss. -- 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 October 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.
"Applicants covered under the GFIP need to be reminded of the expiration date and purchase their own individual flood insurance policy prior to the expiration date," said NFIP Group Supervisor Tim Russo. "They must maintain continuous coverage. There can't be any gaps in coverage between the group policy and the new individual policy. Failure to maintain continuous flood insurance protection will result in denial of future federal disaster assistance."
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.
The Mississippi Emergency Management Agency is the designated state agency for NFIP and is committed to reducing flood losses and preserving natural floodplain functions by embracing the broad and ever-changing field of floodplain management, flood hazard mitigation and the requirements of NFIP. Learn more about MEMA at www.msema.org.
Questions regarding flood insurance may be directed to the NFIP Call Center in Biloxi at 866-925-8789.
To learn more about what is and is not covered by flood insurance and how items are valued at the time of loss, you can go to www.fema.gov/pdf/nfip/summary_cov.pdf.
To learn more about the NFIP, how to prepare for floods, how to purchase a flood insurance policy and what the benefits are of protecting your home or property against flooding, visit www.floodsmart.gov.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
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