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DHS FEMA NFIP Services - eWaterwark
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Policyholders in Puerto Rico Get a Boost
When Hurricane Georges swept across Puerto Rico in September 1998, there were approximately 434,000
people living in floodplains on the island. But there were only about 43,000 flood insurance policies
in force, providing coverage for approximately 135,000 individuals.
So that flood victims could receive federal disaster assistance, the government of Puerto Rico worked
with FEMA to make sure their homes were protected by the NFIP's Group Flood Insurance Policy (GFIP).
At the end of December 2006, the government of Puerto Rico stepped in to protect its citizens again,
when their GFIPs were about to expire, making sure the policyholders maintained their flood insurance,
as required by the law.
Group Coverage
FEMA established the GFIP in the mid-1990s to address the needs of recipients of Individual and
Household programs (IHP) disaster assistance under section 411 of the Stafford Act. The GFIP provides
a temporary mechanism for recipients of IHP grants, generally low-income persons living in a Special
Flood Hazard Area (SFHA), to comply with the NFIP mandatory purchase requirement as result of
receiving Federal disaster assistance for a flood event. The GFIP presently provides $28,200 of
building and contents coverage at an annual premium of $600 for 3 years after a flood. This enables
the GFIP certificate holders time to recover from the disaster and be in better position to buy flood
insurance for themselves when the GFIP expires.
Policyholder? Certificate Holder?
These words are interchangeable when referring to the Group Flood Insurance Policy (GFIP).
Technically, one GFIP is issued for an entire area receiving a Presidential Disaster Declaration.
Then, each individual property owner is added to the GFIP as a certificate holder.
GFIP to SFIP
Flood insurance policy retention in Puerto Rico was strengthened on December 21, 2006, when
Governor Anibal Acevedo Vilá signed an Executive Order for $3.6 million to purchase an estimated
11,900 NFIP Standard Flood Insurance Policies (SFIPs). These new policies will replace GFIPs purchased
as a result of floods that received Presidential Disaster Declarations between 1996 and 2004.
Presidential Disaster Declarations for Floods in Puerto Rico
1996-2004 |
| Flooding Event |
Date |
Expired Group Flood Insurance Certificates* |
NFIP Paid Losses** |
Claim Payments (in millions)** |
| Hurricane Hortense |
September 1996 |
5,601 |
812 |
$13.3 |
| Hurricane Georges |
September 1998 |
3,259 |
2,659 |
$26.6 |
| Severe Thunderstorms |
May 2001 |
374 |
114 |
$1.9 |
| Severe Thunderstorms |
November 2003 |
1,933 |
281 |
$1.4 |
| Tropical Storm Jeanne |
September 2004 |
1,635 are scheduled to expire on 11/16/07 |
556 |
$4.6 |
* GFIP Report (data as of 2/28/07)
** NFIP Policy/Loss Summary Statistics Report (data as of 12/31/06) |
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| Business-Driven Technologies.
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| Last Modified:
Tuesday, 27 May 2008 |
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