FEMA keeps changing the rules! And remember, a forgotten payment could really be a disaster!
The Moral of the Story - DON'T LET YOUR FLOOD INSURANCE POLICY LAPSE!!
The Short Version -
a) Flood gives you a 30 day grace period for payment, if you pay, your policy is in good shape.
b) If your payment is late between 30 and 90 days, you can get your policy reinstated (only one late pay allowed during the life of your policy!)
c) If payment received over 90 days past due, or you pay late for the second time, you lose your policy and have to start over --- the rates may be THOUSANDS higher :(
The Long Version -
A lapse is defined as:
1) Premium paid after the policy's 30 day grace period ends, but is paid within the 90 days of the policy's expiration (effective) date.
*this first offense forgiven, but not forgotten
OR
2) Premium paid after 90 days past the policy's expiration (effective) date.
Payment made within the 30 day grace period do not constitute a lapse. However, a payment made after the grace period expires will trigger the Lapse rule to become active, and the following outcomes applied:
Policy A Premium Due Date Premium paid within 30 days (the grace period)
No Lapse Policy keeps the same rating criteria and effective date
Policy B Premium Due Date Premium paid after 30- day grace period BUT within 90 days of the policy expiration date
First Lapse occurs- No change in rating, but policy is flagged and lapse is reported to the
NFIP
Policy will renew and the effective date will be 30 days from the date the renewal
premium is received.
Policy B Premium Due Date Premium paid after 30 day grace period BUT within 90 days of the policy expiration date Second Lapse occurs (anytime during the life of the policy)
Policy is re-rated Policy will not renew. A new policy will be issued and the effective date will be 30 days from the date the premium and, in some cases a new application may be required, is received (see below).
Policy C Premium Due Date Premium paid after 90 days or more from the policy expiration date Policy fully Lapsed -noted as expired or cancelled
New Application required
New Policy: a new application will be required and the standard waiting period rules apply.
We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast
http://www.southgroupgulfcoast.com , SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Brittany Jones, Denise Russell, Melissa Moran, Alex Treutel, Anne Gillam, Ashlie Moody, Mark Strickland, and Whitney Webb at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: info@southgropugulfcoast.com , phone: 228-466-4498 fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast, or Twitter www.twitter.com/atreutel !
We have 2 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi and 412 Hwy 90 Suite 6-Bay Saint Louis, MS. We write coverage in 40 different states and can assist you with Mississippi insurance, Louisiana insurance, and Alabama insurance and many other states.
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