Statutory Discounts - Revision history

WikiAdmin: /* Discount Types */

2025-02-21T15:19:58Z

Discount Types

← Older revision		Revision as of 08:19, 21 February 2025
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	* Applies to buildings constructed before a community joined the NFIP.		* Applies to buildings constructed before a community joined the NFIP.
	* Building must be the policyholder's '''primary residence''' to qualify.		* Building must be the policyholder's '''primary residence''' to qualify.
	* Phased out via the glide path ~~methodology shown below~~.		* Phased out via the glide path.

	=== Newly Mapped Discount ===		=== Newly Mapped Discount ===

WikiAdmin: /* Pre-FIRM Discount */

2025-02-21T15:19:37Z

Pre-FIRM Discount

← Older revision		Revision as of 08:19, 21 February 2025
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	The '''Pre-FIRM discount''' applies to buildings constructed before the community's [[FIRM Date]], marking its participation in the NFIP's regular program. Buildings are designated as "Pre-FIRM" if constructed prior to this date and "Post-FIRM" if built after the FIRM Date.		The '''Pre-FIRM discount''' applies to buildings constructed before the community's [[FIRM Date]], marking its participation in the NFIP's regular program. Buildings are designated as "Pre-FIRM" if constructed prior to this date and "Post-FIRM" if built after the FIRM Date.
	* Applies to buildings constructed before a community joined the NFIP.		* Applies to buildings constructed before a community joined the NFIP.
	* ~~Compares~~ the ~~building~~'s ~~date of construction~~ to ~~the community's FIRM Date~~.		* Building must be the policyholder's '''primary residence''' to qualify.
	* Phased out via the glide path" methodology.		* Phased out via the glide path methodology shown below.

	=== Newly Mapped Discount ===		=== Newly Mapped Discount ===

WikiAdmin: /* Types */

2025-02-21T15:18:34Z

Types

← Older revision		Revision as of 08:18, 21 February 2025
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	* Lapses in coverage or other scenarios will result in losing statutory discounts.		* Lapses in coverage or other scenarios will result in losing statutory discounts.

	== Types ==		== Discount Types ==

	=== Pre-FIRM Discount ===		=== Pre-FIRM Discount ===

WikiAdmin: /* Real Estate Transaction Discount */

2025-02-21T15:18:13Z

Real Estate Transaction Discount

← Older revision		Revision as of 08:18, 21 February 2025
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	The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.		The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.

	=== Real Estate Transaction ~~Discount~~ ===		=== Real Estate Transaction ===
	The '''Real Estate Transaction ~~discount~~''' [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=113] allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.		The '''New Policy After a Real Estate Transaction rule''' [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=113] allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.
	* Transferable discounts for properties insured under an NFIP policy and sold within the last year.		* Transferable discounts for properties insured under an NFIP policy and sold within the last year.
	* ~~Replaces legacy grandfathering systems.~~		* Closing paperwork required
	* No prior declarations page required~~; proof is shown via settlement documents or deeds.~~		* No prior declarations page required


	{{nfip}}		{{nfip}}

WikiAdmin: /* Annual Increase Cap Discount */

2025-02-21T15:12:32Z

Annual Increase Cap Discount

← Older revision		Revision as of 08:12, 21 February 2025
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	===Annual Increase Cap Discount ===		===Annual Increase Cap Discount ===

	The '''Annual Increase Cap''' discount is not outlined clearly in the Flood Insurance Manual, although it is mentioned in passing. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=~~143~~]		The '''Annual Increase Cap''' discount is not outlined clearly in the Flood Insurance Manual, although it is mentioned in passing. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=142]

	It serves as a mechanism to phase in premium increases gradually. This prevents a sudden, significant cost hike for policyholders transitioning from legacy rating methodologies or other subsidized rates. The glidepath ensures a gradual adjustment to actuarial rates for existing coverage holders. The Annual Increase Cap is categorized as its own type of discount in NFIP calculations.		It serves as a mechanism to phase in premium increases gradually. This prevents a sudden, significant cost hike for policyholders transitioning from legacy rating methodologies or other subsidized rates. The glidepath ensures a gradual adjustment to actuarial rates for existing coverage holders. The Annual Increase Cap is categorized as its own type of discount in NFIP calculations.
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	{{clear}}		{{clear}}
	==== Conditions That Can Remove the Discount ====		==== Conditions That Can Remove the Discount ====
	* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap.		* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap
	* ~~Transitioning~~ from ~~buildings~~ under construction to ~~fully completed structures can also remove this cap.~~		* A building that transitions from '''under construction to finished construction'''
	The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.~~<br>~~		* A [[Policy Form]] update or correction
	~~[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=142 Find more situations that can remove the Annual Increase Cap]~~		* A property address correction, if keyed incorrectly
			The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.

	=== Real Estate Transaction Discount ===		=== Real Estate Transaction Discount ===

WikiAdmin: /* Annual Increase Cap Discount */

2025-02-21T15:07:41Z

Annual Increase Cap Discount

← Older revision		Revision as of 08:07, 21 February 2025
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	It serves as a mechanism to phase in premium increases gradually. This prevents a sudden, significant cost hike for policyholders transitioning from legacy rating methodologies or other subsidized rates. The glidepath ensures a gradual adjustment to actuarial rates for existing coverage holders. The Annual Increase Cap is categorized as its own type of discount in NFIP calculations.		It serves as a mechanism to phase in premium increases gradually. This prevents a sudden, significant cost hike for policyholders transitioning from legacy rating methodologies or other subsidized rates. The glidepath ensures a gradual adjustment to actuarial rates for existing coverage holders. The Annual Increase Cap is categorized as its own type of discount in NFIP calculations.
	It ensures policyholders don’t experience abrupt shifts from heavily subsidized rates to full actuarial costs.		It ensures policyholders don’t experience abrupt shifts from heavily subsidized rates to full actuarial costs.

			[[File:Img-tlm-glidepath-01.png\|left\|800px\|link=]]
			{{clear}}
	==== Conditions That Can Remove the Discount ====		==== Conditions That Can Remove the Discount ====
	* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap.		* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap.

WikiAdmin: /* Conditions That Can Remove the Discount */

2025-02-20T22:20:02Z

Conditions That Can Remove the Discount

← Older revision		Revision as of 15:20, 20 February 2025
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	* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap.		* A '''lapse in coverage''' is the most common reason for losing the Annual Increase Cap.
	* Transitioning from buildings under construction to fully completed structures can also remove this cap.		* Transitioning from buildings under construction to fully completed structures can also remove this cap.
	The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.		The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.<br>
	[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=142 Find more situations that can remove the Annual Increase Cap]		[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=142 Find more situations that can remove the Annual Increase Cap]

WikiAdmin: /* Annual Increase Cap Discount */

2025-02-20T22:19:52Z

Annual Increase Cap Discount

← Older revision		Revision as of 15:19, 20 February 2025
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	* Transitioning from buildings under construction to fully completed structures can also remove this cap.		* Transitioning from buildings under construction to fully completed structures can also remove this cap.
	The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.		The Annual Increase Cap is integral to balancing affordability and actuarial soundness, ensuring a smooth rate transition for policyholders without immediate full-cost burdens.
			[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=142 Find more situations that can remove the Annual Increase Cap]

	=== Real Estate Transaction Discount ===		=== Real Estate Transaction Discount ===

WikiAdmin: /* Real Estate Transaction Discount */

2025-02-19T16:07:02Z

Real Estate Transaction Discount

← Older revision		Revision as of 09:07, 19 February 2025
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	=== Real Estate Transaction Discount ===		=== Real Estate Transaction Discount ===
	The '''Real Estate Transaction discount'''[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=113] allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.		The '''Real Estate Transaction discount''' [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=113] allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.
	* Transferable discounts for properties insured under an NFIP policy and sold within the last year.		* Transferable discounts for properties insured under an NFIP policy and sold within the last year.
	* Replaces legacy grandfathering systems.		* Replaces legacy grandfathering systems.

WikiAdmin: /* Real Estate Transaction Discount */

2025-02-19T16:06:53Z

Real Estate Transaction Discount

← Older revision		Revision as of 09:06, 19 February 2025
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	=== Real Estate Transaction Discount ===		=== Real Estate Transaction Discount ===
	The '''Real Estate Transaction discount''' allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.		The '''Real Estate Transaction discount'''[https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=113] allows statutory discounts to transfer to a new NFIP policy when a property changes ownership, provided the sale occurred within the last year. Instead of requiring prior declarations pages, eligibility is established using settlement documents or deeds, ensuring continuity of coverage benefits for the new owner.
	* Transferable discounts for properties insured under an NFIP policy and sold within the last year.		* Transferable discounts for properties insured under an NFIP policy and sold within the last year.
	* Replaces legacy grandfathering systems.		* Replaces legacy grandfathering systems.