FEMA extends renewals for insureds facing financial struggles due to COVID-19

The US Federal Emergency Management Agency (FEMA) has extended the grace period to renew flood insurance policies to help policyholders affected by the coronavirus (COVID-19) pandemic.

The agency said it has taken "proactive steps" to help serve its National Flood Insurance Program (NFIP) customers who may be experiencing financial hardships.

The grace period to renew flood insurance policies, which is typically 30 days, has been extended to 120 days. This extension applies to NFIP flood insurance policies with an expiration date between February 13 to June 15, 2020.

FEMA stated that it recognises that flood insurance policyholders may not be able to meet the standard policy renewal deadline due to the widespread economic disruption arising from the pandemic.

“FEMA understands the sense of urgency related to financial hardships and wants to be proactive,” said David Maurstad, deputy associate administrator of FEMA’s Federal Insurance and Mitigation Administration, who oversees the NFIP. “We want to make sure that policyholders don’t have to worry that their policy will lapse during the spring flood season or into the start of hurricane season. We hope this extension will give policyholders some peace of mind and allow them extra time to renew their policies to ensure they are covered should a flood loss occur.”