On March 29, 2020 the Federal Emergency Management Agency (FEMA) announced that due to COVID-19 pandemic it is extending the grace period to renew flood insurance policies from 30 to 120 days. This extension applies to NFIP flood insurance policies with an expiration date between February 13, 2020 to June 15, 2020.
To avoid a lapse in coverage, there is typically a 30-day grace period to renew policies. However, due to the widespread economic disruption arising from the pandemic, FEMA recognizes that flood insurance policyholders may not meet the standard policy renewal deadline.
When force placing flood insurance, Compliance Resource recommends that financial institutions continue to follow the current requirements of the flood regulations. Send the required 45-day notice at the time the policy expires, not at the time that the grace period expires.
