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Understanding Group Flood Insurance Policies (GFIPs)

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A special type of flood coverage helps bridge the gap following Presidentially-declared disasters. Learn how it works to help policyholders transition to standard National Flood Insurance Program (NFIP) polices when their GFIP expires.

Have you ever gotten a call from a homeowner asking about a “three-year policy” or “low-cost” flood insurance, or the need to renew a flood insurance policy you know nothing about? The caller may be referring to coverage under an NFIP Group Flood Insurance Policy (GFIP).

If you’re not familiar with GFIPs, you’re in good company. Many insurance agents are not aware of them, and even homeowners who have them don’t always fully understand how they work.

FEMA provides GFIPs to individuals and households that don’t have flood insurance and have experienced flood damage resulting from a Presidentially declared major disaster. FEMA may pay up to $2400 in premiums as part of a disaster assistance grant, for up to three years of coverage for eligible recipients’ flood damaged property. GFIP policies begin 60 days after the date of the Presidential disaster declaration, and individual coverage becomes effective 30 days following NFIP’s receipt of the individual’s name and premium payment from either FEMA or a state, local, territorial, or tribal government agency.

Have questions about GFIP coverage? Contact NFIP Direct at www.nfipdirect.fema.gov or 1-800-638-6620 to connect with the servicer that has the policy.

When individuals have received federal disaster aid for flood-damaged homes or personal property, the properties must be insured against flood risk to be eligible for any future disaster aid. Recognizing that many flood survivors can’t afford flood insurance premiums, FEMA built this coverage into disaster aid to help individuals and families get back on their feet financially, while protecting their property.

GFIP coverage is limited to $87,200. Policyholders who want additional coverage can purchase a flood insurance policy, at which point the GFIP coverage ceases. GFIPs are administered by NFIP Direct, which sends policyholders a letter with an individual certificate, summary of coverage, and modified Standard Flood Insurance Policy (SFIP), and sends a copy of the certificate to the State. GFIP policyholders must purchase flood insurance policies at least 30 days before the GFIP expires to avoid a lapse in coverage. 

NFIP notifies policyholders six months in advance that their GFIP policies are ending and advises them to contact an insurance agent to purchase a standard NFIP policy.  If you sell flood insurance in an area with a recent Presidentially declared disaster, be on the alert several months in advance of the three-year disaster anniversary, so you can help GFIP policyholders make this transition.

You can find more information on GFIPs in this FEMA video and the GFIP Summary of Coverage brochure.