The purpose of this page is to define surcharge (insurance), a commonly used term in floodplain management.
When a community is placed on probation by the National Flood Insurance Program (NFIP), each policyholder within the community will be assessed an additional $50.00 on their premium for a one-year period. Beginning on the date probation becomes effective, the surcharge will be assessed on all new and renewal policies issued in the community. The surcharge will always run for a full one-year period even if the community brings its program into compliance and is removed from probation. If the community is still on probation one year and one day after probation first began, another full year of surcharge will be imposed.