Paying NFIP Premiums by Credit Card
Did you know that NFIP policyholders can pay their annual flood insurance premium with a credit card?
Paying the full amount of their annual flood insurance premium up front can be challenging for some
consumers. However, the NFIP Servicing Agent and most of the Write Your Own (WYO) insurance companies
selling NFIP policies offer insurance agents the option of processing their customers' credit card
payments using the Internet. Although the full premium charge is made to the credit card at the time
coverage is purchased or renewed, policyholders then can choose to spread payments to the credit
card company over several monthly installments.
Let the policyholders in your community know about the increased convenience of paying their NFIP
premiums by using VISA, American Express, MasterCard, Diners Club, or Discover credit cards.
Credit Card Payments to a WYO Company
If NFIP coverage is placed through a WYO company, the agent may contact the company for instructions
about how to offer the credit card option. Procedures for accepting this form of payment may vary
slightly between WYO companies, but usually just involve collecting the basic information (the
cardholder's name as well as the card number, expiration date, and security code) needed for credit
card reimbursement. The policyholder must authorize credit card payment before the charge
can be made.
Renewals made through a WYO company also may be paid for by credit card. The WYO company carrying
the coverage will provide its agents with information about how to process credit card payments
Credit Card Payments to the NFIP Servicing Agent
Many insurance agents who place coverage through the NFIP Servicing Agent can process their
clients' credit card payments online. Details about how to do this are available by sending an
email to the NFIP Servicing Agent
Those agents unable to process credit card payments using the Internet can submit a signed Credit
Card Payment Form to the NFIP Servicing Agent when they send the property owner's application for
insurance or endorsement application to the NFIP Servicing Agent. This form is available in the Forms
Library on the
NFIP Servicing Agent's website.
Applications and endorsements received with a Credit Card Payment Form are processed as usual,
though the payment is charged to the indicated credit card.
Facilitating Premium Payment
The credit card payment option can reduce financial barriers to flood insurance purchase for
many property owners. And for some consumers, the deciding factor in whether or not to purchase
coverage in a moderate-risk flood zone, where it is prudent but not required, may be what the
credit card payment option offers: convenience. For more information about credit card payment,
see pages APP 6, REN 2, and MAP 4 in the
Flood Insurance Manual.