Why does an applicant receive a penalty for not having insurance?
Under Options 1, 2 and 3, a 30% penalty on the compensation grant is required if the applicant did not have the required insurance coverage at the time of the storm. All applicants are required to have carried homeowner’s insurance at the time of the storm. Applicants living in the flood zone are required to have carried flood insurance at the time of the storm. An exception applies if the applicant’s community did not participate in the National Flood Insurance Program (NFIP).
