National Flood Insurance Program: The New FEMA Guidelines

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  • Great presentation. Thanks for the info, it’s easy to understand. BTW, if anyone needs to fill out a fema elevation certificate form, I found a blank form here http://pdf.ac/6LB4T
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National Flood Insurance Program: The New FEMA Guidelines

  1. 1. National Flood Insurance Program (NFIP): The New FEMA Guidelines Michelle F. Burnett, State Floodplain Coordinator Jess Stimson, State Mapping Coordinator RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  2. 2. National Flood Insurance Program Background • National Flood Insurance Act of 1968 – Established the NFIP – Required mapping of flood-prone areas – Made flood insurance available to all residents of communities that meet floodplain management requirements – Afforded communities ability to obtain certain types of disaster assistance RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  3. 3. Rhode Island NFIP Facts • All 39 communities and 1 Tribe participate in the National Flood Insurance Program (NFIP). • Currently 16,123 policies in Rhode Island (Data as of Oct. 16, 2013) – Bristol: 2,141 – Kent : 2,439 – Newport: 3,016 – Providence: 2,668 – Washington: 5,859 • Average RI Premium is $1,343/annually RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  4. 4. The NFIP: How It Works RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  5. 5. Types of flooding • • • • Riverine Flash Coastal Shallow RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  6. 6. FLOODPLAIN MAPPING RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  7. 7. Why New Maps? • There is a nationwide project underway to update the FEMA FIRMs. A combination of new data and outdated maps has propelled the project. • The maps were created by a FEMA contractor, STARR, through extensive modeling using new transects, surveys and coastal analyses. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  8. 8. Projected Effective Dates • • • • • Bristol County: May 16, 2014 Kent County: September 18, 2013 Newport County: September 4, 2013 Providence County: September 18, 2013 Washington County: October 16, 2013 • The preliminary maps will go effective county-wide on these dates. • If communities want to remain in good standing with the NFIP (and they do), each impacted community will adopt the floodplain ordinance and corresponding panels. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  9. 9. Definitions • Base Flood: Flood that has a 1% chance of being equaled or exceeded in any given year. • Flood Insurance Rate Map (FIRM): An official map where FEMA has delineated the special flood hazard areas. • Freeboard: An additional level of protection added above the Base Flood Elevation. • Special Flood Hazard Area (SFHA): Areas subject to the Base Flood or greater in any given year. These areas include Zones A and V. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  10. 10. Definitions • Pre-FIRM buildings for which construction or substantial improvements occurred on or before December 31, 1974, or before the effective date of an initial FIRM was issued. • Post-FIRM buildings were built after initial FIRM. They have reduced risk of flooding and damage if they are compliant with the state and local floodplain regulations. • http://www.fema.gov/cis/RI.html RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  11. 11. Definitions of FEMA Flood Zones RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  12. 12. Insurance and Mapping Tools Floodsmart FEMA Map Service Center RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  13. 13. Digital Flood Insurance Rate Maps (DFIRMs) RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  14. 14. ELEVATION CERTIFICATES RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  15. 15. Elevation Certificates (ECs) RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  16. 16. Elevation Certificates  The NFIP requires communities to obtain lowest floor elevation information for newly constructed and substantially improved buildings in the SFHA.  Required for rating buildings in A and V zones  Elevation Certificate certifies building elevations, but does NOT waive the flood insurance purchase requirement RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  17. 17. Elevation Certificates RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  18. 18. Elevation Certificates The FEMA Elevation Certificate & Guidance http://www.fema.gov/national-floodinsurance-program-2/elevation-certificate RI Department of Business Regulation, Licensed Design Professionals http://www.bdp.state.ri.us/surveyors/ RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  19. 19. FLOOD INSURANCE RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  20. 20. Flood Insurance Facts  Standard homeowners insurance doesn't cover flooding.  Flood Insurance is required if you live in a Special Flood Hazard Area (SFHA) or high-risk area AND have a federally backed mortgage or other commitment (reverse mortgage, line of credit, etc.)  A lender can require flood insurance, even if a structure is NOT in the SFHA.  Flood insurance can be purchased through a local insurance agent. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  21. 21. Mandatory Purchase Requirement  Applies to buying, repairing, constructing or improving private and publicly owned buildings  Secured mortgage loans from lenders regulated or insured by Federal agencies  Lender determines if property is in SFHA  Lender discretion if building is not in SFHA RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  22. 22. Coverage  Obtained from local insurance agents  Agents can sell “direct” policies through FEMA or Write Your Own (WYO) companies that work with and agree to FEMA requirements and rates  Dwelling, General Property and Residential Condo Association are standard flood insurance policy types RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  23. 23. How much insurance is available through the NFIP? RESIDENTIAL Building $250,000 COMMERCIAL Building $500,000 Contents $100,000 Contents $500,000 RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  24. 24. Limitations Insurance coverage limitations:  In areas below the lowest elevated floor depending on the flood zone and date of construction  In basements regardless of zone or date of construction RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  25. 25. Rating Buildings Pre-FIRM Rating based on building type and FIRM zone, not elevation  Pre-FIRM rates are/were considered “subsidized”. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  26. 26. Rating Buildings – Post FIRM Post-FIRM rates are actuarial. Based on building’s risk of flooding:  When BFE is available, rating is based on elevation of lowest floor in relation to the BFE. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  27. 27. FLOOD INSURANCE REFORM – BIGGERT WATERS 2012 RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  28. 28. Changes are Coming to the NFIP • Congress passed the Flood Insurance Reform Act of 2012 (Biggert-Waters 2012), which will: – Make the NFIP more financially stable by raising rates on certain classes of property to reflect true flood risk; and – Trigger rate changes for certain properties within a revised or updated map area to accurately reflect the flood risk. • Intent is to eliminate subsidies for: – Structures built prior to the first flood insurance map in a community (pre-FIRM) – Policies based on the map in effect when structure was built (grandfathering) • Artificially low rates and discounts no longer are sustainable. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  29. 29. Current & Upcoming Insurance Rate Changes RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  30. 30. Direct Move to Full-Risk Rates  After the purchase of a property  Subsidized rates cannot be assigned to the new owner  After a policy lapse  When a new policy is issued  Policies for buildings uninsured as of the date that the law was passed (July 6, 2012)  If an offer to mitigate has been refused  These changes started October 1, 2013 RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  31. 31. What about when a new flood map is adopted? • If you live in a community which adopts a new, updated Flood Insurance Rate Map (FIRM) : – Charging of insurance premiums based on a prior FIRM -- grandfathering -- will be phased out. • The Biggert-Waters Act Section 100207 calls for a phase-out of grandfathering discounts for properties shown on Flood Insurance Rate Maps that are updated. • But the pain is lessened somewhat, because new rates will be gradually phased in at 20% per year for five years • Implementation anticipated in 2014. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  32. 32. Who Won’t Be Affected by Subsidy Changes? Owners of primary residences in SFHAs will be able to keep their subsidized rates unless or until:  You sell your property (new rates will be charged to next owner if they insure);  You allow your policy to lapse  You suffer severe, repeated flood losses; or,  You purchase a new policy (after July 6, 2012). RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  33. 33. What Can Be Done to Lower Costs? RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  34. 34. Community Rating System (CRS) A voluntary NFIP program to recognize and encourage communities to go beyond the NFIP minimums in their local floodplain Management activities.  Communities in full compliance can apply  CRS uses a class rating system which entitles residents in SFHAs to premium reductions RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  35. 35. Benefits of CRS • Reduced flood insurance rates • More risk awareness & education • Improved public safety – less damage and $ losses • Better floodplain management • CRS training and technical assistance RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  36. 36. Community Rating System (CRS) • North Kingstown (Class 9 – 5%) • Middletown (Class 8 – 10%) • Narragansett (Class 8 – 10%) • Bristol (Class 8 – 10%) • Westerly (Class 8 – 10%) RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  37. 37. What You Need to Remember • Many changes are coming to the Flood Insurance program • Congress acted to make program stronger financially. • On many more policies, flood insurance rates will reflect full risk. • Insurance rates will rise on some policies; and • There are specific actions which will trigger rate changes. • Building or rebuilding higher can lower flood risk and could save money. • FEMA can help communities lower flood risk and flood insurance premiums through: • Community Rating System program; • Various mitigation grants; and • Technical advice on building and rebuilding to mitigate future flood damage. RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
  38. 38. Questions? Contact Information: Michelle F. Burnett State Floodplain Coordinator Michelle.f.burnett.nfg@mail.mil Jess Stimson State Mapping Coordinator Jessica.r.stimson.nfg@mail.mil RHODE ISLAND EMERGENCY MANAGEMENT AGENCY

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