Introduction to the National Flood Insurance Program

RHODE ISLAND EMERGENCY MANAGEMENT AGENCY

Introduction to the National Flood Insurance Program


National Flood Insurance Program (NFIP)

• Provides flood insurance to homeowners, renters, and business owners

• Community must participate in the program

• Written by insurance agencies through their carrier or direct with the NFIP (rates and coverage are the same for all agents)

• Created by Congress in 1968

• Administered by the Federal Emergency Management Agency (FEMA)


The NFIP: How It Works


Rhode Island NFIP Facts• 39 communities and 1 Tribal Nation participate in the National Flood Insurance

Program (NFIP).

• Approximately 14,000 structures in designated floodplains

• As of January 2016, there are 15,281 policies statewide Figures reflect policies in and out of the floodplain

– Bristol County: 2,308– Kent County : 1,985– Newport County: 2,775– Providence County: 2,685– Washington County: 5,528

• Average RI Premium is $1,350/annually


FLOODPLAIN MAPPING


Rhode Island Facts

• 400+ miles of coastline

• 21 of 39 municipalities are coastal

• Digital mapping data available statewide


• Riverine• Flash• Coastal• Shallow

Types of Flooding

Photo: Bob McMillan, FEMA


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.


Definitions• Pre-FIRM buildings are built prior to the

community’s initial FIRMs or flood maps, so they may have greater flood risk.

• 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

http://www.fema.gov/cis/RI.html


Definitions of FEMA Flood Zones


Flood Zone Wave Heights


Coastal Mapping Elements


Riverine Mapping Elements


Digital Flood Insurance Rate Maps (DFIRMs)


Mapping ToolsFEMA Map Service CenterFloodsmart

https://msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1

http://www.floodsmart.gov/


Rhode Island Alternative


• Designed to provide users with an easily accessible online reference tool by which to make informed decisions about the flood risk for a specific area or property.

• The floodplains shown on this Tool are delineated on the FEMA historic, preliminary, or effective FIRMs.

• www.riema.ri.gov

RI Floodplain Mapping Tool

http://www.riema.ri.gov/


REGULATIONS


Floodplain Management 44 CFR 60.3 Requirements

• A permit is required for all development in the SFHA shown on the FIRM.

• “Development” is any man-made change to real estate including:

• structures • mining• dredging • filling• grading • paving• excavating • drilling• storage


Duties of the Floodplain Administrator

• Understand the regulations

• Ensure permits are obtained• Coordinate with other offices, departments,

and programs

• Conduct inspections

• Correct violations and enforcement actions

• Update the ordinance and record keeping


Ordinance AdministrationOrdinance must be:

• Legally enforceable• Applied uniformly throughout community• Take precedence over less restrictive

requirements


Record Keeping

There is no statute of limitations!Permit File (NFIP Requirement)Elevation Certificates official record for new and substantially improved buildings

– Documents compliance with regulations and supports insurance rating

– CRS communities must use FEMA Elevation Certificate (Form 81-31)


Elevation Certificates (ECs)


Elevation Certificates• The NFIP requires communities to obtain lowest

floor elevation information for newly constructed and substantially improved buildings in the SFHA.

• Provides elevation information to ensure compliance

• Determines proper insurance premiums

• Supports map change requests


Elevation Certificates






Diagram 2A - Basement


Diagrams 5 & 6 – Piers, Posts or Piles


Diagrams 7 & 8 – Walkouts and Crawlspace


Elevation CertificatesThe FEMA Elevation Certificate & Guidance

http://www.fema.gov/national-flood-insurance-program-2/elevation-certificate

RI Department of Business Regulation, Licensed Design Professionals

http://www.bdp.state.ri.us/surveyors/








Request must be based upon existing real world conditions at the time of the

request.


Types of Map Change• Amendments – maps changed to reflect

errors primarily due to limitations in map scale

• Revisions – maps changed to reflect physical changes to flood conditions

BFE

LOMR-F

BFE

LOMA

Natural Grade


What Does a LOMA Do?• Officially amends the FIRM• Removes the mandatory* flood insurance

purchase requirement• May remove a property from the local

regulatory requirements• No review fee

* Even with a LOMA, lender may still require purchase of flood insurance


Steps To Get a LOMA• Hire a Professional Land Surveyor• Survey structure and complete EC

• If Lowest Adjacent Grade (C2(f)) is higher than BFE (B9) on EC then file for a LOMA

• LOMAs are free of charge for single structures

• Can be completed electronically through eLOMA


FLOOD INSURANCE


Flood Insurance Basics• 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/equity, 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.


Base Flood Elevation (BFE)

Base Flood Elevation (BFE)

Design Flood Elevation (DFE)

Freeboard


Coverage Limits

Structure Type Building Coverage Contents Coverage

Residential $250,000 $100,000

Commercial $500,000 $500,000

Flood insurance coverage can help protect property and belongings. The NFIP determines coverage and premiums.


LimitationsInsurance 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


LimitationsBasement is any area of a building (including

sunken room or portion of) with a floor sub-grade (below ground level) on all sides.

NO coverage for:


Rating Buildings• “Insurable” Building: is walled and roofed

“principally above ground” with at least 51% of actual cash value (including equipment and machinery) above ground

• Manufactured Home: designed for use with or without a permanent foundation when attached to required utilities


Rating Buildings“Submit-to-Rate” detailed underwriting analysis is required for certain buildings with peculiarities in exposure toflooding:

• Lowest floor 2 feet or more below BFE• Below grade crawlspace• Enclosure below BFE


Homeowner Flood Insurance Affordability Act of 2014

• HFIAA was signed into law on March 21, 2014• Repeals and modifies certain BW-12 provisions:

• Reinstated grandfathering• Refunded excessive policy premiums• Instituted policy surcharge $25 primary

residence/$250 all others per year• Capped yearly premium increases • Provided relief for primary residence owners • Remove sales rate trigger

• Create Affordability Study for Congress• Designation of Flood Insurance Advocate to assist NFIP

policyholders


Program Changes Effective April 1, 2016

• Revised Premium Rates– Limits annual premium and average rate class

increases Increase of 25% on premiums for non-primary, SRL, SI/SD, commercial policy holders

• Increases to the Reserve Fund• For the most comprehensive policy

information, have your clients contact the insurance agent


Questions?

Twitter: @RhodeIslandEMA

Facebook: facebook.com/rhodeislandema

Web: riema.ri.gov

Date post:	12-Apr-2017
Category:	Government & Nonprofit
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Introduction to the National Flood Insurance Program

Government & Nonprofit