national flood insurance program flood insurance...

1

Flood Insurance Manual Crosswalk

NATIONAL FLOOD INSURANCE PROGRAM

Where to find information in the newly redesigned October 2018 Flood Insurance Manual

2

Table of Contents

Welcome 3

How to Use the Crosswalk 4

Reference 5

General Rules 6

Application 10

Rating 12

Condominiums 16

Lowest Floor Guide 18

Special Certifications 21

Preferred Risk Policy (PRP) 23

Newly Mapped (NM) 25

Mortgage Portfolio Protection Program (MPPP) 27

General Change Endorsement 29

Policy Renewals 31

Cancellation/Nullification 32

Claims 34

Policy 35

Flood Maps 36

Provisional Rating 37

Coastal Barrier Resource System (CBRS) 38

Community Rating System 39

Guidance for Severe Repetitive Loss Properties 40

Guidance for Leased Federal Properties 41

Definitions 42

3

In October 2018, FEMA released a new, easy-to-use Flood Insurance Manual (FIM), which supersedes the previous FIM.

FEMA designed the FIM with the insurance professional in mind. The newly redesigned manual aims to make flood insurance issues and NFIP processes more understandable to agents, insurers, and policyholders. This Crosswalk is intended to ease the transition to the new manual format.

The new edition of the FIM does not change flood insurance coverage or supersede the terms and conditions of the Standard Flood Insurance Policy (SFIP).

The FIM is a resource for insurance professionals as they work with FEMA to close the insurance gap. Thank you for your participation in the NFIP and for helping us to provide world class service to our policyholders.

Together we are making America more flood resilient and building a culture of preparedness.

Welcome

https://www.fema.gov/flood-insurance-manual

4

Welcome to the NFIP Flood Insurance Manual Crosswalk. There have been a lot of changes in the organization of the new manual. We know you will see the benefits of the new format soon, but it may take a little getting used to. This Crosswalk will show you exactly where the information from the April 2018 is in the new manual and provide quick links to the content.

How to Use the Crosswalk

Previous Manual New Manual

October 2018 Manual

The right half of thepage has the location orlocations with links to theinformation in the newmanual. The links will takeyou to the page where theinformation begins.

Start Here! April 2018 Manual

The left half of each pageshows the contents of theApril 2018 Flood InsuranceManual in order. Somesections are grouped whenthey are found in the samesection of the new manual.

Return to the Table of Contentsanytime to jump to a new section.

5

Reference

1. Reference

Reference - Section 2

I. INTRODUCTION TO THE NATIONAL FLOOD INSURANCE PROGRAM

II. THE WRITE YOUR OWN PROGRAM

III. TECHNICAL ASSISTANCE

A. WYO CompaniesB. NFIP Servicing Agent (NFIP Direct)C. Special Direct Facility

IV. CONTACT INFORMATION

A. NFIP Servicing Agent Contact Information for NFIP Direct Program Agents

B. NFIP General Contact Information for All NFIP Stakeholders

C. National Flood Insurance Program Bureau and Statistical Agent Regional Offices

PAPERWORK BURDEN DISCLOSURE NOTICE

1. Reference

I. NFIP History 1.1

II. Flood Insurance 1.2

A. Placing Flood Business through the NFIP 1.2B. Technical Assistance 1.2

III. NFIP Topics and Contact Information 1.3IV. NFIP Bureau and Statistical Agent Regional Offices 1.4

N/A - This section does not correlate with the new manual

Table 2. NFIP Topics and Contact Information 1.3

Table 3. NFIP Bureau and Statistical Agent Regional Offices 1.4

V. Paperwork Burden Disclosure Notice 1.6

1. Reference

April 2018 Flood Insurance Manual October 2018 Flood Insurance Manual

End of Reference - Section 2

https://www.fema.gov/media-library-data/1538670828969-81423feb161c06426ac157a409123f3d/1_reference_508_oct2018.pdf

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https://www.fema.gov/media-library-data/1538670828969-81423feb161c06426ac157a409123f3d/1_reference_508_oct2018.pdf

https://www.fema.gov/media-library/assets/documents/171681


6

General Rules

General Rules - Section 3

I. COMMUNITY ELIGIBILITY

A. Participating (Eligible) CommunitiesB. Emergency ProgramC. Regular Program


D. Maps


E. Probation

F. SuspensionG. Non-Participating (Ineligible) CommunitiesH. Coastal Barrier Resources Act

I. Federal Land

II. POLICIES AND PRODUCTS AVAILABLE

A. Standard Flood Insurance Policy

B. Insurance Products

III. BUILDING PROPERTY ELIGIBILITY

A. Eligible Buildings

2. Before You Start

A. Where the NFIP Provides Insurance 2.1

Table 1. Where the NFIP Provides Insurance 2.1

Appendix H: Flood Maps

II. Flood Hazard Maps H.1

2. Before You Start


Table 2. Where the NFIP Does Not Provide Insurance 2.2


IV. Policy Forms 2.7

Table 6. Standard Flood Insurance Policy Forms 2.7

Table 7. NFIP Insurance Products Available 2.9

II. Insurable Buildings 2.2

Table 3. Buildings the NFIP Insures 2.3


2. Before You Start

3. How to Write

4. How to Endorse

5. How to Renew


Appendix D: Coastal Barrier Resources System

Appendix J: Rate Tables

https://www.fema.gov/media-library-data/1541619481569-878aa52bac8ac0a6baabe8ac90c92719/2_before_you_start_508_oct2018.pdf

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https://www.fema.gov/media-library-data/1541619486310-878aa52bac8ac0a6baabe8ac90c92719/3_how_to_write_508_oct2018.pdf

https://www.fema.gov/media-library-data/1541619490414-878aa52bac8ac0a6baabe8ac90c92719/4_how_to_endorse_508_oct2018.pdf

https://www.fema.gov/media-library-data/1541619915734-878aa52bac8ac0a6baabe8ac90c92719/5_how_to_renew_508_oct2018.pdf


https://www.fema.gov/media-library-data/1538673696837-4bace6e8194ed8083e9ca6e6d51c1d65/app-d_cbrs_508_oct2018.pdf#page=1

https://www.fema.gov/media-library-data/1538670910296-81423feb161c06426ac157a409123f3d/app-j_rate_tables_508_oct2018.pdf

7

General Rules


B. Single Building

C. Walls

D. Determination of Building Occupancy

E. Primary Residence Determination


IV. CONTENTS ELIGIBILITY

A. Eligible ContentsB. Vehicles and Equipment

C. Silos, Grain Storage Buildings, and CisternsD. Commercial Contents Coverage

V. OTHER EXAMPLES OF ELIGIBLE RISKSA. Cooperative Building – Entire Building in Name of Cooperative

B. Units Within a Cooperative Building

C. Timeshare Building – Entire Building in Name of CorporationD. Buildings Within a Non-Condominium Homeowners AssociationE. Condominium Buildings

VI. INELIGIBLE PROPERTY

A. Section 1316 PropertiesB. Container-Type BuildingsC. Buildings Entirely Over Water

D. Buildings Partially Underground

E. Basement/Elevated Building Enclosures


F. CBRS and OPAs


VII. EXAMPLES OF INELIGIBLE RISKS

A. Building Coverage

3. How to Write

7. Determine Single Building Eligibility 3.10

Table 8. Elevated Buildings - Elevating Foundation Types 3.13a. Enclosure Wall Types 3.14

6. Determine Building Occupancy 3.8Table 7. Building Occupancy Types 3.9

8. Primary Residence 3.11

2. Before You Start

III. Type of Contents 2.6

A. Eligible Contents 2.6

A. Eligible Contents 2.7


Table 5. NFIP Coverage Exclusions and Limitations 2.6


B. Buildings the NFIP Does Not Insure 2.5

Table 4. Buildings the NFIP Does Not Insure 2.5




1. General Information D.1

2. Before You Start

B. Buildings the NFIP Does Not Insure 2.5Table 4. Buildings the NFIP Does Not Insure 2.5Table 5. NFIP Coverage and Exclusions and Limitations 2.6B. Ineligible Contents 2.7

Table 4. Buildings the NFIP Does Not Insure 2.5Table 5. NFIP Coverage Exclusions and Limitations 2.6


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General Rules


B. Contents Coverage

C. Non-Residential Condominium Unit

VIII. POLICY EFFECTIVE DATE

A. Receipt Date (in the Determination of the Effective Date)

B. Presentment of Premium Date Requirements for Loan Closing

C. Effective Date – New Policy


D. Effective Date – Endorsement


E. Effective Date – Renewal


F. Effective Date – Change/Correction


IX. COVERAGE

A. Limits of Coverage

B. Deductibles


C. Coverage D – Increased Cost of Compliance (ICC) Coverage

D. Reduction of Coverage Limits or Reformation


E. Loss Assessments

F. Tenant’s Coverage

2. Before You Start

B. Ineligible Contents 2.7


VI. Policy Effective Dates 2.10

Table 8. Policy Effective Date with a 30-Day Waiting Period 2.11Table 9. Policy Effective Date with a 1-Day Waiting Period 2.12Table 10. Policy Effective Date with No Waiting Period 2.13

Table 10. Policy Effective Date with No Waiting Period 2.13

A. Waiting Periods 2.10

4. How to Endorse

1. Waiting Periods 4.1

5. How to Renew

J. Coverage Endorsements during the Renewal Cycle 5.6

2. Before You Start

B. Post-Wildfire Exception 2.13

3. How to Write

2. Amount of Insurance Available 3.2

Table 2. Maximum Amount of Insurance Available 3.3

2. Deductibles 3.322. Deductibles 3.38


RATE TABLE 8A. MINIMUM DEDUCTIBLES J.17RATE TABLE 8B. DEDUCTIBLE FACTORS J.18CONDO TABLE 7. RCBAP DEDUCTIBLE FACTORS J.53

2. Before You Start

XII. Coverage D - Increased Cost of Compliance (ICC) Coverage 2.15

XIII. Reforming the Policy 2.15

3. How to Write

Table 44. Assessment Coverage After a Loss 3.54

H. Tenant's Coverage 3.29











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9

General Rules


G. Duplicate Policies

H. Coverage for Building Items Under the Condominium Unit-Owners’ Contents Coverage

X. SPECIAL RATING SITUATIONS

A. Tentative Rates

B. Submit-for-Rate

C. Provisional Rates

D. Buildings in More Than 1 Flood Zone/BFEE. Different BFEs ReportedF. Flood Zone Discrepancies


XI. MISCELLANEOUS

A. Policy Term

B. Application Submission

C. Delivery of the Policy

D. Evidence of Insurance

E. Assignment

F. Transfer of Business

G. Agents’/Producers’ Commissions (NFIP Direct Business Only)H. Contract Agent RuleI. Rebating of Agents’/Producers’ Commissions

(NFIP Direct and WYO Companies)

4. How to Endorse

VII. Duplicate Coverage 4.8

2. Before You Start

IX. Duplicate Policies 2.14

3. How to Write

1. Duplicate Policies 3.54

C. Residential Condominium – Unit Owners Coverage 3.49E. Non-Residential Condominium – Unit Owners Coverage 3.50Table 38. Non-Residential Condominium Unit Owners Coverage 3.51

I. Special Rating Situations 3.29

3. Tentative Rates 3.30

V. Submit-for-Rate 3.59

VI. Provisional Rating 3.60

b. Special Considerations 3.5

2. Before You Start


IV. Policy Forms 2.7


VII. Delivery of Policy 2.14

VIII. Evidence of Insurance 2.14

X. Assignment 2.14

XI. Transfer of Business 2.14

N/A - These sections do not correlate with the new manual

End of General Rules - Section 3
























10

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL B • 1

Appendix B: Forms

I. NFIP Flood Insurance Application

U.S. DEPARTMENT OF HOMELAND SECURITYFEDERAL EMERGENCY MANAGEMENT AGENCY

National Flood Insurance ProgramFLOOD INSURANCE APPLICATION, PAGE 1 (OF 2)IMPORTANT—PLEASE PRINT OR TYPE; ENTER DATES AS MM/DD/YYYY.

O.M.B. No. 1660-0006 Expires April 30, 2020

NEW RENEWAL TRANSFER (NFIP ONLY)

PRIOR POLICY #:

BIL

LIN

G FOR RENEWAL, BILL: INSURED LOSS PAYEE FIRST MORTGAGEE OTHER (AS SPECIFIED IN THE “2ND

MORTGAGEE/OTHER” BOX BELOW) SECOND MORTGAGEE

PO

LIC

Y P

ER

IOD

POLICY PERIOD IS FROM TO 12:01 A.M. LOCAL TIME AT THE INSURED PROPERTY LOCATION.

WAITING PERIOD: STANDARD 30-DAYREQUIRED FOR LOAN TRANSACTION — NO WAITING PERIODMAP REVISION (ZONE CHANGE FROM NON-SFHA TO SFHA) — 1 DAYTRANSFER (NFIP ONLY) — NO WAITING PERIOD

INDICATE THE PROPERTY PURCHASE DATE:

AG

EN

T/P

RO

DU

CE

R

INFO

RM

ATI

ON

NAME AND MAILING ADDRESS OF AGENT/PRODUCER:

AGENCY NO.: AGENT’S TAX ID:

PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N

NAME AND MAILING ADDRESS OF INSURED:

PHONE NO.:

IS THE INSURED A SMALL BUSINESS? YES NOIS THE INSURED A NON-PROFIT ENTITY? YES NO

PR

OP

ER

TY L

OC

ATI

ON

NOTE: ONE BUILDING PER POLICY — BLANKET COVERAGE NOT PERMITTED.IS INSURED PROPERTY LOCATION SAME AS INSURED’S MAILING ADDRESS? YES NO

IF NO, ENTER PROPERTY ADDRESS. IF RURAL, ENTER LEGAL DESCRIPTION, OR GEOGRAPHIC LOCATION OF PROPERTY (DO NOT USE P.O. BOX).

IDENTIFY ADDRESS TYPE: STREET LEGAL DESCRIPTION* GEOGRAPHIC LOCATION

FOR AN ADDRESS WITH MULTIPLE BUILDINGS AND/OR FOR A BUILDING WITH ADDITIONS OREXTENSIONS, DESCRIBE THE INSURED BUILDING:

* LEGAL DESCRIPTION MAY BE USED ONLY WHILE A BUILDING OR SUBDIVISION IS IN THE COURSE OF CONSTRUCTION OR PRIOR TO ESTABLISHING A STREET ADDRESS.

1S

T M

OR

TGA

GE

E

NAME AND MAILING ADDRESS OF FIRST MORTGAGEE:

LOAN NO.:

IS INSURANCE REQUIRED UNDER MANDATORY PURCHASE? YES NO

2N

D M

OR

TGA

GE

E/O

THE

R NAME AND MAILING ADDRESS OF: 2ND MORTGAGEE LOSS PAYEE OTHER

IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

TER

A

SS

ISTA

NC

E IS INSURANCE REQUIRED FOR DISASTER ASSISTANCE? YES NOIF YES, CHECK THE GOVERNMENT AGENCY: SBA FEMA FHA

OTHER (SPECIFY):

CASE FILE NO.:

CO

MM

UN

ITY

GRANDFATHERING INFORMATIONGRANDFATHERED? YES NO IF YES, BUILT IN COMPLIANCE OR

CONTINUOUS COVERAGE (PROVIDE PRIOR POLICY NUMBER IN BOX ABOVE)

RATING MAP INFORMATIONNAME OF COUNTY/PARISH:

COMMUNITY NO./PANEL NO. AND SUFFIX:

FIRM ZONE: MAP DATE: COMMUNITY PROGRAM TYPE IS: REGULAR EMERGENCY

CURRENT MAP INFORMATIONCURRENT COMMUNITY NO./PANEL NO. AND SUFFIX:

CURRENT FIRM ZONE: CURRENT BFE: MAP DATE:

PR

IOR

NFI

P C

OV

ER

AG

E

COMPLETE THIS SECTION ONLY FOR PRE-FIRM BUILDINGS LOCATED IN AN SFHA.

1. HAS THE APPLICANT HAD A PRIOR NFIP POLICY FOR THIS PROPERTY? YES NO2. WAS THE POLICY REQUIRED BY THE LENDER UNDER MANDATORY PURCHASE?

YES NO3. IF YES, HAS THE PRIOR NFIP POLICY EVER LAPSED WHILE COVERAGE WAS REQUIRED

UNDER MANDATORY PURCHASE BY THE LENDER? YES NO4. IF YES, WAS THE LAPSE THE RESULT OF A COMMUNITY SUSPENSION? YES NO

IF YES, WHAT IS THE SUSPENSION DATE?

WHAT IS THE REINSTATEMENT DATE?

5. WILL THIS POLICY BE EFFECTIVE WITHIN 180 DAYS OF THE COMMUNITY REINSTATEMENT AFTER SUSPENSION REFERRED TO IN (4) ABOVE? YES NO

ALL

BU

ILD

ING

S

1. BUILDING PURPOSE100% RESIDENTIAL100% NON-RESIDENTIALMIXED-USE — SPECIFY PERCENTAGE OF RESIDENTIAL USE: %

2. BUILDING OCCUPANCY SINGLE FAMILY2–4 FAMILYOTHER RESIDENTIALNON-RESIDENTIAL BUSINESSOTHER NON-RESIDENTIAL

3. IS THE BUILDING A HOUSE OF WORSHIP? YES NO

4. IS THE BUILDING AN AGRICULTURAL STRUCTURE? YES NO

5. BUILDING DESCRIPTION (CHECK ONE)MAIN HOUSEDETACHED GUEST HOUSEDETACHED GARAGE BARNAPARTMENT BUILDINGAPARTMENT – UNIT COOPERATIVE BUILDING COOPERATIVE – UNITWAREHOUSE

TOOL/STORAGE SHEDPOOLHOUSE, CLUBHOUSE, RECREATION BUILDINGOTHER:

6. CONDOMINIUM INFORMATIONIS BUILDING IN A CONDOMINIUM FORM

OF OWNERSHIP? YES NOIS COVERAGE FOR THE ENTIRE BUILDING?

YES NO TOTAL NUMBER OF UNITS:

HIGH-RISE LOW-RISE IS COVERAGE FOR A CONDOMINIUM UNIT?

YES NO

7. ADDITIONS AND EXTENSIONS(IF APPLICABLE)

DOES THE BUILDING HAVE ANY ADDITIONS OR EXTENSIONS? YES NO (ADDITIONS AND EXTENSIONS MAY BE SEPARATELY INSURED.)

COVERAGE IS FOR:BUILDING INCLUDING ADDITION(S)AND EXTENSION(S)BUILDING EXCLUDING ADDITION(S) AND EXTENSION(S) PROVIDE POLICY NUMBER FOR ADDITION OR EXTENSION:

ADDITION OR EXTENSION ONLY (INCLUDE DESCRIPTION IN THE PROPERTY LOCATION BOX ABOVE). PROVIDE POLICY NUMBER FOR BUILDING EXCLUDING ADDITION(S) OR EXTENSION(S):

8. PRIMARY RESIDENCE, RENTAL PROPERTY, TENANT’S COVERAGE

IS BUILDING INSURED’S PRIMARY RESIDENCE? YES NO

IS BUILDING A RENTAL PROPERTY? YES NO

IS THE INSURED A TENANT? YES NO

IF YES, IS THE TENANT REQUESTING BUILDING COVERAGE? YES NO IF YES, SEE NOTICE IN SIGNATURE BLOCK ON PAGE 2.

9. BUILDING INFORMATION

IS BUILDING IN THE COURSE OFCONSTRUCTION? YES NO

IS BUILDING WALLED AND ROOFED? YES NO

IS BUILDING OVER WATER? NO PARTIALLY ENTIRELY

IS BUILDING LOCATED ON FEDERAL LAND? YES NO

IS BUILDING A SEVERE REPETITIVE LOSS PROPERTY? YES NO

10. IS BUILDING ELEVATED? YES NO

11.BASEMENT, ENCLOSURE, CRAWLSPACE

NONEFINISHED BASEMENT/ENCLOSURECRAWLSPACEUNFINISHED BASEMENT/ENCLOSURESUBGRADE CRAWLSPACE

IS THE BASEMENT/SUBGRADE CRAWLSPACE FLOOR BELOW GRADE ON ALL SIDES?

YES NO

12. NUMBER OF FLOORS IN BUILDING (INCLUDING BASEMENT/ENCLOSED AREA, IF ANY) OR BUILDING TYPE1 2 3 OR MORESPLIT LEVEL TOWNHOUSE/ROWHOUSE (RCBAP LOW-RISE ONLY)

M ANUFACTURED (MOBILE) HOME/TRAVEL TRAILER ON FOUNDATION

NO

N-E

LEV

ATE

D B

UIL

DIN

GS

1. GARAGEIS A GARAGE ATTACHED TO THE BUILDING?

YES NO

TOTAL NET AREA OF THE GARAGE:

SQUARE FEET.

ARE THERE ANY OPENINGS (EXCLUDING DOORS) THAT ARE DESIGNED TO ALLOW THE PASSAGE OF FLOODWATERS THROUGH THE GARAGE? YES NO

IF YES, NUMBER OF PERMANENT FLOOD OPENINGS WITHIN 1 FOOT ABOVE THE ADJACENT GRADE: .

TOTAL AREA OF ALL PERMANENT OPENINGS:

SQUARE INCHES.

IS THE GARAGE USED SOLELY FOR PARKINGOF VEHICLES, BUILDING ACCESS, AND/OR STORAGE? YES NO

IF YES, DOES THE GARAGE CONTAIN MACHINERY AND/OR EQUIPMENT?

YES NO

2. BASEMENT/SUBGRADE CRAWLSPACE

DOES THE BASEMENT/SUBGRADE CRAWLSPACE CONTAIN MACHINERY AND/OR EQUIPMENT? YES NO

IF YES, SELECT THE VALUE BELOW:

UP TO $10,000

$10,001 TO $20,000

IF GREATER THAN $20,000 – INDICATE THE AMOUNT:

DOES THE BASEMENT/SUBGRADE CRAWLSPACE CONTAIN A WASHER, DRYER OR FOOD FREEZER? YES NO


UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y

FEMA Form 086-0-1 Previously FEMA Form 81-16 F-050 (FEB 2015

PLEASE SUBMIT TOTAL AMOUNT DUE AND ALL REQUIRED CERTIFICATIONS WITH THE NFIP COPY OF THIS APPLICATION. IF PAYING BY CHECK OR MONEY ORDER, MAKE PAYABLE TO THE NATIONAL FLOOD INSURANCE PROGRAM.

IMPORTANT — COMPLETE PAGE 1 AND PAGE 2 BEFORE SENDING APPLICATION TO THE NFIP. — IMPORTANT

)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /

ONLINE The NFIP Flood Insurance Application, FEMA Form 086-0-1, is available at https://www.fema.gov/media-library/assets/documents/154

Application

APPLICATION

I. USE OF THE FORM

The National Flood Insurance Program (NFIP) Flood Insurance Application form, or a similar form for Write Your Own (WYO) Companies, must be used for all flood insurance policies, except for Preferred Risk Policies (PRP) and policies for properties newly mapped into a Special Flood Hazard Area (SFHA). See the PRP and Newly Mapped sections in this manual. For a Scheduled Building Policy, an Application must be completed for each building and/or contents for which coverage is requested. See the Scheduled Building Policy subsection in this section.

The flood insurance rate to be applied to a building insured under the NFIP is determined by establishing the following:

• Whether the building is Post-FIRM construction orPre-FIRM construction.

• The building description with regard to:

º Building occupancy; º Building type; º Basement type; º Elevated building type.

• The flood risk zone.

• Building elevation data.

• Whether the building is a Primary residence.

• Whether the building is a 1–4 Family SevereRepetitive Loss (SRL) property.

• Whether the building has been substantiallyimproved.

II. COMPLETING PAGE 1 OF THE FLOODINSURANCE APPLICATION FORM

The following are instructions for completing Page 1 of the Flood Insurance Application form.

A. Application Type

Check the appropriate box to indicate if the Application is for a NEW policy, RENEWAL, or TRANSFER (Direct or WYO) of an existing policy. If the Application is for a renewal or transfer, enter the prior 10-digit policy number.

Select NEW:

• If applying for a new policy.

Select RENEWAL:

• If renewing an existing policy by application.

Select TRANSFER (NFIP ONLY):

• If the agent/producer moves his or her book ofbusiness from one insurer to another, or when aninsurer acquires another’s book of business.

• If the agent/producer is transferring an individualpolicy within the NFIP (Direct or WYO). For additionalguidance, refer to the Transfer of Business subsection in the General Rules section of this manual.

B. Billing

Check the appropriate box to indicate who should receive the renewal bill.

C. Policy Period

Enter the policy effective date and policy expiration date (month/day/year). Check the box for the applicable waiting period. The effective date of the policy is determined by adding the appropriate waiting period, if applicable, to the date of application listed in the “Signature” section. The standard waiting period is 30 days. For additional guidance on exceptions to the standard waiting period, refer to the Effective Date subsection in the General Rules section of this manual.

Provide the property purchase date. Property purchase does not apply to inheritances, gifts, transfers of ownership without purchase, assignments to an estate or trust, or at the time of foreclosure.

D. Agent/Producer Information

Enter the agent/producer or agency name, mailing address, agency number, tax ID number, phone number, fax number, and email address.

APP 1 APRIL 1, 2017

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL 2 • 1

2. Before You Start

Prior to writing a flood insurance policy, the agent should review this section. The following factors determine eligibility to purchase an NFIP insurance policy:

• Property Location;

• Building Type; and

• Contents Type.

I. Property Location

A. Where the NFIP Provides InsuranceThe NFIP insures buildings and contents located within participating NFIP communities or located on federal land. Table 1 shows where the NFIP provides insurance.

Table 1. Where the NFIP Provides Insurance

LOCATION DESCRIPTION

NFIP Participating Communities

NFIP food insurance may be written only in those communities designated as participating in the NFIP by FEMA. To be eligible, a community must adopt a foodplain management ordinance that meets or exceeds the minimum NFIP criteria and have a Flood Insurance Rate Map (FIRM) or a Flood Hazard Boundary Map (FHBM) for the community to participate in the NFIP.

Emergency Program The Emergency Program represents the initial phase of a community’s participation in the NFIP in which limited amounts of coverage are available.

Note: Participating communities in the Emergency Program remain in the Emergency Program if an FHBM is rescinded.

Regular Program The Regular Program is the fnal phase of a community’s participation in the NFIP. In this phase, the completed FIRM is in effect and full coverage limits are available.

Federal Land NFIP food insurance is available on land owned by the Federal Government when the local community meets the foodplain management requirements. The NFIP records all federal land under a local community number even if that local community does not have jurisdiction.

Community on Prroobabattiion on

FEMA may place a participating NFIP community on probation when it does not comply with the NFIP’s foodplain management requirements. The probationary period lasts at least until all program defciencies have been corrected and violations have been remedied to the maximum extent possible. Insurance is available while the community is on probation.

FEMA applies a $50 Probation Surcharge to all policies in the community, issued on or after the probation effective date. The NFIP exempts the Group Flood Insurance Policy (GFIP) from the surcharge. Check with the insurer to determine if a community is on probation or refer to the Community Status Book at https://www.fema.gov/national-food-insurance-program-community-status-book. Probation ends when the community remedies all defciencies. FEMA may suspend the community if it does not remedy the violations during the probationary period.


2. Before You Start

3. How to Write

Appendix B: Forms

Application - Section 4

I. USE OF THE FORM

II. COMPLETING PAGE 1 OF THE FLOOD INSURANCE APPLICATION FORM


A. Application Type


B. BillingC. Policy PeriodD. Agent/Producer InformationE. Insured Information


F. Property Location

G. 1st Mortgagee

Appendix B: Forms

I. NFIP Flood Insurance Application B.1

II. NFIP Preferred Risk Policy andNewly Mapped Policy Application B.4

3. How to Write

3. Application Forms 3.3

Appendix B: Forms


3. How to Write

1. Property Location 3.4

Appendix B: Forms

I. NFIP Flood Insurance Application B.1 II. NFIP Preferred Risk Policy and Newly Mapped Policy Application B.4

I. NFIP Flood Insurance Application B.1 II. NFIP Preferred Risk Policy and Newly Mapped Policy Application B.4 III. NFIP Flood Insurance General Change Endorsement B.7IV. NFIP Flood Insurance Cancellation / NullificationRequest Form B.10





https://www.fema.gov/media-library-data/1538670867399-81423feb161c06426ac157a409123f3d/app-b_forms_508_oct2018.pdf


https://www.fema.gov/media-library-data/1538670867399-81423feb161c06426ac157a409123f3d/app-b_forms_508_oct2018.pdf#page=1







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11

Application


H. 2nd Mortgagee/OtherI. Disaster AssistanceJ. CommunityK. Prior NFIP CoverageL. All BuildingsM. Non-Elevated Buildings

III. COMPLETING PAGE 2 OF THE FLOOD INSURANCE APPLICATION FORM

A. Elevated Buildings (Including Manufactured [Mobile] Homes/Travel Trailers)B. Manufactured (Mobile) Homes/Travel Trailers (Wheels must be removed for travel trailer to be insurable.)C. Construction InformationD. ContentsE. Elevation DataF. Coverage and RatingG. Signature


IV. SCHEDULED BUILDING POLICY

V. MAILING INSTRUCTION

VI. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS

Appendix B: Forms


2. Before You Start

Table 7. NFIP Insurance Products Available 2.9


Table 11. Reformation 2.16

End of Application - Section 4















12


I. Effective Date of Rates FEMA updates its flood insurance rates once a year, but on occasion the effective date varies. Most of the following tables present rates that were effective April 1, 2018. However, some Preferred Risk Policy (PRP) and Newly Mapped (NM) tables have effective dates of January 1, 2019. Affected tables will include the January date in red above the table title.

II. Rates for Standard NFIP Policies Table 1 presents annual rates per $100 of coverage for properties in Emergency Program communities. Tables 1–5 show annual rates per $100 of coverage for properties in Regular Program communities, according to Pre-FIRM premium rates, or Post-FIRM/full-risk premium rates for each zone classification. Table 6 provides tentative rates (for more information, refer to the Tentative Rates subsection in the How to Write section). Tables 7A–7C detail the Federal Policy Fee, Probation Surcharge, Reserve Fund Assessment, and HFIAA Surcharge.

RATE TABLE 1. EMERGENCY PROGRAM RATES ANNUAL RATES PER $100 OF COVERAGE

(Basic/Additional)

BUILDING CONTENTS

Residential 1.04 1.31

Non-Residential Business, Other Non-Residential 1.13 2.22

IMPORTANT TO NOTE

The rate tables in this Appendix have the same numbering as the tables in the April 2018 NFIP Flood Insurance Manual sections from which they came. These table numbers are tied to the Transaction Record Reporting and Processing Plan (TRRP) and cannot be modifed at this time.

We have included the section abbreviation used in the April 2018 manual (e.g., RATE, CONDO, etc.) before the word “Table”

in the titles in this appendix.

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL J • 1


Appendix B: Forms






PRIOR POLICY #:

BIL

LIN



PO

LIC

Y P

ER

IOD




AG

EN

T/P

RO

DU

CE

R

INFO

RM

ATI

ON



PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N


PHONE NO.:


PR

OP

ER

TY L

OC

ATI

ON






1S

T M

OR

TGA

GE

E


LOAN NO.:


2N

D M

OR

TGA

GE

E/O

THE


IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

TER

A

SS

ISTA

NC


OTHER (SPECIFY):

CASE FILE NO.:

CO

MM

UN

ITY








PR

IOR

NFI

P C

OV

ER

AG

E








ALL

BU

ILD

ING

S











YES NO




















YES NO



NO

N-E

LEV

ATE

D B

UIL

DIN

GS


YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /



4. How to Endorse

I. General Information An endorsement is a change or correction to an existing NFIP policy.

The General Change Endorsement form cannot be used to:

• Renew a policy;

• Extend or change a policy year; or

• Change the effective date of the policy.

II. Endorsement Process Agents must submit a General Change Endorsement form or a similar request to the insurer to endorse a policy. A copy of the form is located in Appendix B.

Examples of premium-bearing endorsements:

• Increasing, adding, reducing, or removing coverage amounts;

• Changing a building description;

• Adjusting rates;

• Revising maps;

• Correcting a misrated policy; or

• Changing Primary Residence status.

Examples of non-premium endorsements:

• Changing a mortgagee;

• Changing the mailing address;

• Changing insured information; or

• Assigning the policy.

III. Changing the Amount of Coverage

A. Adding or Increasing Coverage Insureds may add or increase coverage on their policy any time during the policy term. Insurers should calculate the additional premium pro rata using the rates in effect as of the policy effective date for the balance of the policy term or the rate in effect as of the endorsement effective date, in accordance with each insurer’s standard business practice. Insurers must receive the full additional premium prior to processing endorsements to add or increase coverage.

1. Waiting Periods

The NFIP applies a 30-day waiting period, a 1-day waiting period, or no waiting period for endorsements that add or increase coverage, depending on the circumstances of the endorsement as described in III.A.1a, b, and c.

Waiting period determinations may differ for submissions sent via certified mail. The term certified mail extends to certified mail sent via the U.S. Postal Service or reputable third-party delivery services that provide proof of the actual mailing and delivery date to the insurer.


3. How To Write

I. Rating

A. General Information

1. Writing a Flood Insurance Policy

Writing a flood insurance policy properly involves gathering a lot of information and following prescribed steps for different types of coverage. Table 1 outlines the requirements, which this section discusses in detail.

Table 1. Rating a Flood Insurance Policy

STEP DECISION OPTION

• Emergency versus Regular Program• Flood Zone

• Meets the definition of an eligible building

• Building coverage, contents coverage, or both

• Flood Insurance Application• Preferred Risk Policy and Newly Mapped

Application

Initial Community Information Determinations

Building

Amount and Type of Coverage

Application Form to Use

Gather Preliminary Property Location Rating Information

• Street address• Legal description• Geographic location

• Pre-FIRM• Post-FIRM

• Preferred Risk Policy or Newly Mapped Procedure• Post-FIRM (Full Risk)• Optional Post-FIRM Rating• Grandfathering• Pre-FIRM• Pre-FIRM subsidized• RCBAP

• Single family• 2-4 family• Other residential• Non-residential business• Other non-residential

• Yes • No

• 1 Floor • Townhouse/Rowhouse(RCBAP low-rise only)• 2 Floors

• Manufactured (mobile)• 3 or More Floorshome/travel trailer on• Split Levelfoundation

Date of Construction

Rating Considerations

Building Occupancy

Primary Residence

Number of Floors

Rating

RATING

This section contains information, including rate tables, required to accurately rate a National Flood Insurance Program (NFIP) flood insurance policy. Information and rates for the Residential Condominium Building Association Policy (RCBAP), Preferred Risk Policy (PRP), Newly-Mapped-rated policies, Mortgage Portfolio Protection Program (MPPP), and provisionally rated policies, are found in their respective sections.

The detailed drawings, and accompanying text and tables, in the Lowest Floor Guide section are to be used as a guide for identifying the lowest floor for rating buildings. This guide will assist in determining the proper rate for the building. Examples of some rating situations are shown at the end of this section.

I. AMOUNT OF INSURANCE AVAILABLE1, 2

REGULAR PROGRAM

BUILDING COVERAGEEMERGENCY PROGRAM

Basic Insurance Limits

Additional Insurance Limits

Total Insurance Limits

Single-Family Dwelling $ 35,0003 $ 60,000 $190,000 $250,000

2–4 Family Building $ 35,0003 $ 60,000 $190,000 $250,000

Other Residential Building $100,0005 $175,000 $325,000 $500,000

Non-Residential Building (including Business Buildings and Other Non-Residential Buildings)4

$100,000 $175,000 $325,000 $500,000

CONTENTS COVERAGE

Residential Property6 $ 10,000 $ 25,000 $ 75,000 $100,000

Non-Residential Business, Other Non-Residential Property4 $100,000 $150,000 $350,000 $500,000

1. This Table provides the maximum coverage amounts available under the Emergency Program coverage and the Regular Program,and the columns cannot be aggregated to exceed the limits in the Regular Program, which are established by statute. The aggregatelimits for building coverage are the maximum coverage amounts allowed by statute for each building included in the relevantOccupancy Category.

2. These limits apply to all single condominium units and all other buildings not in a condominium form of ownership, includingcooperatives and timeshares. Refer to the Condominiums section of this manual for basic insurance limits and maximum amountof insurance available under the RCBAP.

3. In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $50,000.4. For further guidance on Non-Residential Business and Other Non-Residential occupancies, refer to the General Rules section of

this manual.5. In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $150,000.6. The Residential Occupancy Category includes the Single Family, 2–4 Family, Other Residential, and Residential

Condominium Occupancies.

II. RATE TABLES

Rate tables are provided for the Emergency Program and for the Regular Program according to Pre-FIRM subsidized premium rates, or Post-FIRM/full-risk premium rates for each zone classification. Tables 1–5 show annual rates per $100 of coverage. Table 6

provides tentative rates (for more information, see the Tentative Rates subsection in this section). See Tables 7A–7C for Federal Policy Fee, Probation Surcharge, Reserve Fund Assessment, and HFIAA Surcharge.

TABLE 1. EMERGENCY PROGRAM RATESANNUAL RATES PER $100 OF COVERAGE

(Basic/Additional)

BUILDING CONTENTS



APRIL 1, 2018RATE 1


2. Before You Start




• Contents Type.















2. Before You Start

3. How to Write

4. How to Endorse

Appendix B: Forms


Rating - Section 5

I. AMOUNT OF INSURANCE AVAILABLE

Rating - Section 5

II. RATE TABLES

III. DEDUCTIBLES

A. Deductible Options At Renewal

Rating - Section 5

B. Changes In Deductible Amount

Rating - Section 5

IV. INCREASED COST OF COMPLIANCE (ICC) COVERAGE

Rating - Section 5

V. RATING STEPS

VI. PREMIUM CALCULATION

A. Emergency Program

3. How to Write

2. Amount of Insurance Available 3.2Table 2. Maximum Amount of Insurance Available 3.3


II. Rates for Standard NFIP Policies J.1

RATE TABLE 8A. MINIMUM DEDUCTIBLES J.17

RATE TABLE 8B. DEDUCTIBLE FACTORS J.18

4. How to Endorse

VI. Changing Deductibles 4.7

2. Before You Start

XII. Coverage D – Increased Cost of Compliance (ICC) Coverage 2.15

3. How to Write

I. Rating 3.1

Table 1. Rating a Flood Insurance Policy 3.1


2. Before You Start








https://www.fema.gov/media-library-data/1538670910296-81423feb161c06426ac157a409123f3d/app-j_rate_tables_508_oct2018.pdf#page=1




















13

Rating

B. Regular Program

Rating - Section 5

VII. KEY POINTS FOR RATINGA. Basic Limits And Additional Limits

B. Whole Dollars

Rating - Section 5

C. Increased Cost Of Compliance (ICC) Premium

Rating - Section 5

D. Reserve Fund Assessment

E. HFIAA Surcharge

F. Federal Policy Fee

Rating - Section 5

G. Buildings In More Than 1 Flood Zone/BFEH. Different BFEs ReportedI. Flood Zone Discrepancies

VIII. REGULAR PROGRAM, ELEVATION-RATED RISKS

A. Elevation Difference

B. Examples

C. Optional Elevation Rating

IX. PRE-FIRM ELEVATED BUILDING RATED WITH PRE-FIRM SUBSIDIZED PREMIUM RATES

X. AR ZONE AND AR DUAL ZONE RATING

XI. AO ZONE RATING

XII. RATING OF ELEVATED BUILDINGS IN ZONES B, C, X, A99, AND D

XIII. REGULAR PROGRAM V-ZONE POST-FIRM CONSTRUCTION

3. How to Write


2. Before You Start


3. How to Write

2. Standard-Rated Policy 3.28

G. Calculate the Premium 3.28

2. Before You Start

XII. Coverage D – Increased Cost of Compliance (ICC) Coverage 2.15


RATE TABLE 7B. RESERVE FUND ASSESSMENT J.16

RATE TABLE 7C. HFIAA SURCHARGE J.16

RATE TABLE 7A. FEDERAL POLICY FEE AND PROBATION SURCHARGE J.16

3. How to Write

b. Special Considerations 3.5

E. Determine Elevation Difference 3.21

a. Zones A1–A30, AE, AH, AR, AR Dual Zones, A (with BFE), V1-V30,VE and V 3.23

2. Optional Full-Risk Rating 3.64

b. Zones AO 3.23

Table 10. Rating Classes for Elevated Buildings without an EC 3.17

Table 13. Elevated Buildings in V Zones Rated with an EC 3.20

























14

Rating

Rating - Section 5

A. Rating All V-Zone Buildings

B. Zones VE And V1–V30 — Enclosure Containing Machinery Or Equipment Below BFE

C. 1975–’81 Post-Firm V-Zone Construction

D. 1981 Post-Firm V-Zone Construction

E. Elevated Buildings – Post-Firm V-Zone Construction

Rating - Section 5

XIV. SPECIAL RATING SITUATIONS

A. Tentative Rates

B. Alternative Rates

C. Special Rates

D. NFIP “Grandfather” Rules – Effect Of Map Revisions On Flood Insurance Rates

E. Post-’81 V-Zone Optional RatingF. Policies Requiring Re-Rating

G. Submit-For-Rate

H. Crawlspace

XV. CONTENTS LOCATION

A. Single-Family Dwellings

B. Multi-Family And Non-Residential Buildings

XVI. FIRMS WITH WAVE HEIGHTS

A. Procedure For Calculating Wave Height Adjustment

B. Wave Heights In Numbered Zones V1–V30 And Ve 1981 Post-Firm Construction

3. How to Write

Any Flood Zone Beginning with V 3.19Table 13. Elevated Buildings in V Zones Rated with an EC 3.20

Table 13. Elevated Buildings in V Zones Rated with an EC Elevated with Enclosure 3.20

13. Elevated Buildings in V Zones Rated with an EC 1975-1981 Post-FIRM elevated buildings 3.20

Table 13. Elevated Buildings in V Zones Rated with an EC 1981 Post-FIRM elevated buildings continued 3.21

1. Replacement Cost Ratio for V-zone Rating 3.28


RATE TABLE 3E. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES J.11RATE TABLE 3F. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES J.12

3. How to Write

I. Special Rating Situations 3.29


1. Alternative Rates 3.29

2. Special Rates 3.30

Table 5. Buildings Eligible for Grandfathered Rating 3.7

Table 13. Elevated Buildings in V Zones Rated with an EC 1981 Post-FIRM elevated buildings 3.20

V. Submit-for-Rate 3.59

Table 9. Rating Classes for Non-Elevated Buildings 3.16Table 10. Rating Classes for Elevated Buildings 3.17

F. Contents Location 3.25

1. Single-Family Dwellings 3.25

2. Multi-Family and Non-Residential Buildings 3.25

4. FIRMS with Wave Height 3.23

a. Wave Height Adjustment Procedure 3.24

4. FIRMs with Wave Heights 3.23Table 14. FIRMS with Wave Height Conversion 3.24


































15

Rating

Rating - Section 5

C. Unnumbered V Zones 1981 Post-Firm ConstructionD. Rate Selection Procedure

XVII. FLOODPROOFED BUILDINGS

A. Elevation Difference

B. Rating

C. Non-Residential Floodproofing Requirements

Rating - Section 5

XVIII. THE V-ZONE RISK FACTOR RATING FORMA. Use

B. Submission

Rating - Section 5

XIX. RATING EXAMPLES

3. How to Write

N/A - These sections do not correlate with the new manual

5. Buildings Eligible for Floodproofing Credit 3.24E. Floodproofing 3.66

5. Buildings Eligible for Floodproofing Credit 3.24

5. Buildings Eligible for Floodproofing Credit 3.24Table 16. Examples of Calculating Floodproofing 3.25Credit Eligibility 3.25

4. Non-Residential Buildings 3.67

Appendix B: Forms

NFIP V-Zone Risk Factor Rating Form B.38


3. How to Write

IX. Rating Examples 3.73

End of Rating - Section 5













16

Appendix A: Policy

The Standard Flood Insurance Policy (SFIP), issued by the Federal Emergency Management Agency (FEMA), specifies the terms and conditions of the agreement of insurance between FEMA as the Insurer and the Named Insureds. Named Insureds in participating communities include owners, renters, builders of buildings that are in the course of construction, condominium associations, owners of residential condominium units, and mortgagees/trustees (applicable for building coverage only). Certain terms and conditions of flood insurance (e.g., Mortgage Clause, Reformation of Coverage) are unique to this policy.

For information on Group Flood Insurance, see the Definitions section.

There are three policy forms:

• The Dwelling Form (see page A-3)

• The General Property Form (see page A-31)

• The Residential Condominium Building Association Policy Form (see page A-55)

Selection of the applicable form to use depends on the type of insurable property to be covered.

Please refer to the SFIP contracts for detailed information on the contractual rights and duties of the Insurer and Insured(s).

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL A • 1

1. Signatures

6. How to Cancel

I. General InformationFlood policies may be terminated mid-term or full-term by cancellation, or full-term by nullification. The insured may request a cancellation or nullification of an NFIP policy for the specific reasons outlined within this section. The insured may be entitled to a full, partial, or no premium refund.

II. Cancellation/Nullifcation• To cancel a policy, agents must submit a completed Cancellation/

Nullification Request Form with proper documentation to the insurer.

• Upon completion of the cancellation/nullification request the insurermust provide the insured and all interested parties with a notice ofcancellation/nullification. Interested parties include any additionalinsureds, additional lenders, loss payees, trustees, or disasterassistance agencies.

• Prior to processing a cancellation request for reason codes 8, 9, 15,and 19, the insurer must inform eligible insureds with standard-ratedpolicies for property located in a non-SFHA of their option to convert toa PRP.

Note: A copy of the Cancellation/Nullification Request form is located in Appendix B: Forms.

A. Processing a Cancellation or Nullification RequestThe insurer may accept electronic submissions if their business process includes signature authentication and records receipt dates. Insurers are responsible for the security and integrity of electronic transactions.

a. Insured’s Signature

All named insureds must provide the insurer with a signed and dated cancellation/nullification request except for reason codes 5, 6, 22, and 25.

Below are specific exceptions when the insured’s signature is not required:

• When using cancellation reason code 1:

– In the event of foreclosure when the court documentation confirmsthe unearned premium belongs to the lender.

– For a policy covering property that was eligible for coverage, butbecame ineligible midterm due to physical alteration of the structure.


– When there is duplicate coverage, the insurer must cancel the policywith the later effective date.

b. Agent Signature

The agent must sign and date the cancellation/nullification request for all cancellation reason codes except 6, 22, and 25.



4. How to Endorse



• Renew a policy;








• Revising maps;










1. Waiting Periods



Condominiums

CONDOMINIUMS

Important Notice to Agents/Producers:

Boards of directors of condominium associations typically are responsible under their by-laws for maintaining all forms of property insurance necessary to protect the common property of the association against all hazards to which that property is exposed for the insurable value/replacement cost of those common elements. This responsibility would typically include providing adequate flood insurance protection for all common property located in Special Flood Hazard Areas (SFHAs). Such by-law requirements could make the individual members of the boards of directors of such associations personally liable for insurance errors or omissions, including those relating to flood insurance.

I. METHODS OF INSURING CONDOMINIUMS

There are 4 methods of insuring condominiums under the National Flood Insurance Program (NFIP). Each method has its own eligibility requirements for condominium type. Only residential buildings having a condominium form of ownership are eligible for the Residential Condominium Building Association Policy (RCBAP).

A. Residential Condominium: Association Coverage on Building and Contents

A condominium association is the corporate entity responsible for the management and operation of a condominium. Membership is made up of the condominium unit owners. A condominium association may purchase insurance coverage on a residential building and its contents under the RCBAP. The RCBAP covers only a residential condominium building in a Regular Program community. If the named insured is listed as other than a condominium association, the agent/producer must provide legal documentation to confirm that the insured is a condominium association. (See the Eligibility Requirements subsection in this section.)

B. Residential Condominium: Unit Owner’s Coverage on Building and Contents

A residential condominium unit in a high-rise or low-rise building, including a townhouse or rowhouse, is considered to be a single-family residence. An individual dwelling unit in a condominium building may be insured in any 1 of the following 4 ways:

1. An individual unit and its contents may be separately insured under the Dwelling Form, in the name of the unit owner, at the limits of insurance for a single-family dwelling.

2. An individual unit may be separately insured under the Dwelling Form, if purchased by the association in the name of the unit owner and the association as their interests may appear, up to the limits of insurance for a single-family dwelling.

3. An individual unit owned by the association may be separately insured under the Dwelling Form, if purchased by the condominium association. The single-family limits of insurance apply.

4. An individual non-residential unit owner may not purchase building coverage. However, contents-only coverage can be purchased either under the General Property Form or the Dwelling Form, depending on the type of contents.

A policy on a condominium unit will be issued naming the unit owner and the association, as their interests may appear. Coverage under a unit owner’s policy applies first to the individually owned building elements and improvements to the unit and then to the damage of the building’s common elements that are the unit owner’s responsibility.

In the event of a loss, the claim payment to an individual unit owner may not exceed the maximum allowable in the Program.

C. Non-Residential Condominium: Building and Contents

Non-residential condominium buildings and their commonly owned contents may be insured in the name of the association under the General Property Form. The “non-residential” limits apply.

D. Non-Residential Condominium: Unit Owner’s Coverage (Contents)

The owner of a non-residential or residential condominium unit within a non-residential condominium building may purchase only contents coverage for that unit. Building coverage may not be purchased in the name of the unit owner.

In the event of a loss, up to 10% of the stated amount of contents coverage can be applied to losses to condominium interior walls, floors, and ceilings. The 10% is not an additional amount of insurance.

CONDO 1 APRIL 1, 2017


2. Before You Start




• Contents Type.















2. Before You Start

3. How to Write

4. How to Endorse

6. How to Cancel

Appendix A: Policy

Condominiums - Section 6

I. METHODS OF INSURING CONDOMINIUMS

A. Residential Condominium: Association Coverage on Building and Contents

B. Residential Condominium: Unit Owner’s Coverage on Building and Contents

C. Non-Residential Condominium: Building and Contents

D. Non-Residential Condominium: Unit Owner’s Coverage (Contents)


II. RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY (RCBAP) FORM


III. ELIGIBILITY REQUIREMENTS

A. General Building Eligibility


B. Condominium Building in the Course of Construction

3. How to Write

A. Insuring Condominiums 3.46

B. Residential Condominium – Association Coverage 3.46

C. Residential Condominium – Unit Owners Coverage 3.49

C. Residential Condominium – Unit Owners Coverage 3.49

E. Non-Residential Condominium – Unit Owners Coverage 3.50

Appendix A: Policy

Residential Condominium Building Association Policy Form A.55

3. How to Write

Table 35. Residential Condominium Association Coverage Under the RCBAP to Table 38. Non-Residential Condominium Unit Owners Coverage 3.47

Table 35. Residential Condominium Association Coverage under the RCBAP 3.47

2. Before You Start







https://www.fema.gov/media-library-data/1541619932093-878aa52bac8ac0a6baabe8ac90c92719/6_how_to_cancel_508_oct2018.pdf

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17

Condominiums


IV. COVERAGE

A. Property CoveredB. Coverage LimitsC. Replacement Cost

D. Coinsurance

E. Assessment Coverage

V. DEDUCTIBLES AND FEES

A. DeductiblesB. Federal Policy Fee

VI. PRE-FIRM RATING GUIDANCE

A. Pre-FIRM Subsidized Rate Eligibility

B. Pre-FIRM Rate Table Hierarchy

VII. TENTATIVE RATES AND SCHEDULED BUILDINGS

VIII. COMMISSIONS (DIRECT BUSINESS ONLY)


IX. CANCELLATION OR ENDORSEMENT OF UNIT OWNERS’ DWELLING POLICIES

IX. CANCELLATION OR ENDORSEMENT OF UNIT OWNERS’ DWELLING POLICIES


X. APPLICATION FORMA. Type of BuildingB. Replacement Cost ValueC. Coverage


XI. CONDOMINIUM RATING EXAMPLES

End of Condominiums - Section 6

3. How to Write

IV. Condominiums 3.46


Table 35. Residential Condominium Association Coverage Under the RCBAP 3.48


Table 35. Residential Condominium Association Coverage Under the RCBAP 3.48

3. Condominium Eligibility for Pre-FIRM Subsidized or Newly Mapped Rating 3.52

Table 40. Pre-FIRM Subsidized Rates Ineligibility Determination 3.52

Table 41. Pre-FIRM Rate Table Hierarchy 3.53

2. Tentative Rates and Scheduled Buildings 3.54

6. How to Cancel

Table 9: Valid Cancellation Reason Code 09 6.10Table 10: Valid Cancellation Reason Code 10 6.10Table 15: Valid Cancellation Reason Code 19 6.14

6. How to Cancel 6.1

4. How to Endorse

4. How to Endorse 4.1

Appendix A: Policy

Residential Condominium Building Association Policy Form A.55

3. How to Write

CONDO RATING EXAMPLE 1 to 9 3.94











http://www.fema.gov/media-library-data/1541619486310-878aa52bac8ac0a6baabe8ac90c92719/3_how_to_write_508_oct2018.pdf#page=48








https://www.fema.gov/media-library-data/1541619932093-878aa52bac8ac0a6baabe8ac90c92719/6_how_to_cancel_508_oct2018.pdf#page=10








http://www.fema.gov/media-library-data/1538670861989-81423feb161c06426ac157a409123f3d/app-a_policy_508_oct2018.pdf#page=55



18

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL C • 1

Appendix C: Lowest Floor Guide

Lowest Floor Guide PUTTING IT INTO PERSPECTIVE…

Section A and C of the Elevation Certificate provide fields for entering numerous measurements that the surveyor must record in completing an elevation survey. This data will be used to not only help insurance agents accurately rate a flood insurance policy, but also assist FEMA and the local communities with their floodplain management compliance issues.

The Elevation Certificate does not specifically identify for the insurance agent the Lower Floor Elevation that must be used for rating purposes. Based upon your knowledge of the rules and regulations of the National Flood Insurance Program, you must make the final determination regarding which elevation should be used to accurately rate the policy and calculate the premium. This guide must be used in conjunction with information provided on the Flood Insurance Application form.

This guide will provide you with some helpful information and hints.

WHERE TO GET HELP

The Lowest Floor Guide will assist you in determining the lowest floor for rating purposes for the majority of your business. However, if you are unable to make the determination, contact your WYO Company underwriting staff or, for NFIP direct policies, the NFIP Servicing Agent underwriting department for assistance.

WHERE TO START…

The following are some suggested guidelines for interpreting the elevation information in Section C:

STEP 1: Review the Elevation Certificate. Find the referenced Building Diagram Number in Section A, Item A7. This diagram number refers to one of the building diagrams located on Instructions Pages 7-9 of the Elevation Certificate.

STEP 2: Once the correct building diagram has been determined, review the data contained in Section C, Item C2 of the Elevation Certificate. The circled letters and numbers on the building diagram correspond to the elevations entered in Items C2. a-h in Section C, Item C2.

STEP 3: Review the Elevation in Item C2.a. If the elevation in Item C2.a is lower than the elevation in Item C2.f, then you have a building with a basement. The correct lowest floor elevation rating will be Item C2.a (Building Diagrams 2A, 2B, 4, or 9).

• For Building Diagrams 1A, 1B, and 3, if Item C2.a is higher than C2.f, the building is slab on grade, or a walkout first level. Rate as no basement and use Item C2.a as the lowest floor elevation for rating.

• If Item C2.c is given, and the property is in a V Zone, Item C2.c will be the correct lowest floor elevation for rating if there are no enclosures (Building Diagram 5).

• If Item C2.c is higher than Item C2.a, then you have an elevated building with enclosure(s) below the elevated level. Use Item C2.c as the lowest floor elevation for rating V Zones if the enclosure is less than 300 sq. ft., the walls are breakaway, and machinery and equipment are elevated at or above the BFE. Otherwise use the bottom of Item C2.a if the enclosure is 300 sq. ft. or greater, the walls are supporting walls, or machinery and equipment are below the BFE and an enclosure of any size exists (Building Diagram 6).

IMPORTANT HINT:

If Item A8 and/or Item A9 shows flood openings, and the openings are adequate for the square footage of the enclosed area, then you have an elevated building with proper venting. The lowest floor elevation for rating is Item C2.b, top of the next higher floor, as long as the building is not located in a V Zone (Building Diagrams 7 and 8).

Lowest Floor Guide for Zones AO and A (without Estimated BFE)

BUILDING DIAGRAMSDistinguishing Feature: All buildings

Lowest Floor for Rating: Difference between the top of the bottom floor and highest adjacent grade

Elevation Needed for Rating from FEMA Elevation Certificate: Use the measurement provided in Item E1. If the top of the bottom floor is below the highest adjacent grade, show this difference as a negative number on the application. For buildings similar to diagrams 6-9 with proper openings, use the measurement provided in Item E2.


Appendix B: Forms






PRIOR POLICY #:

BIL

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PO

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AG

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PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N


PHONE NO.:


PR

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TY L

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ON






1S

T M

OR

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LOAN NO.:


2N

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OR

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IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

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A

SS

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OTHER (SPECIFY):

CASE FILE NO.:

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PR

IOR

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ALL

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YES NO




















YES NO



NO

N-E

LEV

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D B

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DIN

GS


YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /


Lowest Floor Guide

LOWEST FLOOR GUIDE

This section is to be used as a guide for identifying the lowest floor for rating buildings being considered for coverage under the National Flood Insurance Program (NFIP).

I. LOWEST FLOOR DETERMINATION

The following guidance is to be used to identify the lowest floor for rating purposes.

A. Non-Elevated Buildings

For a non-elevated building, the lowest floor used for rating purposes is the building’s lowest floor including a basement or subgrade crawlspace, if any.

Attached Garage

If a non-elevated building described and rated as a single-family dwelling (including a condominium unit within a multi-unit residential building that qualifies as a single building) located in any A Zone (any flood zone beginning with the letter A) has an attached garage floor elevation at or above the Base Flood Elevation (BFE), the garage floor may be excluded from rating.

An attached garage floor elevation below the BFE can be excluded as the lowest floor for rating if the garage has no machinery or equipment below the BFE.

For rating purposes, if the garage has machinery or equipment below the BFE, the floor of the attached garage can be excluded from rating if all of the following conditions exist:

• The building is described and rated as a single-family dwelling;

• The building is located in any A Zone;

• The garage floor elevation is below the elevation ofthe top of the bottom floor; and

• The garage has proper openings (refer to ProperOpenings Requirements subsection in this sectionof the manual).

If a building not described and rated as a single-family dwelling located in any A Zone has an attached garage, and the floor level of the garage is below the level of the building, use the garage floor as the lowest floor for rating.

B. Elevated Buildings in A Zones

An elevated building is a building that has no basement and that has its lowest elevated floor raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. Foundation walls

are masonry walls, poured concrete walls, or precast concrete walls, regardless of height, that extend above grade and support the weight of a building. Buildings with knee foundation walls below the elevated floor (e.g., foundation walls not constructed the full height of the area between the lowest elevated floor and the grade, with wood-frame or studs attached above the foundation wall), are considered elevated buildings for rating purposes. However, if the foundation walls are supported on a slab foundation, the building is non-elevated.

Enclosure

An enclosure is the portion of an elevated building below the lowest elevated floor that is either partially or fully shut in by rigid walls. In determining whether an enclosure is finished, drywall that is mudded, taped, and painted is considered a finished wall. Drywall that is only painted is not considered to be finished. Drywall that is mudded and taped but not painted or textured is also not considered to be finished. Block walls are not considered to be finished even if they are painted. Typically a block (or concrete) wall is part of the foundation system. Painted plywood is considered to be finished.

NOTE: A crawlspace below the lowest elevated floor, and a garage below or attached to an elevated building are both considered enclosures.

Elevated No Enclosure

For an elevated building located in any A Zone (any flood zone beginning with the letter A), with no enclosure below the lowest elevated floor, the floor used for rating purposes is the lowest elevated floor.

Elevated with Enclosure

For an elevated building located in any A Zone that has an enclosure below the elevated floor, including a crawlspace or an attached garage, the enclosure or garage floor becomes the lowest floor for rating if any of the following conditions exists:

• The enclosed space is finished (having more than 20linear feet of interior finished wall [paneling, etc.]); or

• The unfinished enclosed space is used for other thanbuilding access (stairwells, elevators, etc.), parking,or storage; or

• There is an elevator below the BFE; or

• The unfinished enclosed space (either the enclosure or garage) has no proper openings.

NOTE: A garage attached to an elevated building is considered an enclosure.

LFG 1 APRIL 1, 2017


3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


3. How to Write

Appendix B: Forms


Lowest Flood Guide - Section 7

I. LOWEST FLOOR DETERMINATIONA. Non-Elevated Buildings

Non-Elevated Buildings in A Zones

Non-Elevated Buildings in V Zones


Lowest Floor Guide C.1

3. How to Write

Table 11. Considerations when Rating Non-Elevated Buildings with an EC 3.18


Lowest Floor Guide for Zones A, AE, A1-A30, AH, AR, AR Dual C.2

I. Non-Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones B,C, X, A99, and D

Specific Building Drawings 5 to 8 C.12I. Non-Elevated Buildings for Pre- and Post-FIRM Risks in Flood ZonesA, AO, and AH

Specific Building Drawings 16 to 20 C.23I. Specific Building Drawings: Non-Elevated Buildings for Pre-and Post-FIRM Risks in Flood Zones AE and A1-A30

Specific Building Drawings 21 to 29 C.29

Lowest Floor Guide for Zones V, VE, V1-V30 C.4

I. Non-Elevated Buildings for Pre-and Post-FIRM Risks with Construction Dates of 1975 to September 30, 1981, in Flood Zones VE and V1-V30

Specific Building Drawings 45 to 50 C.52I. Non-Elevated Buildings for Post-FIRM Risks in Flood Zones VE and V1-V30, Construction Date October 1, 1981, and After

Specific Building Drawing 76 C.83





https://www.fema.gov/media-library-data/1538670872319-81423feb161c06426ac157a409123f3d/app-c_lowest_floor_guide_508_oct2018.pdf

https://www.fema.gov/media-library-data/1538670872319-81423feb161c06426ac157a409123f3d/app-c_lowest_floor_guide_508_oct2018.pdf

https://www.fema.gov/media-library-data/1538670872319-81423feb161c06426ac157a409123f3d/app-c_lowest_floor_guide_508_oct2018.pdf#page=1























19

Lowest Floor Guide

B. Elevated Buildings in A Zones


C. Elevated Buildings in V Zone


D. Hanging Floors (A Zones and V Zones)

II. USE OF ELEVATION CERTIFICATE

3. How To Write

b. Elevated Building 3.13

Table 8. Elevated Buildings - Elevated Foundation Types 3.13

Table 12. Elevated Buildings in A Zones Rated with an EC 3.18


Lowest Floor Guide for Zones A, AE, A1-A30, AH, AR, AR Dual C.2

I. Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones B,C, X, A99, and D

Specific Building Drawings 1 to 4 C.8I. Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones A, AO, and AH

Specific Building Drawings 9 to 15 C.16I. Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones AE and A1-A30


3. How To Write

Table 13. Elevated Buildings in V Zones Rated with an EC 3.20


Lowest Floor Guide for Zones V, VE, V1-V29 C.5

I. Elevated Buildings for Pre- and Post-FIRM Risks with ConstructionDates of 1975 to September 30, 1981, in Flood Zones VE and V1-V30

Specific Building Drawings 51 to 63 C.58I. Elevated Buildings for Post-FIRM Risks in Flood Zones VE and V1-V30, Construction Date October 1, 1981, and After


3. How To Write

c. Hanging Floors (A Zones and V Zones) 3.21

1. The NFIP Requires Elevation Certificates For SFHAs 3.64

Appendix B: Forms

VII. NFIP Elevation Certificate and Instructions B.20

































20

Lowest Floor Guide


A. Mandatory Use of Elevation Certificate

B. Optional Rating Using the Elevation Certificate

C. Guidelines for Determining the Conversion from NGVD 1929 to NAVD 1988


III. SPECIFIC BUILDING DRAWINGS

3. How To Write

1. The NFIP Requires Elevation Certificates For SFHAs 3.64

2. Optional Full-Risk Rating 3.64

1. Guidelines For Elevation Datum Conversion 3.22


I. Specific Building Drawings C.7

End of Lowest Flood Guide - Section 7








21


Appendix B: Forms






PRIOR POLICY #:

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PHONE NO.: FAX NO.:

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PHONE NO.:


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1S

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IF OTHER, SPECIFY:

LOAN NO.:


DIS

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OTHER (SPECIFY):

CASE FILE NO.:

CO

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UN

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PR

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ALL

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YES NO




















YES NO



NO

N-E

LEV

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D B

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DIN

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YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /


Special Certifications

CERT 1 APRIL 1, 2017

SPECIAL CERTIFICATIONS

NOTE: When determining the lowest floor for rating, refer to the Lowest Floor Guide section of this manual.

This section presents detailed instructions for the completion of the National Flood Insurance Program (NFIP) Elevation Certificate (EC) and the NFIP Floodproofing Certificates.

I. NFIP ELEVATION CERTIFICATE

The EC is an important administrative tool of the NFIP. It is to be used to provide elevation information necessary to ensure compliance with community floodplain management ordinances, to determine the proper insurance premium rate, and to support a request for a Letter of Map Amendment (LOMA) or Letter of Map Revision based on Fill (LOMR-F).

The surveyor, engineer, architect, property owner, or owner’s representative is required to provide the square footage of any crawlspace or enclosure(s) below the lowest elevated floor (including an attached garage) plus information about any permanent flood openings in the crawlspace or enclosure(s). When the EC is being submitted to obtain flood insurance through the NFIP, generally at least 2 photographs of the building must accompany it. This additional information will significantly enhance the agent’s/ producer’s and company underwriter’s ability to properly rate elevation-rated risks. Current photograph requirements, and exceptions to them, are described in Section II. below.

The revised NFIP EC form and instructions that will expire on November 30, 2018, replaces all previous editions. Non-NFIP elevation certification forms certified on or after October 1, 2000, do not satisfy NFIP requirements and cannot be used for rating policies.

When 2 or more ECs are submitted for the same building, use the EC with the latest certified date when rating the policy.

The EC is required on Post-FIRM and full-risk, elevation-rated Pre-FIRM buildings constructed in an SFHA, but is optional on Post-FIRM buildings constructed in a non-SFHA. For Post-FIRM buildings constructed in a non-SFHA and remapped to an SFHA and that are eligible for grandfathering or the Newly Mapped procedure, the insured has the option of obtaining an EC or continuing with the non-SFHA rates without an EC. The EC is required by the NFIP to certify the lowest floor elevation of a building so that the policy can be properly rated, as follows (also see the Lowest Floor Guide section in this manual):

• All Post-FIRM Buildings

The EC is to be completed by a land surveyor, anengineer, or an architect who is authorized by stateor local law to certify elevation information when itis required for zones A1–A30, AE, AH, AO, A (withor without Base Flood Elevations [BFEs]), V1–V30,VE, and V (with BFEs). Community officials whoare authorized by local law or ordinance to providefloodplain management information may alsocomplete this form. For zones AO and A (withoutBFEs), a building official, a property owner, oran owner’s representative may also provide theinformation on this certification. Building elevationinformation may be available through the communityofficial if the community is a Community RatingSystem (CRS) participating community.

The lowest adjacent grade and diagram number arerequired for all new business applications effective on or after October 1, 1997, if the elevation certificationdate is on or after October 1, 1997.

• Pre-FIRM Buildings Rated Using Full-Risk Rates

Pre-FIRM buildings can be rated using full-risk ratesif more favorable to the insured. The decision toobtain an EC and to request full-risk rating of a Pre-FIRM building eligible for subsidized premium ratesis an option of the insured. Subsidized rates willcontinue to be used until the full-risk rates are morefavorable. Subsidized premium rates will be phasedout over time through annual premium increases.Once it is determined that full-risk rating will providea lower premium, a policy may be endorsed for thecurrent policy year only to obtain a lower rate.

• AR and AR Dual Zones

The EC is optional on all Post- and Pre-FIRMconstruction located in AR and AR Dual Zones.The decision to obtain an EC and to requestPost-FIRM rating is at the discretion of theinsured. The EC includes the AR and AR Dual Zoneelevation requirements.

The agent/producer is to attach a copy of the completed and signed EC to the Application. The certifier’s seal or license number must be legible on the copy of the EC. The agent/producer and the policyholder should retain a copy.

II. PHOTOGRAPH REQUIREMENTS

Generally, all new business applications for elevation-rated risks with a policy effective date of January 1, 2007, or later must be submitted with at least 2 photographs that show the front and back of the building and were taken and dated within 90 days of submission (not the certification date, if that date

1. Reference


3. How To Write

Appendix B: Forms

Special Certifications - Section 8

I. NFIP ELEVATION CERTIFICATE


II. PHOTOGRAPH REQUIREMENTS

III. USING THE ELEVATION CERTIFICATE: SPECIAL CONSIDERATIONS

A. Section A – Property Information


B. Section B – Flood Insurance Rate Map (FIRM) InformationSpecial Certifications - Section 8


C. Section C – Building Elevation Information (Survey Required)

3. How to Write

B. Elevation Certificate 3.64

Appendix B: Forms

VII. NFIP Elevation Certificate and Instructions B.20

3. How to Write

2. Photographs 3.65

C. Completing an Elevation Certificate (EC) 3.64


Appendix B: Forms

SECTION A - PROPERTY INFORMATION B.28

3. How to Write


Appendix B: Forms

SECTION B - FLOOD INSURANCE RATE MAP (FIRM) INFORMATION B.29

3. How to Write


Appendix B: Forms

SECTION C - BUILDING ELEVATION INFORMATION (SURVEY REQUIRED) B.30
























22


D. Section D – Surveyor, Engineer, or Architect Certification


E. Section E – Building Elevation Information (Survey Not Required) for Zone AO and Zone A (Without BFE)


F. Section F – Property Owner (or Owner’s Representative) Certification


G. Section G – Community Information (Optional)


IV. FLOODPROOFING CERTIFICATE


A. Purpose and EligibilityB. SpecificationsC. Rating

D. Certification

3. How to Write


Appendix B: Forms

SECTION D - SURVEYOR, ENGINEER, OR ARCHITECT CERTIFICATION B.32

3. How to Write


Appendix B: Forms

SECTION E - BUILDING ELEVATION INFORMATION (SURVEY NOTREQUIRED) FOR ZONE AO AND ZONE A (WITHOUT BFE) B.32

3. How to Write


Appendix B: Forms

SECTION F - PROPERTY OWNER (OR OWNER'S REPRESENTATIVE) CERTIFICATION B.33

3. How to Write

3. Other Elevation Information 3.65

Appendix B: Forms


3. How to Write

E. Floodproofing 3.66

Appendix B: Forms

V. NFIP Residential Basement Floodproofing Certificate B.12

VI. NFIP Floodproofing Certificate for Non-Residential Structures B.16

3. How to Write



Special Certifications

End of Special Certifications - Section 8



























23


Appendix B: Forms






PRIOR POLICY #:

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PHONE NO.:


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1S

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LOAN NO.:


2N

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TGA

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IF OTHER, SPECIFY:

LOAN NO.:


DIS

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A

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ISTA

NC


OTHER (SPECIFY):

CASE FILE NO.:

CO

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UN

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COMMUNITY NO./PANEL NO. AND SUFFIX: FIRM ZONE: MAP DATE: COMMUNITY PROGRAM TYPE IS: REGULAR EMERGENCY



PR

IOR

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ALL

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YES NO




















YES NO



NO

N-E

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D B

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DIN

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YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

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/ /

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/

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/ /


1. Amounts of Insurance on the Renewal Notice

5. How to Renew

I. General Information • The Standard Flood Insurance Policy (SFIP) contract is for one year only.

• All policies expire at 12:01 a.m. on the last day of the one-year policy term.

• A new policy term and new contractual agreement between the insured and the insurer begins when an expiring policy renews.

• All policies renew using the rates in effect on the policy renewal effective date.

• The insurer must receive the premium in full to renew the policy at the coverage amount offered on the renewal bill.

• Paying the premium more than 30 days after the expiration date of the policy causes a lapse in coverage that may affect policy rating.

• All references to days are calendar days, not business days.

II. Renewal Process

A. Renewal Notice The insurer must mail a Renewal Notice at least 45 days before the policy expires to the payor listed on the policy declarations page, using first-class mail. The insurer must also mail a copy of the Renewal Notice to all parties listed on the policy declarations page, stating “THIS IS NOT A BILL.”

Insurers must use the rates that will be in effect on the policy renewal date to calculate the premium to renew the policy. The insurer may present the payor with two coverage options:

• Option A – Renewing for the Same Amounts of Insurance:

– This option provides the current amounts of insurance and applicable deductibles.

• Option B – Renewing for Higher Amounts of Insurance:

– This option provides an inflation option of 10 percent for the building and 5 percent for the contents with applicable deductibles.

– The amount of insurance offered cannot exceed the maximum limits.

– The minimum deductible may change based on the amount of insurance offered at renewal.

– For Preferred Risk Policies and Newly Mapped policies, the insurer must use the next higher amounts of insurance available. For more information on the combinations of insurance amounts, refer to Appendix J: Rate Tables.

– The amount of insurance cannot exceed the replacement cost of the building.

NOTE

Severe Repetitive Loss (SRL) Properties

The NFIP Special Direct Facility, operated by NFIP Direct, processes the policy renewals for SRL properties. (Refer to Appendix I: SRL of this manual for more information.)



4. How to Endorse



• Renew a policy;








• Revising maps;










1. Waiting Periods



Preferred Risk Policy

PREFERRED RISK POLICY

I. GENERAL DESCRIPTION

The Preferred Risk Policy (PRP) is a lower-cost Standard Flood Insurance Policy (SFIP), written under the Dwelling Form or General Property Form. It offers fixed combinations of building/contents coverage limits or contents-only coverage. The PRP is available for properties located in B, C, X, AR, or A99 zones, in Regular Program communities that meets eligibility requirements based on the property’s flood loss history.

Refer to the Newly Mapped section of this manual for buildings that were newly mapped within a Special Flood Hazard Area (SFHA) on or after October 1, 2008.

For 1–4 family dwellings, the maximum coverage combination is $250,000 building and $100,000 contents. For other residential buildings, the maximum coverage combination is $500,000 building and $100,000 contents. Up to $100,000 contents-only coverage is available for all residential properties.

For non-residential business and other non-residential properties, the maximum coverage combination is $500,000 building and $500,000 contents. Up to $500,000 contents-only coverage is available.

Only 1 building can be insured per policy, and only 1 policy with building coverage can be written on each building except in the case of a Residential Condominium Building Association Policy (RCBAP) and a condominium unit owner dwelling policy.

II. ELIGIBILITY REQUIREMENTS

A. Flood Zone

To be eligible for coverage under the PRP, the building must be in a B, C, X, AR, or A99 zone on the effective date of the policy.

For the purpose of determining the flood zone, the agent/producer may use the Flood Insurance Rate Map (FIRM) in effect at the time of application and presentment of premium. The FIRM available at the time of the renewal offer determines a building’s continued

eligibility for the PRP. National Flood Insurance Program (NFIP) grandfather rules do not apply to the PRP.

B. Occupancy

Combined building/contents amounts of insurance are available for owners of all eligible occupancy types — 1–4 family properties (including individual condominium units in residential condominium buildings), other residential properties, non-residential business, and other non-residential properties.

Contents-only coverage is available for tenants and owners of all eligible occupancies, except when contents are located entirely in a basement.

C. Loss History

A building’s eligibility for the PRP is based on the preceding requirements and on the building’s flood loss history. If any of the following conditions exists within any 10-year period, regardless of any change(s) in ownership of the building, then the building is not eligible for the PRP:

• 2 flood insurance claim payments for separatelosses, each more than $1,000; or

• 3 or more flood insurance claim payments forseparate losses, regardless of amount; or

• 2 Federal flood disaster relief payments (includingloans and grants) for separate occurrences, eachmore than $1,000; or

• 3 Federal flood disaster relief payments (includingloans and grants) for separate occurrences,regardless of amount; or

• 1 flood insurance claim payment and 1 Federalflood disaster relief payment (including loans andgrants), each for separate losses and each morethan $1,000.

NOTE: Multiple losses at the same location within 10 days of each other are counted as 1 loss, with the payment amounts added together.

TABLE 1. THE PRP COVERAGE LIMITS

COVERAGE TYPE

MAXIMUM LIMITS BY OCCUPANCY TYPE

1–4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL BUSINESS,

OTHER NON-RESIDENTIAL

Combined Building/Contents $250,000/$100,000 $500,000/$100,000 $500,000/$500,000

Contents Only $100,000 $100,000 $500,000

PRP 1 APRIL 1, 2017


3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


3. How to Write

4. How to Endorse

5. How to Renew

Appendix B: Forms

Preferred Risk Policy - Section 9



A. Flood ZoneB. OccupancyC. Loss History

III. INELIGIBILITY

IV. DOCUMENTATION


V. RENEWAL


VI. COVERAGE LIMITATIONS

VII. DEDUCTIBLES


VIII. ENDORSEMENTS

3. How to Write

A. General Information 3.32

B. Determining Eligibility 3.32

1. Flood Zone 3.33

5. How to Renew

K. Transfer of Business at Renewal 5.6

3. How to Write

F. Coverage Limitations 3.35

2. Deductibles 3.32

4. How to Endorse

ENDORSEMENT EXAMPLE 1INCREASING COVERAGE ON A PREFERRED RISK POLICY 4.12V. Correcting a Misrated Policy 4.7






















24

Preferred Risk Policy


IX. CONVERSION OF A STANDARD-RATED POLICY TO A PRP DUE TO MISRATING

X. CONVERSION OF A STANDARD-RATED POLICY TO A PRP DUE TO A MAP REVISION, LOMA, OR LOMR

XI. CONVERSION OF A PRP TO A STANDARD-RATED POLICY


XII. COMPLETING PAGE 1 OF THE PREFERRED RISK POLICY AND NEWLY MAPPED APPLICATION FORM

A. Application TypeB. BillingC. Policy PeriodD. Agent/Producer InformationE. Insured InformationF. Property LocationG. 1st MortgageeH. 2nd Mortgagee/OtherI. Disaster AssistanceJ. CommunityK. Prior NFIP CoverageL. All BuildingsM. Non-Elevated Buildings

XIII. COMPLETING PAGE 2 OF THE PREFERRED RISK POLICY AND NEWLY MAPPED APPLICATION FORM

A. Elevated Buildings (Including Manufactured [Mobile] Homes/Travel Trailers)B. Manufactured (Mobile) Homes/Travel Trailers

(Wheels must be removed for travel trailer to be insurable.)C. Construction InformationD. ContentsE. Building EligibilityF. Coverage and PremiumG. Signature

XIV. MAILING INSTRUCTIONS


XV. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS

XVI. PRP RATING EXAMPLE

3. How To Write

E. Policy Conversions 3.34

Appendix B: Forms

II. NFIP Preferred Risk Policy andNewly Mapped Policy Application B.4

3. How To Write

3. Incomplete Preferred Risk Policy Applications 3.32

PRP RATING EXAMPLE PREFERRED RISK POLICY, $1,250/$1,250 DEDUCTIBLE, ZONE X, PRIMARY RESIDENCE 3.92

End of Preferred Risk Policy - Section 9










25


Appendix B: Forms






PRIOR POLICY #:

BIL

LIN



PO

LIC

Y P

ER

IOD




AG

EN

T/P

RO

DU

CE

R

INFO

RM

ATI

ON



PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N


PHONE NO.:


PR

OP

ER

TY L

OC

ATI

ON






1S

T M

OR

TGA

GE

E


LOAN NO.:


2N

D M

OR

TGA

GE

E/O

THE


IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

TER

A

SS

ISTA

NC


OTHER (SPECIFY):

CASE FILE NO.:

CO

MM

UN

ITY








PR

IOR

NFI

P C

OV

ER

AG

E








ALL

BU

ILD

ING

S











YES NO




















YES NO



NO

N-E

LEV

ATE

D B

UIL

DIN

GS


YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /


Newly Mapped

NEWLY MAPPED


The Newly Mapped procedure applies to properties previously in Zones B, C, X, D, AR, or A99 that have been newly mapped into a Special Flood Hazard Area (SFHA). The Newly Mapped procedure does not apply to properties mapped into the SFHA by the initial Flood Insurance Rate Map (FIRM).

For 1–4 family dwellings, the maximum coverage combination is $250,000 building and $100,000 contents. For other residential buildings, the maximum coverage combination is $500,000 building and $100,000 contents. Up to $100,000 contents-only coverage is available for all residential properties.

For non-residential business, and other non-residential properties, the maximum coverage combination is $500,000 building and $500,000 contents. Up to $500,000 contents-only coverage is available.

Only 1 building can be insured per policy, and only 1 policy with building coverage can be written on each building except in the case of a Residential Condominium Building Association Policy (RCBAP) and a condominium unit owner dwelling policy.


A. Eligibility

To be eligible for coverage under the Newly Mapped procedure, the building must meet the following criteria:

• Properties newly mapped into an SFHA on or afterApril 1, 2015, are eligible for the Newly Mappedprocedure if the applicant obtains coverage thatis effective within 12 months of the map revisiondate and if the property does not fall under any ofthe categories of Ineligible properties. Refer to theIneligibility subsection in this section of the manual.

• If a property located in an AR or A99 zone is insuredunder the PRP, and is later remapped to an SFHAexcluding AR and A99, it will be eligible to use theNewly Mapped procedure.

For the purpose of determining the flood zone, the agent/producer may use the FIRM in effect at the time of application and presentment of premium.

B. Occupancy

Combined building/contents amounts of insurance are available for owners of all eligible occupancy types — 1–4 family properties (including individual condominium units in residential condominium buildings), other residential properties, and non-residential business, and other non-residential properties.

Contents-only coverage is available for tenants and owners of all eligible occupancies, except when contents are located entirely in a basement.

C. Loss History

A building’s eligibility for the Newly Mapped procedure is based on the preceding requirements and on the building’s flood loss history. If any of the following conditions exists within any 10-year period, regardless of any change(s) in ownership of the building, then the building is not eligible for the Newly Mapped procedure:

• 2 flood insurance claim payments for separatelosses, each more than $1,000; or

• 3 or more flood insurance claim payments forseparate losses, regardless of amount; or

• 2 Federal flood disaster relief payments (includingloans and grants) for separate occurrences, eachmore than $1,000; or

• 3 Federal flood disaster relief payments (includingloans and grants) for separate occurrences,regardless of amount; or

• 1 flood insurance claim payment and 1 Federalflood disaster relief payment (including loans andgrants), each for separate losses and each morethan $1,000.

NOTE: Multiple losses at the same location within 10 days of each other are counted as 1 loss, with the payment amounts added together.

TABLE 1. PROPERTIES NEWLY MAPPED INTO AN SFHA COVERAGE LIMITS

COVERAGE TYPE

MAXIMUM LIMITS BY OCCUPANCY TYPE

1–4 FAMILY OTHER RESIDENTIAL NON-RESIDENTIAL BUSINESS,

OTHER NON-RESIDENTIAL

Combined Building/Contents $250,000/$100,000 $500,000/$100,000 $500,000/$500,000

Contents Only $100,000 $100,000 $500,000

NM 1 APRIL 1, 2017 OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL 3 • 1

3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


3. How to Write

Appendix B: Forms

Newly Mapped - Section 10



A. Eligibility

B. Occupancy

C. Loss History

III. INELIGIBILITY

IV. DOCUMENTATION

V. RENEWAL

VI. COVERAGE LIMITATIONS

VII. DEDUCTIBLES

VIII. ENDORSEMENTS

IX. CONVERSION OF A STANDARD-RATED POLICY TO A NEWLY- MAPPED-RATED POLICY DUE TO MISRATING

X. CONVERSION OF A NEWLY-MAPPED-RATED POLICY TO A STANDARD-RATED POLICY

3. How to Write


III. Newly Mapped 3.38

B. Determining Eligibility 3.38

Table 27. Maximum Coverage Limits by Occupancy Type 3.38

2. Loss History 3.39Table 28. Loss History Eligibility for the Newly Mapped Procedure 3.39

C. Ineligibility 3.40

1. Flood Zone 3.38

D. Renewal 3.41

F. Coverage Limitations 3.43

2. Deductibles 3.32

D. Renewal 3.41

1. Standard Rated Policy To Newly Mapped Due To Misrating 3.42

2. Newly Mapped Rated Policy to a Standard-rated Policy 3.42




















26

Newly Mapped


XI. COMPLETING PAGE 1 OF THE PREFERRED RISK POLICY AND NEWLY MAPPED APPLICATION FORM

A. Application TypeB. BillingC. Policy PeriodD. Agent/Producer InformationE. Insured InformationF. Property LocationG. 1st MortgageeH. 2nd Mortgagee/OtherI. Disaster AssistanceJ. CommunityK. Prior NFIP CoverageL. All BuildingsM. Non-Elevated Buildings

XII. COMPLETING PAGE 2 OF THE PREFERRED RISK POLICY AND NEWLY MAPPED APPLICATION FORM

A. Elevated Buildings (Including Manufactured [Mobile] Homes/Travel Trailers)

B. Manufactured (Mobile) Homes/Travel Trailers (Wheels must be removed for travel trailer to be insurable.)

C. Construction InformationD. ContentsE. Building EligibilityF. Coverage and PremiumG. Signature

XIII. MAILING INSTRUCTIONS


XIV. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS

XV. NEWLY MAPPED RATING EXAMPLE

Appendix B: Forms

II. NFIP Preferred Risk Policy and Newly Mapped Policy Application B.4

II. NFIP Preferred Risk Policy and Newly Mapped Policy Application B.5


3. How to Write

3. Incomplete Newly Mapped Rated Policy Applications 3.38

NEWLY MAPPED RATING EXAMPLE 3.93

End of Newly Mapped - Section 10









27

Mortgage Portfolio Protection Program

MORTGAGE PORTFOLIO PROTECTION PROGRAM

I. BACKGROUND

The Mortgage Portfolio Protection Program (MPPP) was introduced on January 1, 1991, as an additional tool to assist the mortgage lending and servicing industries in bringing their mortgage portfolios into compliance with the flood insurance requirements of the Flood Disaster Protection Act of 1973.

The MPPP is not intended to act as a substitute for the need for mortgagees to review all mortgage loan applications at the time of loan origination and comply with flood insurance requirements as appropriate.

Proper implementation of the mandatory purchase requirements usually results in mortgagors, after their notification of the need for flood insurance, either showing evidence of such a policy, or contacting their insurance agent/producer or their insurer to purchase the necessary coverage. It is intended that flood insurance policies be written under the MPPP only as a last resort, and only on mortgages whose mortgagors have failed to respond to the various notifications required by the MPPP.

II. REQUIREMENTS FOR PARTICIPATING IN THE MPPP

The following paragraphs represent the criteria and requirements that must be followed by all parties engaged in the sale of flood insurance under the National Flood Insurance Program (NFIP) Mortgage Portfolio Protection Program.

A. General

1. All mortgagors notified, in conjunction with this program, of their need to purchase flood insurance must be encouraged to obtain a Standard Flood Insurance Policy (SFIP) from their agent/producer or insurer.

2. When a mortgagee or a mortgage-servicing company discovers, at any time following loan origination, that there is no evidence of flood insurance on a property in a Special Flood Hazard Area (SFHA), then the MPPP may be used by such lender/servicer to obtain (force-place) the required flood insurance coverage. The MPPP process

MORTGAGE PORTFOLIO PROTECTION PROGRAM RATE AND INCREASED COST OF COMPLIANCE (ICC) 1, 2

ZONE MPPP RATES PER $100 OF

BUILDING COVERAGE3 MPPP RATES PER $100 OF

CONTENTS COVERAGE3 ICC PREMIUM FOR $30,000

COVERAGE4, 5

Emergency Program Community 5.00 5.00 N/A

A Zones – All building & occupancy types,

except A99, AR, AR Dual Zones 5.00 /3.00 5.00 /3.00 $70

V Zones – All building & occupancy types 11.00 /11.00 11.00 /11.00 $70

A99 Zone, AR, AR Dual Zones 1.12 / .67 1.42 / .60 $5

1 Include the Reserve Fund Assessment, Probation Surcharge, Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) surcharge, and Federal Policy Fee, if applicable, when calculating the Total Amount Due.

2 MPPP policies are not eligible for Community Rating System premium discounts.

3 For basic and additional insurance limits, refer to the Rating section of this manual.

4 ICC coverage does not apply to contents-only policies or to individually owned condominium units insured under the Dwelling Form or General Property Form.

5 The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium.

MPPP 1 APRIL 1, 2017 OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL 3 • 1

3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


3. How to Write

Mortgage Portfolio Protection Program - Section 11

I. BACKGROUND

II. REQUIREMENTS FOR PARTICIPATING IN THE MPPP

A. General

B. WYO Arrangement Article III – FeesC. Use of WYO Company Fees for Lenders/Servicers or Others

D. Notification

E. Eligibility

F. Source of Offering

G. Dual Interest

H. Term of Policy

I. Coverage Offered

J. Policy Form

K. Waiting Period

L. Premium Payment

M. Underwriting – Application

N. Rates

O. Policy Declarations Page Notification Requirements

P. Policy Reformation – Policy Correction

3. How to Write

A. Background 3.68

1. Eligibility 3.68

B. General Information 3.68

G. MPPP WYO Insurers 3.73

C. Required Notifications 3.69

1. Eligibility 3.68

B. General Information 3.68

7. Dual Interest 3.71

2. Policy Term 3.70

3. Coverage 3.70

2. Policy Form 3.68

1. Waiting Period 3.70

Table 50. Calculate Premium for an MPPP Policy 3.72

3. Underwriting Application 3.68

1. Rates 3.71

C. Required Notifications 3.69

1. Policy Reformation 3.72
























28

Mortgage Portfolio Protection Program

Mortgage Portfolio Protection Program - Section 11

Q. Coverage Basis – Actual Cash Value or Replacement Cost

R. Deductible

S. Reserve Fund AssessmentT. HFIAA SurchargeU. Federal Policy Fee

V. Renewability

W. Cancellations

X. EndorsementY. Assignment to a Third Party

Z. Article XIII – Restriction on Other Flood Insurance

AA. Participating WYO Companies

3. How to Write

6. Coverage Basis 3.71

4. Deductible 3.71

Table 50. Calculate Premium for an MPPP Policy 3.72

2. Renewal 3.72

3. Cancelations 3.72

4. Endorsements 3.73

2. Restrictions on WYO Insurers 3.73

G. MPPP WYO Insurers 3.73

End of Mortgage Portfolio Protection Program - Section 11











29


Appendix B: Forms






PRIOR POLICY #:

BIL

LIN



PO

LIC

Y P

ER

IOD




AG

EN

T/P

RO

DU

CE

R

INFO

RM

ATI

ON



PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N


PHONE NO.:


PR

OP

ER

TY L

OC

ATI

ON






1S

T M

OR

TGA

GE

E


LOAN NO.:


2N

D M

OR

TGA

GE

E/O

THE


IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

TER

A

SS

ISTA

NC


OTHER (SPECIFY):

CASE FILE NO.:

CO

MM

UN

ITY







CURRENT FIRM ZONE: CURRENT BFE:

MAP DATE:

PR

IOR

NFI

P C

OV

ER

AG

E








ALL

BU

ILD

ING

S











YES NO




















YES NO



NO

N-E

LEV

ATE

D B

UIL

DIN

GS


YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /


1. Signatures

6. How to Cancel
















b. Agent Signature




4. How to Endorse



• Renew a policy;








• Revising maps;










1. Waiting Periods



General Change Endorsement - Section 12

I. USE OF THE FORM

II. ENDORSEMENT RULES

A. Coverage Endorsements

B. Rating Endorsements

C. Misrated Policy


D. Conversion of Standard-Rated Policy to PRP Due to Misrating


E. Changing Deductibles

F. Endorsements Due to Duplicate Coverage

G. Property Address Corrections

H. Assignment of Policy

4. How to Endorse

I. General Information 4.1II. Endorsement Process 4.1

III. Changing the Amount of Coverage 4.1

A. Adding or Increasing Coverage 4.1B. Reducing Coverage 4.4C. Removing Coverage 4.5

IV. Rating Endorsements 4.5

V. Correcting a Misrated Policy 4.7

3. How to Write

E. Policy Conversions 3.34

6. How to Cancel

Table 18. Valid Cancellation Reason Code 22 6.16

4. How to Endorse

VI. Changing Deductibles 4.7

VII. Duplicate Coverage 4.8

VIII. Property Address Corrections 4.8

IX. Assignment of a Policy 4.9

General Change Endorsement

GENERAL CHANGE ENDORSEMENT

I. USE OF THE FORM

The National Flood Insurance Program (NFIP) General Change Endorsement form or a similar request can be used to make certain types of coverage and rating changes or corrections to the existing policy.

However, this form cannot be used to 1) renew a policy, 2) extend or change a policy year, or 3) change the effective date of the policy.

An endorsement may be submitted for such reasons as:

• Change of a mortgagee

• Increasing, adding, reducing, or removing coverage amounts

• Change of the mailing address

• Change of the building description

• Change of insured information

• Rating Adjustments

• Map revisions

• Correcting a misrated policy

• Assignment of the policy

• Change of Primary Residence status

II. ENDORSEMENT RULES

A. Coverage Endorsements

1. Addition of Coverage or Increase in Amount of Insurance

Added coverage, or an increase in the amount of insurance, is permitted at any time during a policy year. The additional premium is calculated pro rata for the balance of the policy year, at either the rate in effect on the endorsement effective date or the rate in effect on the policy effective date, in accordance with each Write Your Own (WYO) Company’s standard business practice. (See Examples 1 through 3 at the end of this section.) Refer to the General Rules section for the applicable waiting period.

2. Reduction in Amount of Insurance

A reduction in the amount of building insurance cannot be made unless part of the building has been removed, which reduces the building’s value to less than the amount of the building insurance, or a current appraisal or cost estimate is provided which shows that the building’s current coverage amount is higher than the estimated replacement

cost of the building. (See Example 4 at the end of this section.)

A reduction in the amount of contents insurance cannot be made unless some of the contents have been sold or removed, which reduces the contents’ value to less than the amount of the contents insurance.

3. Removal of Coverage

Coverage may be removed and premium returned only in the following instances:

• Property is no longer at the described location

• The property is no longer owned by the policyholder

• There is more than one NFIP policy with building coverage insuring the same building.

B. Rating Endorsements

1. Rate Reduction

It is not permissible to revise a policy’s rating during a policy year, due to a rate decrease, unless the effective date of the rate change is prior to the policy’s effective date.

2. Rating Adjustment

NFIP rules require that the policy must be in effect in order to process refunds.

Rating adjustments will be allowed for only the current year for the following situations:

• Use of the V-Zone Risk Factor Rating Form. The endorsement effective date is either the date the V-Zone Risk Factor Rating Form was certified or the effective date of the current policy year, whichever is later.

• Use of the Federal Emergency Management Agency (FEMA) Special Rates (see the Rating section). The endorsement effective date is the date that FEMA provided the rates.

• Revision of alternative rates (rates used for Pre-FIRM rated risks where the zone is unknown). The endorsement effective date is the effective date of the current policy year.

• Use of Post-FIRM/full-risk rating for a Pre-FIRM building receiving subsidized rates. The refund will be processed if the insured provides a valid Elevation Certificate (EC). The endorsement

END 1 OCTOBER 1, 2017


3. How to Write

4. How to Endorse

6. How to Cancel

Appendix B: Forms

























30


III. ENDORSEMENT PROCESSING PRIOR TO POLICY RENEWAL (NFIP DIRECT BUSINESS ONLY)

A. During the Last 90 Days of Policy Year

B. During the Last 75 Days of Policy Year

C. Refunds Generated from Endorsement Processing

IV. COMPLETING THE FLOOD INSURANCE GENERAL CHANGE ENDORSEMENT FORM

A. General Change Endorsement Instructions


B. Refund Processing Procedures

IV. ENDORSEMENT RATING EXAMPLES

4. How to Endorse

X. Endorsement Processing Prior to Renewal 4.9

A. During the Last 90 Days of Policy Term 4.9

B. During the Last 75 Days of Policy Term 4.9

C. Return Premium Generated from Endorsement Processing 4.10

XI. Completing the General Change Endorsement Form 4.10

Appendix B: Forms

III. NFIP Flood Insurance General Change Endorsement B.7

4. How to Endorse

XII. Return Premium Processing Procedures 4.10

XIII. Endorsement Rating Examples 4.11

General Change Endorsement

End of General Change Endorsement - Section 12













31

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL

Appendix I: Severe Repetitive Loss Properties

I. General Information A Severe Repetitive Loss (SRL) designation applies to any NFIP-insured property after 1978, regardless of ownership, meeting at least one of the following paid flood loss criteria:

• Four or more separate claim payments where each of the payments is greater than $5,000 (including building and contents payments); or

• Two or more separate claim payments (building payments only) where the total payments exceed the current value of the property.

In either case, two of the claim payments must have occurred within 10 years of each other. Losses occurring at the same location within 10 days of each other count as one loss.

The loss history includes all owners of the property since 1978 or from the building’s construction, if it was built after 1978.

The writing company must transfer SRL policies to the Special Direct Facility (SDF) operated by NFIP Direct as they reach their renewal date. The NFIP monitors all transferred SRL policies located at the SDF for targeted mitigation actions.

SRL properties may obtain renewal or new business coverage only through the SDF. The agent of record remains in that capacity while the policy remains in the SDF.

II. New Business If the insurer determines a property to be an SRL property, the insurer must submit the completed application and the required documentation to the SDF at the following address:

NFIP Special Direct Facility P.O. Box 913111 Denver, CO 80291-3111

III. Notifcation Requirements A request to transfer a policy occurs when the NFIP identifies a property as meeting the SRL criteria.

• The NFIP notifies the Write Your Own (WYO) company at least 150 days prior to the policy expiration date.

• The company notifies the affected insured, agent, and lender 90 days before expiration of the policy. This notice explains that the policy must be written with the SDF. (See agent, lender, and insured SDF Notification Letters in this section.)

• The SDF issues a renewal offer for the SRL policy approximately 45 days prior to the expiration date.

I • 1

Policy Renewals

POLICY RENEWALS

I. GENERAL INFORMATION

The Standard Flood Insurance Policy (SFIP) is not a continuous policy. The policy contract is for the term of one year. Each policy contract expires at 12:01 a.m. on the last day of the policy term. Renewal of an expiring policy establishes a new policy term and new contractual agreement between the policyholder and the Federal Emergency Management Agency (FEMA). The National Flood Insurance Program (NFIP) must issue a notice of expiration not less than 45 days before the expiration of the flood insurance policy by first-class mail to the owner of the property, the servicer of any loan secured by the property, and (if known) the owner of the loan.

All policies, including Submit-for-Rate, must be renewed using the rates in effect on the renewal date.

Policy renewal documentation and premium should be submitted to the insurer in advance of the policy expiration date to ensure there is no lapse in coverage. There are 2 ways to renew a policy:

• The agent/producer will be required by the insurer to renew by means of an application or Recertification Questionnaire. In this instance, the agent/producer should complete an Application for renewal when recertifying or changing policy information, and mail it with the Total Amount Due to the insurer.

OR

• The payor must respond to a Renewal Notice including a renewal offer by selecting one of the coverage options shown on the direct mail notice and returning it with the Total Amount Due to the insurer.

II. RENEWAL NOTICE

All parties listed on the policy declarations page (insured, agent/producer, mortgagees) are to be mailed an initial Renewal Notice (page REN 5) no less than 45 days prior to the policy expiration date. Additional copies of this Renewal Notice may be mailed less than 45 days prior to policy expiration according to a company’s standard business practices. The party designated on the policy record as the payor receives the payor’s copy of the bill; all other parties receive a copy that states “THIS IS NOT A BILL.”

A. Renewing for the Same Coverage – Option A

Option A of the Renewal Notice shows current amounts of insurance and deductibles at the time the Renewal Notice is printed.

B. Inflation Factor – Option B

Option B shows premium for amounts of insurance increased by an inflation factor of 10% for building coverage and 5% for contents coverage. The current deductible is used. For PRPs, Option B is the next-higher coverage combination available. There is no waiting period if Option B is chosen. The inflation option will be no higher than the replacement cost on record for that policy. If coverage higher than the current replacement cost on record is desired, updated replacement cost documentation must be submitted.

From time to time, an agent/producer may want to endorse a policy to initiate a renewal by means of application in order to change policy information even when the insurer has made a renewal offer by means of a Renewal Notice.

When an agent/producer opts to renew by means of application after a renewal offer has been made by the insurer, the 30-day waiting period does not apply when an additional amount of insurance is requested at the time of renewal that is no more than the amount of increase recommended by the insurer on the renewal bill to keep pace with inflation.

If a revised renewal offer results from an endorsement that increases coverage more than the previously offered inflation increase option and becomes effective at least 30 days before renewal, the revised limits will apply at the policy renewal. The revised renewal offer must be generated at least 30 days before the policy renewal in order for these revised limits to take effect at renewal. In either situation, the increased amount of coverage will be effective at 12:01 a.m. on the date of policy renewal, provided that the premium for the increased coverage is received before the expiration of the grace period.

The 30-day waiting period applies when an additional amount of insurance requested at renewal time is higher than the amount listed on the renewal bill provided by the insurer, and the request is received by the insurer less than 30 days prior to policy expiration. The beginning of the waiting period is determined by the standard rules for endorsement or application. Thus, in order for the coverage amount higher than the inflation option to take effect on the renewal date, the full premium must be received at least 30 days prior to the renewal effective date.

C. Nonrenewal and Cancellation

A policy intended for an ineligible risk is considered null, and cannot renew.

REN 1 APRIL 1, 2017 OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL 3 • 1

3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


5. How to Renew


Policy Renewals - Section 13

I. GENERAL INFORMATION

II. RENEWAL NOTICE

A. Renewing for the Same Coverage – Option AB. Inflation Factor – Option B

C. Nonrenewal and Cancellation

III. FINAL NOTICE

IV. RENEWAL BY MEANS OF APPLICATION OR RECERTIFICATION QUESTIONNAIRE

V. PREMIUM PAYMENT DUE

VI. RENEWAL EFFECTIVE DATE DETERMINATION

VII. ENDORSEMENTS DURING RENEWAL CYCLE


VIII. SEVERE REPETITIVE LOSS PROPERTIES


IX. TRANSFER OF BUSINESS AT RENEWAL

5. How to Renew

I. General Information 5.1

A. Renewal Notice 5.1

1. Amounts of Insurance on the Renewal Notice 5.1

H. Nonrenewal and Cancellation 5.5

B. Final Notice 5.2

G. Renewal by an Application or Recertification Questionnaire 5.4

D. Premium Payment 5.2

F. Determine the Renewal Effective Date 5.4

J. Coverage Endorsements during the Renewal Cycle 5.6


I. General Information I.1

5. How to Renew

K. Transfer of Business at Renewal 5.6

End of Policy Renewals - Section 13




https://www.fema.gov/media-library-data/1538670905886-81423feb161c06426ac157a409123f3d/app-i_srl_oct2018.pdf#page=1


















32


Appendix B: Forms






PRIOR POLICY #:

BIL

LIN



PO

LIC

Y P

ER

IOD




AG

EN

T/P

RO

DU

CE

R

INFO

RM

ATI

ON



PHONE NO.: FAX NO.:

EMAIL ADDRESS:

INS

UR

ED

IN

FOR

MA

TIO

N


PHONE NO.:


PR

OP

ER

TY L

OC

ATI

ON






1S

T M

OR

TGA

GE

E


LOAN NO.:


2N

D M

OR

TGA

GE

E/O

THE


IF OTHER, SPECIFY:

LOAN NO.:


DIS

AS

TER

A

SS

ISTA

NC


OTHER (SPECIFY):

CASE FILE NO.:

CO

MM

UN

ITY








PR

IOR

NFI

P C

OV

ER

AG

E








ALL

BU

ILD

ING

S











YES NO




















YES NO



NO

N-E

LEV

ATE

D B

UIL

DIN

GS


YES NO


SQUARE FEET.




SQUARE INCHES.



YES NO




UP TO $10,000

$10,001 TO $20,000




UP TO $5,000

$5,001 TO $10,000


N F IP

C O P Y




)

/ /

/ /

–

/ /

/ / –

/

/ / /

/ /


Cancellation/Nullification

CANCELLATION/NULLIFICATION

Flood insurance coverage may be terminated mid-term or for a full term by either canceling or nullifying the policy, only in accordance with a valid reason for the transaction, as described in Paragraphs I.B.1–25. If coverage is terminated, the insured may be entitled to a full or partial refund under applicable rules and regulations. In some instances, the insured might be ineligible for a refund.

I. PROCEDURES AND VALID REASONS

Submit a completed Cancellation/Nullification Request Form and proper documentation to the current National Flood Insurance Program (NFIP) insurer for processing.

A. Refund Processing Procedures

1. The current NFIP insurer will be responsible forreturning the premium for the current policy yearand 1 prior policy year, as applicable, provided thatit was the insurer for that period. If another NFIPinsurer was the insurer for the prior policy year, itwill be responsible for returning the premium forthat year.

2. Requests for refunds for more than 2 years(reasons 1, 2, 4, 6, 10, 22, and 24 only) mustbe processed by the NFIP Bureau and StatisticalAgent (NFIP Bureau).

a. For requests processed by the NFIP Bureau,the current NFIP insurer must submit all ofthe documentation required to support thereason code used to make a refund for anyperiod exceeding 2 years. At a minimum, thisdocumentation will consist of the following:

• A policy cancellation request and the premiumrefund calculation for each year.

• The company’s statistical records ordeclarations pages for each policy term andevidence of premium payments obtainedfrom the insured if these documents are notavailable from the company’s records.

• Photographs to verify ineligible risks.

b. Mail the appropriate documentation to:

NFIP Bureau and Statistical AgentUnderwriting Department8400 Corporate Dr., Suite 350Hyattsville, MD 20785

3. Write Your Own (WYO) Companies will be notified ofthe premium refunded and the Expense Allowancedue to the NFIP. The companies must maintain thisdocumentation as part of their underwriting files.

4. All existing refund rules concerning the FederalPolicy Fee and agent/producer commission remainin effect.

5. For the purpose of determining the receipt dateof the cancellation/nullification request, thedate shall be that on which the cancellation/nullification request was initially received bythe insurer, as long as the complete supportingdocumentation for that request is received by theinsurer within 60 days of the insurer’s request foradditional documentation. When the supportingdocumentation for the cancellation/nullificationrequest is received by the insurer more than60 days after the insurer’s request for thedocumentation, the receipt date shall be the datethe insurer received the complete documentation.

B. Valid Reason Codes for Cancellation/Nullificationof NFIP Policies

The Transaction Record Reporting and Processing (TRRP) reason codes in this section are used for reporting purposes only.

1. Building Sold or Removed, Destroyed or PhysicallyAltered to no Longer Meet the Definition of an EligibleBuilding (TRRP Reason 01)

This reason can be used for the following: (1) whenthe insured has sold or transferred ownershipof the insured property and no longer has aninsurable interest in the insured building; (2) theinsured building has been removed through eitherrelocation or destruction; or (3) the building isphysically altered mid-term such that a risk thatwas eligible for coverage is no longer eligible forcoverage. An example is a mobile home affixed toa permanent foundation that is removed from itsfoundation and placed back on its wheels.

This reason may also be used if: (1) the builderor developer has requested to cancel the policymid-term because ownership has transferred toa newly created condominium association, andthe association has purchased a policy under itsname; (2) the building is considered a total lossbecause the building damage is greater than orequal to the replacement cost of the building; or(3) the building has been foreclosed.

• Cancellation Effective Date: The date theinsured ceased to have an insurable interest inthe building (e.g., the date of the sale of thebuilding, the date the building was removedfrom the described location, or the date thebuilding became ineligible for coverage.)

CN 1 APRIL 1, 2017

1. Signatures

6. How to Cancel
















b. Agent Signature




6. How to Cancel

Appendix B: Forms

Cancellation/Nullification - Section 14

I. PROCEDURES AND VALID REASONS

A. Refund Processing Procedures

B. Valid Reason Codes for Cancellation/Nullification of NFIP Policies


II. COMPLETING THE CANCELLATION/ NULLIFICATION REQUEST FORM

A. Current Policy NumberB. Policy TermC. Agent InformationD. Insured Mailing AddressE. First Mortgagee Cancellation/Nullification - Section 14F. Other Parties NotifiedG. Property Location

H. Cancellation Reason Code

6. How to Cancel

6. How to Cancel 6.1

III. Premium Refunds 6.2

IV. Valid Cancellation Reason Codes/Nullification Request 6.2

Appendix B: Forms

IV. NFIP Flood Insurance Cancellation/NullificationRequest Form B.10

IV. NFIP Flood Insurance Cancellation/NullificationRequest Form B.10

6. How to Cancel

Table 1. Valid Cancellation Reason Code 01to Table 22. Valid Cancellation Reason Code 26 6.3

















33


I. Refund


J. Signature

Cancellation/Nullification

Appendix B: Forms

IV. NFIP Flood Insurance Cancellation/NullifcationRequest Form B.10

6. How to Cancel

III. Premium Refunds 6.2

Appendix B: Forms

IV. NFIP Flood Insurance Cancellation/NullifcationRequest Form B.10

End of Cancellation/Nullification - Section 14









34

Claims

CLAIMS

The claims information outlined in this section is describes key aspects of the National Flood Insurance Program (NFIP) process. Information about the claims process can also be found in the NFIP Flood Insurance Claims Handbook.

Two important points about NFIP claims payments follow:

• The NFIP Direct Servicing Agent and the WYO Companies (NFIP insurers) pay the insured for direct physical loss by or from flood to the insured’s NFIP-insured property [Building Property and Personal Property (contents)]. This means that there must be evidence of physical change to the property.

• Payment for direct physical loss by or from flood can be made if the insured has (1) paid the correct premium, (2) complied with all terms and conditions of the Standard Flood Insurance Policy (SFIP), and (3) furnished accurate information and statements. (See SFIP Section I, Agreement.)

I. OVERVIEW OF THE CLAIMS PROCESS

A. Procedure and Requirements After a Flood

1. Notice

In the event of a loss, the insured must provide prompt notice to the NFIP Direct Servicing Agent or WYO Company (NFIP Insurer). This notice is often made through the policyholder’s insurance agent or the insurer’s representative.

2. Handling the Claim

a. Working with the Adjuster

Generally, the adjuster will contact the insured within 24–48 hours after receiving the notice of loss. However, depending on local conditions and the severity of flooding, it may take more time. The insured should work cooperatively and promptly with the claims adjuster to determine and document all damaged items.

b. Scoping the Loss

The adjuster will take measurements and photographs and note direct flood damage. This is called “scoping a loss.”

c. Preparing a Detailed Estimate

The adjuster will use the information gained from the visit(s), and the documentation the insured has

provided, to complete a detailed estimate of damages. The insured will receive a copy of the estimate. It is to be used as a guide when the insured asks for bids for repair work from licensed professional contractors. The adjuster may ask if the insured would like to request an advance payment from the insurer.

B. The Proof of Loss

1. Completing and Filing the Proof of Loss

The proof of loss is the insured’s statement of the amount of money being requested. The proof of loss must be signed and sworn to by the insured with attached documentation to support the amount requested.

After a loss is reported, the insurer will assign an adjuster to assist the insured with the claim. The adjuster will work with the insured to reach an agreed amount for the covered loss. Once the adjuster scopes the damage and provides an estimate of the flood damage, a proof of loss form may be provided for the policyholder to sign and swear to.

The adjuster will assist the insured with preparing a proof of loss. The insured is responsible for preparing the proof of loss, signing and swearing to the proof of loss, and ensuring that the proof of loss is received by the NFIP insurer with the supporting documentation within 60 days after the date of the flood loss.

A complete proof of loss, signed and sworn to by the insured, along with documentation to support the amount requested, is required before a claim can be paid. Any requests for additional payment must be sent to the NFIP insurer within 60 days after the date of loss or within any extension of that deadline made in writing by the Associate Administrator for Federal Insurance and Mitigation.

NOTE: Signing the proof of loss does not waive an insured’s rights to make supplemental claims or to amend the original proof of loss. Once the insured signs and swears to the proof of loss form, is paid, and cashes the check(s), the insurer may still make an additional payment if additional flood damage is found and the request for additional payment is supported with the documentation provided within 60 days after the date of the loss. There is only one claim made for a flood loss event, even if multiple proofs of loss are submitted for that claim.

2. Extensions Beyond 60 Days

In severe flood events, the Federal Emergency Management Agency (FEMA) may authorize an

CL 1 APRIL 1, 2017

Appendix E: Claims

I. Information for Insureds after a Flood The Standard Flood Insurance Policy (SFIP) covers direct physical loss by or from a flood to a property insured by the National Flood Insurance Program (NFIP). The NFIP pays an insured’s flood claim if the insured paid the correct premium, complied with all terms and conditions of the SFIP, and furnished accurate information and statements.

For more information regarding the NFIP claims process, please review the NFIP Flood Insurance Claims Handbook and the NFIP Claims Fact Sheet. They are available through FEMA’s website using the following links:

• NFIP Flood Insurance Claims Handbook – https://www.fema.gov/ media-library/assets/documents/6659

• NFIP Fact Sheet: The Flood Claim Process – https://www.fema.gov/ media-library/assets/documents/114402

Insureds may also reference the Claims Guidelines In Case of a Flood included with their SFIP form for additional information.

II. Claim Process Following a flood loss, the insured must provide prompt written notice to the insurer to start the claims process. Upon notification, the insurer assigns an adjuster to assist the insured with the claim. Generally, the adjuster contacts the insured within 24 to 48 hours after receiving the notice of loss. However, assigning an adjuster may take more time depending upon the severity of flooding and local conditions.

A. Damage Estimate The adjuster visits the property to inspect the extent of the flood loss, assess the damage, and review the insured’s documentation to prepare a detailed estimate of the covered damages. Subsequently, the adjuster provides the insured with a copy of his or her estimate, which the insured may compare to a licensed contractor’s damage repair cost estimate. The insured and the adjuster then submit a Proof of Loss (POL) to request payment for the covered flood loss amount.

The completed, signed, and sworn-to POL form represents the insured’s statement of the amount of flood loss they are claiming. The insurer must have the POL form and documentation that supports the requested covered loss amount prior to paying the claim. The adjuster coordinates with the insured to agree on the covered loss amount and may assist in completing and/or updating the proof of loss form that the insured signs and swears to. Even if the insured does not agree with the adjuster, the insured must still prepare, sign, and swear to a POL, and ensure the insurer receives the POL along with supporting documentation within 60 days following the flood loss date.

The insured retains the right to amend the original proof of loss to request additional covered loss amounts after they have submitted the original POL. Similarly, the insured must prepare, sign, and swear to the amended POL, as well as ensure the insurer receives the amended POL along with

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL E • 1


Appendix E: Claims

Claims - Section 15

I. OVERVIEW OF THE CLAIMS PROCESS

A. Procedure and Requirements After a Flood

B. The Proof of Loss

C. Claim Payment

D. Appealing a Claim

II. INCREASED COST OF COMPLIANCE (ICC) CLAIMS

Appendix E: Claims

I. Information for Insureds after a Flood E.1II. Claim Process E.1III. Disputed Claims E.2IV. Appealing a Claim E.3V. Litigation E.4

II. Claims Process E.1

A. Damage Estimate E.1

B. Claim Payment E.2

IV. Appealing a Claim E.3

VI. Increased Cost of Compliance (ICC) Claims E.4

End of Claims - Section 15



https://www.fema.gov/media-library-data/1538670883939-81423feb161c06426ac157a409123f3d/app-e_claims_508_oct2018.pdf

https://www.fema.gov/media-library-data/1538670883939-81423feb161c06426ac157a409123f3d/app-e_claims_508_oct2018.pdf

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35

Policy

POLICY



There are 3 policy forms – the Dwelling Form, the General Property Form, and the Residential Condominium Building Association Policy Form. Selection of the applicable form to be used is dependent on the type of insurable property to be covered.

The October 2015 policy forms have been reformatted to comply with the provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12).


POL 1 APRIL 1, 2017

Appendix A: Policy



There are three policy forms:

• The Dwelling Form (see page A-3)

• The General Property Form (see page A-31)

• The Residential Condominium Building Association Policy Form (see page A-55)

Selection of the applicable form to use depends on the type of insurable property to be covered.


OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL A • 1


Appendix A: Policy

Policy - Section 16

DWELLING FORM

GENERAL PROPERTY FORM

RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY

Appendix A: Policy

Dwelling Form A.3

General Property Form A.31

Residential Condominium Building Association Policy A.55

End of Policy - Section 16








36

Flood Maps

FLOOD MAPS

I. OVERVIEW

The Federal Emergency Management Agency (FEMA) provides all participating communities with copies of their flood maps. The maps are generally kept in community planning or building permit departments where they should be available for review.

Additional information about flood maps can be obtained at the FEMA Flood Map Service Center (MSC) website (http://msc.fema.gov). The MSC is the official public source for flood hazard information produced in support of the National Flood Insurance Program (NFIP).

A. Types of Flood Maps

FEMA produces 2 types of maps for rating flood insurance. For detailed information, refer to Answers to Questions About the NFIP (F-084).

1. Flood Hazard Boundary Map (FHBM) – Initial floodhazard identification generally used for EmergencyProgram communities.

2. Flood Insurance Rate Map (FIRM) – Generally usedfor Regular Program communities. Some RegularProgram communities may use a map originallypublished as an FHBM; however, a letter willaccompany the map in conjunction with conversionto the Regular Program stating that the map is tobe considered a FIRM.

Countywide FIRMs are official sources of flood riskdata for several communities that supersede allprevious versions of the FEMA flood hazard mapsfor the communities covered. Countywide FIRMsshow flooding information for the entire geographicarea of a county, including the incorporatedcommunities within the county.

B. Map Information

The date of the current effective map version for a community can be obtained by calling the appropriate community official or by calling the National Flood Insurance Program (NFIP) office at the toll-free number. Maps provide community name, community number, suffix, panel number, map type, and the map effective date. (See FIRM panel example at the end of this section.)

1. The maps may have 1 panel or multiple panels.Most Z-fold maps have multiple panels. Flat mapsgenerally consist of only 1 panel.

2. For multiple-panel maps, individual panels areidentified on a community map index.

3. Panel numbers are listed for that community’smap in numerical sequence. FHBMs and FIRMsare drawn to show:

• Community boundaries;

• Special Flood Hazard Areas (SFHAs); and

• Areas not included in a community’s map. Acommunity may be physically located within theoverall geographical area, but actually stand onits own as a separate community. Therefore, thiscommunity would be shown on a separate map.

4. Each panel has a panel number and communitynumber. When there is only 1 panel (i.e., a flat map),the community number will consist of only 6 digits.

Example: Monterey County, CA 060195-1025 (Thefirst 2 digits of the number identify the state and the next 4 digits identify the community. The last 4 digits identify the map panel.)

5. Most FIRMs also show:

• Flood Zones;

• Base Flood Elevations; and/or

• Base Flood Depths.

C. Communities with Unpublished Maps

These are communities without formally identified SFHAs that chose to have flood insurance coverage available even though the local flooding problems are too small to map. For any such community in the Regular Program, all areas within that community are treated as Zone C or X.

D. Unmapped Areas in Communities with Maps

The flood hazards for some areas within mapped communities remain undetermined and are unmapped. These unmapped areas are to be treated as Zone D. The designation of Zone D can also be used for rating when a community incorporates portions of another community’s area where no map has been prepared.

II. MAP ZONES

A. Special Flood Hazard Areas

1. Zone A

The lowest floor elevation is required and the BaseFlood Elevations (BFEs) are not provided.

2. Zones A1–A30

The lowest floor elevation is required and the BFEsare provided.

MAP 1 APRIL 1, 2017

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL H • 1


I. Flood Map Service Center The FEMA Flood Map Service Center (MSC) and its website (http://msc.fema. gov) serve as the official public source for flood hazard information produced in support of the National Flood Insurance Program (NFIP).

Individuals and communities can view and download flood maps and related products free of charge through the MSC website. The integrated “Search All Products” feature allows users to find and download all products for a geographic area and, using the enhanced “Search by Address” feature, download all Flood Insurance Rate Maps (FIRMs) and Letters of Map Change directly from the search results page.

Map Specialists are available to answer questions Monday through Friday from 8:00 a.m. to 6:30 p.m. ET by calling the FEMA Map Information eXchange (FMIX) toll-free information line at 1-877-FEMA-MAP (1-877-336-2627).

II. Flood Hazard Maps FEMA produces two types of maps for rating flood insurance:

• Flood Hazard Boundary Map (FHBM) – Initial flood hazard identification generally used for Emergency Program communities.

• FIRM (Figure 1 at the end of this appendix) – Generally used for Regular Program communities. Some Regular Program communities may use a map originally published as an FHBM. When a community converts to the Regular Program, FEMA sends a letter accompanying the map stating that FEMA considers the map to be a FIRM.

Countywide FIRMs supersede all previous versions of the FEMA flood hazard maps for covered communities. Countywide FIRMs show flooding information for the entire county’s geographic area, including incorporated communities. For detailed information and answers to questions, refer to Answers to Questions about the NFIP (F-084). Answers to Questions

(F-084) is available online at: https://

www.fema.gov/ media-library/assets/

documents/272

RESOURCE

A. Map Information Insureds or Agents may obtain the date of their current effective map version by calling their local community official or by going to the MSC. Maps provide the community name, community number, suffix, panel number, map type, and map effective date. (See FIRM panel example at the end of this section.)

• The maps may have one panel or multiple panels.

– Flat maps generally consist of only one panel.

– For multiple-panel maps, the community map index identifies individual panels.

– Panel numbers for a community’s map are in numerical order.

• Each panel has a panel number and community number. When there is only one panel (i.e., a flat map), the community number will consist of only six digits.

– Example: Monterey County, CA 060195-1025



Flood Maps - Section 17

I. OVERVIEW

A. Types of Flood Maps

B. Map Information

C. Communities with Unpublished Maps

D. Unmapped Areas in Communities with Maps

II. MAP ZONES

A. Special Flood Hazard Areas

B. Moderate, Minimal Hazard Areas

III. LOCATING A SPECIFIC PROPERTY ON A MAP

IV. CHANGING OR CORRECTING A FLOOD MAP

A. Letter of Map Amendment (LOMA)

B. Letter of Map Revision (LOMR)

C. Physical Map Revision

V. FLOOD HAZARD PRODUCTS


I. Flood Map Service Center H.1

II. Flood Hazard Maps H.1

A. Map Information H.1

B. Communities with Unpublished Maps H.2

C. Unmapped Areas in Communities with Maps H.2

III. Map Zones H.2

A. Special Flood Hazard Areas H.2

B. Moderate or Minimal Hazard Areas H.4

IV. Locating a Property on a Map H.4

V. Changing or Correcting a Flood Map H.4

A. Letter of Map Amendment (LOMA) H.4

B. Letter of Map Revision (LOMR) H.5

C. Physical Map Revision H.5

1. Flood Map Service Center H.1

End of Flood Maps - Section 17



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37


I. Effective Date of Rates FEMA updates its flood insurance rates once a year, but on occasion the effective date varies. Most of the following tables present rates that were effective April 1, 2018. However, some Preferred Risk Policy (PRP) and Newly Mapped (NM) tables have effective dates of January 1, 2019. Affected tables will include the January date in red above the table title.

II. Rates for Standard NFIP Policies Table 1 presents annual rates per $100 of coverage for properties in Emergency Program communities. Tables 1–5 show annual rates per $100 of coverage for properties in Regular Program communities, according to Pre-FIRM premium rates, or Post-FIRM/full-risk premium rates for each zone classification. Table 6 provides tentative rates (for more information, refer to the Tentative Rates subsection in the How to Write section). Tables 7A–7C detail the Federal Policy Fee, Probation Surcharge, Reserve Fund Assessment, and HFIAA Surcharge.

RATE TABLE 1. EMERGENCY PROGRAM RATES ANNUAL RATES PER $100 OF COVERAGE

(Basic/Additional)

BUILDING CONTENTS



IMPORTANT TO NOTE

The rate tables in this Appendix have the same numbering as the tables in the April 2018 NFIP Flood Insurance Manual sections from which they came. These table numbers are tied to the Transaction Record Reporting and Processing Plan (TRRP) and cannot be modifed at this time.

We have included the section abbreviation used in the April 2018 manual (e.g., RATE, CONDO, etc.) before the word “Table”

in the titles in this appendix.

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL J • 1

Provisional Rating

PROVISIONAL RATING


Provisional rating is available to enable the placement of coverage prior to receipt of the Elevation Certificate (EC). It is expected that an EC will be secured and full-risk rating completed within 60 days of the policy effective date. Failure to obtain the EC could result in reduced coverage limits at the time of a loss. A sample rate questionnaire and a sample notice to the policyholders informing them of their obligations under a provisionally rated policy are included in this section.

Provisional rates may be used in writing new business flood policies. All provisionally rated policies are subject to the effective date rules.


Provisional rating is available only for newly insured risks meeting all of the following criteria:

• Post-FIRM;• 1–4 family residential buildings; and• Property located in either

o Zones AE, A1–A30, AO, or AH, oro Zone A where the community provides Base Flood

Elevations (BFEs).

Manufactured (mobile) homes are not eligible.

Policies written with provisional rates cannot be renewed or rewritten with provisional rates. In addition, an insured who has purchased a provisionally rated policy on a given property may not purchase another provisionally rated policy on that same property.

III. REFORMATION

While provisionally rated policies may remain in effect for up to 1 year, full-risk rating must be accomplished prior to any claim payment, should there be a loss.

A. Limitations

A provisionally rated policy has limited reformation rights.

1. If the insurer receives a valid EC and the requiredphotographs within 60 days of the policy effectivedate, the coverage limits on the declarations pagewill be revised as of the policy effective date. If anyadditional premium is due because the full-riskpremium is more than the provisional premium, theinsured will then have 30 days to pay the additionalpremium for the entire term to restore the originallyrequested limits without a waiting period. Thosecoverage limits will apply even to a loss occurring

before the EC and additional premium are received. Full-risk rating must be completed before the loss payment is made.

2. If the insurer receives a valid EC and any additionalpremium due as a result of using full-risk ratesmore than 60 days after the policy effective datebut before a loss occurs, the insured has 2 options.The insured may submit the additional premium forthe entire policy term, in which case the coveragelimits on the declarations page will be in force fromthe effective date. Alternatively, the insured maysubmit the additional premium, computed for theremainder of the policy term with a 30-day waitingperiod. In this latter case, the originally requestedcoverage limits will apply only to any loss occurringafter the waiting period. Reduced coverage limitsas described in number (3) below will apply to anyloss occurring within the waiting period.

3. If neither (1) nor (2) above applies, full-risk ratesmust be determined before any loss payment willbe made. If the full-risk premium is more than theprovisional premium, the coverage limits will beless than those shown on the declarations page. Inthat case, the loss payment will be subject to thereduced coverage limits, which will be the coveragelimits that the provisional premium would buy usingthe full-risk rates. If the insured wants to increasethe reduced coverage limits, a 30-day waitingperiod will apply to the additional coverage.

In all instances, if the full-risk premium is less thanthe provisional premium, the amount of coveragemay not exceed the amount originally requested.

B. Endorsement Procedure

A provisionally rated policy may not be endorsed to increase coverage until the policy has been reformed to a full-risk rated policy. At that time, all standard endorsement rules apply (e.g., 30-day wait). In order to reform the rating method of a provisionally rated policy, the agent/producer should submit a general change request along with the necessary documentation. Any additional premium due must be calculated and submitted at that time. The reason for change should be listed as “reforming from provisional to full-risk rating.”

IV. NOTIFICATION REQUIREMENTS

When a policy is issued using provisional rating, along with the declarations page, a notice will be provided to the insured, the agent/producer, and the lender (if applicable) that explains the nature of the coverage, the limited reformation rights, and the expectation that

PR 1 APRIL 1, 2017


3. How To Write

I. Rating










Application


Building








• Yes • No





Building Occupancy

Primary Residence

Number of Floors


3. How to Write


Provisional Rating - Section 13



III. REFORMATIONA. Limitations




V. COMPLETING THE PROVISIONAL RATING QUESTIONNAIRE


A. General Directions

B. Guidance for Determining Building Elevated on Fill

VI. PROVISIONAL RATING EXAMPLE

3. How to Write


B. Eligibility Requirements 3.60

C. Reformation 3.60

D. Endorsements 3.61

E. Notification 3.61


PROVISIONAL RATING J.22

3. How to Write


F. Provisional Rating Documents 3.62

PROVISIONAL RATING EXAMPLE 1 REGULAR PROGRAM, POST-FIRM CONSTRUCTION 3.74

End of Provisional Rating - Section 18


















38

Coastal Barrier Resources System

PROVISIONAL RATING








Elevations (BFEs).



III. REFORMATION


A. Limitations











PR 1 APRIL 1, 2017



Coastal Barrier Resources System - Section 19

LIST OF COMMUNITIES


Table 1. Coastal Barrier Resources System Communities D.5

End of Coastal Barrier Resources System - Section 19







39

Community Rating System

COMMUNITY RATING SYSTEM


The Community Rating System (CRS) is a voluntary program for National Flood Insurance Program (NFIP) participating communities. The goals of the CRS are to reduce flood damages to insurable property, strengthen and support the insurance aspects of the NFIP, and encourage a comprehensive approach to floodplain management.

The CRS has been developed to provide incentives in the form of premium discounts for communities to go beyond the minimum floodplain management requirements to develop extra measures to provide protection from flooding.

II. ELIGIBILITY

For a community to be eligible, it must be in full compliance with the NFIP and be in the Regular phase of the program. Table 1 shows the categories that are eligible for CRS premium discounts.

The following categories are not eligible for CRS premium discounts:

• Emergency Program communities

• Preferred Risk Policies

• Newly-Mapped-rated policies

• Mortgage Portfolio Protection Program policies

• Post-FIRM buildings located in a Special Flood Hazard Area (SFHA) where the elevation difference used for rating is at least 1 foot or more below the Base Flood Elevation (BFE), with the following exceptions:

o Post-FIRM V-Zone buildings with unfinished breakaway wall enclosures and machinery or equipment at or above the BFE; and

o Subgrade crawlspaces with certification from a community official. The subgrade crawlspace exception must be certified by a community official letter containing the following statement:

“I certify that the building located at [address] has a crawlspace

that was built in compliance with the NFIP requirements for crawlspace construction as outlined in FEMA Technical Bulletin 11-01, Crawlspace Construction for Buildings Located in Special Flood Hazard Areas.”

III. CLASSIFICATIONS AND DISCOUNTS

All communities start out with a Class 10 rating (which provides no discount). There are 10 CRS classes: Class 1 requires the most credit points and gives the greatest premium discount; Class 10 identifies a community that does not apply for the CRS, or does not obtain a minimum number of credit points and receives no discount. There are 18 activities recognized as measures for eliminating exposure to floods. Credit points are assigned to each activity. The activities are organized under 4 main categories: Public Information, Mapping and Regulation, Flood Damage Reduction, and Flood Preparedness. Once a community applies to the appropriate Federal Emergency Management Agency (FEMA) region for the CRS program and its implementation is verified, FEMA sets the CRS classification based upon the credit points. This classification determines the premium discount for policyholders. Premium discounts ranging from 5% to a maximum of 45% will be applied to eligible policies written in a community as recognition of the floodplain management activities instituted. Table 2 shows premium discounts for CRS Classes 1–10 within different flood zones. Table 3 lists all CRS eligible communities and their discounts.

IV. CRS ACTIVITIES THAT CAN DIRECTLY BENEFIT INSURANCE AGENTS/PRODUCERS

Certain activities credited under the CRS provide direct benefit to agents/producers writing flood insurance.

All CRS communities must maintain completed FEMA elevation and floodproofing certificates for all new and substantially improved construction in the SFHA after the date of application for CRS classification. These certificates must be available upon request. Therefore, in writing a policy, an agent/producer should be able to get these certificates from any CRS community. In addition, some CRS communities receive credit for having completed certificates for Post-FIRM buildings constructed prior to the CRS application date. If they do receive this credit, then these certificates should also be available to agents/producers writing flood insurance. The community may charge a fee for copying certificates.

Many CRS communities receive credit for providing inquirers with information from the community’s Flood Insurance Rate Map (FIRM). This includes a property’s flood risk zone and the BFE. The service must be publicized once a year. If a community is receiving this credit, then agents/producers should be able to use the service. A fee may be charged for the service.

CRS 1 APRIL 1, 2017

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL F • 1

Appendix F: Community Rating System

I. General InformationThe Community Rating System (CRS) is a voluntary program for communities participating in the National Flood Insurance Program (NFIP). The CRS offers flood insurance policy premium discounts in communities that develop and execute extra measures beyond minimum floodplain management requirements to provide protection from flooding.

II. Community EligibilityA community’s eligibility for the CRS depends upon participating in the Regular Program and maintaining full compliance with the NFIP. CRS flood insurance policy premium discounts range from 0 percent to 45 percent depending on the community’s floodplain management measures and activities.

III. CRS Premium Discount Eligibility

A. Premium Discount Eligibility by Policy Rating CategoryTable 1 highlights CRS premium discount eligibility by policy rating category.

Table 1. CRS Premium Discount Eligibility by Policy Rating Category

Flood Zone Eligible for

CRS Premium Discount Not Eligible for

CRS Premium Discount

All Flood Zones

B, C, X, D, A99, AR, and AR Dual Zones (AR/A, AR/AE, AR/ A1–A30, AR/AH, and AR/AO)

Pre-Flood Insurance Rate Map (Pre-FIRM) Buildings N/A

Post-FIRM Buildings N/A

A Zones (AE, A1–A30, Unnumbered A, AO, AH)

Post-FIRM Non-Elevated Buildings where the elevation difference used for rating is at or above the Base Flood Elevation (BFE) or with subgrade crawlspace certifcation from a community offcial

Post-FIRM Non-Elevated Buildings where the elevation difference used for rating is 1 foot or more below the BFE or with no subgrade crawlspace certifcation from a community offcial

A Zones (AE, A1–A30, Unnumbered A, AO, AH)

Post-FIRM Elevated Buildings1 where the elevation difference used for rating is at or above the BFE

Post-FIRM Elevated Buildings where the elevation difference used for rating is 1 foot or more below the BFE

’75–’81 and Post-’81 V Zones (VE, V1–V30, Unnumbered V)

Post-FIRM Non-Elevated Buildings where the elevation difference used for rating is at or above the BFE

Post-FIRM Non-Elevated Buildings where the elevation difference used for rating is 1 foot or more below the BFE

April 2018 Flood Insurance Manual


Community Rating System - Section 20


II. ELIGIBILITY

III. CLASSIFICATIONS AND DISCOUNTS

IV. CRS ACTIVITIES THAT CAN DIRECTLY BENEFIT INSURANCE AGENTS/PRODUCERS

ELIGIBLE COMMUNITIES


I. General Information F.1

II. Community Eligibility F.1III. CRS Premium Discount Eligibility F.1

IV. CRS Classes and Discounts F.2

V. Elevation Certificates and Map Information for Agents F.3

Table 3. Community Rating System Eligible Communities F.4

End of Community Rating System - Section 20

October 2018 Flood Insurance Manual

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40

Guidance For Severe Repetitive Loss Properties

GUIDANCE FOR SEVERE REPETITIVE LOSS PROPERTIES


The primary objective of the Severe Repetitive Loss (SRL) properties strategy is to eliminate or reduce the damage to property and the disruption to life caused by repeated flooding. Approximately 11,900 insured properties have been identified with a high frequency of losses or a high value of claims. As these policies come up for renewal, they will be transferred to the National Flood Insurance Program (NFIP) Servicing Agent’s Special Direct Facility (SDF).

The close supervision the SDF provides the group of policies, and the attention the group of properties receives when mitigation decisions are made, contribute to attaining the strategy’s primary objective. The SRL group consists of any NFIP-insured property that has met at least 1 of the following paid flood loss criteria since 1978, regardless of ownership:

• 4 or more separate claim payments of more than $5,000 each (including building and contents payments); or

• 2 or more separate claim payments (building payments only) where the total of the payments exceeds the current value of the property.

In either case, 2 of the claim payments must have occurred within 10 years of each other. Multiple losses at the same location within 10 days of each other are counted as 1 loss, with the payment amounts added together.

The loss history includes all ownership of the property since 1978 or since the building’s construction if built after 1978.

SRL properties with renewal dates of January 1, 2007, or later will be afforded coverage (new business or renewal) only through the SDF.

The agent/producer of record will remain in that capacity while the policy is in the SDF. The NFIP Servicing Agent will pay the agent/producer of record the standard 15% commission that is paid on all NFIP Direct business.

II. NOTIFICATION REQUIREMENTS

Policies that renew on or after January 1, 2007, and meet the SRL criteria will be transferred to the SDF for policy issuance. Any policy that meets the SRL criteria during the current term will be transferred to the SDF with the subsequent renewal. As requests for review (discussed in “IV. Dispute Resolution” below) are successful, and the Federal Emergency Management

Agency (FEMA) or its designee approves properties for mitigation, policies will be transferred out of the SDF.

When policies are to be transferred to the SDF, the NFIP Bureau and Statistical Agent (NFIP Bureau) will notify Write Your Own (WYO) Companies and the NFIP Servicing Agent at least 150 days prior to the expiration date. The companies will notify the affected policyholders, their agents/producers, and their lenders 90 days before expiration of the policy. This notice will explain that the policies are ineligible for coverage outside of the SDF. (See agent, lender, and policyholder SDF Notification Letters on pages SRL 3–8.) Offers to renew will be issued by the SDF approximately 45 days prior to the expiration date.

III. RE-UNDERWRITING REQUIREMENTS

All SRL policies that have been transferred to the NFIP SDF and will renew on or after October 1, 2012, must be re-underwritten before they can be renewed.

The NFIP SDF will require a new Application, photographs of the front and rear of the building, Elevation Certificate if applicable, and any additional documents to ensure that policy information and rates are current and correct. This documentation will be needed at least 120 days prior to the expiration date. Policies will be processed and issued based upon current rates, zone, and map information, except for those properties meeting the NFIP grandfathering eligibility rules.

IV. DISPUTE RESOLUTION

The designation of a property as an SRL property is based on the data on file with the NFIP. If the policyholder believes that the claims history is inaccurate, or if the property has already been mitigated to reduce future flooding, the designation may be challenged.

When a policyholder has documentation that the NFIP-insured property has not sustained the losses reported, a request for review may be presented, in writing, to the NFIP Bureau. All documentation to substantiate the review must be included with the request letter. The policy will remain in the SDF during the review.

The policyholder and agent/producer will be notified of the results of the review. If the policyholder’s request for review is successful, and the policyholder requests that the policy be returned to the previous carrier, the SDF policy will be canceled and the full premium will be returned to the former carrier. Otherwise, the

SRL 1 APRIL 1, 2017

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL


I. General Information A Severe Repetitive Loss (SRL) designation applies to any NFIP-insured property after 1978, regardless of ownership, meeting at least one of the following paid flood loss criteria:

• Four or more separate claim payments where each of the payments is greater than $5,000 (including building and contents payments); or

• Two or more separate claim payments (building payments only) where the total payments exceed the current value of the property.

In either case, two of the claim payments must have occurred within 10 years of each other. Losses occurring at the same location within 10 days of each other count as one loss.

The loss history includes all owners of the property since 1978 or from the building’s construction, if it was built after 1978.

The writing company must transfer SRL policies to the Special Direct Facility (SDF) operated by NFIP Direct as they reach their renewal date. The NFIP monitors all transferred SRL policies located at the SDF for targeted mitigation actions.

SRL properties may obtain renewal or new business coverage only through the SDF. The agent of record remains in that capacity while the policy remains in the SDF.

II. New Business If the insurer determines a property to be an SRL property, the insurer must submit the completed application and the required documentation to the SDF at the following address:

NFIP Special Direct Facility P.O. Box 913111 Denver, CO 80291-3111

III. Notifcation Requirements A request to transfer a policy occurs when the NFIP identifies a property as meeting the SRL criteria.

• The NFIP notifies the Write Your Own (WYO) company at least 150 days prior to the policy expiration date.

• The company notifies the affected insured, agent, and lender 90 days before expiration of the policy. This notice explains that the policy must be written with the SDF. (See agent, lender, and insured SDF Notification Letters in this section.)

• The SDF issues a renewal offer for the SRL policy approximately 45 days prior to the expiration date.

I • 1



Guidance for Severe RepetitiveLoss Properties - Section 21



III. RE-UNDERWRITING REQUIREMENTS

IV. DISPUTE RESOLUTION

V. NEW BUSINESS SEVERE REPETITIVE LOSS PROPERTIES

VI. FLOOD MITIGATION ASSISTANCE AND SEVERE REPETITIVE LOSS GRANT PROGRAMS


I. General Information I.1

III. Notification Requirements I.1

IV. Underwriting Requirements I.2

V. Dispute Resolution I.2

II. New Business I.1

VI. Flood Mitigation Assistance Program I.3

End of Guidance For Severe Repetitive Loss Properties - Section 21














41

Guidance For Leased Federal Properties

GUIDANCE FOR LEASED FEDERAL PROPERTIES


In accordance with the provisions of the Flood Insurance Reform Act of 2004, Sec. 106, the Federal Emergency Management Agency (FEMA) will begin charging actuarial rates for a Leased Federal Property (LFP), which is any property leased from the Federal Government (including residential and non-residential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood-control structure, or seaward of any seawall or other coastal flood-control structure. A list of property addresses meeting this description has been provided to FEMA by the U.S. Army Corps of Engineers. Actuarial rates will apply to all new and renewal policies with effective dates on or after October 1, 2009, that meet these criteria.


The National Flood Insurance Program (NFIP) maintains a list of LFP addresses available only to insurers. The insurer must determine whether property addresses for new or existing business appear on this list. Policies that have an address match must be rated using actuarial rates in accordance with the procedures below.

The insurer must notify existing policyholders (and their agents/producers and lenders) at least 120 days before renewal that their property has been identified as being located on the river-facing side of any dike, levee, or other riverine flood-control structure, or seaward of any seawall or other coastal flood-control structure. The notice must include the requirement for such policies to be rated using actuarial rates. Sample notification letters have been provided at the end of this section that can be altered to work with a company’s billing cycle as necessary.

In order to establish the actuarial rate, the insurer must obtain a FEMA Elevation Certificate (EC), which provides current Flood Insurance Rate Map (FIRM) information and elevations. At least 2 photographs (front and back) of the building must also be submitted. If the EC is not received within 45 days from the date of notice, the renewal policy may be canceled or nullified, or it may be issued using tentative rates. Tentative rates use Risk Rating Method code “F,” which is part of the Transaction Record Reporting and Processing (TRRP) Plan.

The use of tentative rates must follow the established tentative rate procedure, which includes informing the parties of the missing information that prevents the policy from being rated actuarially. Additionally, the claim settlement procedure, when a tentatively rated property suffers a loss, must also be included in the

information presented with the tentative rates. Policies that are within the 120-day window prior to renewal will not receive the Leased Federal Property notice until the subsequent renewal.

III. TENTATIVE RATES

Tentative rates (see table on page LFP 2) are used to issue policies when agents/producers fail to provide the required full-risk rating information. Tentative rates are generally higher than other rates published in the manual. If the premium payment received is not sufficient to purchase the coverage limits requested, the policy will be issued with the coverage limits that can be purchased for the premium received, based on tentative rates.

When tentative rates are applied, a declarations page and a Tentative Rate Letter will be forwarded to the policyholder, agent/producer, and mortgagee (if any), requesting the necessary information so that the proper rate can be determined. Tentatively rated policies cannot be endorsed to increase coverage limits, or renewed for another policy term, until the required actuarial rating information and full premium payment are received.

If a loss occurs on a tentatively rated policy, the loss payment will be limited by the lower of the amount of coverage that the premium initially submitted will purchase (using the correct full-risk rating information), or the amount requested by application.

IV. APPEALS

The notice to policyholders must inform them that they can challenge their properties’ inclusion on the Leased Federal Properties list by submitting documentation refuting the information that placed them on the list. One example of acceptable documentation is a letter from a community official or land surveyor stating that the property is not located on the river-facing side of any dike, levee, or other riverine flood-control structure, or seaward of any seawall or other coastal flood-control structure. Another example is documentation showing that the insured, and not the Federal Government, owns the property. This information should be submitted to insurer, who will then process the request and forward it to FEMA for final review and determination. If FEMA approves the appeal, the property will be removed from the list and the building may continue to be rated as it was previously.

If the policyholder does not provide acceptable documentation, or the appeal has been denied, the

LFP 1 APRIL 1, 2017

OCTOBER 2018 NFIP FLOOD INSURANCE MANUAL G • 1

Appendix G: Leased Federal Properties

I. General Information The Federal Emergency Management Agency (FEMA) must charge full-risk rates for flood insurance for residential or non-residential properties leased from the Federal Government, referred to as Leased Federal Properties (LFPs), that the Administrator determines are located:

• On the river-facing side of any dike, levee, or other riverine flood-control structure; or

• Seaward of any seawall or other coastal flood-control structure.

The U.S. Army Corps of Engineers provides a list of property addresses meeting these criteria to FEMA.

II. Notifcation Requirements The National Flood Insurance Program (NFIP) maintains a list of LFP addresses, made available only to WYO insurers and the NFIP Direct. The insurer must determine whether property addresses for new or existing business appear on this list. Insurers must use full-risk rates for flood insurance policies with a matching address, in accordance with the procedures below.

• The insurer must notify existing insureds (and their agents and lenders) at least 120 days before renewal that their property is located on the river-facing side of any dike, levee, or other riverine flood-control structure, or seaward of any seawall or other coastal flood-control structure.

• The notice must include the requirement for such policies to be rated using full-risk rates. Insurers may modify the sample notification letters provided at the end of this section to coincide with the billing cycle of the company as necessary.

• To establish the full-risk rate, the insurer must obtain a FEMA Elevation Certificate (EC), which provides current Flood Insurance Rate Map (FIRM) information and the elevations of the building. The insurer must require at least two photographs (front and back) of the building.

• The insurer must cancel or nullify the renewal policy or issue the policy using tentative rates if the insurer does not receive the EC within 45 days from the date of the notice. Tentative rates use Risk Rating Method code “F” in the Transaction Record Reporting and Processing (TRRP) Plan.

• If using tentative rates, the insurer must follow the established tentative rate procedure (Refer to Tentative Rates in the How to Write section), which includes informing the parties of any missing information preventing full-risk rating of the policy. Additionally, the insurer must also include information on how the NFIP settles claims for a tentatively-rated property along with the tentative rate (Refer to the Rate Table Appendix).

• Policies within the 120-day window prior to renewal will not receive the LFP notice until the subsequent renewal.


Appendix G: Leased

Federal Properties


3. How to Write

Guidance For Leased Federal Properties - Section 22




III. TENTATIVE RATES


IV. APPEALS


I. General Information G.1

II. Notification Requirements G.1

3. How to Write



RATE TABLE 6. TENTATIVE RATES J.15


III. Appeals G.2

End of Guidance For Leased Federal Properties - Section 22


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42

Definitions

PROVISIONAL RATING








Elevations (BFEs).



III. REFORMATION


A. Limitations











PR 1 APRIL 1, 2017


Definitions - Section 23 Appendix L: Definitions

Appendix L: Definitions

End of Definitions - Section 23


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