national flood insurance program: the new fema guidelines

RHODE ISLAND EMERGENCY MANAGEMENT AGENCYRHODE ISLAND EMERGENCY MANAGEMENT AGENCY

National Flood Insurance Program (NFIP): The New FEMA Guidelines

Michelle F. Burnett, State Floodplain Coordinator

Jess Stimson, State Mapping Coordinator


• National Flood Insurance Act of 1968

– Established the NFIP

– Required mapping of flood-prone areas

– Made flood insurance available to all residents of communities that meet floodplain management requirements

– Afforded communities ability to obtain certain types of disaster assistance

National Flood Insurance Program Background


Rhode Island NFIP Facts• All 39 communities and 1 Tribe participate in the National

Flood Insurance Program (NFIP).

• Currently 16,123 policies in Rhode Island (Data as of Oct. 16, 2013)

– Bristol: 2,141– Kent : 2,439– Newport: 3,016– Providence: 2,668– Washington: 5,859

• Average RI Premium is $1,343/annually


The NFIP: How It Works


• Riverine• Flash• Coastal• Shallow

Types of flooding

RHODE ISLAND EMERGENCY MANAGEMENT AGENCY

FLOODPLAIN MAPPING


Why New Maps?

• There is a nationwide project underway to update the FEMA FIRMs. A combination of new data and outdated maps has propelled the project.

• The maps were created by a FEMA contractor, STARR, through extensive modeling using new transects, surveys and coastal analyses.


Projected Effective Dates

• Bristol County: May 16, 2014• Kent County: September 18, 2013• Newport County: September 4, 2013• Providence County: September 18, 2013• Washington County: October 16, 2013

• The preliminary maps will go effective county-wide on these dates.

• If communities want to remain in good standing with the NFIP (and they do), each impacted community will adopt the floodplain ordinance and corresponding panels.


Definitions

• Base Flood: Flood that has a 1% chance of being equaled or exceeded in any given year.

• Flood Insurance Rate Map (FIRM): An official map where FEMA has delineated the special flood hazard areas.

• Freeboard: An additional level of protection added above the Base Flood Elevation.

• Special Flood Hazard Area (SFHA): Areas subject to the Base Flood or greater in any given year. These areas include Zones A and V.


Definitions

• Pre-FIRM buildings for which construction or substantial improvements occurred on or before December 31, 1974, or before the effective date of an initial FIRM was issued.

• Post-FIRM buildings were built after initial FIRM. They have reduced risk of flooding and damage if they are compliant with the state and local floodplain regulations.

• http://www.fema.gov/cis/RI.html

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

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


Definitions of FEMA Flood Zones


Insurance and Mapping ToolsFEMA Map Service CenterFloodsmart

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

http://www.floodsmart.gov/


Digital Flood Insurance Rate Maps (DFIRMs)


ELEVATION CERTIFICATES


Elevation Certificates (ECs)


Elevation Certificates The NFIP requires communities to obtain lowest floor elevation information for newly constructed and

substantially improved buildings in the SFHA.

Required for rating buildings in A and V zones

Elevation Certificate certifies building elevations, but does NOT waive the flood insurance purchase requirement


Elevation Certificates


Elevation Certificates

The FEMA Elevation Certificate & Guidance

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

RI Department of Business Regulation, Licensed Design Professionals

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



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


FLOOD INSURANCE


Flood Insurance Facts

Standard homeowners insurance doesn't cover flooding.

Flood Insurance is required if you live in a Special Flood Hazard Area (SFHA) or high-risk area AND have a federally backed mortgage or other commitment (reverse mortgage, line of credit, etc.)

A lender can require flood insurance, even if a structure is NOT in the SFHA.

Flood insurance can be purchased through a local insurance agent.


Mandatory Purchase Requirement

Applies to buying, repairing, constructing or improving private and publicly owned buildings Secured mortgage loans from lenders regulated or insured by Federal agencies Lender determines if property is in SFHA Lender discretion if building is not in SFHA


Coverage

Obtained from local insurance agents Agents can sell “direct” policies through FEMA or Write Your Own (WYO)

companies that work with and agree to FEMA requirements and rates

Dwelling, General Property and Residential Condo Association are standard flood insurance policy types


How much insurance is available through the NFIP?

COMMERCIAL Building Contents$500,000 $500,000

RESIDENTIAL Building Contents$250,000 $100,000


Limitations

Insurance coverage limitations: In areas below the lowest elevated floor depending on the flood zone and date of construction In basements regardless of zone or date of construction


Rating Buildings Pre-FIRM

Rating based on building type and FIRM zone, not elevation

Pre-FIRM rates are/were considered “subsidized”.


Rating Buildings – Post FIRM

Post-FIRM rates are actuarial.

Based on building’s risk of flooding:

When BFE is available, rating is based on elevation of lowest floor in relation to the BFE.


FLOOD INSURANCE REFORM – BIGGERT WATERS 2012


Changes are Coming to the NFIP

• Congress passed the Flood Insurance Reform Act of 2012 (Biggert-Waters 2012), which will:– Make the NFIP more financially stable by raising rates on

certain classes of property to reflect true flood risk; and– Trigger rate changes for certain properties within a revised or

updated map area to accurately reflect the flood risk.• Intent is to eliminate subsidies for:

– Structures built prior to the first flood insurance map in a community (pre-FIRM)

– Policies based on the map in effect when structure was built (grandfathering)

• Artificially low rates and discounts no longer are sustainable.


Current & Upcoming Insurance Rate Changes


Direct Move to Full-Risk Rates After the purchase of a property

Subsidized rates cannot be assigned to the new owner

After a policy lapse When a new policy is issued

Policies for buildings uninsured as of the date that the law was passed (July 6, 2012)

If an offer to mitigate has been refused These changes started October 1, 2013


What about when a new flood map is adopted?

• If you live in a community which adopts a new, updated Flood Insurance Rate Map (FIRM) : – Charging of insurance premiums based on a prior

FIRM -- grandfathering -- will be phased out. • The Biggert-Waters Act Section 100207 calls for a phase-out

of grandfathering discounts for properties shown on Flood Insurance Rate Maps that are updated.

• But the pain is lessened somewhat, because new rates will be gradually phased in at 20% per year for five years

• Implementation anticipated in 2014.


Who Won’t Be Affected by Subsidy Changes?

Owners of primary residences in SFHAs will be able to keep their subsidized rates unless or until: You sell your property (new rates will be charged to

next owner if they insure); You allow your policy to lapse You suffer severe, repeated flood losses; or, You purchase a new policy (after July 6, 2012).


What Can Be Done to Lower Costs?


Community Rating System (CRS)

A voluntary NFIP program to recognize and encourage communities to go beyond the NFIP minimums in their local floodplain Management activities.

Communities in full compliance can apply CRS uses a class rating system which entitles residents in SFHAs to premium reductions


Benefits of CRS

• Reduced flood insurance rates• More risk awareness & education• Improved public safety

– less damage and $ losses• Better floodplain management• CRS training and technical assistance


Community Rating System (CRS)

• North Kingstown (Class 9 – 5%)• Middletown (Class 8 – 10%)• Narragansett (Class 8 – 10%)

• Bristol (Class 8 – 10%)• Westerly (Class 8 – 10%)


What You Need to Remember

• Many changes are coming to the Flood Insurance program• Congress acted to make program stronger financially.

• On many more policies, flood insurance rates will reflect full risk.

• Insurance rates will rise on some policies; and• There are specific actions which will trigger rate changes.

• Building or rebuilding higher can lower flood risk and could save money.

• FEMA can help communities lower flood risk and flood insurance premiums through:• Community Rating System program;• Various mitigation grants; and• Technical advice on building and rebuilding to mitigate future flood

damage.


Questions?

Michelle F. BurnettState Floodplain [email protected]

Jess StimsonState Mapping [email protected]

Contact Information:

national flood insurance program: the new fema guidelines

Education

flood insurance available

mapping of flood

rhode island data

base flood elevation

rhode island nfip facts

flood insurance rate

definitions base flood

special flood hazard