National Flood Insurance Program - H2O Partners

3/23/2015

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F E M A Mapping Changes

FEMA Mapping Changes

National Flood Insurance Program 1


Welcome to FEMA Mapping Changes!

We will get started in a few minutes. Meanwhile, let’s perform a warm up exercise.

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Training Agenda

Section 1- EVOLUTION of flood maps Section 2- PROCESS of flood mapping Section 3- RESOURCES for finding flood maps Section 4- BENEFITS of updated flood maps Section 5- IMPACTS of mapping changes Section 6- IMPLEMENTATION issues for agents and lenders

Section 7- CHALLENGES to the flood maps

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Section 1

EVOLUTION of flood maps

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Evolution

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FHBM FIRM DFIRM

How do we get to where we are going?


FEMA Mapping

Flood Hazard Boundary Map (FHBM)

Flood Insurance Rate Map (FIRM)

Digital Flood Insurance Rate Map (DFIRM)

Evolution

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FEMA Mapping

Evolution

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FEMA Map Modernization

FEMA Risk MAP


Section 2

PROCESS of flood mapping

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FEMA Mapping Changes

Process

Project Scoping or Discovery

• Initial Involvement

Data/Map Development

• Stakeholder Outreach

Preliminary Release • Stakeholder, Media & Public Outreach

Adoption • Stakeholder, Media & Public Outreach

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Processing the Process


Section 3

RESOURCES for finding flood maps

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Resources

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Don’t hesitate to be resourceful!


Flood Zone Designations

High Risk (SFHA)

• AE (replaces A1-A30)

• A, AH, AO, A99, AR

• VE (replaces V1-V30)

• V, VO

Moderate to Low Risk

• B, C, X

Resources

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Flood Zone Designations

Resources

100-Year Floodplain

• “…1-percent chance of being flooded in any given year (base flood).”

• At least 26% chance of flooding over a 30 year mortgage

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Finding FEMA Map Changes

Resources For Finding Map Changes

Map Service Center www.msc.fema.gov

FloodSmart website www.floodsmart.gov

Community Status Book* Click Here

*Community Status Book

https://www.fema.gov/national-flood-insurance-program/national-flood-insurance-program-community-status-book

Resources

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http://www.msc.fema.gov/

http://www.floodsmart.gov/


























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www.msc.fema.gov

Visit the Map Service Center

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FEMA Map Service Center

Resources

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Resources

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Resources

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Flood Insurance Rate Map



Resources

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“FIRMETTE”

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Resources

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Resources

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Resources

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Resources

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Resources

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Resources

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Resources

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Locating Historic Flood Maps

Resources

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Resources

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Resources

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Resources

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Resources

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www.floodsmart.gov

Resources

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www.floodsmart.gov

Resources

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www.floodsmart.gov

Resources

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www.floodsmart.gov

Resources

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www.floodsmart.gov

Topic 1: The National Flood Insurance Program

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www.floodsmart.gov

Topic 1: The National Flood Insurance Program

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Resources

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Community Status Book

Resources

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Resources

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Pre-FIRM Built before initial FIRM

or

On or before 12/31/1974

Post-FIRM On or After the initial FIRM

or

After 12/31/1974 . . .

whichever is LATER

Defining Pre-FIRM and Post-FIRM

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Resources

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Section 4

BENEFITS of updated flood maps

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Each new benefit is more beneficial than the one before. Benefits

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Risk

Identity Accuracy Informed Decisions

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Insurance Benefits of New Maps

• Identifies current flood hazard risks

• Better delineates Base Flood Elevations (BFEs)

• Provides for more accurate rating

• Allows property owners to make more informed decisions

Benefits

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Benefits

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SFHAs appear as dark shading on a Flood Insurance Rate Map (FIRM).

../floodpicx.ppt#11. No Slide Title

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Benefits

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SFHAs appear as aqua dotted area on the Digital Flood Insurance Rate Map (DFIRM).


Section 5

IMPACTS of mapping changes

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Every flood makes a big impact…on someone.

Impacts

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Properties Moving into Special Flood Hazard Areas

Mandatory Purchase of Flood Insurance Required?

Impacts

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Enter SFHA

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Properties Removed From Special Flood Hazard Areas

Eligible for Low-Cost Preferred Risk Policy

Impacts

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Exit SFHA


Mapped “In”

• Flood risk increased

• More structures in floodplain

• Mandatory purchase of flood insurance

Mapped “Out”

• Flood risk reduced

• Risk not eliminated

• Low-cost preferred risk coverage available – Keep coverage

– Lower cost

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Impacts

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What is a Preferred Risk Policy (PRP)?

• Low-Cost Flood Policy

• B, C & X Zones

• Building/Contents Combinations

• Loss eligibility

Impacts

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Premium Comparisons*

$200,000 Bldg $80,000 Contents

Pre-FIRM AE Zone $3,321

Post-FIRM +1 AE Zone $945

Standard X Zone $1,908

PRP in B, C, X zone $405

* Single family, one floor, no basement, minimum deductible (4/1/15 rates)


Section 6

IMPLEMENTATION issues for stakeholders

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Making it all work together

Implementation

Agent

Lender

Property Owner

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Insurance Agent Implementation Issues

Importance of identifying properties affected by map change

Significance of understanding rating options available

Rating options that may apply:

• Grandfather rating rules

• Newly Mapped Procedure

Implementation

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Rating Options Following a Map Revision Implementation

4/01/2015

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PRP ELIGIBILITY EXTENSION

10/01/2008 until further notice

NEWLY MAPPED PROCEDURE

RULES

GRANDFATHER RATING


Grandfathering

Allows premium benefits after

• Changes in map zones

• Changes to compliance standards

May provide legitimate reason for zone discrepancies on policy declarations page

Implementation

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Grandfathering

Allows a property owner to:

“Lock” in a previous Flood Zone

“Lock” in a previous Base Flood Elevation

Implementation

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Grandfathering – Continuous Coverage

For policy in effect prior to map change date, maintain prior zone and BFE

Coverage must be continuous

Implementation

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Grandfathering – Built In Compliance

If building was constructed in compliance with a specific FIRM, use that map’s zone and BFE

Submit proof to carrier

Continuous coverage not required

Implementation

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Rating Options Following a Map Revision Implementation

4/01/2015

PRP ELIGIBILITY EXTENSION

10/01/2008 until further notice

NEWLY MAPPED PROCEDURE

RULES

GRANDFATHER RATING

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F E M A M a p p i n g C h a n g e s

Newly Mapped Procedure

Effective April 1, 2015

• PRP Eligibility Extension transitioned to Newly Mapped Procedure

• Properties newly mapped into SFHA receive a “preferred risk premium” for first year after map revision

• Identical to the Preferred Risk Policy premium before application of:

Reserve Fund Assessment

Federal Policy Fee

• After first year, policies transition to full-risk rates via premium increases subject to the 18% limitation

Implementation

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Newly Mapped on or after April 1, 2015

• Eligible for Newly Mapped Procedure…

If coverage obtained within 12 months of map revision

“Preferred risk premium” first year

• Not eligible for Newly Mapped Procedure…

If coverage not obtained within 12 months of map change

Only eligible for grandfathering to zone and/or BFE in effect at time of construction

Implementation

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NOTE: All Properties must meet Preferred Risk Policy loss requirements to be eligible for


Within 12 months of map revision

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Newly Mapped between: October 1, 2008 and March 31, 2015

• Eligible for Newly Mapped Procedure…

If coverage obtained before April 1, 2016

Properties eligible under the PRP Eligibility Extension (PRPEE)

• Policies issued under PRPEE before 4/1/15:

Renew under Newly Mapped Procedure on first effective date on or after April 1, 2015

Implementation

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NOTE: All Properties must meet Preferred Risk Policy loss requirements to be eligible for


Oct 1, 2008

Mar 31, 2015

Newly Mapped between

BEFORE Apr 1, 2016

Coverage must be purchased

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Lending Community Issues

How do lenders know maps have changed?

• Portfolio reviews – required?

• Life of loan flood zone determinations

Process for requiring flood insurance

• Borrower notification – 45 day letter

• Force Placement

Implementation

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Lending Community Issues

What happens once the policy arrives?

• Lender verifies compliance issues

• Resolves flood zone discrepancies

What is a flood zone discrepancy?

• Lender determination and policy declaration have different flood zones

• SFHA vs. Non-SFHA discrepancies

• Unless Grandfather Rating Rules or Newly Mapped Procedure apply

Implementation

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Flood Zones on Declarations Pages

Current Flood Zone – flood zone of property on current (revised) Flood Insurance Rate Map (FIRM)

Flood Risk/Rated Zone – flood zone from the previous map used to rate policy

Lenders are not required to investigate or resolve differences between Current Flood Zone and Flood Risk/Rated Zone

Implementation

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Current Zone/Rated Zone

Implementation

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Section 7

CHALLENGES to the flood maps

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What happens when we all can’t agree?

Challenges

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Letters of Map Change (LOMC)

Challenges

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Letter of Determination Review (LODR)

• Lender and borrower must jointly request

• 45-day window to request

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Riverside Road

River

AE

AE

AE

LODR - Letter of Determination Review


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Riverside Road

River

AE

AE

AE

LODR - Letter of Determination Review

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Challenges

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Letter of Map Amendment (LOMA)

• Single structure, single lot

www.fema.gov/online-lomc


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LOMA - Letter of Map Amendment

http://www.fema.gov/online-lomc



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Challenges

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Letter of Map Revision (LOMR)

• Multiple structures/lots

• LOMR-F - based on fill


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LOMR - Letter of Map Revision

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Challenges

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LOMAs, SOMAs, and so on…

• LOMA “Out as Shown”


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Riverside Road

AE

AE

AE

River

LOMA – “Out as Shown”

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Riverside Road

AE

AE

AE

River

LOMA – “Out as Shown”


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Challenges

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• LOMAs, SOMAs, and so on…

LOMA “Out as Shown”

SOMA – Summary of Map Action

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SOMA – Summary of Map Action

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Challenges

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Contact FEMA Mapping Specialist at

877-336-2627




Letter of Map Amendment(LOMA)





LOMAs, SOMAs, and so on…

• LOMA “Out as Shown”

• SOMA – Summary of Map Action

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Overview of Resources

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• NFIP Flood Manual

• Community Status Book

www.fema.gov

• FIRMettes for Documentation

• Current Effective Maps/Historic Maps

• FEMA Map Information eXchange (FMIX) 1-877-336-2627

www.msc.fema.gov

• Flood Map Update Schedule

• Understanding Flood Maps

www.floodsmart.gov

• WYO Companies

• NFIP Direct Servicing Agent

Other Resources

F E M A N F I P Agent Tr a i n i n g P r o g r a m

All attendees will be receiving an email with a link to an evaluation and feedback form.

Please take time to complete and help us improve our training effort!

THANKS

Evaluations - Online

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www.nfipiservice.com/training

Melanie Graham [email protected]

Dorothy Martinez [email protected]

Rich Slevin [email protected]

Sonja Wood [email protected]

Rich Waalkes [email protected]

Aaron Montanez [email protected]

Training Information

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http://www.twitter.com/nfiptraining

http://www.nfipiservice.com/training

http://www.nfipiservice.com/training

mailto:[email protected]








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Documents

National Flood Insurance Program - H2O Partners