LFMA Conference April 2008 Dorothy Martinez, CFM NFIP Region VI (CSC)

Transcription

1 National Flood Insurance Program LFMA Conference April 2008 Dorothy Martinez, CFM NFIP Region VI (CSC)

2 How will a new map affect flood insurance rates?

3

4 Map Grandfather Rule Allows a property owner to: 1. Lock in an old flood zone 2. Lock in an old Base Flood Elevation

5 Preferred Risk vs. Standard Preferred Risk Rates- Must be in Zone B, C, or X at time of application AND each subsequent renewal* Limited loss history Standard Rates- Rate Tables provided in Flood Insurance Manual Risks not eligible for Preferred Risk Policy NOTE: *A building which becomes ineligible for PRP due to a zone change will renew using Standard Rates. However, the old zone can still be locked in using zones B, C, or X.

6 How to Lock in your current Zone or BFE before a map revision 1. Which structures can benefit? All structures! 2. Purchase flood insurance BEFORE the map revision 3. Maintain continuous coverage 4. Policy can be assigned to a new owner

7 Zone X in 2000 Pre-FIRM Building $296 PRP

8 Zone AE in (Preliminary) June 18, 2007 ZONE AE Grandfathered: $296 PRP PRP (1 (1 st st year) $1,092 SFIP-X (yr (yr 2-3) 2-3) $2,480 in in 3 years Not Grandfathered: $1,865 SFIP (AE (AE Zone) $5,595 in in 3 years

9 Is Zone X always the best rate? Example*: X zone vs. AE zone Locked X Zone: New AE Zone (+2): $296 PRP (1st year) $1,092 SFIP-X (yr 2 & 3) $2,480 in 3 years $296 PRP (1 st year) $489 SFIP (yr 2 & 3) $1,274 in 3 years *$200,000 building/$80,000 contents; May 2007 rates *$200,000 building/$80,000 contents; May 2007 rates

10 Sometimes X Zone IS the best rate! Example*: X zone vs. AE zone Locked X Zone: New AE Zone (at BFE): $296 PRP (1st year) $1,092 SFIP-X (yr 2 & 3) $2,480 in 3 years $296 PRP (1st year) $1157 SFIP (yr 2 & 3) $2610 in 3 years *$200,000 building/$80,000 contents; May 2007 rates *$200,000 building/$80,000 contents; May 2007 rates

11 How to Lock in your OLD flood zone after a map revision Second Chance Option Which structures can benefit? Primarily applies to Post- FIRM structures (built after initial FIRM in the community) Provide your insurance agent either: a copy of OLD flood map showing OLD zone to insurance agent (at time of construction) Letter from local community official Note: Continuous Coverage is NOT required

12 Lock in Before or After? Locked in X Zone BEFORE map revision: Locked in X Zone AFTER map revision: $296* PRP (1st year) $1,092* SFIP-X (yr 2 & 3) $2,480 in 3 years REMEMBER that Zone X may not be the best rate! $1092* SFIP (1 st year) $1092* SFIP (yr 2 & 3) $3,276 in 3 years New AE Zone (+2): $489* SFIP (1 st year) $489* SFIP (yr 2 & 3) $1,467 in 3 years *$200,000 building/$80,000 contents; May 2007 rates

13 How to Lock in your OLD Base Flood Elevation 1. Which structures can benefit? Those built in compliance at the time of construction. 2. Use BFE that provides best rate 3. Provide your insurance agent (one of the following): Old map showing BFE Letter from community official Elevation Certificate

14 Base Flood Elevation --76 feet above BFE Approx $665

15 New Base Flood Elevation feet -1-1 below BFE Approx $4,632

16 Lock in Old BFE Example*: OLD BFE vs. Current Locked Old BFE (+1): Use current BFE (-1): $665 SFIP (3 years) $1,995 in 3 years $4,632 (3 years) $13,896 in 3 years *$200,000 building/$80,000 contents; May 2007 rates

17 Grandfathering Summary Pre-FIRM Buildings One Chance to lock current zone or current BFE Purchase flood insurance before the maps become effective Post-FIRM Buildings Two Chances to lock in OLD zone or BFE Purchase flood insurance before the maps become effective Obtain proof that the building was built in compliance at the time it was constructed Remember: Sometimes the rate is better using the new maps; both options should be checked!

18 Resources Consumer/Agent Site Map Service Center (including historic maps): Insurance-Related Outreach Toolkit Flood Insurance Manual (RATE page 21)

19