Few Reminders. 1. We will begin promptly at 2:00 pm Central time. See below for your time zone:

Transcription

1 Few Reminders 1. We will begin promptly at 2:00 pm Central time. See below for your time zone: 12:00 pm (Pacific) 1:00 pm (Mountain) 2:00 pm (Central) 3:00 pm (Eastern) 2. To listen to the audio portion of this webinar, Dial and enter the #. 3. As you join the web conference, please mute your phones. Use your phone s mute button or press *6. To un-mute press *6 again. Please do not place your phone on hold. (music while on hold will disrupt the web conference) 4. Once the session begins, all lines will be muted to reduce background noise.

2 WebEx Tips

3 Meet today s trainers! F E M A N F I P Two-Year PRP Eligibility Extension GeoLearning/H2O Partners NFIP Training Before we get started, let s perform a warm up exercise. Rich Slevin Dorothy Martinez You all have some questions flashed on your screens. Attempt all the questions and click Submit.

4 The Preferred Risk Policy (PRP) The Two-year Eligibility Extension

5 Section 1 Training Overview

6 Training Objectives After completing this training, participants will be able to: Describe the Goals and Benefits of the Preferred Risk Policy Eligibility Extension Explain how the Preferred Risk Policy Eligibility Extension works Understand the required documentation Identify who determines eligible property owners Find available resources The duration of the training program is 1.5 hrs.

7 NFIP Flood Insurance Manual Online at the Flood Insurance Library: Hard copy can be obtained from: FEMA Map Service Center P.O. Box 1038 Jessup Maryland (877)

8 Training Agenda Section 1- Training Overview Section 2- Defining Terms Section 3- Goals and Benefits of the PRP Extension Section 4- PRP Eligibility Extension Section 5- Case Studies Section 6- Required Documentation Section 7- Who Determines Eligible Property Section 8- Resources

9 Section 2 Defining some terms

10 Before we get started LET S DEFINE SOME TERMS F E M A N F I P Two-Year PRP Eligibility Extension Preferred Risk Policy (PRP) Pre-FIRM and Post-FIRM Map Grandfather Rules 10

11 What is a Preferred Risk Policy (PRP)? Low Cost Flood Insurance Owners and Tenants Eligible Residential or Non Residential buildings Located in Moderate to Low Risk Zones Zones B, C and X 11

12 What is a Preferred Risk Policy (PRP)? Loss History Requirements 2 claims or disaster relief payments for flood of $1,000 or more* Ineligible for PRP 3 claims or disaster relief payments for flood of any amount* - Ineligible for PRP *within any 10-year period regardless of building ownership 12

13 Coverage F E M A N F I P Two-Year PRP Eligibility Extension What is a Preferred Risk Policy (PRP)? $129 for $20,000 in building and $8,000 in contents $405 for $250,000 building and $100,000 contents $323 to $1,635 - Standard X-Zone rated policy. $49 - Residential tenant/renter for $8,000 in contents only 13

14 Poll Question How many Preferred Risk Policies (PRP) have you written in the past month? a. None b. Less than 10 c. 10 or more d. What is a PRP? 14

15 Before we get started LET S DEFINE SOME TERMS F E M A N F I P Two-Year PRP Eligibility Extension Preferred Risk Policy (PRP) Pre-FIRM and Post-FIRM Map Grandfather Rules 15

16 Defining Pre-FIRM and Post-FIRM Pre-FIRM Post-FIRM Built before initial FIRM or On or before 12/31/1974 On or After the initial FIRM or After 12/31/1974 whichever is LATER

17 Before we get started LET S DEFINE SOME TERMS F E M A N F I P Two-Year PRP Eligibility Extension Preferred Risk Policy (PRP) Pre-FIRM and Post-FIRM Map Grandfather Rules 17

18 Map Grandfather Rules BENEFIT OPTIONS*: F E M A N F I P Two-Year PRP Eligibility Extension Use the current rating criteria for that property; or Have the premium rate determined by: the BFE and/or flood zone on the FIRM (old map) in effect when the building was originally constructed (for those built in compliance); or when coverage was first obtained (for those with continuous coverage) *FI Manual, page RATE 22

19 Section 3 Goals and Benefits of the PRP Extension

20 Goal To ease the financial burden on property owners whose buildings have been newly remapped to a Special Flood Hazard Zone and allow time to prepare and plan for the added cost. 20

21 Why the Extension Before 2003, 70% of flood maps were at least 10 years old In 2003, Congress created the Flood Map Modernization program Many property owners are now in high-risk areas For buildings newly included in SFHAs after map revisions, lenders are requiring the purchase flood insurance FEMA recognizes the financial burden 21

22 Benefits Provides temporary financial relief F E M A N F I P Two-Year PRP Eligibility Extension Additional time to prepare for standard rates A PRP policy for a home without a basement is $343 for $200,000 in building and $80,000 in contents A standard-rated policy in an X zone is more than $1,400 for a savings of more than $1,000+ a year Even more if rated in a high-risk flood zone ( A & V zones) Provides more time for the communities to upgrade or mitigate flood control structures to meet FEMA standards and reduce the flood risk and financial impact. 22

23 Section 4 PRP Eligibility Extension

24 Two-Year PRP Eligibility Extension 1st Window of Opportunity Buildings that were newly designated within an SFHA due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible for a PRP for 2 policy years. 24

25 PRP Extension Policy Eligibility Date of the Effective Map between 10/1/08 before 1/1/11 10/1/08 Eligible Maps Effective Date 1/1/11 PRP Rule Effective Date Buildings Eligible for PRP Extension 2 Policy Years Until 12/31/12 Eligible for 2 Policy Years Starting 1/1/11 until 12/31/12 25

26 Two-Year PRP Eligibility Extension 2 nd Window of Opportunity Buildings that are newly designated within an SFHA due to a map revision on or after January 1, 2011, will be eligible for a PRP for 2 policy years from the effective date of the map revision. 26

27 PRP Extension Policy Eligibility Date of the Effective Map on or after 1/1/11 1/1/11 PRP Rule Effective Date /1/11 2 Policy Years Eligible for 2 Policy Years 27

28 Section 5 Case Studies

29 Let s see how this applies F E M A N F I P Two-Year PRP Eligibility Extension Map Effective Date Policy Effective Date PRP Eligibility Rules Is this building eligible? 29

30 Case Study 1 On 6/15/10, Mary A. Wash purchased a flood insurance policy for the first time as a result of her lender s requirement following a map change effective 5/1/10 that put her home into a SFHA. When her policy comes up for renewal on 6/15/11, is she eligible for the PRP extension? a. Yes b. No 30

31 New Purchase Policyholder : Mary A. Wash Bldg-$200,000, Contents $80,000 5/1/10 Map Effective Date 1/1/11 PRP Rule Effective Date Standard X Zone Policy (Grandfathered) PRP Policy 2 Years $1439 $343 $343 Standard X Zone Policy (Grandfather option) $1439 Zone X Zone AE 6/15/10 Policy Date 6/15/11 Renewal Date 6/15/12 Renewal Date 6/15/13 End of PRP Extension 31

32 Case Study 2 Will Flood purchased a policy on his home just before the map changed in his community on 12/2/09. Since he purchased the policy while he was still in Zone X, he was eligible for a PRP. His initial policy was effective 11/15/09. On the 12/2/09 map revision, his house was placed into zone AE. When his policy comes up for renewal on 11/15/10, is he eligible to continue his PRP under the PRP extension? a. YES b. NO 32

33 Existing PRP EXAMPLE : Will Flood Bldg-$200,000, Contents $80,000 12/2/09 Map Effective Date 1/1/11 PRP Rule Effective Date Zone X PRP Policy Standard X Zone (Grandfathered) $343 $1439 $343 $343 1/1/11 Zone AE PRP Policy 2 Years Standard X Zone $ /15/09 Policy Date 11/15/10 Renewal Date 11/15/11 Renewal Date 11/15/12 Renewal Date 11/15/13 End of PRP Extension 33

34 Case Study 3 Sorry Charlie wants to buy a PRP for his building. He has a Standard A Zone Policy as a result of a Map Change on 5/1/08 that put his building into a SFHA. Now he wants it converted to a PRP on the 5/1/11 renewal date which is the first renewal date after the rule change on 1/1/11. Is this building Eligible? a. YES b. NO 34

35 PRP Extension Eligibility EXAMPLE : Sorry Charlie Standard A Zone Policy 10/1/08 5/1/08 Map Eligible Maps Effective Effective Date Date 1/1/11 PRP Rule Effective Date Standard A Zone Policy 5/1/08 Policy Date 5/1/09 Renewal Date 5/1/10 Renewal Date 5/1/11 Renewal Date 35

36 Key Points to Remember Must meet PRP Loss Eligibility Requirements See FI Manual, page PRP 1 (Effective 1/1/2011) Eligible structures may be renewed as standard-rated policies at the end of the 2-year eligibility See FI Manual, pages Rate (Oct 2010 edition) 36

37 Key Points to Remember (cont d) A new policy effective during the 2nd year of the extension period will receive only one year of PRP eligibility See FI Manual, page PRP 6 (Oct 2010 edition) No Policy Refunds prior to 01/11/2011 unless policy issued in error See FI Manual, page PRP 6 (Oct 2010 edition) 37

38 Poll Question This building has a PRP policy. It also will be moving into a V zone as the result of a Map change on Sept 22, It has three previous flood claims. Is this Building Eligible? a. Yes b. No 38

39 Section 6 Required Documentation

40 Required Documentation F E M A N F I P Two-Year PRP Eligibility Extension Acceptable forms of documentation for the current and prior map information include: A Letter of Map Amendment (LOMA) A Letter of Map Revision (LOMR) A Letter of Determination Review (LODR) A copy of flood map marked to show the location and flood zone of the building A signed and dated letter from a local community official indicating the address, flood zone, map panel and map effective date 40

41 Required Documentation F E M A N F I P Two-Year PRP Eligibility Extension Acceptable forms of documentation for the current and prior map information include: An Elevation Certificate (EC), indicating the address and flood zone of the building, that is signed and dated by a surveyor, engineer, architect, or local community official A flood zone determination certification that guarantees the accuracy of the information A FIRMette produced on the FEMA Map Service Center web site that shows the flood zone of the building on the map in effect immediately prior to the current effective map. Ask your WYO Company 41

42 Section 7 Who determines eligibility

43 Determining Eligible Property Holders NFIP and WYOs will attempt to identify all eligible policyholders in communities with new maps that are effective 10/1/2008 or later. WYO Companies will be sending out letters 90 days prior to Policy renewal to all Policyholders identified by them as being eligible. 43

44 Section 8 Resources

45 Where can I find out if a Map in my Community has changed? Community Status List Local Community Official 45

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48 Where can I find out if a Map in my Community has changed? Community Status List Local Community Official 48

49 Where Can I find Flood Maps? FEMA s Map Service Center 49

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57 Where Can I find Historic Flood Maps? FEMA s Map Service Center 57

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62 Resources NFIP Flood Manual Community Status Book FIRMettes for Documentation Current Effective Maps Historical Maps FEMA Map Information exchange (FMIX) Agent Talking Points Other Resources Your WYO Company WYO Bulletin W at 62

63 Poll Question Where can I get more information about the PRP Extension? a. My WYO Company b. NFIP Flood Insurance Manual c. FloodSmart ( d. WYO Bulletins ( e. All of the Above 63

64 Agent Training Melanie Graham Dorothy Martinez Rich Slevin Sonja Wood 64

65 Evaluations - Online F E M A N F I P Two-Year PRP Eligibility Extension All attendees will be receiving an with a link to a survey and feedback form. Please Take Time to complete and help us improve our training effort! THANKS 65

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