The National Flood Insurance Program All things flood insurance

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1 The National Flood Insurance Program All things flood insurance Edie Lohmann FEMA Region IX NFIP Insurance Specialist Edie Lohmann September 18, 2012 Flooding California Style 1

2 Only 12% of people think their home is at risk for flooding Only 41% of people think their community is at risk from flooding 2

3 Federally Declared Disasters in California Earthquakes Floods 12% 50% Fires 15% Other 23% Where there are fires, there are floods 3

4 Where there are earthquakes, there could be floods Only 24% of people have talked to their insurance agent about flood insurance 4

5 Statistics show that only about 50% of structures in Special Flood Hazard Areas carry flood insurance Who needs flood insurance? 5

6 Who needs flood insurance when there are levees? Text Your Friends: Your Homeowners Policy Does Not Cover Floods! 6

7 More than half of all families have no disaster plan according to a 2011 survey by the National Center For Disaster Preparedness Educate & Encourage Flood Insurance Contact Your Local Insurance Agent 7

8 FloodSmart for Communities Community Rating System Class SFHA Discount Non- SFHA Discount 10 0% 0% 9 5% 5% 8 10% 5% 7 15% 5% 6 20% 10% 5 25% 10% 4 30% 10% 3 35% 10% 2 40% 10% 1 45% 10% 8

9 How Much Flood Insurance is Available? Residential Building Contents Building 250, ,000 Non-Residential Building Contents Building 500, ,000 How Much Does Flood Insurance Cost? Coverage Amount Flood Zone Building Design Building Age Location Elevation Cost Shopping 9

10 Preferred Risk Policy Save Money Low cost coverage for property owners and tenants located in NFIP participating communities Preferred Risk Policy Eligibility Extension Eligibility requirements apply Preferred Risk Policy Save Money Based on 1-4 Family Residential No Basement/Enclosure Coverage Preferred Risk Policy Premiums Oct. 1, 2012 Preferred Risk Policy Premiums Jan. 1, 2013 Standard B,C, X Zone Premiums Pre-Firm A & D Zone Premiums* 150,000 $322 $354 $807 $1, ,000 $353 $388 $927 $1, ,000 $376 $412 $1,046 $2,014 Rates as of 10/01/

11 Preferred Risk Policy Save Money Based on Non-Residential No Basement/Enclosure Coverage Preferred Risk Policy Premiums Oct. 1, 2013 Preferred Risk Policy Premiums Jan. 1, 2013 Standard B,C, X Zone Premiums Pre-Firm A & D Zone Premiums* 150,000 $929 $1,019 $1,663 $1, ,000 $1,295 $1,420 $2,038 $3, ,000 $1,567 $1,719 $2,537 $6,553 Rates as of 10/01/2012 The NFIP Future HR 5740 National Flood Insurance Program Extension Signed by the President on May 31, day short-term extension until July 31, 2012 Phase out of subsidized premium rates for nonprimary residences 11

12 HR 5740 Premium Comparison Pre-firm Non-Primary Residences Effective Jan 2013* Building Coverage Pre-firm A & D Zones Single Family Pre-Firm A & D Zones Single Family $250,000 $2,074 $2,242 $100,000 $874 $1,012 Rates reflect 25% increase as mandated in legislation HR 5740 Premium Comparison Pre-firm Non-Primary Residences Effective Jan 2013* Building Coverage Pre-firm V Zones Single Family 2012 Pre-Firm V Zones Single Family 2013 $250,000 $4,375 $4,886 $100,000 $1,480 $1,706 Rates reflect 25% increase as mandated in legislation 12

13 The NFIP Future HR 4348 Biggert-Waters Flood Insurance Reform Act Signed by the President July 6, 2012 Goal to make the NFIP more resilient, sustainable to include a comprehensive approach to flood risk management Under evaluation by FEMA team NFIP October 1, 2012 Manual Changes Average premium increases of 5% A Zones Post-firm A1-A30 and AE Zones: 2% Pre-firm AE Zones: 9% A0, AH, A0B, AHB Zones: 1% Unnumbered A Zones w/ no BFEs: 2% A99 and AR Zones: 5% 13

14 NFIP October 1, 2012 Manual Changes Average premium increases of 5% V Zones Post-firm V Zones: 8% Pre-firm V Zones: 10% X Zones: Standard Policy: 5% Preferred Risk Policy (PRP): 3% Mortgage Portfolio Protection Program (MPPP): 10% California At A Glance * Statistics as of: May 31, 2012 Total Policies 261,631 Total Written Premium $207,907,276 Average Premium $795 CA Total Flood Losses 44,573 Average Claim Pymt $11,144 Total Participating Communities 521 W2RHUDX2 NFIP Bureau & Statistical Agent 14

15 Pay Now or Pay Later! 15