Ignoring Flood Insurance Equals an E & O Exposure

Transcription

1 Ignoring Flood Insurance Equals an E & O Exposure Picture Courtesy of FEMA Photo Library

2 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Introduction of the National Flood Insurance Program National Flood Insurance Program The National Flood Insurance Program was established by the National Flood Insurance Act of 1968, in response to Congress finding that: Flooding disasters require unforeseen disaster relief and placed an increased burden on the nation s resources. The installation of the flood preventive and protective measures designed to reduce flood losses had not been sufficient. The Federal Emergency Management Website is The National Flood Insurance Website is The Write Your Own Program The Write Your Own Program begun in 1983 The WYO is cooperative undertaking of FEMA and the private insurance industry. The WYO operates within the context of the NFIP and is subject to its rules and regulations. WYO allows participating property and casualty insurance companies to write and service federal flood insurance in their own names. Community Participation Participating (Eligible) Communities Flood Insurance can only be written in communities that have been designated as participating in the National Flood Insurance Program (NFIP) by the Federal Emergency Management Agency (FEMA) Emergency Program is the initial phase of the community s participation in the NFIP. Limited amounts of coverage are available Regular Program is the final phase of the community s participation in the NFIP, and full limits of coverage are available. Community Rating System is a voluntary program for the NFIP participating communities. The goals of the CRS are to reduce flood losses, to facilitate accurate insurance rating and to promote awareness of flood insurance Building Property Eligibility Eligible Buildings Insurance may be written only on a structure with two or more outside rigid walls and a fully secure roof that is affixed to a permanent site. Buildings must resist flotation, collapse, lateral movement and at least 51% of the actual cash value of the buildings including machinery & equipment which is part of the building must be above ground level. Detached Garages Manufactured (Mobile) Homes/Travel Trailers Silos, Grain Storage Buildings & Cisterns Who Needs Flood Insurance? Mandatory Purchase of Flood Insurance In High Hazard Areas Recommended in Moderate and Low Flood Risk Zones Why Flood Insurance is Better than Disaster Assistance Buildings Entirely Over Water prior to October 1, 1982 Buildings Partially Over Water Buildings in Course of Construction Agent Resources Flood Agent Training through the NFIP contractor can be found at Flood Insurance Manuals can be purchase at under Product Catalog or viewed on line at 10/13 2/38

3 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Flood Insurance Rate Maps Flood Hazard Boundary Map (FHBM) is the initial map of a community issued by FEMA, where the boundaries of the flood, mudflow, and related erosion areas having special hazards have been designated. Flood Insurance Rate Map (FIRM) is the official map of a community on which FEMA has delineated both the special hazard areas and the risk premium zones applicable to the community. Pre-FIRM or Post-FIRM Pre-FIRM is a building for which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial Flood Insurance Rate Map (FIRM). Post-FIRM is a building for which construction or substantial improvement occurred after December 31, 1974, or on or after the effective date of an initial Flood Insurance Rate Map, whichever is later. If you are writing a manufactured (mobile) home to determine the date you use either the date of the mobile home park or if set on private property the date the home was placed on that private property. Flood Zones Special Flood Hazard Areas (High Hazard): are areas having special flood, mudflow, or flood-related erosion hazards, and shown on a Flood Hazard Boundary Map or Flood Insurance Rate Map as zone A, AO, A1-A30, AE, A99, AH, AR, AR/A, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, OR V. Non-Special Flood Hazard Areas (Low Hazard): are areas of moderate or minimal hazard subject to flooding from severe storm activity or local drainage problems. Zone X is the designation for B and C zones and is used in place of these zones on the maps. Zone D is also included as a Non-SFHA. Base Flood Elevation (BFE) is the elevation shown on the Flood Insurance Rate Map for Zones AE, AH, A1- A30, AR, AR/A, AR/AE, AR/ A1-A30, AR/AH, AR, V1-V30 and VE that indicates the water surface elevation resulting from a flood that has a one percent chance of equaling or exceeding that level in any given year. Zone Determinations are completed by companies for banks and insurance companies that write National Flood Insurance Policies Coastal Barrier Resources Systems (CBRA) and Other Protected Areas (OPA) The legislation was implemented as part of a Department of Interior initiative to minimize loss of human life by discouraging development in high-risk areas, reduce wasteful expenditures of federal resources and preserves the ecological integrity of areas Congress designates as CBRS and OPA. 10/13 3/38

4 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Grandfathering Grandfathering in the National Flood Insurance Program is used to recognize policyholders who have built in compliance with the Flood Insurance Rate Map (FIRM) and/or remained loyal customers of the National Flood Insurance Program (NFIP). The rules allow the policy holder to benefit in the rating of the building. Types of Grandfathering Built in Compliance Buildings that are built in compliance with the FIRM in effect at the time of the construction are eligible for grandfathering. The insured has the option of using the current rating criteria for that property or having the premium rate determined by using the BFE and/or Flood zone on the FIRM (old map) in effect when the building was originally constructed. For Elevated buildings, the lowest finished floor must be at or above the BFE. The enclosures must be unfinished and used solely for parking, storage, or building access. A zones, proper openings are required V zones, the enclosures must be constructed with breakaway walls. Continuous Coverage Policyholders who have remained loyal customers of the NFIP by maintaining continuous coverage (since coverage was first obtained on the building) are eligible for grandfathering rules. This will result in a cost savings to insured s when the new map resulting for a map revision would result in a higher premium rate. How does my date of construction work with Grandfathering? Pre-FIRM buildings under the new rules effective October 01, 2013 grandfathering for Pre-FIRM will no longer be available. Post-FIRM buildings a building that was built after the community entered the NFIP and there was a flood map in effect to determine zone and/or base flood elevation is eligible for continuous coverage or for built in compliance grandfathering. Documentation Needed for Renewals & New Business Applications Renewal Conversions can be moved from one WYO company or NFIP direct to another WYO company or NFIP direct provided the following documentation is submitted at time of application: The immediate prior year s policy declaration page from the previous WYO Company will be required at time of application. New Business Applications that are using grandfathering will require the following information built in compliance. A copy of the map panel showing the panel number, date of the FIRM, the flood zone, BFE, and the exact location of the building on the panel. A letter from a community official with the property address, map panel number, date of the FIRM, the flood zone, and BFE. For buildings that were/are located in Special Flood Hazard Areas an elevation certificate (EC) that was completed at the time of finished construction, provided the EC reflects the panel number, date of the FIRM, flood zone, and BFE at the time. A current EC with a comment from the surveyor indicating the grandfathering information (panel number, date of FIRM, flood zone, and BFE). 10/13 4/38

5 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Policies and Products Available SFIP Policy Form Dwelling Form Issued to homeowner, residential renter, or owner of residential building containing two to four units General Property Form Issued to owner of residential building with five or more units. General Property Form Issued to owner or Lessee of nonresidential building or unit. Residential Condominium Building Association Policy (RCBAP) Issued to residential condominium association on behalf of association and unit owners. Eligibility In NFIP Regular Program community of Emergency Program community, provides building and/or contents coverage for: Detached, single-family, non-condominium residence with incidental occupancy limited to less than 50% of the total floor area; Two to four family, non-condominium building with incidental occupancy limited to less than 25% of the total floor area; Dwelling unit in residential condominium building; Residential townhouse/rowhouse In NFIP Regular Program community or Emergency Program Community, provides building and/or contents coverage for these and similar other residential risks: Hotel or motel with normal guest occupancy of 6 months or more; Tourist home or rooming house with five or more lodgers; Apartment building; Residential cooperative building; Dormitory Assisted-living facility In NFIP Regular Program community or Emergency Program community, provides building coverage and/or contents coverage for these and similar non-residential risks: Hotel or Motel with normal guest occupancy of less than 6 months; License bed and breakfast inn; Retail shops, restaurant, or other business; Mercantile building; Grain bin, silo, or other farm building; Agricultural or industrial processing facility; Factory; Warehouse; Poolhouse, clubhouse, or other recreational building House of worship; School; Nursing home; Non-residential condominium; Condominium building with less than 75% of its total floor area in residential use; Detached garage; Tool Shed; Stock, Inventory, or other commercial contents. In NFIP Regular Program community only, provides building coverage and, if desired, coverage of commonly owned contents for residential condominium building with 75% or more of its total floor area is residential use. Products Available Preferred Risk Policy (PRP) see additional pages Mortgage Portfolio Protection Program (MPPP) offers a force placed policy available only through a Write Your Own Company. Used by banks when the insured does not purchase coverage. Group Flood Insurance is issued by the NFIP Direct Program in response to a Presidential Disaster declaration. 10/13 5/38

6 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Residential Condominium Building Association Policy (RCBAP) Eligibility Requirements General Building Eligibility In order for a condominium building to be eligible under the RCBAP form, the building must be owned by a condominium association, which the NFIP defines as the entity made up of the unit owners responsible for the maintenance and operation of: common elements owned in the undivided shares by unit owners: and other real property in which the unit owners have use rights: where membership in the entity is a required condition of unit ownership. The RCBAP is required for all buildings owned by a condominium association containing 1 or more residential units and in which at least 75% of the total floor area within the building is residential without regard to the number of units or number of floors. The RCBAP is available for high-rise, low-rise residential condominium buildings including townhouse/rowhouse and detached single family condominium buildings in the Regular Program only. Only buildings having a condominium form of ownership are eligible for the RCBAP. Note: If the named insured listed is listed as other than a condominium association, the agent must provide legal documentation to confirm that the insured is a condominium association. A homeowners association (HOA) may differ from a condominium association and is ineligible for the RCBAP, unless the HOA meets the definition of a condominium association as defined in the policy. Cooperative ownership buildings are not eligible. Timeshare buildings having a condominium form of ownership in jurisdictions where title is vested in individual unit owners are eligible provided all other criteria are met. Rating High-rise buildings contain 5 or more units and at least 3 floors excluding enclosures, even if it is the lowest floor for rating. Low-rise buildings have fewer than 5 units regardless of the number of floors, or 5 or more units with fewer than 3 floors, including the basement. Townhouse/Rowhouse buildings are always considered low-rise buildings for rating purposed, no matter how many units or floors they have. Coverage Property Covered The entire building is covered under one policy, including both the common as well as individually owned building elements within the units, improvements with the units, and contents owned in common. The condominium must purchase contents coverage for their items to have coverage at claim time. Coverage Limits The maximum amount of building coverage that can be purchased on a high-rise or low-rise condominium is the Replacement Cost Value of the building or the total number of units in the condominium building times $250,000, whichever is less. Building coverage purchased under the RCBAP will be on a Replacement Cost Basis. Replacement Cost The RCBAP s building coverage is on a Replacement Cost valuation basis. The cost of the buildings foundation must be included in determining the RCV. Coinsurance Is applied if the insured has not purchased insurance in an amount equal to the lesser of 80% or more of the full replacement cost of the building at the time of loss or the maximum amount of insurance under the NFIP. Insurance Carried / Insurance Required x Amount of Loss = Limit of Recovery 10/13 6/38

7 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Preferred Risk Policy (PRP) Eligibility Requirements Preferred Risk Policy & Preferred Risk Policy Extension Flood Zone to be eligible for coverage under the PRP, the building must be in a B, C, or X zone on the effective date of the policy. Please reference the flood manual for the 2 exceptions. Occupancy Combined building/contents amounts of insurance are available for owners of all eligible occupancy types 1-4 family properties (including individual condominium units in condominium buildings), other residential properties and non-residential properties. Loss History A building eligibility for the PRP is based on the preceding requirements and on the building s flood loss history. If any of the following conditions exists within any 10 year period, regardless of any change(s) in ownership of the building, then the building is not eligible for the PRP: 2 loss payments, each more than $1,000? 3 or more loss payments, regardless of amount? 2 Federal disaster relief payments, each more than $1,000 3 Federal disaster relief payments, regardless of amount? 1 Flood insurance claim payment and 1 flood disaster relief payment (including loans & grants), each more than $1,000? Grandfathering - on the Preferred Risk Policy you flood zone must be a B, C, or X on the current flood map. If the zone on the map is a Special Flood Hazard Area but you are writing the application as a B, C, or X you will have to complete a standard application. Standard deductible for the Preferred Risk Application is $1000 for building and $1000 for contents Preferred Risk Policy Extension The National Flood Insurance Program is expanding the PRP eligibility for buildings newly designated within the Special Flood Hazard Area (SFHA) due to a map revision on or after October 01, Below are the guidelines for the Preferred Risk Policy Extension The program began on January 01, 2011 Policies must meet the following conditions Loss history requirements for the PRP policy Zone eligibility on the map panel effective prior to the newly issued Flood Insurance Rate Map (FIRM). Building Eligibility Building covered by policies effective on or after January 01, 2011 Buildings that were newly designated from a Non-SFHA, including D zones to a SFHA due to a map revision that was effective on or after October 01, 2008 Buildings that meet the PRP Loss History requirements Buildings that would otherwise be eligible for the PRP if actually located in zone B, C, or X on the current FIRM. 10/13 7/38

8 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Preferred Risk Policy Extension Continued Determination of the 2 years If the effective date of the map revision is between October 01, 2008 and December 31, 2010 the extension period is available for the policy terms effective January 01, 2011 to December If the effective date of the map revision is on or after January 01, 2011, the extension period is available for policy terms that are effective within 2 years of the map revision effective date. On August 21, 2012 the NFIP issued bulletin W announcing the extension of the Preferred Risk Policy Extension program until further notice. A rate increase for the PRP policies happened effective January 1 st, 2013 as part of the extension. Ineligible Properties The following properties are not eligible for the PRP extension Properties in the Emergency Program Residential Condominium Building Associations Properties constructed in an SFHA after the effective date of the most recent FIRM Non-Residential Condominium Unit Owners are ineligible for building coverage under the PRP Repetitive Loss Properties Leased Federal Properties Properties that are in the SFHA based on the initial FIRM Residential units in a non-residential condominium building are ineligible for building coverage. Agent Responsibility the agent is ultimately responsible for making sure that all eligible properties are identified. New Business application The agent may write the new policy in the prior flood zone however there must be proof the risk was located in a B, C, X, or D zone on the prior map and is now located within a SFHA as of a FIRM dated 10/01/208 or later. This includes verifying the loss history. Lender Responsibility Lenders will be notified by the flood declarations if the property is eligible for the extension program. The lenders have been advised by the NFIP that it is the company s responsibility to determine the eligibility of the property not the lender, and they are not required to investigate the difference in flood zones. NFIP Change on October 01, 2013 the Preferred Risk Policy Extension will have separate tables from the standard Preferred Risk Policy. See attached tables for the Preferred Risk Policy and Preferred Risk Policy Extension effective October 01, /13 8/38

9 BUILDING COVERAGE BUILDING COVERAGE PRP COVERAGE LIMITS AND PREMIUMS FOR PROPERTIES CURRENTLY MAPPED IN B, C, OR X ZONES EFFECTIVE OCTOBER 01, FAMILY RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS WITH BASEMENT OR ENCLOSURE 4 WITHOUT BASEMENT OR ENCLOSURE 5 BUILDING CONTENTS PREMIUM BUILDING CONTENTS PREMIUM $ 20,000 $ 8,000 $176 $ 20,000 $ 8,000 $129 $ 30,000 $ 12,000 $211 $ 30,000 $ 12,000 $183 $ 50,000 $ 20,000 $269 $ 50,000 $ 20,000 $240 $ 75,000 $ 30,000 $315 $ 75,000 $ 30,000 $281 $100,000 $ 40,000 $346 $100,000 $ 40,000 $312 $125,000 $ 50,000 $368 $125,000 $ 50,000 $334 $150,000 $ 60,000 $390 $150,000 $ 60,000 $356 $200,000 $ 80,000 $429 $200,000 $ 80,000 $390 $250,000 $100,000 $460 $250,000 $100,000 $414 RESIDENTIAL CONTENTS-ONLY COVERAGE CONTENTS ABOVE GROUND LEVEL MORE THAN 1 FLOOR ALL OTHER LOCATIONS (BASEMENT-ONLY NOT ELIGIBLE) CONTENTS PREMIUM CONTENTS PREMIUM $ 8,000 $57 $ 8,000 $79 $ 12,000 $75 $ 12,000 $106 $ 20,000 $110 $ 20,000 $147 $ 30,000 $126 $ 30,000 $168 $ 40,000 $140 $ 40,000 $187 $ 50,000 $153 $ 50,000 $207 $ 60,000 $167 $ 60,000 $226 $ 80,000 $194 $ 80,000 $248 $100,000 $221 $100,000 $271 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS With Basement or Enclosure 4 CONTENTS COVERAGE $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 $ 20,000 $192 $208 $222 $237 $251 $263 $275 $287 $298 $ 30,000 $208 $223 $238 $253 $266 $279 $291 $303 $314 $ 50,000 $246 $262 $277 $291 $305 $317 $330 $341 $352 $ 75,000 $264 $280 $295 $309 $323 $335 $348 $359 $370 $100,000 $289 $305 $320 $334 $348 $360 $373 $384 $395 $125,000 $297 $313 $327 $342 $356 $368 $381 $392 $403 $150,000 $303 $318 $333 $348 $361 $374 $386 $398 $409 $200,000 $338 $353 $368 $383 $396 $409 $421 $433 $444 $250,000 $357 $373 $387 $402 $416 $428 $440 $452 $463 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS Without Basement or Enclosure 5 CONTENTS COVERAGE $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 $ 20,000 $160 $174 $186 $199 $210 $221 $231 $242 $251 $ 30,000 $181 $193 $205 $218 $229 $240 $251 $261 $270 $ 50,000 $220 $233 $245 $257 $269 $280 $290 $300 $309 $ 75,000 $243 $255 $268 $279 $290 $301 $312 $322 $331 $100,000 $263 $275 $288 $299 $310 $322 $332 $342 $351 $125,000 $273 $286 $298 $309 $321 $331 $341 $351 $360 $150,000 $281 $294 $306 $317 $329 $339 $349 $359 $368 $200,000 $313 $325 $338 $349 $360 $370 $381 $390 $399 $250,000 $330 $342 $355 $366 $377 $387 $398 $407 $416 1 Add the $50 Probation Surcharge, if applicable 2 Premium includes Federal Policy Fee of $22. 3 Premium includes ICC Premium of $5. Deduct this amount if the risk is a condominium unit. 4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces: see footnote 5. Use this section of the table if a building elevated on a crawlspace has an attached garage without openings. 5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 6 Use this All Residential Contents-Only Coverage premium table for individual residential condominium unit contents-only policies 10/13 9/38 1, 2, 6 1, 2, 3 1, 2, 3 1, 2, 3

10 BUILDING COVERAGE BUILDING COVERAGE PRP COVERAGE LIMITS AND PREMIUMS FOR PROPERTIES CURRENTLY MAPPED IN B, C, OR X ZONES EFFECTIVE OCTOBER 01, 2013 CONTENTS COVERAGE NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS With Basement or Enclosure 4 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $ 50,000 $1,016 $1,308 $1,589 $1,855 $2,109 $2,351 $2,581 $2,796 $3,000 $3,191 $100,000 $1,438 $1,731 $2,010 $2,277 $2,531 $2,773 $3,002 $3,218 $3,421 $3,612 $150,000 $1,749 $2,042 $2,321 $2,587 $2,842 $3,084 $3,313 $3,529 $3,732 $3,923 $200,000 $1,917 $2,210 $2,489 $2,756 $3,010 $3,252 $3,481 $3,697 $3,901 $4,091 $250,000 $2,036 $2,329 $2,608 $2,874 $3,129 $3,371 $3,600 $3,816 $4,019 $4,210 $300,000 $2,167 $2,460 $2,739 $3,006 $3,260 $3,502 $3,731 $3,947 $4,150 $4,341 $350,000 $2,312 $2,604 $2,884 $3,150 $3,404 $3,646 $3,875 $4,090 $4,294 $4,485 $400,000 $2,407 $2,699 $2,978 $3,245 $3,499 $3,741 $3,969 $4,185 $4,389 $4,580 $450,000 $2,515 $2,808 $3,087 $3,354 $3,608 $3,850 $4,078 $4,294 $4,497 $4,688 $500,000 $2,634 $2,926 $3,206 $3,472 $3,726 $3,968 $4,197 $4,412 $4,616 $4,807 CONTENTS COVERAGE NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS Without Basement or Enclosure 5 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $ 50,000 $643 $799 $948 $1,090 $1,226 $1,355 $1,477 $1,592 $1,700 $1,802 $100,000 $860 $1,016 $1,165 $1,307 $1,443 $1,572 $1,694 $1,809 $1,917 $2,019 $150,000 $1,021 $1,177 $1,326 $1,469 $1,604 $1,733 $1,855 $1,970 $2,079 $2,181 $200,000 $1,190 $1,346 $1,495 $1,637 $1,773 $1,902 $2,024 $2,139 $2,247 $2,349 $250,000 $1,303 $1,459 $1,608 $1,750 $1,886 $2,015 $2,137 $2,252 $2,360 $2,462 $300,000 $1,422 $1,578 $1,728 $1,870 $2,005 $2,134 $2,256 $2,372 $2,480 $2,582 $350,000 $1,487 $1,643 $1,792 $1,934 $2,070 $2,199 $2,321 $2,436 $2,545 $2,646 $400,000 $1,558 $1,714 $1,863 $2,005 $2,141 $2,270 $2,392 $2,507 $2,616 $2,717 $450,000 $1,636 $1,792 $1,941 $2,083 $2,219 $2,348 $2,470 $2,585 $2,694 $2,795 $500,000 $1,721 $1,877 $2,026 $2,168 $2,304 $2,433 $2,555 $2,670 $2,778 $2,880 NON-RESIDENTIAL CONTENTS-ONLY COVERAGE 1, 2 CONTENTS ABOVE GROUND LEVEL MORE THAN 1 FLOOR ALL OTHER LOCATIONS (BASEMENT-ONLY NOT ELIGIBLE) CONTENTS PREMIUM CONTENTS PREMIUM $ 50,000 $185 $ 50,000 $394 $100,000 $270 $100,000 $586 $150,000 $355 $150,000 $778 $200,000 $439 $200,000 $970 $250,000 $524 $250,000 $1,163 $300,000 $609 $300,000 $1,355 $350,000 $694 $350,000 $1,547 $400,000 $778 $400,000 $1,739 $450,000 $863 $450,000 $1,931 $500,000 $948 $500,000 $2,123 1, 2, 3 1, 2, 3 1 Add the $50 Probation Surcharge, if applicable 2 Premium includes Federal Policy Fee of $22. 3 Premium includes ICC Premium of $5. Deduct this amount if the risk is a condominium unit. 4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces: see footnote 5. Use this section of the table if a building elevated on a crawlspace has an attached garage without openings. 5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 6 Use this All Residential Contents-Only Coverage premium table for individual residential condominium unit contents-only policies 10/13 10/38

11 Building Coverage Building Coverage PRP ELIGIBILITY EXTENSION COVERAGE LIMITS AND PREMIUMS FOR PROPERTIES NEWLY MAPPED INTO AN SFHA ON OR AFTER OCTOBER 1, Family Residential Building and Contents Coverage Combinations With Basement Or Enclosure 4 Without Basement Or Enclosure 5 Building Contents Premium Building Contents Premium $ 20,000 $ 8,000 $207 $ 20,000 $ 8,000 $168 $ 30,000 $ 12,000 $248 $ 30,000 $ 12,000 $215 $ 50,000 $ 20,000 $316 $ 50,000 $ 20,000 $282 $ 75,000 $ 30,000 $371 $ 75,000 $ 30,000 $330 $100,000 $ 40,000 $407 $100,000 $ 40,000 $367 $125,000 $ 50,000 $434 $125,000 $ 50,000 $394 $150,000 $ 60,000 $459 $150,000 $ 60,000 $419 $200,000 $ 80,000 $506 $200,000 $ 80,000 $459 $250,000 $100,000 $542 $250,000 $100,000 $489 Residential Contents-Only Coverage Contents Above Ground Level More Than 1 Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 8,000 $66 $ 8,000 $91 $ 12,000 $87 $ 12,000 $124 $ 20,000 $129 $ 20,000 $172 $ 30,000 $147 $ 30,000 $196 $ 40,000 $164 $ 40,000 $220 $ 50,000 $179 $ 50,000 $242 $ 60,000 $195 $ 60,000 $265 $ 80,000 $228 $ 80,000 $293 $100,000 $260 $100,000 $319 1 Add the $50 Probation Surcharge, if applicable 2 Premium includes Federal Policy Fee of $22 3 Premium includes ICC Premium of $5. Deduct this amount if the risk is a condominium unit. 4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces; see footnote 5. Use this section of the table if a building elevated on a crawlspace has an attached garage without openings. 5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 6 Use this All Residential Contents Only Coverage Premium table for individual residential condominium unit contents only policies. 1, 2, 6 Other Residential Building and Contents Coverage Combinations With Basement or Enclosure 4 Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 $ 20,000 $225 $243 $261 $278 $295 $309 $324 $338 $351 $ 30,000 $243 $263 $280 $298 $313 $328 $343 $356 $369 $ 50,000 $289 $308 $325 $343 $359 $373 $389 $402 $415 $ 75,000 $311 $329 $347 $364 $381 $395 $410 $423 $437 $100,000 $341 $359 $376 $394 $410 $425 $439 $452 $465 $125,000 $350 $368 $386 $403 $419 $434 $449 $462 $476 $150,000 $356 $374 $393 $410 $426 $441 $455 $469 $482 $200,000 $398 $416 $434 $451 $467 $482 $497 $510 $524 $250,000 $420 $439 $456 $475 $490 $504 $520 $533 $546 Without Basement or Enclosure 5 Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 $ 20,000 $187 $204 $218 $233 $247 $260 $272 $283 $295 $ 30,000 $212 $226 $241 $256 $269 $282 $295 $307 $317 $ 50,000 $259 $273 $287 $303 $316 $329 $342 $354 $364 $ 75,000 $285 $300 $315 $328 $342 $355 $367 $378 $390 $100,000 $309 $324 $339 $352 $365 $378 $391 $403 $413 $125,000 $321 $337 $351 $364 $377 $390 $402 $413 $425 $150,000 $330 $346 $360 $373 $387 $399 $411 $423 $434 $200,000 $368 $384 $398 $411 $425 $437 $449 $459 $471 $250,000 $389 $403 $417 $432 $445 $456 $469 $480 $490 10/13 11/38 1, 2, 3 1, 2, 3

12 Building Coverage Building Coverage PRP ELIGIBILITY EXTENSION COVERAGE LIMITS AND PREMIUMS FOR PROPERTIES NEWLY MAPPED INTO AN SFHA ON OR AFTER OCTOBER 1, 2008 Non-Residential Building and Contents Coverage Combinations With Basement or Enclosure 4 Contents Coverage $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $ 50,000 $1,201 $1,548 $1,880 $2,196 $2,497 $2,783 $3,055 $3,311 $3,553 $3,779 $100,000 $1,702 $2,049 $2,379 $2,695 $2,997 $3,284 $3,556 $3,810 $4,052 $4,278 $150,000 $2,070 $2,417 $2,748 $3,064 $3,364 $3,652 $3,923 $4,180 $4,420 $4,646 $200,000 $2,270 $2,617 $2,947 $3,263 $3,565 $3,851 $4,122 $4,378 $4,620 $4,846 $250,000 $2,410 $2,757 $3,088 $3,403 $3,705 $3,991 $4,264 $4,519 $4,761 $4,987 $300,000 $2,565 $2,912 $3,244 $3,559 $3,860 $4,147 $4,419 $4,675 $4,915 $5,142 $350,000 $2,737 $3,084 $3,415 $3,731 $4,031 $4,319 $4,589 $4,845 $5,086 $5,312 $400,000 $2,850 $3,197 $3,527 $3,843 $4,144 $4,430 $4,701 $4,957 $5,197 $5,425 $450,000 $2,978 $3,324 $3,656 $3,972 $4,273 $4,559 $4,830 $5,086 $5,326 $5,552 $500,000 $3,119 $3,466 $3,796 $4,112 $4,414 $4,700 $4,970 $5,226 $5,467 $5,694 Non-Residential Building and Contents Coverage Combinations Without Basement or Enclosure 5 Contents Coverage $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $ 50,000 $759 $944 $1,121 $1,290 $1,450 $1,603 $1,747 $1,884 $2,012 $2,133 $100,000 $1,017 $1,201 $1,378 $1,547 $1,707 $1,860 $2,005 $2,141 $2,270 $2,391 $150,000 $1,208 $1,392 $1,569 $1,738 $1,899 $2,051 $2,196 $2,332 $2,461 $2,582 $200,000 $1,408 $1,593 $1,769 $1,937 $2,098 $2,250 $2,396 $2,532 $2,661 $2,781 $250,000 $1,542 $1,726 $1,903 $2,071 $2,232 $2,384 $2,530 $2,666 $2,795 $2,915 $300,000 $1,684 $1,868 $2,045 $2,214 $2,374 $2,527 $2,672 $2,808 $2,937 $3,056 $350,000 $1,759 $1,945 $2,122 $2,289 $2,451 $2,603 $2,748 $2,885 $3,013 $3,133 $400,000 $1,843 $2,028 $2,205 $2,374 $2,535 $2,687 $2,831 $2,969 $3,097 $3,218 $450,000 $1,936 $2,122 $2,297 $2,466 $2,627 $2,779 $2,925 $3,062 $3,189 $3,310 $500,000 $2,037 $2,222 $2,399 $2,568 $2,727 $2,881 $3,025 $3,162 $3,290 $3,410 Non-Residential Contents-Only Coverage 1, 2 Contents Above Ground Level More Than 1 Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 50,000 $217 $ 50,000 $464 $100,000 $317 $100,000 $693 $150,000 $417 $150,000 $920 $200,000 $519 $200,000 $1,148 $250,000 $619 $250,000 $1,375 $300,000 $719 $300,000 $1,603 $350,000 $819 $350,000 $1,830 $400,000 $920 $400,000 $2,058 $450,000 $1,021 $450,000 $2,285 $500,000 $1,121 $500,000 $2,513 1, 2, 3 1, 2, 3 1 Add the $50 Probation Surcharge, if applicable 2 Premium includes Federal Policy Fee of $22 3 Premium includes ICC Premium of $5. Deduct this amount if the risk is a condominium unit. 4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces; see footnote 5. Use this section of the table if a building elevated on a crawlspace has an attached garage without openings. 5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 6 Use this All Residential Contents Only Coverage Premium table for individual residential condominium unit contents only policies. 10/13 12/38

13 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Statutory Coverage Limits General Rules REGULAR PROGRAM EMERGENCY PROGRAM Basic Limits Additional Limits Total Limits BUILDING COVERAGE Single Family Dwelling $35,000 $60,000 $190,000 $250, Family Dwelling $35,000 $60,000 $190,000 $250,000 Other Residential $100,000 $175,000 $75,000 $250,000 Non-Residential $100,000 $175,000 $325,000 $500,000 CONTENTS COVERAGE Residential $10,000 $25,000 $75,000 $100,000 Non-Residential $100,000 $150,000 $350,000 $500,000 Deductibles Standard deductibles do apply: $2000 for Pre-FIRM and $1000 for Post-FIRM & Non-SFHA zones. Other deductible options are available upon request up to $5000. Non-Residential also have the option of $10,000 - $15,000 - $20,000 - $25,000 and $50,000. Deductibles apply separately to building and contents Determining Property Value Use normal company practices in determining the property value. Remember to include the building foundation when determining the replacement cost. Loss Settlement Options The policy that your building is issued under will determine which loss settlement option you are eligible for. Two types of loss settlements are Replacement Cost (RCV) and Actual Cash Value (ACV) Reduction and Reformation of Coverage Is discussed in each of the policy forms and will depend on if found prior to a claim or after. Evidence of Insurance A copy of the Flood Insurance Application and premium payment, or a copy of the declarations page, is sufficient evidence of proof of purchase. The NFIP does not recognize binders. Blanket Coverage A single amount of insurance applying to more than one building and/or contents. Blanket insurance is not permitted under the NFIP. Effective Date New Policy (change for 10/01/13) Standard 30-Day Waiting Period the effective date of a new policy will be 12:01 am local time on the 30 th calendar day after the application date and the presentment of premium. This includes new policies obtained when a lender determines the flood insurance is required for an existing loan on a building that does not have flood insurance. This includes Mortgage Portfolio Program Polices (MPPP) No Waiting Period (Loan Transaction) flood insurance that is initially purchased in connection with making, increasing, extending, or renewal of a loan shall be effective at the time of loan closing, provided that the policy is applied for at or before closing. Please refer to the NFIP manual for remaining guidelines. Policy Term The policy term available is 1 year for both NFIP Direct Business Policies and Write Your Own company policies. 10/13 13/38

14 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual General Change Endorsements Coverage endorsements cover the following types of endorsements in the NFIP: Additional Coverage or Increase of Coverage coverage can be added or increased can be done anytime during the policy period. The increase of coverage is calculated on a pro-rated basis for the balance of the policy term. Effective date of the change is based on the rules that are listed below: The effective date of the increase will be 30th calendar day following the date of endorsement and presentment of premium. Two exceptions to this rule are as follows: The 30 day wait period does not apply when the additional amount of flood insurance is required in connection with making, increasing, extending, or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. The increase is effective the date of the loan closing. The second exception is when during the 13th month period beginning on the effective date of a map revision. This only applies when the building was not in a SFHA and now is located in a SFHA. Reduction of Insurance cannot be done unless part of the building has been removed, which reduces the building value to less than the amount of the building insurance. A current appraisal or cost estimate is required to show proof the building insurance is higher than its estimated replacement cost; the same is also true for contents. Removal of coverage there is no return premium for the removal of building or contents coverage unless the property is no longer at the described location. Rating endorsements cover the following types of endorsements in the NFIP. Rating Errors The NFIP rules require that the policy must be in effect in order process refunds. Corrections will be allowed for only the current year for failure of the WYO or NFIP Direct to: Revision of an alternative rating is used to compute the premium on a renewal notice following conversion of a community from the emergency to regular program The map grandfather rule The V zone risk factor rating Make a timely revision of alternative rates Use of Post-FIRM rating for Pre-FIRM structures Use of an elevation certificate on Post-FIRM buildings. Map revision a map change including reprinting, LOMA, LOMR, or LODR may change the flood zone in which the property is located to a lower rated zone or may change the Base Flood Elevation. In such cases, the policy rating may be revised for the current and prior policy years if the change occurred prior to the current policy year. Other endorsements that are used in the NFIP are: Misrated Policy premium refunds will be allowed with proper documentation going back a maximum of 6 calendar years when there was a misrating such as an incorrect building description, lowest floor elevation, community number, flood zone or Base Flood Elevation, so long as the insured can provide proof of the misrating. The flood zone or base flood elevation can only be corrected using the current FIRM. Any lapse in coverage does not extend the number of years the premium refund is allowed. Conversation of Standard Rated Policy to PRP due to misrating or map revision a policy written as a standard B, C, or X zone policy and later found to be eligible for a PRP may be endorsed or rewritten as a PRP for only the current term. Changing of Deductible Increasing of the deductible during the policy term is permitted with a 30 day wait. Decreasing a deductible cannot be reduced mid-term unless required by the mortgagee and a letter to this effect is provided by the mortgagee. A 30-day wait will apply to decreasing unless the request to reduce the deductible is in connection with making, extending or renewing a loan. Correcting Property Address a policy cannot be endorsed to change the location. This includes relocation from one unit to another unit in the same building. However, an erroneous address (typographical error) can be corrected through endorsement. The agent must provide proof or a reasonable explanation for the error. 10/13 14/38

15 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Cancellation/Nullification Flood insurance coverage may be terminated by either cancelling or nullifying the policy, only in accordance with a valid reason for the transaction. If coverage is terminated, the insured may be entitled to a full or partial refund under the applicable rules and regulations. Cancellation Procedures The agent must complete the following for cancellation/nullification: Signed Cancellation request with Agent and all named insured signatures Attach proper documentation for the listed cancellation reason (i.e. mortgage letter) Notification of address for refund check Valid Reasons Codes for Cancellation/Nullification of NFIP Policies CXL/TRRP 01 / 01 Building Sold or Removed 02 / 02 Contents Sold or Removed 03 / 03 REASON Policy Cancelled and Rewritten to Establish a Common Expiration Date with Other Insurance Coverage 04 / 04 Duplicate NFIP Policies 05 / 05 Non-Payment 06 / 06 Risk Not Eligible for Coverage 07 / 08 Property Closing Did Not Occur 08 / 50 Policy Not Required by Mortgage 09 / 09 Insurance No Longer Required By Mortgagee Because Property Is No Longer In a SFHA Because of a Physical Map Change 10 / 45 Condominium Policy (Unit or Association) Converting to RCBAP 12 / 52 Mortgage Paid Off 13 / 60 Voidance Prior to Effective Date 14 / 70 Voidance Due to Credit Card Error 15 / 16 Insurance No Longer Required Based on FEMA Review of Lender s SFHA Determination 16 / 17 Duplicate Policies from Sources Other Than the NFIP 18 / 52 Mortgage Paid Off on a Mortgage Portfolio Protection Program (MPPP) 19 / 20 Insurance No Longer Require by the Mortgage Because the Structure Has Been Removed from the SFHA by Means of a LOMA (Letter of Map Amendment) or LOMR (Letter of Map Revision) 20 /21 Policy was Written to the Wrong Facility (Severe Repetitive Loss Property) 21 / 10 Other: Continuous Lake Flooding or Closed Basin Lakes (no refund allowed) 22 / 22 Cancel/Rewrite due to Mis-rating 23 / 23 Fraud (no refund allowed) 24 / 24 Cancel/Rewrite due to Map Revision, LOMA or LOMR 10/13 15/38

16 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Non-Elevated Buildings Non-Elevated Buildings For a non-elevated building, the lowest floor used for rating purposes is the building s lowest floor including a basement or subgrade crawlspace, if any. Basement any area of the building, including any sunken room or sunken portion of a room having its floor below ground level (subgrade) on all sides. Attached Garage If a non-elevated building described and rated as a single-family dwelling (including a condominium unit within a multi-unit residential building that qualifies as a single family building) located in an A zone (any flood zone beginning with the letter A) has an attached garage floor elevation at or above the Base Flood Elevation (BFE), the garage floor may be excluded for rating. An attached garage floor elevation below the BFE can be excluded as the lowest floor for rating if the garage has no machinery or equipment below the BFE. For rating purposes, if the garage has machinery or equipment below the BFE, the floor of the attached garage can be excluded from rating if all of the following conditions exist: The building is described and rated as a single-family dwelling; The building is located in an A zone; The garage floor elevation is below the elevation of the top of the bottom floor; and The garage has proper openings (flood vents) If a building not described and rated as a single-family dwelling located in an A zone has an attached garage, and the floor level of the garage is below the level of the building, use the garage floor as a lowest floor for rating. Coverage Limitations for Basements Items of Property in a building enclosure below the lowest elevated floor of an elevated Post-FIRM building located in zones A1-A30, AE, AH, V1-V30, or VE or in a basement, regardless of the zone. Coverage is limited to the following: Any of the following items, if installed in their functioning locations and, if necessary for operation, connected to a power source: A. Central Air Conditioners; B. Cisterns and the water in them; C. Drywall for walls and ceilings, in a basement and the cost of labor to nail it, unfinished and unfloated and not taped, to the framing; D. Electrical junction and circuit breaker boxes; E. Electrical outlets and switches; F. Elevators, dumbwaiters, and related equipment, except for related equipment installed below the base flood elevation after September 30, 1987; G. Fuel tanks and the fuel in them; H. Furnaces and hot water heaters; I. Heat pumps; J. Nonflammable insulation in a basement; K. Pumps and tanks used in solar energy systems; L. Stairways and staircases attached to the building, not separated from it by elevated walkways; M. Sump pumps; N. Water softeners and the chemicals in them, water filters, and faucets installed as an integral part of the plumbing systems; O. Well water tanks and pumps; P. Required utility connections for any items in this list; and; Q. Footings, foundations, post, pilings, piers, or other foundation walls and anchorage systems required to support a building. Clean-up is also covered Contents coverage - in a basement applies to a washer/dryer, food freezer and the food in it, and air conditioner window or wall unit. 10/13 16/38

17 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevated Building in Flood Zone A (any A zone) Elevated Building An elevated building is a building that has no basement and that has its lowest elevated floor raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. Foundation walls are masonry walls, poured concrete walls, or precast concrete walls, regardless of height, that extend above grade and support the weight of a building. Buildings with knee foundation walls below the elevated floor (e.g., foundation walls not constructed the full height of the area between the lowest elevated floor and the grade, with wood-frame or studs attached above the foundation wall), are considered elevated buildings for rating purposes. However, if the foundation walls are supported on a slab foundation, the building is nonelevated. Enclosure An enclosure is the portion of an elevated building below the lowest elevated floor that is either partially or fully shut in by rigid walls. In determining whether an enclosure is finished, drywall that is mudded, taped, and painted is considered a finished wall. Drywall that is only painted is not considered to be finished. Drywall that is mudded and taped but not painted or textured is also not considered to be finished. Block walls are not considered to be finished even if they are painted. Typically a block (or concrete) wall is part of the foundation system. Painted plywood is considered to be finished. Note: A crawlspace below the lowest elevated floor, and a garage below or attached to an elevated building are both considered enclosures. Elevated No Enclosure For an elevated building located in any A Zone (any flood zone beginning with the letter A), with no enclosure below the lowest elevated floor, the floor used for rating purposes is the lowest elevated floor. Elevated with Enclosure For an elevated building located in any A Zone that has an enclosure below the elevated floor, including a crawlspace or an attached garage, the enclosure or garage floor becomes the lowest floor for rating if any of the following conditions exists: The enclosed space is finished (having more than 20 linear feet of interior finished wall [paneling, etc.]); or The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage; or There is an elevator below the BFE; or The unfinished enclosed space (either the enclosure or garage) has no proper openings. Note: A garage attached to an elevated building is considered an enclosure. For an elevated building located in any A Zone that has an enclosure below the elevated floor constructed with flood-damage resistant materials (as outlined in FEMA Technical Bulletin 2), the enclosure floor becomes the lowest floor for rating if any of the following conditions exists: The enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage, or There is an elevator below the BFE; or The enclosed space has no proper openings. 10/13 17/38

18 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevated Building in Flood Zone A (any A zone) Proper Opening Requirement An elevated building with an enclosure or crawlspace below the elevated floor with proper flood openings (flood vents) in the enclosure or crawlspace can be rated using the elevated floor as the lowest floor. (For elevated buildings with proper flood openings in an unfinished enclosure or crawlspace, the Application should indicate None for enclosure.) This rule applies to buildings in zones A, A1 A30, AE, AO, AH, AR, and AR Dual. For buildings in any A Zone all enclosures (including an elevator shaft, a garage, or a crawlspace) below the lowest elevated floor must be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. One of the following criteria must be met to satisfy this proper openings requirement for rating purposes: A minimum of 2 openings must be present, with positioning on at least 2 exterior walls, having a total net area of not less than 1 square inch for every square foot of enclosed area. The bottom of all openings must be no higher than 1 foot above the higher of the exterior or interior grade (adjacent) or floor immediately below the openings. If the enclosure floor is partially subgrade, a minimum of 2 openings must be present, with positioning on a single exterior wall adjacent to the lowest grade next to the building, having a total net area of not less than 1 square inch for every square foot of enclosed area. The bottom of all openings must be no higher than 1 foot above the higher of the exterior or interior grade (adjacent) or floor immediately below the openings. Elevated Building with Garage If a building elevated on a crawlspace is located in an A Zone and has an attached garage, and the main building and garage are separated by foundation walls, the garage and the crawlspace are considered separate enclosures. Each must have its own flood openings meeting the NFIP proper openings requirement in order to exclude either garage or crawlspace floor as the lowest floor for rating. If the garage and the crawlspace share two exterior walls and are not separated by a foundation wall, the garage and crawlspace form a single enclosure. Use the following guidelines to determine the lowest floor for rating: Use the top of the crawlspace (under-floor space) floor or the garage floor, whichever is lower, if neither the crawlspace nor the garage has proper openings; or Use the top of the crawlspace floor, if the only area that has proper openings is the garage; or Use the top of the garage floor, if the only area that has proper openings is the crawlspace; or Use the top of the finished floor (habitable floor), if both the crawlspace and the garage have proper openings. Elevated with Enclosure Garage under the Elevated Floor If a building is elevated with an enclosure, and the garage is located in an enclosure beneath the elevated floor, the garage area is considered to be a part of the enclosure area. It is not necessary for the garage area to have its own flood openings, as long as the openings in the enclosure as a whole meet the NFIP proper openings requirements. When a garage shares exterior walls with other enclosed areas, and there is no foundation wall between them, then the garage area is considered to be a part of the enclosed area. When the garage is separated from other enclosed areas by a foundation wall, the garage must meet the proper openings requirement separately in order to be excluded from rating. 10/13 18/38

19 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevated Buildings in V Zones In zones V, VE, and V1 V30, the floor of an enclosed area below the lowest elevated floor is the building s lowest floor if any of the following conditions exists: The enclosed space is finished (having more than 20 linear feet of interior finished wall [paneling, etc.]); or The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage; or The enclosed space is of any size, and there is machinery or equipment below the BFE located inside or outside the enclosed space. (Machinery or equipment is defined as building items permanently affixed to the building and that provide utility services for the building i.e., furnaces, water heaters, heat pumps, air conditioners. Washers, dryers, and food freezers are contents items and are not considered machinery or equipment.); or There is elevator equipment below the BFE; or The enclosed space is constructed with non-breakaway walls. (A non-breakaway wall is defined as a wall that is attached to the structural support of the building and is not designed or constructed to collapse under specific lateral loading forces. This type of construction endangers the foundation system of the building.); or The enclosed space is 300 square feet or more and has breakaway walls; or The enclosed space has load-bearing (supporting) walls. NOTE: If the enclosed space (enclosure) is at or above the BFE, use the Free of Obstruction rate table in the Rating or Condominiums section as appropriate. Also use these rates if an enclosure has solid load-bearing walls that provide less than 25% of the building s structural support. The elevation of the bottom enclosure floor is the lowest floor for rating (LFE) Post-FIRM V Zone with Obstruction For Post-FIRM 1981 buildings elevated in V zones with an enclosure, the bottom of the lowest horizontal structural member is the building s lowest floor if ALL of the following conditions exist: The enclosure is unfinished; and The enclosure is used solely for building access, parking, or storage; and The enclosure is constructed with breakaway walls; and The enclosure is less than 300 square feet; and There is no machinery and equipment below the BFE; and There is no elevator below the BFE. The Post-FIRM Elevated Buildings with Obstruction rate table must be used. NOTE: Pre-1981 construction (both Pre-FIRM and Post-FIRM 75-81) meeting the above building conditions may use the Post-1981 V zone rate tables if the FIRM used for rating is effective on or after October 1, Post-FIRM V Zone No Obstruction For Post-FIRM 1981 buildings elevated in V zones with no enclosure, the bottom of the lowest horizontal structural member is the building s lowest floor using the 1981 Post-FIRM Elevated Building without Obstruction rate table. NOTE: Pre-1981 construction (both Pre-FIRM and Post-FIRM 75-81) meeting the above building conditions may use the Post-1981 V zone rate tables if the FIRM used for rating is effective on or after October 1, Hanging Floors (A Zones and V Zones) A hanging floor is a walled-in floor area beneath an elevated building which does not extend to the ground. A hanging floor includes foyers or mid-level entries that are walled-in and beneath an elevated building, and has a floor which does not extend to the ground. In A Zones, the top of the hanging floor is considered the lowest floor for rating. In V Zones, the bottom of the hanging floor s lowest horizontal structure member is considered the lowest floor for rating. A building that includes a hanging floor must be described as an elevated building. Buildings with hanging floors can be submitted for Special Rates consideration. 10/13 19/38

20 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual New Elevation Certificate Form Elevation Certificate Information As of August 01, 2013 the all new elevation certificates had to be completed on the new elevation certificate form. If an elevation certificate was completed prior to August 01, 2013 then the form in effect at the time of completion is acceptable if all required documentation is completed. When is an Elevation Certificate Mandatory? As of October 1, 2011 an Elevation Certificate is mandatory for all Post-FIRM buildings located in any flood zone A or V. Starting October 01, 2013 all new business Pre-FIRM buildings located in Special Flood Hazard Areas are required to have an elevation certificate for rating. When is an Elevation Certificate Not Required? An elevation certificate is not required for the Low-Hazard Zones B, C or X Where to find an existing Elevation Certificate Current Property Owner Builder / Developer / Engineer Community Official Photo Requirements Previous Property Owner / Prospective Seller Insurance Agent (current or previous) Photos should confirm the occupancy of the building, the foundation type and the number of floors. Multilevel and Split-level buildings with areas at ground level will require a photo of each side of the building. All New submissions require photos with the Elevation Certificate Two Recent Photographs that show the front and back of the building and are taken and dated within 90 days of the application date. Photos must be dated the date may be stamped on the front of the photo by the camera or the photographs must be attached to the building photograph page with the date listed under the photo. All photos must measure at least 3x3 and provide a good, clear image of the building s distinguishing features. This includes a picture of at least one flood vent if applicable. Digital or Analog photos are acceptable. Color photographs are preferred, but black and white will be accepted if a good clear image is provided. NO FAXED PHOTOS! An elevation certificate submitted without the required photographs cannot be processed and may require coverage can be lowered. When a New Elevation Certificate is required? Items on the elevation certificate are altered. At times, the EC may have items crossed out, additional items written on the form, or written over. This is not acceptable unless we are unable to determine that the surveyor made the revision and initialed off on the change. 10/13 20/38

21 U.S. DEPARTMENT OF HOMELAND SECURITY FEDERAL EMERGENCY MANAGEMENT AGENCY National Flood Insurance Program ElEvAtion CErtiFiCAtE important: Follow the instructions on pages 1 9. OMB No Expiration Date: July 31, 2015 SECtion A ProPErtY information FOR INSURANCE COMPANY USE A1. Building Owner s Name Policy Number: A2. Building Street Address (including Apt., Unit, Suite, and/or Bldg. No.) or P.O. Route and Box No. Company NAIC Number: City State ZIP Code A3. Property Description (Lot and Block Numbers, Tax Parcel Number, Legal Description, etc.) A4. Building Use (e.g., Residential, Non-Residential, Addition, Accessory, etc.) A5. Latitude/Longitude: Lat. Long. Horizontal Datum: NAD 1927 NAD 1983 A6. Attach at least 2 photographs of the building if the Certificate is being used to obtain flood insurance. A7. Building Diagram Number A8. For a building with a crawlspace or enclosure(s): a) Square footage of crawlspace or enclosure(s) sq ft b) No. of permanent flood openings in the crawlspace or enclosure(s) within 1.0 foot above adjacent grade c) Total net area of flood openings in A8.b sq in d) Engineered flood openings? Yes No SECtion B FlooD insurance rate MAP (FirM) information A9. For a building with an attached garage: a) Square footage of attached garage sq ft b) Number of permanent flood openings in the attached garage within 1.0 foot above adjacent grade c) Total net area of flood openings in A9.b sq in d) Engineered flood openings? Yes No B1. NFIP Community Name & Community Number B2. County Name B3. State B4. Map/Panel Number B5. Suffix B6. FIRM Index Date B7. FIRM Panel Effective/ Revised Date B8. Flood Zone(s) B9. Base Flood Elevation(s) (Zone AO, use base flood depth) B10. Indicate the source of the Base Flood Elevation (BFE) data or base flood depth entered in Item B9: FIS Profile FIRM Community Determined Other/Source: B11. Indicate elevation datum used for BFE in Item B9: NGVD 1929 NAVD 1988 Other/Source: B12. Is the building located in a Coastal Barrier Resources System (CBRS) area or Otherwise Protected Area (OPA)? Yes No Designation Date: / / CBRS OPA SECtion C BUilDinG ElEvAtion information (SUrvEY required) C1. Building elevations are based on: Construction Drawings* Building Under Construction* Finished Construction *A new Elevation Certificate will be required when construction of the building is complete. C2. Elevations Zones A1 A30, AE, AH, A (with BFE), VE, V1 V30, V (with BFE), AR, AR/A, AR/AE, AR/A1 A30, AR/AH, AR/AO. Complete Items C2.a h below according to the building diagram specified in Item A7. In Puerto Rico only, enter meters. Benchmark Utilized: Vertical Datum: Indicate elevation datum used for the elevations in items a) through h) below. NGVD 1929 NAVD 1988 Other/Source: Datum used for building elevations must be the same as that used for the BFE. Check the measurement used. a) Top of bottom floor (including basement, crawlspace, or enclosure floor). feet meters b) Top of the next higher floor. feet meters c) Bottom of the lowest horizontal structural member (V Zones only). feet meters d) Attached garage (top of slab). feet meters e) Lowest elevation of machinery or equipment servicing the building. feet meters (Describe type of equipment and location in Comments) f) Lowest adjacent (finished) grade next to building (LAG). feet meters g) Highest adjacent (finished) grade next to building (HAG). feet meters h) Lowest adjacent grade at lowest elevation of deck or stairs, including. feet meters structural support SECtion D SUrvEYor, EnGinEEr, or ArCHitECt CErtiFiCAtion This certification is to be signed and sealed by a land surveyor, engineer, or architect authorized by law to certify elevation information. I certify that the information on this Certificate represents my best efforts to interpret the data available. I understand that any false statement may be punishable by fine or imprisonment under 18 U.S. Code, Section Check here if comments are provided on back of form. Were latitude and longitude in Section A provided by a Check here if attachments. licensed land surveyor? Yes No Certifier s Name Title Company Name License Number Address City State ZIP Code PLACE SEAL HERE Signature Date Telephone FEMA 10/13 Form (7/12) See reverse side for continuation. Replaces all previous editions. 21/38

22 ElEvAtion CErtiFiCAtE, page 2 important: in these spaces, copy the corresponding information from Section A. Building Street Address (including Apt., Unit, Suite, and/or Bldg. No.) or P.O. Route and Box No. FOR INSURANCE COMPANY USE Policy Number: City State ZIP Code Company NAIC Number: SECtion D SUrvEYor, EnGinEEr, or ArCHitECt CErtiFiCAtion (ContinUED) Copy both sides of this Elevation Certificate for (1) community official, (2) insurance agent/company, and (3) building owner. Comments Signature Date SECtion E BUilDinG ElEvAtion information (SUrvEY not required) For ZonE Ao AnD ZonE A (WitHoUt BFE) For Zones AO and A (without BFE), complete Items E1 E5. If the Certificate is intended to support a LOMA or LOMR-F request, complete Sections A, B,and C. For Items E1 E4, use natural grade, if available. Check the measurement used. In Puerto Rico only, enter meters. E1. Provide elevation information for the following and check the appropriate boxes to show whether the elevation is above or below the highest adjacent grade (HAG) and the lowest adjacent grade (LAG). a) Top of bottom floor (including basement, crawlspace, or enclosure) is. feet meters above or below the HAG. b) Top of bottom floor (including basement, crawlspace, or enclosure) is. feet meters above or below the LAG. E2. For Building Diagrams 6 9 with permanent flood openings provided in Section A Items 8 and/or 9 (see pages 8 9 of Instructions), the next higher floor (elevation C2.b in the diagrams) of the building is. feet meters above or below the HAG. E3. Attached garage (top of slab) is. feet meters above or below the HAG. E4. Top of platform of machinery and/or equipment servicing the building is. feet meters above or below the HAG. E5. Zone AO only: If no flood depth number is available, is the top of the bottom floor elevated in accordance with the community s floodplain management ordinance? Yes No Unknown. The local official must certify this information in Section G. SECtion F ProPErtY owner (or owner S representative) CErtiFiCAtion The property owner or owner s authorized representative who completes Sections A, B, and E for Zone A (without a FEMA-issued or community-issued BFE) or Zone AO must sign here. The statements in Sections A, B, and E are correct to the best of my knowledge. Property Owner or Owner s Authorized Representative s Name Address City State ZIP Code Signature Date Telephone Comments SECtion G CoMMUnitY information (optional) Check here if attachments. The local official who is authorized by law or ordinance to administer the community s floodplain management ordinance can complete Sections A, B, C (or E), and G of this Elevation Certificate. Complete the applicable item(s) and sign below. Check the measurement used in Items G8 G10. In Puerto Rico only, enter meters. G1. The information in Section C was taken from other documentation that has been signed and sealed by a licensed surveyor, engineer, or architect who is authorized by law to certify elevation information. (Indicate the source and date of the elevation data in the Comments area below.) G2. A community official completed Section E for a building located in Zone A (without a FEMA-issued or community-issued BFE) or Zone AO. G3. The following information (Items G4 G9) is provided for community floodplain management purposes. G4. Permit Number G5. Date Permit Issued G6. Date Certificate Of Compliance/Occupancy Issued G7. This permit has been issued for: New Construction Substantial Improvement G8. Elevation of as-built lowest floor (including basement) of the building:. feet meters Datum G9. BFE or (in Zone AO) depth of flooding at the building site:. feet meters Datum G10. Community s design flood elevation:. feet meters Datum Local Official s Name Community Name Signature Title Telephone Date Comments Check here if attachments. 10/13 22/38 FEMA Form (7/12) Replaces all previous editions.

23 Building Diagram #1A Slab on grade building Building Diagram #1B Slab on grade building 10/13 23/38

24 Building Diagram #2 Building with a Basement Building Diagram #3 Split Level Building 10/13 24/38

25 Building Diagram #4 Split Level Building with a Basement Building Diagram #5 Elevated Building with no enclosure 10/13 25/38

26 Building Diagram #6 Elevated Building with enclosure Building Diagram #7 Elevated Building with enclosure 10/13 26/38

27 Building Diagram #8 Elevated Building on crawlspace Building Diagram #9 Elevated Building with Sub-Grade Crawlspace 10/13 27/38

28 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevation Certificate Lowest Floor Guide for AE, A1-A30, AH & A with BFE 1 Diagram 1A Slab on Grade building or 1B Raised Slab on Grade Building All Building Occupancies No Attached Garage Single Family Dwelling with an Attached Garage Other Building Occupancies with an attached garage Diagram 2 Building with a basement The lowest floor used for rating is C2a. Diagram 4 Split level with a basement The lowest floor used for rating is C2a. The lowest floor used for rating is C2a. 1. If the elevation of the attached garage floor is at or above the BFE? Then the lowest floor for rating is C2a. 2. If the elevation of the attached garage floor is below the BFE, but the machinery & equipment is not below the BFE? The lowest floor for rating is C2a. 3. If the elevation of the attached garage floor and the machinery & equipment are below the BFE, but there are proper openings in the garage? The lowest floor for rating is C2a 4. If the garage does not have proper openings and the floor of the garage along with machinery & equipment are below the BFE? The lowest floor for rating is C2d. The lowest floor used for rating is C2d Diagram 6 Elevated building with an enclosure 2, 3, 4 Diagram 3 Split level building The lowest floor used for rating is C2a. Diagram 5 Elevated building no enclosure The lowest floor used for rating is C2a. 1. If the enclosure/garage meets the enclosure and venting requirements, then the lowest floor used for rating is C2b. 2. If the enclosure/garage does not meet the enclosure or venting requirements, then the lowest floor used for rating is C2a. 2, 3, 4 Diagram 7 Elevated building with a enclosure (walkout level) 1. If the enclosure/garage meets the enclosure and venting requirements, then the lowest floor used for rating is C2b. 2. If the enclosure/garage does not meet the enclosure or venting requirements, then the lowest floor used for rating is C2a. 2, 3, 4 Diagram 8 Elevated building on a crawl space No Attached Garage With an Attached Garage 1. If the enclosure meets the enclosure and venting requirements, then the lowest floor used for rating is C2b. 2. If the enclosure does not meet the enclosure or venting requirements, then the lowest floor used for rating is C2a. Use the guidelines listed below in the endnote to determine the lowest floor used for rating. 3, 4, 5 Diagram 9 Elevated building on a sub-grade crawl space The lowest floor used for rating is C2a 1 Zone AH & A with a BFE that have a basement/enclosure/crawlspace/subgrade crawlspace will be a Submit for Rate to the company. 2 Garage Reminders If a garage area is listed separately from the enclosure for diagram number 6 or 7 it must meet the enclosure and venting requirements to be exempted for rating. If the garage cannot be exempt for rating then the lowest floor for rating is C2d. 3 Enclosure & Garage Requirements In an elevated building located in an A zone, the lowest floor used for rating is the lowest elevated floor, with the exceptions described below. If a building located in an A zone has an enclosure below the elevated floor, including an attached garage, the enclosure or garage floor becomes the lowest floor for rating if any of the following conditions exists: The enclosed space is finished (having more than 20 linear feet of finished wall paneling, etc.); or The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage or The unfinished enclosed space has no proper openings (flood vents) 4 Proper Venting Requirement All three requirements must be met to qualify as having proper vents A minimum of 2 openings must be provided, with positioning on at least 2 walls Has a total net area of not less than 1 square inch for every square foot of enclosed area. The bottom of all openings must be no higher than1 foot above the higher of the exterior or interior grade (adjacent) or floor immediately below the openings. 5 Crawlspace buildings with a garage If a building elevated on a crawl space is located in an A zone and has an attached garage, use the following guidelines to determine the lowest floor for rating: Use the top of the crawl space floor (C2a) or the garage floor (C2d), whichever is lower, if neither the crawl space nor the garage has proper openings; or Use the top of the crawl space floor(c2a), if the only area that has proper openings is the garage; or Use the top of the garage floor(c2d), if the only area that has proper openings is the crawl space; or Use the top of the finished floor(c2b), if both the crawl space and the garage have proper openings 10/13 28/38

29 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevation Certificate Lowest Floor Guide for AO & A without a BFE 1 Diagram 1A Slab on Grade building or 1B Raised Slab on Grade Building All Building Occupancies No Attached Garage Single Family Dwelling with an Attached Garage Other Building Occupancies with an attached garage Diagram 2 Building with a basement The lowest floor used for rating is E1a. Diagram 4 Split level with a basement The lowest floor used for rating is E1a. The lowest floor used for rating is E1a. 1. If the elevation of the attached garage floor is at or above the BFE? Then the lowest floor for rating is E1a. 2. If the elevation of the attached garage floor is below the BFE, but the machinery & equipment is not below the BFE? The lowest floor for rating is E1a. 3. If the elevation of the attached garage floor and the machinery & equipment are below the BFE, but there are proper openings in the garage? The lowest floor for rating is E1a. 4. If the garage does not have proper openings and the floor of the garage along with machinery & equipment are below the BFE? The lowest floor for rating is E3. The lowest floor used for rating is E3. Diagram 6 Elevated building with an enclosure 2, 3, 4 Diagram 3 Split level building The lowest floor used for rating is E1a. Diagram 5 Elevated building no enclosure The lowest floor used for rating is E1a. 1. If the enclosure/garage meets the enclosure and venting requirements, then the lowest floor used for rating is E2. 2. If the enclosure/garage does not meet the enclosure or venting requirements, then the lowest floor used for rating is E1a. 2, 3, 4 Diagram 7 Elevated building with a enclosure (walkout level) 1. If the enclosure/garage meets the enclosure and venting requirements, then the lowest floor used for rating is E2. 2. If the enclosure/garage does not meet the enclosure or venting requirements, then the lowest floor used for rating is E1a. 2, 3, 4 Diagram 8 Elevated building on a crawl space No Attached Garage With an Attached Garage 1. If the enclosure meets the enclosure and venting requirements, then the lowest floor used for rating is E2. 2. If the enclosure does not meet the enclosure or venting requirements, then the lowest floor used for rating is E1a. 3, 4, 5 Use the guidelines listed below in the endnote to determine the lowest floor used for rating. Diagram 9 Elevated building on a sub-grade crawl space The lowest floor used for rating is E1a 1 Zone AO & A w/o a BFE that have an basement/enclosure/crawlspace/subgrade crawlspace will be a submit for rate to the company 2 Garage Reminders If a garage area is listed separately from the enclosure for diagram number 6 or 7 it must meet the enclosure and venting requirements to be exempted for rating. If the garage cannot be exempt for rating then the lowest floor for rating is C2d. 3 Enclosure & Garage Requirements In an elevated building located in an A zone, the lowest floor used for rating is the lowest elevated floor, with the exceptions described below. If a building located in an A zone has an enclosure below the elevated floor, including an attached garage, the enclosure or garage floor becomes the lowest floor for rating if any of the following conditions exists: The enclosed space is finished (having more than 20 linear feet of finished wall paneling, etc.); or The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage or The unfinished enclosed space has no proper openings (flood vents) 4 Proper Venting Requirement All three requirements must be met to qualify as having proper vents A minimum of 2 openings must be provided, with positioning on at least 2 walls Has a total net area of not less than 1 square inch for every square foot of enclosed area. The bottom of all openings must be no higher than1 foot above the higher of the exterior or interior grade (adjacent) or floor immediately below the openings. 5 Crawlspace buildings with a garage If a building elevated on a crawl space is located in an A zone and has an attached garage, use the following guidelines to determine the lowest floor for rating: Use the top of the crawl space floor (E1a) or the garage floor (E3), whichever is lower, if neither the crawl space nor the garage has proper openings; or Use the top of the crawl space floor(e1a), if the only area that has proper openings is the garage; or Use the top of the garage floor(e3), if the only area that has proper openings is the crawl space; or Use the top of the finished floor(e2), if both the crawl space and the garage have proper openings 10/13 29/38

30 Quick Reference - National Flood Insurance Program This is intended for overview purposes only. For complete underwriting rules and guidelines, please refer to the NFIP Manual Elevation Certificate Lowest Floor Guide for V, VE & V1-V30 Diagram 1A Slab on Grade building or 1B Raised Slab on Grade Building V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a 1. Diagram 2 Building with a basement V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a. Diagram 4 Split level with a basement V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a. Diagram 6 Elevated building with an enclosure 2 V, VE & V1-V30 Flood Zone Diagram 3 Split level building V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a. Diagram 5 Elevated building no enclosure V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2c 1. If the enclosure meets all the requirements listed in the endnote, the lowest floor used for rating is C2c. 2. If the enclosure does not meet all the requirements listed in the endnote, the lowest floor used for rating is C2a. 3 Diagram 7 Elevated building with a enclosure (walkout level) V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a Diagram 8 Elevated building on a crawl space V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a. Diagram 9 Elevated building on a sub-grade crawl space V, VE & V1-V30 Flood Zone The lowest floor used for rating is C2a. 1 Measurements for the lowest floor should reflect the bottom of the lowest floor 2 In zones V, VE and V1-V30, the floor of an enclosed area below the lowest elevated floor is the building s lowest floor if one or more of the following conditions are met: The enclosed space is finished (having more than 20 linear feet of finished wall-paneling, etc.); or The unfinished enclosed area is used for other than building access (stairwells, elevators, etc.), parking, or storage; or The enclosed space is of any size, and there is machinery or equipment below the BFE located inside or outside the enclosed space. (Machinery or equipment is defined as building items permanently affixed to the building and that provide utility services for the building i.e. furnaces, hot water heaters, heat pumps, air conditioners, and elevators and their associated equipment.); or The enclosed space is constructed with non-breakaway walls (A non-breakaway wall is defined as a wall that is attached to the structural support of the building and is not designed or constructed to collapse under specific lateral loading forces.) The enclosed space is 300 square feet or more and has breakaway walls; or The enclosed space has load-bearing (supporting) walls 3 Reminder for V, VE & V1-V30 if the elevation in C2a is at or higher than the stated lowest adjacent grade C2f then subtract 12 from C2a for 1-4 family residences and 18 from C2a for non-residential buildings. 10/13 30/38

31 this document was prepared by the national flood insurance Program (nfip) to help you understand your flood insurance policy. It provides general information about deductibles, what is and is not covered by flood insurance, and how items are valued at time of loss. This document is based on the Standard flood insurance Policy Dwelling form, which is used to insure one to four family residential buildings and single family dwelling units in a condominium building. There are two other policy forms: the general Property form is used to insure five or more family residential buildings and non-residential buildings. the Residential Condominium Building Association Policy form is used to insure residential condominium association buildings. While the three forms are similar, they do contain some important differences. For example, the General Property Form does not provide coverage for contents in any building other than the insured building, and the Residential Condominium Building Association Policy Form contains a coinsurance clause, which provides for a pro rata reduction in the building claim payment if the building is not insured to 80 percent of its replacement value. two types of flood insurance Coverage The NFIP's Dwelling Form offers coverage for: 1) Building Property, up to $250,000, and 2) Personal Property (Contents), up to $100,000. The NFIP encourages people to purchase both types of coverage. Your mortgage company may require that you purchase a certain amount of flood insurance coverage. for information about your specific limits of coverage and deductibles, refer to the Declarations Page in your flood insurance policy. it is also a good idea to review your policy with your insurance agent or company representative. What is a flood? Flood insurance covers direct physical loss caused by flood. In simple terms, a flood is an excess of water on land that is normally dry. The official definition used by the National Flood Insurance Program is: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: Overflow of inland or tidal waters; Unusual and rapid accumulation or runoff of surface waters from any source; Mudflow*; or Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above. *Mudflow is defined as A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water three important facts About Your flood Policy A Standard Flood Insurance Policy is a single-peril (flood) policy that pays for direct physical damage to your insured property up to the replacement cost or Actual Cash Value (ACV) (See How Flood Damages Are Valued ) of the actual damages or the policy limit of liability, whichever is less. 1. Contents coverage must be purchased separately. 2. it is not a valued policy. A valued policy pays the limit of liability in the event of a total loss. For example: Your home is totally destroyed by a fire and it costs $150,000 to rebuild. If your homeowners insurance policy is a valued policy with a $200,000 limit of liability on the building, you would receive $200,000. Flood insurance pays the replacement cost or ACV of actual damages, up to the policy limit. 3. it is not a guaranteed replacement cost policy. A guaranteed replacement cost policy pays the cost to rebuild your home regardless of the limit of liability. For example: Your home is totally destroyed by a fire and it costs $200,000 to rebuild. If your homeowners insurance policy is a guaranteed replacement cost policy with a $150,000 limit of liability on the building, you would receive $200,000. Flood insurance does not pay more than the policy limit. 10/13 31/38 1

32 Choosing Deductibles Choosing the amount of your deductible is an important decision. As with car or homeowners insurance, choosing a higher deductible will lower the premium you pay, but will also reduce your claim payment. You can choose different deductibles for Building Property and Personal Property coverage. The deductibles will apply separately to Building Property and Personal Property claims. Your mortgage company may require that your deductible is no more than a certain amount. Review the Declarations Page in your flood insurance policy for amounts of coverage and deductibles. Talk with your insurance agent, company representative, or lender about raising and lowering deductibles. Reminder: Keep Your Receipts While you are not expected to keep receipts for every household item and article of clothing, do try to keep receipts for electronic equipment, wall-to-wall carpeting, major appliances, and other higher cost items. Your adjuster will be able to process your claim more quickly when you can prove how much items cost at the time of purchase. What is Covered by flood insurance and What is not Physical damage to your building or personal property directly caused by a flood is covered by your flood insurance policy. For example, damages caused by a sewer backup are covered if the backup is a direct result of flooding. If the backup is caused by some other problem, the damages are not covered. The following charts provide general guidance on items covered and not covered by flood insurance. Refer to your policy for the complete list. general guidance on flood insurance Coverage What is insured under BuilDing PRoPeRtY coverage The insured building and its foundation. The electrical and plumbing systems. Central air conditioning equipment, furnaces, and water heaters. Refrigerators, cooking stoves, and built-in appliances such as dishwashers. Permanently installed carpeting over an unfinished floor. Permanently installed paneling, wallboard, bookcases, and cabinets. Window blinds. Detached garages (up to ten percent of Building Property coverage). Detached buildings (other than garages) require a separate Building Property policy. Debris removal. What is insured under PeRSonAl PRoPeRtY coverage Personal belongings such as clothing, furniture, and electronic equipment. Curtains. Portable and window air conditioners. Portable microwave ovens and portable dishwashers. Carpets not included in building coverage (see above). Clothes washers and dryers. Food freezers and the food in them. Certain valuable items such as original artwork and furs (up to $2,500). What is not insured by either Building Property or Personal Property coverage Damage caused by moisture, mildew, or mold that could have been avoided by the property owner. Currency, precious metals, and valuable papers such as stock certificates. Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools. Living expenses such as temporary housing. Financial losses caused by business interruption or loss of use of insured property. Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy). 10/13 32/38 2

33 general guidance on flood insurance Coverage limitations in Areas Below the lowest elevated floor and Basements Flood insurance coverage is limited in areas below the lowest elevated floor (including crawlspaces) depending on the flood zone and date of construction (refer to Part III, Section A.8 in your policy) and in basements regardless of zone, or date of construction. As illustrated below, these areas include 1) basements, 2) crawlspaces under an elevated building, 3) enclosed areas beneath buildings elevated on full story foundation walls that are sometimes referred to as walkout basements, and 4) enclosed areas under other types of elevated buildings. What is insured under BuilDing PRoPeRtY coverage Foundation walls, anchorage systems, and staircases attached to the building. Central air conditioners. Cisterns and the water in them. Drywall for walls and ceilings (in basements only). Nonflammable insulation (in basements only). Electrical outlets, switches, and circuit breaker boxes. Fuel tanks and the fuel in them, solar energy equipment, well water tanks and pumps. Furnaces, hot water heaters, heat pumps, and sump pumps. What is insured under PeRSonAl PRoPeRtY coverage Washers and dryers. Food freezers and the food in them (but not refrigerators). Portable and window air conditioners. What is not insured by either Building Property or Personal Property coverage Paneling, bookcases, and window treatments such as curtains and blinds. Carpeting, area carpets, and other floor coverings such as tile. Drywall for walls and ceilings (below lowest elevated floor). Walls and ceilings not made of drywall. Most personal property such as clothing, electronic equipment, kitchen supplies, and furniture. 1. BASeMentS Coverage limitations apply to basements, which are any area of the building, including a sunken room or sunken portion of a room, having its floor below ground level on all sides. 2. CRAWlSPACe When a building is elevated on foundation walls, coverage limitations apply to the crawlspace below. 3. elev ted BuilDing A on full StoRY foundation WAllS Coverage limitations apply to the enclosed areas (lower floor) even when a building is constructed with what is sometimes called a walkout basement. 4. elev ted BuilDing A WitH enclosure Coverage limitations apply to enclosed areas at ground level under an elevated building. An elevated building allows water to flow freely under the living quarters, thus putting less strain on the building in the event of flooding. An enclosure is the area below the lowest elevated floor that is fully shut in by rigid walls. 10/13 33/38 3

34 How flood Damages Are Valued The value of flood damage in the Dwelling Form is based on either Replacement Cost Value or Actual Cash Value. Replacement Cost Value (RCV) RCV is the cost to replace that part of a building that is damaged (without depreciation). To be eligible, three conditions must be met: 1. The building must be a single-family dwelling, and 2. Be your principal residence, meaning you live there at least 80-percent of the year, and 3. Your building coverage is at least 80-percent of the full replacement cost of the building, or is the maximum available for the property under the NFIP. Actual Cash Value (ACV) ACV is Replacement Cost Value at the time of loss, less the value of its physical depreciation. Some building items such as carpeting are always adjusted on an ACV basis. For example, wall-to-wall carpeting could lose between 10 to 14 percent of its value each year, depending on the quality of the carpeting. This depreciation would be factored in the adjustment. Personal property is always valued at ACV. Special Considerations for Multiple Claims Property owners of severe repetitive loss properties may be eligible for a FEMA mitigation grant for property improvements that reduce the likelihood of future flood damages. Property owners who refuse the grant money could be required to pay increased flood insurance premiums. A property is defined as a severe repetitive loss property when it meets one of these conditions: 1. Four or more separate flood claim payments have been made and each claim payment exceeds $5,000, or 2. At least two flood claim payments have been made and the cumulative payments exceed the value of the property. A final note This document provides general information about flood insurance coverage. However, please be aware that your Standard Flood Insurance Policy, your application, and any endorsements, including the Declarations Page, make up your official contract of insurance. Any differences between this information and your policy will be resolved in favor of your policy. If you have questions, call your insurance agent or company representative. What is increased Cost of Compliance (icc) coverage? Most NFIP policies include ICC coverage, which applies when flood damages are severe. ICC coverage provides up to $30,000 of the cost to elevate, demolish, or relocate your home. If your community declares your home substantially damaged or repetitively damaged by a flood, it will require you to bring your home up to current community standards. The total amount of your building claim and ICC claim cannot exceed the maximum limit for Building Property coverage ($250,000 for a singlefamily home). Having an ICC claim does not affect a Personal Property claim (up to $100,000), which is paid separately. Details about eligibility are in Part III, Section D of your policy. Congress created the National Flood Insurance Program (NFIP) in 1968 to reduce future flood damage through floodplain management, and to provide people with flood insurance through individual agents and insurance companies. The Federal Emergency Management Agency (FEMA) manages the NFIP. As required by Congress, this document was prepared by the NFIP to help flood insurance policyholders understand their policy. 10/13 34/38 4

35 U.S. Department of Homeland Security Washington, D.C Date, 2005 Policy Number Barcode NAME PROPERTY ADDRESS ADDRESS 1 ADDRESS 1 ADDRESS 2 ADDRESS 2 CITY, STATE ZIP CITY, STATE ZIP Address Barcode Line 1 Address Barcode Line 2 ACKNOWLEDGEMENT OF RECEIPT By signing, dating and returning this document in the pre-stamped, enclosed envelope, you acknowledge that: You have received your Declarations Page, and a Summary of Coverage from your insurance company. We have provided you with your property s loss history and the NFIP Flood Insurance Claims Handbook. You understand that you have the option to purchase BOTH building and contents coverage as part of your policy or; You may purchase building or contents coverage separately. The person(s) listed on the policy as the Named Insured(s) should sign and date this form. If a legal representative of the Named Insured signs, you must explain the nature of the representation and provide legal authority. An additional copy of this form has been provided for you to keep with the other documents you received. Return the original signed and dated form in the envelope provided. Thank you for your cooperation and for protecting your property with the National Flood Insurance Program. Signature of Named Insured: Date: Printed Full Name: Signature of Named Insured: Date: Printed Full Name: 10/13 35/38

36 NATIONAL FLOOD INSURANCE PROGRAM PROPERTY LOSS HISTORY CURRENT COMPANY/POLICY NUMBER: INSURANCE COMPANY/00000XXXXX CURRENT PROPERTY ADDRESS: 1 Main Street Anywhere, USA ZIP+4 THE INFORMATION PROVIDED BELOW IS THE FLOOD INSURANCE LOSS PAYMENT HISTORY FOR CLAIMS PAID BY THE NATIONAL FLOOD INSURANCE PROGRAM SINCE 1978 FOR THE ABOVE PROPERTY ADDRESS. IF YOU HAVE ANY QUESTIONS ABOUT THIS INFORMATION PLEASE CONTACT THE NFIP AT BUILDING CONTENTS TOTAL DATE OF LOSS PAYMENTS PAYMENTS PAYMENTS /10/1994 $9, $9, $18, THE FLOOD INSURANCE REFORM ACT OF 2004 PROVIDED FOR THE ESTABLISHMENT OF A PILOT GRANT PROGRAM FOR THE MITIGATION OF SEVERE REPETITIVE LOSS PROPERTIES. THE ACT DEFINES A SEVERE REPETITIVE LOSS PROPERTY AS A PROPERTY COVERED BY A FLOOD INSURANCE POLICY THAT HAS INCURRED FLOOD-RELATED DAMAGE (1) FOR WHICH 4 OR MORE SEPARATE CLAIMS PAYMENTS HAVE BEEN MADE, WITH THE AMOUNT OF EACH CLAIM EXCEEDING $5,000 OR (2) FOR WHICH 2 SEPARATE CLAIMS PAYMENTS HAVE BEEN MADE, WITH THE CUMULATIVE AMOUNT OF SUCH CLAIMS EXCEEDING THE VALUE OF THE PROPERTY. ONCE THAT PILOT GRANT PROGRAM IS ESTABLISHED, YOU WILL BE NOTIFIED IF THE RECORDED CLAIMS HISTORY OF YOUR PROPERTY SHOWS IT TO BE A SEVERE REPETITIVE LOSS PROPERTY. 10/13 36/38

37 NATIONAL FLOOD INSURANCE PROGRAM PROPERTY LOSS HISTORY CURRENT COMPANY/POLICY NUMBER: INSURANCE COMPANY/00000YYYYY CURRENT PROPERTY ADDRESS: 2 Main Street Anytown, USA ZIP+4 THE INFORMATION PROVIDED BELOW IS THE FLOOD INSURANCE LOSS PAYMENT HISTORY FOR CLAIMS PAID BY THE NATIONAL FLOOD INSURANCE PROGRAM SINCE 1978 FOR THE ABOVE PROPERTY ADDRESS. IF YOU HAVE ANY QUESTIONS ABOUT THIS INFORMATION PLEASE CONTACT THE NFIP AT BUILDING CONTENTS TOTAL DATE OF LOSS PAYMENTS PAYMENTS PAYMENTS NO LOSSES ON FILE THE FLOOD INSURANCE REFORM ACT OF 2004 PROVIDED FOR THE ESTABLISHMENT OF A PILOT GRANT PROGRAM FOR THE MITIGATION OF SEVERE REPETITIVE LOSS PROPERTIES. THE ACT DEFINES A SEVERE REPETITIVE LOSS PROPERTY AS A PROPERTY COVERED BY A FLOOD INSURANCE POLICY THAT HAS INCURRED FLOOD-RELATED DAMAGE (1) FOR WHICH 4 OR MORE SEPARATE CLAIMS PAYMENTS HAVE BEEN MADE, WITH THE AMOUNT OF EACH CLAIM EXCEEDING $5,000 OR (2) FOR WHICH 2 SEPARATE CLAIMS PAYMENTS HAVE BEEN MADE, WITH THE CUMULATIVE AMOUNT OF SUCH CLAIMS EXCEEDING THE VALUE OF THE PROPERTY. ONCE THAT PILOT GRANT PROGRAM IS ESTABLISHED, YOU WILL BE NOTIFIED IF THE RECORDED CLAIMS HISTORY OF YOUR PROPERTY SHOWS IT TO BE A SEVERE REPETITIVE LOSS PROPERTY. 10/13 37/38

38 Ignoring Flood Insurance Equals an E & O Exposure Participate Feedback Listed below are the topics covered in the Training Class, please place an X in the appropriate box to indicate your confidence prior to the attending the course. Then please place an X in the appropriate box to indicate your confidence after the course. Topic General Information Rating / Underwriting Non & Elevated Buildings Not too Confident BEFORE attending the class Somewhat Confident Moderately Confident Confidence Ranking Very Confident Not too Confident AFTER attending the class Somewhat Confident Moderately Confident Very Confident Elevation Certificate Comments In the section below please provided any comments about the topics covered in the course and how they might assist you in completing a flood application. Comments: Below please indicate the course date and location Course Date: Course Location (City & St): 10/13 38/38