NFIP Producer Seminar

NFIP Producer Seminar Flood Insurance Course (FIRA compliant) Sonja Wood, CFM Senior Territory Training Manager NFIP Training / H2O Partners

Unauthorized Entities Language AN UNAUTHORIZED ENTITY IS AN INSURANCE COMPANY THAT IS NOT LICENSED BY THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES. AGENTS AND BROKERS HAVE RESPONSIBILITY FOR CONDUCTING REASONABLE RESEARCH TO ENSURE THAT THEY ARE NOT WRITING POLICIES OR PLACING BUSINESS WITH UNAUTHORIZED ENTITIES. LACK OF CAREFUL SCREENING CAN RESULT IN SIGNIFICANT FINANCIAL LOSS TO FLORIDA RESIDENTS DUE TO UNPAID CLAIMS AND/OR THEFT OF PREMIUMS. AGENTS MAY BE HELD LIABLE WHEN REPRESENTING THESE UNAUTHORIZED ENTITIES. IT IS THE AGENTS AND BROKERS RESPONSIBILITY TO GIVE FAIR AND ACCURATE INFORMATION REGARDING THE COMPANIES THEY REPRESENT. ANY QUESTION ABOUT THE AUTHORIZED STATUS OF A COMPANY CAN BE CHECKED BY CALLING THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES AT 1.877-693-5236. WE URGE ALL AGENTS AND BROKERS TO ADHERE TO THIS ADMONITION. THE STATE OF FLORIDA HAS TAKEN A VERY STRONG POSITION ON THE ISSUE OF UNAUTHORIZED ENTITIES. 2

Resource Information Lynne Magel, NFIP Bureau & Statistical Agent/URS lmagel@ostglobal.com 813.788.2624 Elizabeth Wong, Stormwater Manager City of North Port, FL ewong@cityofnorthport.com 941.429.7090

The Essential Essentials NFIP Background Types of Policies Policy Coverage Flood Insurance Claims Rating Base Flood Elevation and Elevation Certificates Resources

NFIP Background 5

History of the NFIP 6

Connecting FEMA with the Insured Department of Homeland Security DHS Federal Emergency Management Agency FEMA Mitigation Division National Flood Insurance Program NFIP NFIP Servicing Agents 100+ WYO companies 7

The National Flood Insurance Program Offers flood insurance Insurance through WYOs as well as NFIP Over 90% of policyholders via WYO Reduces the consequences of flooding Community participation is required for NFIP flood insurance 8

The Least You Need to Know Every building is in a flood zone. You can purchase flood insurance in any zone, not just high-risk ones. You purchase coverage separately for a building and for its contents. You can file a claim without a federal declaration of disaster. The standard flood insurance policy: Doesn t guarantee replacement cost Limits coverage for basements Excludes time-element exposure 9

Floods and Flood Insurance Every building in a participating community is in a flood zone

Community Participation FEMA agrees to make flood insurance available within a community. The community agrees to: Adopt a floodplain management ordinance. Enforce the regulations in that ordinance. 11

NFIP: Two Ways to Participate Regular Program Full insurance coverage available More detailed flood maps Emergency Program Limited insurance coverage Limited flood risk information on maps Generally first step to regular program 12

Does My Community Participate? Community Status Book (www.fema.gov/fema/csb.shtm) Joined regular program 11/15/78 (E) : Joined emergency program 7/28/95 13

Flood Insurance vs. Disaster Assistance Flood Insurance Average annual cost for $100,000 policy: $400 Preferred risk policies (low-risk areas) as low as $119 (1-4 family residential with building and contents) Disaster Assistance Requires federal disaster declaration Most disaster relief comes as a loan, not insurance Annual interest on $50,000 at 4%: $2,880 and in Special Flood Hazard Areas, you must already have flood insurance 14

Flood Zone Basics Special Flood Hazard Area (SFHA) 100-year floodplain 1% annual chance of flood A 26% chance over a 30-year mortgage High-risk zones A zones V zones (coastal) Non-SFHA Moderate to minimal risk B and C zones X zones 15

3 2 Flood zone boundary 1 SFHAs appear as dark shading on a Flood Insurance Rate Map (FIRM). 16

FIRM: Flood Insurance Rate Map Official flood map showing: Hazard areas Low Risk Moderate Risk High Risk Available online through FEMA s Map Service Center www.msc.fema.gov 17

Types of Policies 18

Types of Policies Which to use? What s the purpose of the structure? 19

Understanding flood insurance Type of policy Not personal or commercial property? Instead: Residential or non-residential? It s not about the mortgage Don t think: Retail loan or commercial loan? Instead: What s the purpose of the building? 20

Special Considerations One Building per policy Building and Contents purchased separately No Binders Policy Term 1 year Cancellation Restrictions 21

Policies: Dwelling Residential building for 1 to 4 families Also applies to: Individual condo units Manufactured homes Renters (for contents) 22

Policies: General Property Residential (More than 4 families) Nonresidential buildings Commercial Schools, churches, etc. 23

Policies: RCBAP Residential Condominium Building Association Policy Buildings owned by condo associations (Individual unit owners purchase a dwelling policy) 24

Waiting Period: 30 Days 30 Day wait after presentment of payment and completed application Exceptions for: Insurance required for a loan Purchased within 13 months of a map change Renewals seeking increased coverage Get it before you need it. Good morning I d like to find out about flood insurance. 25

Preferred Risk Policy Application (PRP) Lower-cost option for low and moderate risk zones Zones B, C, and X only Other conditions exist Limits on loss history Documentation requirements Available for individual condo owners, but not for the condo association Insure common property through RCBAP (Residential Condominium Building Association Policy) 26

Policy Coverages Presenter s Name and Date 27

Coverage A single-peril policy: Direct physical loss by or from flood 28

What Makes a Flood a Flood? A general condition A temporary condition Partial or complete inundation Overflow of inland or tidal waters Unusual and rapid accumulation or runoff of surface waters from any source Accidental or unplanned 29

At least two acres or two properties At least partial inundation Temporary Unplanned 30

Flood (part 2): Mudflow Flood includes mudflow A river of liquid or flowing mud On normally dry land Consistency of chocolate milk or a milkshake 31

Flood (part 3): Erosion Flood-related erosion Collapse or subsidence of land Caused by waves or currents exceeding cyclical levels Resulting in flooding (general, temporary inundation ) 32

Types of Coverage Coverage A: Building Property Coverage B: Personal Property Coverage C: Other Coverage Example: debris removal Coverage D: Increased Cost of Compliance Repair / rebuild after a flood Examples: elevation, floodproofing, demolition 33

Coverage A: What s a Building? At least two rigid exterior walls and a roof Principally above ground Also: Manufactured (mobile) home or travel trailer On a chassis, fixed to a permanent foundation. (Buildings don t have wheels.) 34

Coverage A: Buildings Under Construction Applies prior to two rigid exterior walls and a roof Coverage while work is in progress, or up to 90 days after work is halted Building deductible is doubled No coverage if lowest floor is below BFE (base flood elevation) Covers materials and supplies stored in a fully enclosed building at the described location or on an adjacent property 35

Additions and Extensions Building includes additions, extensions in contact with the structure via: Rigid exterior wall Solid, load-bearing interior wall Stairway Elevated walkway Roof 36

Garages (dwelling form only) You can apply up to 10% of Coverage A to detached garage Not additional coverage; taken from limit for building Not used for residential, business or agricultural purposes Dwelling policy only Not General Property form Not RCBAP form (condo associations) 37

Coverage A: Manufactured Home/Travel Trailer Affixed to permanent foundation Poured masonry slab or foundation walls Piers or block supports No weight on wheels or axles Special Flood Hazard Areas: Anchored to permanent foundation to resist flotation, collapse or lateral movement 38

Also Part of Coverage A Awnings, canopies Blinds Built-in dishwashers Carpet permanently installed over unfinished flooring Central A/C Elevator equipment Fire sprinkler systems Furnaces, radiators Garbage disposals Light fixtures Outdoor antennas & aerials fastened to buildings Permanently installed cupboards, bookcases, cabinets, paneling and wallpaper Plumbing fixtures Pumps, machinery Ranges, cooking stoves/ovens Refrigerators, walk-in freezers Wall mirrors (perm. inst.) Water heaters (incl. solar) Examples of building property, not personal property. See policy for details. 39

Coverage B: Personal Property in Which Building? Dwelling form: Contents that you own in any building at the insured location General property / RCBAP forms: Contents inside a fully enclosed insured building Remember they re separate coverages: Coverage A insures the building property. Coverage B insure personal property. Need both? Purchase both. 40

Personal Property Examples / Dwelling Policy These are examples. See the policy for full details. Air conditioners (portable or window) Carpets over finished flooring Also, if not installed permanently over unfinished flooring Clothes washers and dryers Cook-out grills Freezers (not walk-in); food in any freezer Portable microwave ovens, dishwashers 41

Coverage B: Dwelling Form- Betterments Improvements made or acquired, but for not more than 10 percent of the limit of liability shown for personal property For condo unit, we will also cover your interior walls, floor, and ceiling for not more than 10 percent of the limit of liability shown for personal property

Coverage B: GP and RCBAP Similar to dwelling policy Also: Outdoor equipment and furniture (stored inside insured building) Ovens and the like For RCBAP, this means owned by the condo association, or by the unit owners in common 43

Even if You re on the Fourth Floor RCBAP covers property owned by the condo association Common areas, association offices Dwelling policy covers the individual unit you own Damage to common property can affect your individual property 44

In a Building, What s a Basement? Any area with its floor below ground level on all sides Includes sunken rooms, rooms with sunken area Basement Walkout so not a basement 45

Coverage A (Building Property) in Basements and Post-FIRM enclosures* Central air conditioners Unfinished drywall (walls, ceilings) Electrical outlets, switches; circuit breaker boxes Elevators and related equipment Footings, foundations, posts, etc., required to support building Fuel tanks and fuel in them Furnaces, water heaters, heat pumps Non-flammable insulation Sump pumps Stairways and staircases (attached to building) Water filters and faucets (installed as integral part of plumbing system) Well water tanks and pumps Required utility connections for items on this list Clean-up Examples of covered building property in basements. See the policy for full details. * In SFHAs 46

Coverage B (Personal Property) in Basements and Post-FIRM enclosures* Portable or window air conditioning units Clothes washers and dryers Food freezers (other than walk-in) and food in freezer Equipment must be in a functioning location and connected to a power source. *In SFHAs 47

Coverage C: Other Removal of debris Non-owned debris from insured property Owned debris from anywhere Value of your labor for removal (at minimum wage) Loss avoidance measures Sandbags, supplies, labor (up to $1,000) Moving property to safety (up to $1,000) Condominium loss assessment Assessed to your unit by condo association Up to the liability limit of Coverage A 48

Coverage C: Doesn t Increase A and B Coverage C does not increase the limits of Coverages A or B Amount under Coverage C reduces amount available under A or under B Example: Building only policy; insured for $125,000 Claimed under Coverage C: $23,000 Remaining under Coverage A: $102,000 49

Coverage D: Increased Cost of Compliance Post-flood cost to comply with flood management ordinances Elevation, relocation, demolition Floodproofing for buildings with basements designed to meet floodproofing requirements Requires substantial damage or repetitive loss At least 50% of market value, or Loss in 2 of last 10 years Up to $30,000; no separate deductible Must also have Coverage A 50

NFIP Coverage Limits Emergency Program Regular Program Single Family Building $35,000 $250,000 Contents $10,000 $100,000 Other Residential Building $100,000 $250,000 Non-Residential Building $100,000 $500,000 Contents $100,000 $500,000 51

Items Not Covered; Exclusions Details in Section IV of the Policy 52

Examples of Items Not Covered Personal property outside the fully enclosed building Property in, on or over water Self-propelled vehicles; recreational vehicles Walks, decks & driveways Land, trees, shrubs Fences, seawalls, piers, docks Livestock Crops Accounts, bills, coins, currency, other valuable papers Underground structures, equipment (e.g., septic systems) Storage for gases, liquids Pools and equipment; hot tubs (except as bathroom fixtures) 53

Exclusions No coverage for: Loss of revenue or profits Loss of access or use Loss from interruption of business Additional living expenses 54

Examples of Exclusions Policy does not cover: Sewer backup / seepage Overflow from sump pump Seepage or leaks Pressure or weight of water Other excluded losses: Movement of earth (landslide, earthquake) Gradual erosion Mold or mildew Exception to the above: A flood in the area is the proximate cause of damage. 55

Claims What your client should know after a flood 56

Deductibles Standard: $1000 or $2,000 Residential option up to $5,000 Non-residential option up to $50,000 Separate for building and for contents Deductible doubles for buildings under construction No deductible for: Loss avoidance measures Loss assessments Increased cost of compliance As of 10/01/09 57

How NFIP Covers Loss Replacement cost value: Single-family dwelling (building only) Property owned by condominium association Actual cash value: Single family dwelling that s ineligible for RCV Other dwellings Non-residential buildings Contents always actual value Special situation for manufactured home or travel trailer 58

Replacement Cost Single-family dwelling only Must be principal residence Building only (not contents) Coverage: 80% of replacement cost at time of loss, or Maximum under NFIP 59

Actual Cash Value $10,000 / 10 years = $1,000/year $1,000/year x 5 years = $5,000 -Deductible Claim $ Paid

Replacement Cost under RCBAP Applies to condo association property (not individual units) Building only Must be insured to 80% of replacement cost Lowest amount of: Amount of insurance Replacement cost Actual expense to repair or replace Unlike Dwelling or GP policy, coinsurance clause applies 61

All Other Buildings: Actual Cash Value Other residential Dwellings for two to four families Single family not eligible for RCV Mobile homes under 16 feet wide and under 600 sq. ft. Detached garages Non-residential buildings Personal property coverage is always at actual cash value 62

Manufactured/Mobile Homes, Travel Trailers Built on permanent chassis; fixed to permanent foundation At least 16 wide; at least 600 square feet Must be principal residence Partial loss at replacement cost If a total loss, coverage is the least of: The building s limit of liability Replacement cost of dwelling 1.5 times actual cash value 63

Making a Claim Report claims to WYO carrier or NFIP servicing agent In major disasters, NFIP sets up a Flood Insurance Claim Office. Refer to Flood Insurance Claims Handbook 64

Flood Insurance Reform Act: Staying Informed Mandatory Training for agents who sell flood insurance through the NFIP Info sent to policyholder by WYO Company (or NFIP Servicing Agent): Cover letter for enclosures, info to follow New or renewal declarations page Four-page summary of coverage Sent to policyholder by FEMA : Cover letter for enclosures Loss history for insured property Claims handbook Acknowledgement form to sign 65

Rating 66

Building a Policy So, what s this going to cost me? 67

Building a Flood Policy (part 1) The Community Does it participate in NFIP? Most do. Which phase: emergency or regular? Where s its flood map? 68

CSB Shows All Participating Communities Community and county Initial date for Flood Hazard Boundary Map (older map) Initial date for Flood Insurance Rate Map (if any) Date of current flood map * * NSFHA in this column means non - special flood hazard area Regular Program (E) : Emergency Program 69

FIRM: Official Flood Map 70

Finding a FIRM Map Service Center: www.msc.fema.gov Click to view map 71

Using the Map Viewer Pan, zoom in, zoom out or make a FIRMette 72

FIRMette: a Section of a FIRM Use the MSC Viewer Move highlight to select a specific area on the FIRM Save: Print Save as PDF Save as an image file 73

FIRMette: Good Reference for the Insured 74

A More Detailed Flood Map 75

Unauthorized Entities Language AN UNAUTHORIZED ENTITY IS AN INSURANCE COMPANY THAT IS NOT LICENSED BY THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES. AGENTS AND BROKERS HAVE RESPONSIBILITY FOR CONDUCTING REASONABLE RESEARCH TO ENSURE THAT THEY ARE NOT WRITING POLICIES OR PLACING BUSINESS WITH UNAUTHORIZED ENTITIES. LACK OF CAREFUL SCREENING CAN RESULT IN SIGNIFICANT FINANCIAL LOSS TO FLORIDA RESIDENTS DUE TO UNPAID CLAIMS AND/OR THEFT OF PREMIUMS. AGENTS MAY BE HELD LIABLE WHEN REPRESENTING THESE UNAUTHORIZED ENTITIES. IT IS THE AGENTS AND BROKERS RESPONSIBILITY TO GIVE FAIR AND ACCURATE INFORMATION REGARDING THE COMPANIES THEY REPRESENT. ANY QUESTION ABOUT THE AUTHORIZED STATUS OF A COMPANY CAN BE CHECKED BY CALLING THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES AT 1.877-693-5236. WE URGE ALL AGENTS AND BROKERS TO ADHERE TO THIS ADMONITION. THE STATE OF FLORIDA HAS TAKEN A VERY STRONG POSITION ON THE ISSUE OF UNAUTHORIZED ENTITIES. 76

No Flood Insurance Available Where: CBRA areas (Coastal Barrier Resources Act) OPA (Otherwise Protected Areas) Coastal barrier islands, shores of Great Lakes, other natural resources Shown on flood maps with identification date What CBRA and OPA mean: Buildings ineligible for coverage (even in participating communities) No coverage available if constructed after the identification date 77

Building a Flood Policy (part 2) About the structure: Eligible for coverage? Dwelling, general, or owned by condo association? Pre-FIRM or Post-FIRM? (based on effective date of Flood Insurance Rate Map) Basement or enclosure? 78

Quick Quiz Which of these properties are insurable? a. b. d. c. 79

Pre-FIRM vs. Post-FIRM Pre-FIRM Built on or before December 31, 1974, or Before effective date of community s initial FIRM Post-FIRM Built after Dec. 31, 1974, or On or after effective date of community s initial FIRM whichever is later whichever is later 80

Why the Initial FIRM Date Matters Pre-FIRM structures are not actuarially rated Requirements are less stringent Premiums are lower But: If structure is substantially damaged, rebuilding must comply with current standards A key post-firm factor: BFE (Base Flood Elevation) 81

Cost for 30 Years of Flood Insurance Pre-FIRM House $65,130 ($2,171/yr) $65,130 ($2,171/yr) $65,130 ($2,171/yr) 1 foot above BFE 1 foot below BFE Post-FIRM House $23,310 ($777/yr) $168,450 ($5,615/yr) 10 feet below BFE $762,330 ($25,411/yr) 82

Building a Flood Policy (part 3) About the Coverage Building, contents, or both? Amount for each coverage? Include Coverage D (increased cost of compliance)? Deductible and fees Eligible for CRS discount? 83

NFIP Coverage Limits Emergency Program Regular Program Single Family Building $35,000 $250,000 Contents $10,000 $100,000 Other Residential Building $100,000 $250,000 Non-Residential Building $100,000 $500,000 Contents $100,000 $500,000 84

Community Rating System Encourages communities to exceed minimum NFIP requirements 900+ communities; 63% of all policies CRS classes 1 10: 1 (highest): 45% discount on insurance premiums (not fees) 9 (lowest): 5% discount 10: community doesn t participate CRS Resource Center: http://training.fema.gov/emiweb/crs/ 85

The Grandfather Provision 86

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

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

Zone X in 2000 Pre-FIRM Building $326 PRP

Zone AE in (Preliminary) June 18, 2007 ZONE AE Grandfathered: $326 PRP (1 (1 st st year) $1,307 SFIP*-X (yr (yr 2-3) $2,940 in in 3 years Not Grandfathered: $2,171* SFIP (AE Zone) $6,513 in in 3 years *$200,000 building/$80,000 contents; Oct 2009 rates

Reminder! Preferred Risk Policy Eligibility Must be in a B, C or X zone At time of application and At time of renewal Eligibility subject to claims history and receipt of disaster assistance NOTE: A building which becomes ineligible for PRP due to a zone change will renew using Standard Rates. However, the old zone can still be locked in using zones B, C, or X.

One Chance for Pre-FIRM! Locked in X Zone BEFORE map revision: Standard Pre-FIRM rate: $1208 (Zone X) $2,074 (Zone AE) *$200,000 building/$80,000 contents; October 2009 rates

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

Is Zone X always the best rate? Example*: X zone vs. AE zone Locked X Zone: New AE Zone (+2): $1,307 $548 *$200,000 building/$80,000 contents; October 2009 rates

Sometimes X Zone IS the best rate! Example*: X zone vs. AE zone Locked X Zone: New AE Zone (at BFE): $1,307 $1,429 *$200,000 building/$80,000 contents; October 2009 rates

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

Base Flood Elevation --76 feet +1 +1 above BFE Approx $777

New Base Flood Elevation -- 78 feet -1-1 below BFE Approx $5,615 *$200,000 building/$80,000 contents; October 08 rates

Lock in old BFE Example*: OLD BFE vs. Current Locked Old BFE (+1): Use current BFE (-1): $717 $5,615 *$200,000 building/$80,000 contents; May 2008 rates

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

Your Source for Previous Flood Maps Find historic flood maps through the MSC Product Catalog 101

Elevation Certificate 102

About Elevation Height of a structure relative to Base Flood Elevation (BFE). A structure above BFE is less likely to experience flood damage Less risk = lower premiums 103

Base Flood Elevation Base flood: 1% chance of being equaled or exceeded Expected surface of base flood 104

Lowest floor below BFE 105

Use of Elevation Certificates Pre-FIRM Construction (A or V zones) Elevation certificates are optional Non-SFHA Zones (B, C & X zones) No elevation certificates Post-FIRM Construction (A or V Zones) Elevation certificates are required in most cases 106

The Elevation Certificate is required An Elevation Certificate is required when flood insurance is applied for on a building that is located in a Special Flood Hazard Area (SFHA) and... 107

The Elevation Certificate is required...and the construction or substantial improvement of the building started after December 31, 1974 or on or after the date the initial Flood Insurance Rate Map (FIRM), whichever is later. 108

What an Elevation Certificate Does Certifies building elevation Document community compliance Determine policy rates Support map revisions and amendments

Why an Elevation Certificate? To correctly rate a flood insurance policy, you must identify the lowest floor of a building. The EC documents several elevation levels E.g., level of bottom floor, lowest adjacent grade You designate the one to use as the lowest floor for rating. See building diagrams in the Manual or the Elevation Certificate instructions. 110

The EC is about underwriting and obtaining accurate premiums How likely is the structure to get flooded? How severe will the damage be? 111

Who Certifies the Elevation? A surveyor, engineer, or architect must certify the building elevation. The insurance agent uses this information for rating. e.g., Is property stored under the structure below BFE? 112

Finding a Professional Word -of-mouth State professional association for land surveyors * State NFIP coordinator Local community s building permit office Yellow Pages under Surveyors * http://www.lsrp.com/lsassocbystate.pdf 113

Quick Quiz Where s the BFE (Base Flood Elevation)? a. b. c. Presenters Name and Date

Building Diagrams A Basic Building Diagram Slab-on-grade building Not split-level Numbers in circles correspond to entries on the elevation certificate Ten diagrams in all (for many types of buildings) 115

Elevated Building What is an Elevated Building? No basement Lowest elevated floor raised above ground level Elevated via foundation walls, shear walls, posts, piers, pilings or columns. Note: in Zones V and VE, solid foundation perimeter walls are unacceptable for elevating buildings 116

Enclosure Elevations and Enclosures Enclosure: part of an elevated building below the lowest elevated floor Partially or fully shut in by rigid walls Partial: May not be full height One wall does not constitute an enclosure. 117

Elevated Buildings and Enclosures A Zones Full enclosure allowed Limited Storage, Parking and Access allowed Venting/Openings required V Zones Limited enclosure (less than 300 sq. ft.) Limited Storage, Parking and Access allowed Breakaway Walls required

Flood Vents Elevation certificates document any flood vents Permanent openings to allow free movement of water No more than one foot above grade One square inch of opening for each square foot of enclosed area 119

Breakaway Wall Elevated Buildings Can Have Breakaway Walls Not part of structural support Intended to give way under certain lateral forces Intended not to damage the elevated portion or the supporting foundation 120

Elevation Certificate - Section A Section A: Property Information New New 121

Elevation Certificate - Section B Section B: FIRM Information 122

Elevation Certificate - Section C Section C: Building Elevation Information New 123

Above or Below (if BFE = 746.2)? 746. 5 757. 5 745. 7 745. 9 746.5 Lowest Floor - 746.2 BFE + 0.3 Elevation Difference 124

Elevation Certificate - Section D Section D: Certification by the Professional 125

Elevation Certificate - Sections E & F Sections E, F: No Survey for Zones A, AO 126

Section G: Optional Community Information 127

What s New 128

October 1, 2009 Program Changes Premium Increases Flood Zone Pre-FIRM & Post FIRM A1-A30, AE & V zones, 10% Unnumbered A zones w/ no BFE, AR & A99, Mortgage Portfolio Protection Program (MPPP) AO, AH, AOB, AHB, 8% Standard X zone No Premium Increase Preferred Risk Policies

October 1, 2009- Basic Limit Increase Buiding Basic Limit CURRENT October 1, 2009 1-4 Family Residential $50,000 $60,000 Other Residential & Non Residential $150,000 $175,000 Contents Basic Limit CURRENT October 1, 2009 Residential $20,000 $25,000 Non-Residential $130,000 $150,000

October 1, 2009 Program Changes Write Your Own Companies will be required to record the date that premium was received for all applications and endorsements

October 1, 2009 Program Changes A new Risk Rating Method has been developed for leased Federal properties on the riverfacing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. These properties will be subject to actuarial rates.

New Elevation and Flood Proofing Certificate Forms Both forms reflect new expiration dates of March 31, 2012 and are currently available for use Elevation Certificate has 12 month voluntary phase-in beginning April 1, 2009. Mandatory use effective April 1, 2010 No significant changes to the Floodproofing Certificate

October 1, 2009 Program Changes Two New Building Diagrams:

Resources 135

FloodSmart.gov Official site of the National Flood Insurance Program 136

The FloodSmart Marketing Campaign Integrated marketing campaign driving customers to agents Direct Response TV Print Direct Mail Banner Ads Website Call Center Media Relations Stakeholder Outreach 137

Agents.FloodSmart.gov Referral Program Offers free leads to registered, trained agents via www.floodsmart.gov and the Referral Call Center 138

FloodSmart Agent Resources Co-Op Program Will reimburse up to 75% of agent marketing costs Reimbursements available on Radio, Yellow Pages, Newspaper and Magazine advertising All templates and spots have space for agent customization Mail-On-Demand Program From Your Desktop Provides agents with pre-built, customizable direct mail and postcard templates General Information Stay connected with e FloodSmart newsletter and news alerts Website also provides helpful information and tips like: Overcoming obstacles; developing marketing plans Latest Map Changes and Mapping Status Reports

The Flood Insurance Library Manuals Handbooks Community Rating System Community Status Book Forms Guidelines Publications Standard Policies Summary of Coverage http://www.fema.gov/business/nfip/library.shtm 140

NFIP Flood Insurance Manual Online at the Flood Insurance Library: http://www.fema.gov/business/nfip/manual.shtm Hard copy from: FEMA Map Service Center P.O. Box 1038 Jessup, MD 20794-1038 1-800-358-9620 141

Publications, Stuffers, Info Sheets Online at NFIP publications: www.fema.gov/business/nfip/libfacts.shtm 142

FEMA s Map Service Center www.msc.fema.gov 143

Agent Training www.nfipiservice.com/training Melanie Graham Dorothy Martinez Leslie Melville Rich Slevin Sonja Wood melanie@h2opartnersusa.com dorothy@h2opartnersusa.com lmelville@h2opartnersusa.com rich@h2opartnersusa.com sonja@h2opartnersua.com 144

In Summary NFIP Background Types of Policies Policy Coverage Flood Insurance Claims Rating Base Flood Elevation and Elevation Certificates Resources

Unauthorized Entities Language AN UNAUTHORIZED ENTITY IS AN INSURANCE COMPANY THAT IS NOT LICENSED BY THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES. AGENTS AND BROKERS HAVE RESPONSIBILITY FOR CONDUCTING REASONABLE RESEARCH TO ENSURE THAT THEY ARE NOT WRITING POLICIES OR PLACING BUSINESS WITH UNAUTHORIZED ENTITIES. LACK OF CAREFUL SCREENING CAN RESULT IN SIGNIFICANT FINANCIAL LOSS TO FLORIDA RESIDENTS DUE TO UNPAID CLAIMS AND/OR THEFT OF PREMIUMS. AGENTS MAY BE HELD LIABLE WHEN REPRESENTING THESE UNAUTHORIZED ENTITIES. IT IS THE AGENTS AND BROKERS RESPONSIBILITY TO GIVE FAIR AND ACCURATE INFORMATION REGARDING THE COMPANIES THEY REPRESENT. ANY QUESTION ABOUT THE AUTHORIZED STATUS OF A COMPANY CAN BE CHECKED BY CALLING THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES AT 1.877-693-5236. WE URGE ALL AGENTS AND BROKERS TO ADHERE TO THIS ADMONITION. THE STATE OF FLORIDA HAS TAKEN A VERY STRONG POSITION ON THE ISSUE OF UNAUTHORIZED ENTITIES. 146