Introduction to the National Flood Insurance Program

RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
Introduction to the
National Flood Insurance Program

National Flood Insurance Program
(NFIP)
• Provides flood insurance to homeowners, renters,
and business owners
• Community must participate in the program
• Written by insurance agencies through their carrier
or direct with the NFIP (rates and coverage are the
same for all agents)
• Created by Congress in 1968
• Administered by the Federal Emergency
Management Agency (FEMA)

The NFIP: How It Works

Rhode Island NFIP Facts
• 39 communities and 1 Tribal Nation participate in the National Flood
Insurance Program (NFIP).
• Approximately 14,000 structures in designated floodplains
• As of January 2016, there are 15,281 policies statewide
Figures reflect policies in and out of the floodplain
– Bristol County: 2,308
– Kent County : 1,985
– Newport County: 2,775
– Providence County: 2,685
– Washington County: 5,528
• Average RI Premium is $1,350/annually

FLOODPLAIN MAPPING

Rhode Island Facts
• 400+ miles of
coastline
• 21 of 39
municipalities are
coastal
• Digital mapping
data available
statewide

• Riverine
• Flash
• Coastal
• Shallow
Types of Flooding
Photo: Bob McMillan, FEMA

Definitions
• Base Flood: Flood that has a 1% chance of being
equaled or exceeded in any given year.
• Flood Insurance Rate Map (FIRM): An official map
where FEMA has delineated the special flood hazard
areas.
• Freeboard: An additional level of protection added
above the Base Flood Elevation.
• Special Flood Hazard Area (SFHA): Areas subject to
the Base Flood or greater in any given year. These
areas include Zones A and V.

Definitions
• Pre-FIRM buildings are built prior to the
community’s initial FIRMs or flood maps, so
they may have greater flood risk.
• Post-FIRM buildings were built after initial
FIRM. They have reduced risk of flooding
and damage if they are compliant with the
state and local floodplain regulations.
http://www.fema.gov/cis/RI.html

Definitions of FEMA Flood Zones

Flood Zone Wave Heights

Coastal Mapping Elements

Riverine Mapping Elements

Digital Flood Insurance Rate Maps
(DFIRMs)

Mapping Tools
FEMA Map Service CenterFloodsmart

Rhode Island Alternative

• Designed to provide users with an easily
accessible online reference tool by which to
make informed decisions about the flood
risk for a specific area or property.
• The floodplains shown on this Tool are
delineated on the FEMA historic,
preliminary, or effective
FIRMs.
• www.riema.ri.gov
RI Floodplain Mapping Tool

REGULATIONS

Floodplain Management
44 CFR 60.3 Requirements
• A permit is required for all development in
the SFHA shown on the FIRM.
• “Development” is any man-made change to
real estate including:
• structures • mining
• dredging • filling
• grading • paving
• excavating • drilling
• storage

Duties of the Floodplain Administrator
• Understand the regulations
• Ensure permits are obtained
• Coordinate with other offices, departments,
and programs
• Conduct inspections
• Correct violations and enforcement actions
• Update the ordinance and record keeping

Ordinance Administration
Ordinance must be:
• Legally enforceable
• Applied uniformly throughout community
• Take precedence over less restrictive
requirements

Record Keeping
There is no statute of limitations!
Permit File (NFIP Requirement)
Elevation Certificates official record for new
and substantially improved buildings
– Documents compliance with regulations and
supports insurance rating
– CRS communities must use FEMA Elevation
Certificate (Form 81-31)

Elevation Certificates (ECs)

Elevation Certificates
• The NFIP requires communities to obtain
lowest floor elevation information for newly
constructed and substantially improved
buildings in the SFHA.
• Provides elevation information to ensure
compliance
• Determines proper insurance premiums
• Supports map change requests

Diagram 2A - Basement

Diagrams 5 & 6 – Piers, Posts or Piles

Diagrams 7 & 8 – Walkouts and Crawlspace

The FEMA Elevation Certificate & Guidance
http://www.fema.gov/national-flood-
insurance-program-2/elevation-certificate
RI Department of Business Regulation,
Licensed Design Professionals
http://www.bdp.state.ri.us/surveyors/

Request must be based upon existing real
world conditions at the time of the
request.

Types of Map Change
• Amendments – maps changed to reflect
errors primarily due to limitations in map
scale
• Revisions – maps changed to reflect
physical changes to flood conditions
BFE
LOMR-F
BFE
LOMA
Natural
Grade

What Does a LOMA Do?
• Officially amends the FIRM
• Removes the mandatory* flood insurance
purchase requirement
• May remove a property from the local
regulatory requirements
• No review fee
* Even with a LOMA, lender may still require
purchase of flood insurance

Steps To Get a LOMA
• Hire a Professional Land Surveyor
• Survey structure and complete EC
• If Lowest Adjacent Grade (C2(f)) is higher
than BFE (B9) on EC then file for a LOMA
• LOMAs are free of charge for single
structures
• Can be completed electronically through
eLOMA

FLOOD INSURANCE

Flood Insurance Basics
• Standard homeowners insurance doesn't cover
flooding.
• Flood Insurance is required if you live in a Special
Flood Hazard Area (SFHA) or high-risk area AND have
a federally backed mortgage or other commitment
(reverse mortgage, line of credit/equity, etc.)
• A lender can require flood insurance, even if a
structure is NOT in the SFHA.
• Flood insurance can be purchased through a local
insurance agent.

Base Flood Elevation (BFE)
Base Flood Elevation (BFE)
Design Flood Elevation (DFE)
Freeboard

Coverage Limits
Structure Type Building Coverage Contents Coverage
Residential $250,000 $100,000
Commercial $500,000 $500,000
Flood insurance coverage can help protect
property and belongings. The NFIP
determines coverage and premiums.

Limitations
Insurance coverage limitations:
• In areas below the lowest elevated floor
depending on the flood zone and date of
construction
• In basements regardless of zone or date of
construction

Limitations
Basement is any area of a building (including
sunken room or portion of) with a floor sub-
grade (below ground level) on all sides.
NO coverage for:

Rating Buildings
• “Insurable” Building: is walled and roofed
“principally above ground” with at least
51% of actual cash value (including
equipment and machinery) above ground
• Manufactured Home: designed for use
with or without a permanent foundation
when attached to required utilities

Rating Buildings
“Submit-to-Rate” detailed underwriting
analysis is required for certain buildings
with peculiarities in exposure to
flooding:
• Lowest floor 2 feet or more below BFE
• Below grade crawlspace
• Enclosure below BFE

Homeowner Flood Insurance
Affordability Act of 2014
• HFIAA was signed into law on March 21, 2014
• Repeals and modifies certain BW-12 provisions:
• Reinstated grandfathering
• Refunded excessive policy premiums
• Instituted policy surcharge $25 primary
residence/$250 all others per year
• Capped yearly premium increases
• Provided relief for primary residence owners
• Remove sales rate trigger
• Create Affordability Study for Congress
• Designation of Flood Insurance Advocate to assist NFIP
policyholders

Program Changes Effective April 1, 2016
• Revised Premium Rates
– Limits annual premium and average rate class
increases Increase of 25% on premiums for
non-primary, SRL, SI/SD, commercial policy
holders
• Increases to the Reserve Fund
• For the most comprehensive policy
information, have your clients contact the
insurance agent

Questions?
Twitter: @RhodeIslandEMA
Facebook: facebook.com/rhodeislandema
Web: riema.ri.gov

Introduction to the National Flood Insurance Program

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Introduction to the National Flood Insurance Program