RI Shoreline Change SAMP Stakeholder Update and National Flood Insurance Reforms

Stakeholder Meeting
July 10th 2013
5:00-7:00pm
Corless Auditorium, URI Bay Campus

Project Goal
• Through a public process help develop innovative
and practical policies and tools for managing
development along shorelines vulnerable to erosion
and flooding
Melissa Devine, 2012
Lynne Harrington, Pawtuxet Cove 2012
Hurricane Irene, RI Sea Grant

Thank you!
• Rhode Island Bays, Rivers and Watershed
Coordination Team
• URI Coastal Institute
• Rhode Island Foundation
• Rhode Island Sea Grant
• Rhode Island Geologic Survey
• Coastal Resources Management Council
• URI Coastal Resources Center
• URI Graduate School of Oceanography
• URI College of Environmental and Life
Sciences
• RI Statewide Planning (North Kingstown)
• Prince Charitable Trusts and Van Buren
Charitable Foundation (Newport)
• NOAA, TNC, Save the Bay, NB National
Estuarine Research Reserve , Roger
Williams University (Marsh Migration)
Image Credit, CRMC

Project Update
April 2013- Kick off Meeting
Policy and Adaptation
Review is underway
Field work, Mapping & Modeling
Areas at Risk
Ongoing state and
local coordination of
efforts

Test Question: Have you lived
in Rhode Island 10 years or
longer?
A. Yes
B. No
C. I don’t live in Rhode
Island
D. I don’t know Yes
No
Idon’tlive
in
Rhode
Island
Idon’tknow
78%
3%7%
13%

How would you best
characterize your affiliation?
A. Local official/board
B. State agency
C. Federal agency
D. University/academia
E. Non-profit group
F. Business/Insurance
G. Interested citizen
H. Other
Localofficial/board
Stateagency
Federalagency
University/academ
ia
Non-profitgroup
Business/Insurance
Interested
citizen
Other
15%
10% 10%
3%
21%
7%
24%
9%

Are you a property owner?
A. Yes, my primary
residence is in RI
B. Yes, my secondary
residence is in RI
C. Yes, I own business
property is in RI
D. Yes, but I own
outside of RI
E. No, I don't own
property now.
Yes,m
yprim
ary
residence...
Yes,m
ysecondaryresiden..
Yes,Iow
n
businessproper..
Yes,butIow
n
outside
ofRI
No,Idon'tow
n
property...
72%
15%
6%
0%
7%

Do you currently have flood
insurance?
A. No, and I do not intend to
purchase flood insurance in
the next year
B. No, but I intend to purchase
flood insurance in the next
year
C. No, but I intend to purchase
flood insurance in the next 6
months
D. Yes, I have purchased flood
insurance within the last
year
E. Yes, I have been purchasing
flood insurance for MORE
than a year
No,and
Ido
notintend
..
No,butIintend
to
purcha..
No,butIintend
to
purcha..
Yes,Ihave
purchased
flo..
Yes,Ihave
been
purchasi..
73%
24%
0%1%1%

If you do have flood insurance,
do you own a home/building
built before 1975?
A. Yes
B. No
C. I don’t have flood
insurance
D. I don’t know Yes
No
Idon’thave
flood
insurance
Idon’tknow
20%
0%
75%
5%

RHODE ISLAND EMERGENCY MANAGEMENT AGENCYRHODE ISLAND EMERGENCY MANAGEMENT AGENCY
National Flood Insurance
Reforms – What do these
changes mean for Rhode
Island?
Impact of changes to the NFIP under Section 205
of the Biggert-Waters Act
July 10, 2013

National Flood Insurance Program
Background
• National Flood Insurance Act of 1968
– Established the NFIP
– Required mapping of flood-prone areas
– Made flood insurance available to all residents of
communities that meet floodplain management
requirements
– Afforded communities ability to obtain certain
types of disaster assistance

The NFIP: How It Works

Flood Insurance Facts
• 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, 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.

Rhode Island NFIP Facts
• All 39 communities and 1 Tribe participate in the National
Flood Insurance Program (NFIP).
• Currently 16,271 policies in Rhode Island
(Data as of July 3, 2013)
– Bristol: 2,128
– Kent : 2,495
– Newport: 2,996
– Providence: 2,733
– Washington: 5,919
• Average RI Premium is $1,303/annually

Important Terms
• 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 area.
• Pre-FIRM structure: A structure built before the community’s first
FIRM became effective.
• Post-FIRM structure: A structure built after the community’s first
FIRM became effective.
• Special Flood Hazard Area (SFHA): Areas subject to the Base Flood
or greater in any given year. These include V Zones and A Zones.

Mapping: Why New Maps?
• There is a nationwide project underway to update the FEMA
FIRMs. A combination of new data and outdated maps has
propelled the project.
• The maps were created by a FEMA contactor, STARR, through
extensive modeling using new transects, surveys and coastal
analyses.

Projected Effective Dates
• Bristol County: May 16, 2014
• Kent County: September 18, 2013
• Newport County: September 4, 2013
• Providence County: September 18, 2013
• Washington County: October 16, 2013
• The preliminary maps will go effective county-wide on these
dates.
• If communities want to remain in good standing with the NFIP
(and they do), each impacted community will adopt the
floodplain ordinance and corresponding panels.

• Congress passed the Flood Insurance Reform Act of 2012
(Biggert-Waters 2012), which will:
– Make the NFIP more financially stable by raising rates on certain
classes of property to reflect true flood risk; and
– Trigger rate changes for certain properties within a revised or
updated map area to accurately reflect the flood risk.
• Intent is to eliminate subsidies for:
– Structures built prior to the first flood insurance map in a
community (pre-FIRM)
– Policies based on the map in effect when structure was built
(grandfathering)
• Artificially low rates and discounts no longer are sustainable.
Changes are Coming to the NFIP

• Revised Premium Rates
– V Zones (Coastal velocity zones)
• Post-FIRM: Premium will increase 11%
• Pre-FIRM: Premiums will increase 17%
– A Zones
• Post-FIRM: Premium will increase 6%
• Pre-FIRM: Premiums will increase 16%
– X Zones (outside the SFHA)
• Standard-Rated Policy: Premium will increase 8%
• Preferred Risk Polices (PRP): Premiums will increase 1%
• Reserve Fund – 5% reserve fund assessment is to be included for all
policies other than PRP’s.
• Federal Policy Fee – Increasing from $20$22 for PRP policies and from
$40$44 for all other policies
Program Changes Effective Oct. 1, 2013

• Not everyone – 43% of NFIP policies in RI receive subsidies.
• Owners of subsidized non-primary residences in a Special Flood
Hazard Area will see 25% increase annually until rates reflect true
risk – began January 1, 2013.
• Owners of subsidized property that has experienced severe
repetitive flood losses or that has incurred flood cumulative
damage with flood insurance payments exceeding the value of the
structure will see 25% rate increase annually until rates reflect true
risk – October 2013.
• Owners of subsidized business properties in a Special Flood
Hazard Area will see 25% rate increase annually until rates reflect
true risk – October 2013.
• Owners of substantially damaged or substantially improved
subsidized property will see 25% rate increase.
Who Will Be Affected by Subsidy Changes?

Current & Upcoming Insurance Rate Changes
Effective Date Type of Structure Changes
Jan 1, 2013 Non-Primary Pre-FIRM Residence Up to 25% increase per
year till full risk
premium is reached
Oct 1, 2013 Pre-FIRM Business Properties
Pre-FIRM Severe Repetitive Loss
Properties
Up to 25% increase per
year till full risk
premium is reached
All new Pre-FIRM policies effective on
or after July 6, 2012.
Including those due to property being
sold, a policy lapse, severe repetitive
flood losses, and new policy purchased
for any reason.
First renewal or
purchase after Oct 1,
2013 will be based on
full risk premium
Oct 1, 2014 When a new map changes the flood
zone or flood elevation for any
property
5-year phase till full risk
rating is reached based
on new map

Changes for Non-Primary Residences
• Rates will increase up to 25 percent per year
until they reflect the full-risk rate
• Changes become effective January 1, 2013,
for new/renewal policies
Pre-FIRM:
Built before the community’s first
Flood Insurance Rate Map became
effective and not substantially damaged
or improved since then
Non-primary residence:
A building that will be lived in by the homeowner
or the owner’s spouse for less than 80 percent
of the year

Changes to Other Subsidized Rates
 Premiums for pre-FIRM commercial buildings
 Increase by up to 25 percent per year until they reach
full-risk rates
 Premiums for repetitively
flooded buildings
 These Severe Repetitive Loss
properties of one to four residences
will receive a premium increase of
up to 25 percent per year until reaching
full-risk rates
 Includes buildings with cumulative
flood insurance claim payments that meet
or exceed fair market value
 These changes will start Oct.1, 2013

Subsidized Policies By County
# of Subsidized
Policies
# of Polices that
are NOT
Subsidized
% of Subsidized
Policies
Bristol 1,020 1,124 48%
Kent 1,254 1,220 51%
Newport 1,458 1,508 49%
Providence 793 1,913 29%
Washington 2,230 3,593 38%

Direct Move to Full-Risk Rates
 After the purchase of a property
 Subsidized rates cannot be assigned to the new
owner
 After a policy lapse
 When a new policy is issued
 Policies for buildings uninsured as of the date that the
law was passed (July 6, 2012)
 If an offer to mitigate has been refused
 These changes will start October 1, 2013

What about when a new flood map is adopted?
• If you live in a community which adopts a new,
updated Flood Insurance Rate Map (FIRM) :
– Charging of insurance premiums based on a prior
FIRM -- grandfathering -- will be phased out.
• The Biggert-Waters Act Section 100207 calls for a phase-
out of grandfathering discounts for properties shown on
Flood Insurance Rate Maps that are updated.
• But the pain is lessened somewhat, because new rates
will be gradually phased in at 20% per year for five years
• Implementation anticipated in 2014

RHODE ISLAND EMERGENCY MANAGEMENT AGENCY
2014 – Elimination of Grandfathering

 Owners of primary residences in SFHAs will be able to
keep their subsidized rates unless or until:
 You sell your property (new rates will be charged to
next owner if they insure;)
 You allow your policy to lapse
 You suffer severe, repeated flood losses; or,
 You purchase a new policy (after July 6, 2012).
Who Won’t Be Affected by Subsidy Changes?

 Home and business owners:
 Talk to your insurance agent about your insurance options
 You’ll probably need an Elevation Certificate to determine your correct rate
 Higher deductibles might lower your premium
 Consider remodeling or rebuilding
 Building or rebuilding higher will lower your risk and could reduce your
premium
 Consider adding vents to your foundation or using breakaway walls
 Talk with local officials about community-wide mitigation steps
 Community leaders:
 Consider joining the Community Rating System (CRS) or increasing
your CRS activities to lower premiums for residents.
 Talk to your state about grants. FEMA issues grants to states which
can distribute the funds to communities to help with mitigation and
rebuilding.
What Can Be Done to Lower Costs?

• Many changes are coming to the Flood Insurance program
• Congress acted to make program stronger financially.
• On many more policies, flood insurance rates will reflect full
risk.
• Insurance rates will rise on some policies; and
• There are specific actions which will trigger rate changes.
• Talk to your insurance agent about how changes may affect your
property and flood insurance policy.
• Building or rebuilding higher can lower your flood risk and
could save you money.
• FEMA can help communities lower flood risk and flood
insurance premiums through:
• Community Rating System program;
• Various mitigation grants; and
• Technical advice on building and rebuilding to mitigate future flood
damage.
What You Need to Remember

Michelle Burnett
Rhode Island State Floodplain Manager
Rhode Island Emergency Management Agency
645 New London Avenue Cranston, RI 02920
Direct: (401) 462-7048
Michelle.F.Burnett.nfg@mail.mil
Bob Desaulniers
FEMA Region I – New England
Insurance Specialist
Direct: (617) 832-4760
Robert.Desaulniers@FEMA.DHS.Gov
Contact Information

Be prepared, take the survey and get tips to be
more prepared for such emergencies.
http://seagrant.gso.uri.edu/climate/
Speak to your builder/designer and local building
official about adding freeboard to your existing,
rebuilt or new home.

Support Community Efforts
Join Stormsmart
RI.stormsmart.org
Use the Community Rating System to reduce rates
Continue to engage in the Beach SAMP

Do you currently have flood
insurance?
A. No, and I do not intend to
purchase flood insurance in
the next year
B. No, but I intend to purchase
flood insurance in the next
year
C. No, but I intend to purchase
flood insurance in the next 6
months
D. Yes, I have purchased flood
insurance within the last
year
E. Yes, I have been purchasing
flood insurance for MORE
than a year
No,and
Ido
notintend
..
No,butIintend
to
purcha..
No,butIintend
to
purcha..
Yes,Ihave
purchased
flo..
Yes,Ihave
been
purchasi..
70%
21%
1%4%3%

National Flood Insurance rates and
maps are changing. Do you know how to
figure out what those changes mean for
you?
A. Yes, I know where to
look up the
information and/or
who to contact.
B. No, I’m still confused
about how to find
this information.
C. Not applicable, I
don’t need flood
insurance.
Yes,Iknow
w
here
to
loo...
No,I’m
stillconfused
ab...
Notapplicable,Idon’tn...
11%
18%
71%

What are the issues
you’d like the SAMP
to respond to?
Melissa Devine, 2012 Browning Cottages, Post-Sandy

What change would
you like to see? And
from who?
Butch Lombardi 2012, Warren

What is at
risk?
31.34%
What are the
social/
economic
consequences?
25.37%
What actions
can be taken at
state, local or
individual
level?
43.28%
Out of over 60 responses
Results from previousSAMP surveyon
people’sconcernsregardingshoreline
change:

Next Steps
Questions we are tackling:
• How has the shoreline changed over time and how might
we expect it to change in the future?
• What areas are at risk from storm surge and sea level rise?
• How will our wetlands respond to rising sea levels, will
they migrate landward or drown in place?
• What are other places doing to deal with these issues and
would that work in Rhode Island?
• What is the cost (insurance, rebuilding, loss of tax
revenue) associated with shoreline change? (pending)
• Coordination with other state agencies

Stay involved!
• Tell a neighbor,
colleague, friend
about what you
learned tonight
• Next stakeholder
meeting will be in fall
• Visit the new website:
beachsamp.org
• Join the listserv

RI Shoreline Change SAMP Stakeholder Update and National Flood Insurance Reforms

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RI Shoreline Change SAMP Stakeholder Update and National Flood Insurance Reforms