It is mandatory to have this insurance if the person is living within a participating National Flood

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1 Natinal Fld Insurance Prgram D I have t have it? It is mandatry t have this insurance if the persn is living within a participating Natinal Fld Insurance Prgram (NFIP) cmmunity, and in a Special Fld Hazard Area (SFHA). T knw if yur cmmunity participates in the NFIP, check nline at r cntact yur cmmunity fficial r insurance agent T see if yur prperty is lcated within SFHA, lk nline at Sme financial institutins may require fld insurance fr thse utside SFHA as part f their wn risk management. Reasn fr this is t alert cmmunities f the danger f flding and t help with ptential prperty lss. Lenders als require the purchase f fld insurance t thse wh acquire lans frm federally regulated, supervised, r insured financial institutins. What is a Regular prgram? A cmmunity withut a Fld Insurance Rate Map enters the Natinal Fld Insurance Prgram (NFIP) as an Emergency Prgram Cmmunity. Once a detailed engineering study is cmpleted fr the cmmunity and a Fld Insurance Rate Map (FIRM) issued, the cmmunity is brught int the Regular Prgram f the NFIP. The cmmunity is required t adpt r amend its fldplain management regulatins t incrprate the new fld data n the FIRM. Under the Regular Prgram, higher amunts f fld insurance cverage are prvided than under the Emergency Prgram and new cnstructin is charged actuarial rates fr fld insurance that fully reflect the building's risk f flding.

2 Sme cmmunities are brught int the regular prgram as minimally fld prne cmmunities r if n special fld hazard areas have been identified within the cmmunity. Minimally fld prne cmmunities generally have nly a minimal fld hazard and limited ptential fr fldplain develpment. These cmmunities are issued a FIRM with special fld hazard areas designated, but n BFEs are prvided. N special fld hazard area cmmunities have n readily identifiable surce f flding r nly a small fld hazard. These cmmunities d nt have a FIRM and are regarded as all Zne X fr fld insurance purpses. N special fld hazard area cmmunities are nt required t adpt fldplain management rdinances. What is an Emergency Prgram? The Emergency Prgram is the initial phase f a cmmunity s participatin in the Natinal Fld Insurance Prgram (NFIP) if n fld hazard infrmatin is available r the cmmunity has a Fld Hazard Bundary Map (FHBM), but n Fld Insurance Rate Map (FIRM). A limited amunt f fld insurance cverage at less than actuarial rates is available fr all residents f the cmmunity. The cmmunity is required t adpt minimum fldplain management standards t cntrl future use f its fldplains. Cmmunities are cnverted t the Regular Prgram upn cmpletin f a Fld Insurance Study and issuance f a FIRM r a determinatin that the cmmunity has n special fld areas (NSFHA). Under the Regular Prgram, mre cmprehensive fldplain management requirements are required f the cmmunity and higher amunts f fld insurance cverage are prvided.

3 Hw much des it cst? If yu live in a high risk zne, then a FEMA agent r Insurance agent has t g ut t yur prperty and determine the cst. (preferred risk plicy lw risk zne n mre than 2 flds within 10 years) rating sectin The Natinal Fld Insurance Prgram's (NFIP) Preferred Risk Plicy (PRP) ffers lwercst prtectin fr hmes and apartments in areas f lw t mderate fld risk. These areas utside f knwn fldplains are shwn as B, C, r X, znes n a Fld Insurance Rate Map. Discunt If cmmunities jin Cmmunity Rating System (CRS), plicyhlders may receive a discunt n fld insurance premiums

4 Wh is the prgram thugh? The prgram was established August 1, 1968 by the U.S Cngress and is administered by the Federal Emergency Management Agency (FEMA), which is a cmpnent f the U.S. Department f Hmeland Security (DHS). Hw lng des it take t g int effect? There is a 30 day waiting perid; 12:01 AM, Lcal time, n the 30 th calendar day after the applicatin date and the What des it cver? presentment f payment f premium Manufactured (i.e., mbile, travel trailers withut wheels) hmes that are affixed and anchred t a permanent fundatin are eligible fr cverage. Nt cvered: Buildings entirely ver water r principally belw grund, gas and liquid strage tanks, animals, birds, fish, aircraft, wharves, piers, bulkheads, grwing crps, shrubbery, land, livestck, rads. Machinery r equipment in the pen, and mst mtr vehicles are nt insurable thrugh the NFIP. There is n minimum cverage fr thse vluntarily purchasing fld insurance Lender Requirements (mandatry purchase requirement), the amunt f fld insurance required must be at least equal t the lesser f: 1. The utstanding principal balance f the lan, 2. The maximum amunt available under the NFIP 3. The ttal insurable value f the prperty

5 What if I live utside f a fld zne, can I still get insurance? Yes, because yu are cnsidered in a fld zne area, be it a high r lw risk fld zne area. What happens if I dn t get fld insurance if it is required (FEMA prvided assistance t the cmmunity t help it becme cmpliant.)? Lw risk areas nt mandatry High risk Cmmunities will be placed n Prbatin r Suspicin. Depending n cmmunity regulatins Prbatin: Cmmunity will be placed 90 days after FEMA prvides written ntice t cmmunity fficials. It may last up t 1 year after cmmunity crrects all Prgrams deficiencies and remedies all vilatins t maximum extent pssible. Cmmunity will have t cmply then claims will nt be cmplied fr individuals (suspicin) Suspensin: This ccurs when a cmmunity fails t adpt an adequate rdinance, including the mst current FIRMs. Cmmunity receives written ntice f impending suspensin and granted 30 days t shw why they shuld nt be suspended. If I have insurance am I still eligible t apply fr FEMA s Fld Insurance? Yes, because FEMA regulates all fld insurance.

6 Hw many times will the insurance pay ut? Every time yu have a claim, as lng as yu have fld insurance. Once 50% f yur hme is damaged, FEMA puts yur hme in a different categry t cnsider n hw t prevent future flding, be it, leveling yur huse r a buyut, etc.