FEMA Mapping Changes National Flood Insurance Program 1 Welcome to FEMA Mapping Changes! We will get started in a few minutes. Meanwhile, let s perform a warm up exercise. 2 1
Training Agenda Section 1- EVOLUTION of flood maps Section 2- PROCESS of flood mapping Section 3- RESOURCES for finding flood maps Section 4- BENEFITS of updated flood maps Section 5- IMPACTS of mapping changes Section 6- IMPLEMENTATION issues for agents and lenders Section 7- CHALLENGES to the flood maps 3 Section 1 EVOLUTION of flood maps 4 2
Evolution How do we get to where we are going? FHBM FIRM DFIRM 5 Evolution FEMA Mapping Flood Hazard Boundary Map (FHBM) Flood Insurance Rate Map (FIRM) Digital Flood Insurance Rate Map (DFIRM) 6 3
Evolution FEMA Mapping FEMA Map Modernization FEMA Risk MAP 7 Section 2 PROCESS of flood mapping 8 4
Process FEMA Mapping Changes Processing the Process Adoption Stakeholder, Media & Public Outreach Project Scoping or Discovery Initial Involvement Preliminary Release Stakeholder, Media & Public Outreach Data/Map Development Stakeholder Outreach 10 Section 3 RESOURCES for finding flood maps 11 5
Don t hesitate to be resourceful! 12 Flood Zone Designations High Risk (SFHA) AE (replaces A1-A30) A, AH, AO, A99, AR VE (replaces V1-V30) V, VO Moderate to Low Risk B, C, X 13 6
Flood Zone Designations 100-Year Floodplain 1-percent chance of being flooded in any given year (base flood). At least 26% chance of flooding over a 30 year mortgage 14 Finding FEMA Map Changes For Finding Map Changes Map Service Center www.msc.fema.gov FloodSmart website www.floodsmart.gov Community Status Book* Click Here *Community Status Book https://www.fema.gov/national-flood-insurance-program/national-flood-insurance-program-community-status-book 15 7
Visit the Map Service Center www.msc.fema.gov 16 17 8
FEMA Map Service Center 18 FEMA Map Service Center 19 9
FEMA Map Service Center Flood Insurance Rate Map 20 FEMA Map Service Center FIRMETTE 21 10
FEMA Map Service Center 22 FEMA Map Service Center 23 11
FEMA Map Service Center 24 FEMA Map Service Center 25 12
FEMA Map Service Center 26 27 13
FEMA Map Service Center 28 FEMA Map Service Center 29 14
Locating Historic Flood Maps 30 Locating Historic Flood Maps 31 15
Locating Historic Flood Maps 32 Locating Historic Flood Maps 33 16
Finding FEMA Map Changes For Finding Map Changes Map Service Center www.msc.fema.gov FloodSmart website www.floodsmart.gov Community Status Book* Click Here *Community Status Book https://www.fema.gov/national-flood-insurance-program/national-flood-insurance-program-community-status-book 34 www.floodsmart.gov 35 17
www.floodsmart.gov 36 www.floodsmart.gov 58102 37 18
www.floodsmart.gov 38 Topic 1: The National Flood Insurance Program www.floodsmart.gov 39 19
Topic 1: The National Flood Insurance Program www.floodsmart.gov 40 Finding FEMA Map Changes For Finding Map Changes Map Service Center www.msc.fema.gov FloodSmart website www.floodsmart.gov Community Status Book* Click Here *Community Status Book https://www.fema.gov/national-flood-insurance-program/national-flood-insurance-program-community-status-book 41 20
Community Status Book 42 Community Status Book 43 21
Defining Pre-FIRM and Post-FIRM Pre-FIRM Built before initial FIRM or On or before 12/31/1974 Post-FIRM On or After the initial FIRM or After 12/31/1974... whichever is LATER 44 Community Status Book 45 22
Section 4 BENEFITS of updated flood maps 47 Benefits Each new benefit is more beneficial than the one before. Risk Identity Accuracy Informed Decisions 48 23
Benefits Insurance Benefits of New Maps Identifies current flood hazard risks Better delineates Base Flood Elevations (BFEs) Provides for more accurate rating Allows property owners to make more informed decisions 49 Benefits Insurance Benefits of New Maps SFHAs appear as dark shading on a Flood Insurance Rate Map (FIRM). 50 24
Benefits Insurance Benefits of New Maps SFHAs appear as aqua dotted area on the Digital Flood Insurance Rate Map (DFIRM). 51 Section 5 IMPACTS of mapping changes 52 25
Impacts Every flood makes a big impact on someone. 53 Impacts Properties Moving into Special Flood Hazard Areas Enter SFHA Mandatory Purchase of Flood Insurance Required? 54 26
Impacts Properties Removed From Special Flood Hazard Areas Exit SFHA Eligible for Low-Cost Preferred Risk Policy 55 Impacts Mapped In Flood risk increased More structures in floodplain Mandatory purchase of flood insurance Mapped Out Flood risk reduced Risk not eliminated Low-cost preferred risk coverage available Keep coverage Lower cost 56 27
Impacts What is a Preferred Risk Policy (PRP)? Low-Cost Flood Policy B, C & X Zones Building/Contents Combinations Loss eligibility Premium Comparisons* $200,000 Bldg $80,000 Contents Pre-FIRM AE Zone $3,321 Post-FIRM +1 AE Zone $945 Standard X Zone $1,908 PRP in B, C, X zone $405 * Single family, one floor, no basement, minimum deductible (4/1/15 rates) 57 Section 6 IMPLEMENTATION issues for stakeholders 59 28
Implementation Making it all work together Lender Agent Property Owner 60 Implementation Insurance Agent Implementation Issues Importance of identifying properties affected by map change Significance of understanding rating options available Rating options that may apply: Grandfather rating rules Newly Mapped Procedure 62 29
Implementation Rating Options Following a Map Revision 4/01/2015 GRANDFATHER RATING RULES PRP ELIGIBILITY EXTENSION NEWLY MAPPED 10/01/2008 PROCEDURE until further notice 63 Implementation Grandfathering Allows premium benefits after Changes in map zones Changes to compliance standards May provide legitimate reason for zone discrepancies on policy declarations page 64 30
Implementation Grandfathering Allows a property owner to: Lock in a previous Flood Zone Lock in a previous Base Flood Elevation 65 Implementation Grandfathering Continuous Coverage For policy in effect prior to map change date, maintain prior zone and BFE Coverage must be continuous 66 31
Implementation Grandfathering Built In Compliance If building was constructed in compliance with a specific FIRM, use that map s zone and BFE Submit proof to carrier Continuous coverage not required 67 Implementation Rating Options Following a Map Revision 4/01/2015 GRANDFATHER RATING RULES PRP ELIGIBILITY EXTENSION NEWLY MAPPED 10/01/2008 PROCEDURE until further notice 68 32
F E M A M a p p i n g C h a n g e s Implementation Newly Mapped Procedure Effective April 1, 2015 PRP Eligibility Extension transitioned to Newly Mapped Procedure Properties newly mapped into SFHA receive a preferred risk premium for first year after map revision Identical to the Preferred Risk Policy premium before application of: Reserve Fund Assessment Federal Policy Fee After first year, policies transition to full-risk rates via premium increases subject to the 18% limitation 69 Implementation Newly Mapped Procedure Newly Mapped on or after April 1, 2015 F E M A M a p p i n g C h a n g e s Eligible for Newly Mapped Procedure If coverage obtained within 12 months of map revision Preferred risk premium first year Not eligible for Newly Mapped Procedure If coverage not obtained within 12 months of map change Only eligible for grandfathering to zone and/or BFE in effect at time of construction Within 12 months of map revision NOTE: All Properties must meet Preferred Risk Policy loss requirements to be eligible for Newly Mapped Procedure 70 33
F E M A M a p p i n g C h a n g e s Implementation Newly Mapped Procedure Newly Mapped between: October 1, 2008 and March 31, 2015 Oct 1, 2008 Newly Mapped between Mar 31, 2015 Eligible for Newly Mapped Procedure If coverage obtained before April 1, 2016 Properties eligible under the PRP Eligibility Extension (PRPEE) 2008 2009 2010 2011 2012 2013 2014 2015 2016 Policies issued under PRPEE before 4/1/15: Renew under Newly Mapped Procedure on first effective date on or after April 1, 2015 Coverage must be purchased BEFORE Apr 1, 2016 NOTE: All Properties must meet Preferred Risk Policy loss requirements to be eligible for Newly Mapped Procedure 71 Implementation Lending Community Issues How do lenders know maps have changed? Portfolio reviews required? Life of loan flood zone determinations Process for requiring flood insurance Borrower notification 45 day letter Force Placement 73 34
Implementation Lending Community Issues What happens once the policy arrives? Lender verifies compliance issues Resolves flood zone discrepancies What is a flood zone discrepancy? Lender determination and policy declaration have different flood zones SFHA vs. Non-SFHA discrepancies Unless Grandfather Rating Rules or Newly Mapped Procedure apply 74 Implementation Flood Zones on Declarations Pages Current Flood Zone flood zone of property on current (revised) Flood Insurance Rate Map (FIRM) Flood Risk/Rated Zone flood zone from the previous map used to rate policy Lenders are not required to investigate or resolve differences between Current Flood Zone and Flood Risk/Rated Zone 75 35
Implementation Current Zone/Rated Zone 76 Section 7 CHALLENGES to the flood maps 77 36
Challenges What happens when we all can t agree? 78 Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request 79 37
LODR - Letter of Determination Review AE AE River AE Riverside Road 80 LODR - Letter of Determination Review AE AE River AE Riverside Road 81 38
Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request Letter of Map Amendment (LOMA) Single structure, single lot www.fema.gov/online-lomc 82 LOMA - Letter of Map Amendment 83 39
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Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request Letter of Map Amendment (LOMA) Single structure, single lot Letter of Map Revision (LOMR) Multiple structures/lots LOMR-F - based on fill 88 LOMR - Letter of Map Revision 89 42
Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request Letter of Map Amendment (LOMA) Single structure, single lot Letter of Map Revision (LOMR) Multiple structures/lots LOMR-F - based on fill LOMAs, SOMAs, and so on LOMA Out as Shown 91 LOMA Out as Shown AE AE River AE Riverside Road 92 43
LOMA Out as Shown AE AE River AE Riverside Road 93 94 44
95 Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request Letter of Map Amendment (LOMA) Single structure, single lot Letter of Map Revision (LOMR) Multiple structures/lots LOMR-F - based on fill LOMAs, SOMAs, and so on LOMA Out as Shown SOMA Summary of Map Action 96 45
SOMA Summary of Map Action 97 Challenges Letters of Map Change (LOMC) Letter of Determination Review (LODR) Lender and borrower must jointly request 45-day window to request Letter of Map Amendment(LOMA) Single structure, single lot Letter of Map Revision (LOMR) Multiple structures/lots LOMR-F - based on fill LOMAs, SOMAs, and so on LOMA Out as Shown SOMA Summary of Map Action Contact FEMA Mapping Specialist at 877-336-2627 98 46
Overview of www.fema.gov NFIP Flood Manual Community Status Book www.msc.fema.gov FIRMettes for Documentation Current Effective Maps/Historic Maps FEMA Map Information exchange (FMIX) 1-877-336-2627 www.floodsmart.gov Flood Map Update Schedule Understanding Flood Maps Other WYO Companies NFIP Direct Servicing Agent 99 F E M A N F I P Agent Tr a i n i n g P r o g r a m Evaluations - Online All attendees will be receiving an email with a link to an evaluation and feedback form. Please take time to complete and help us improve our training effort! THANKS 100 47
F E M A N F I P Agent Tr a i n i n g P r o g r a m Social Media - Online Follow us on twitter: www.twitter.com/nfiptraining Like us on Facebook at: www.facebook.com/nfiptraining LIKE. FOLLOW. LEARN. 101 Training Information www.nfipiservice.com/training Melanie Graham melanie@h2opartnersusa.com Dorothy Martinez dorothy@h2opartnersusa.com Rich Slevin rich@h2opartnersusa.com Sonja Wood sonja@h2opartnersusa.com Rich Waalkes rwaalkes@h2opartnersusa.com Aaron Montanez nfip-producer@h2opartnersusa.com 102 48
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