FEMA’s New Elevation CertificateUpdated Fall 2016
Expires Nov 30, 2018
VFMA Fall Workshop
David GunnHenrico County DPW
NFIP Started in 1968 and expanded ever since - many reforms
over 50 years. Reduce/Avoid Disaster Relief for Foreseeable Events. Policies underwritten by Federal Flood Insurance
Administration – policy published in CFR Not traditional insurance – uniform policies –no reserve,
no profits.
“Flood Damages are not the result of a Natural Disaster,They are the result of poor decisions.”
Three Supports
Flood Insurance – initially subsidized to encourage participation – Added Mortgage Company Mandate & Periodic Portfolio Reviews.
Flood Insurance Rate Maps – Coastal Updates, GIS conversions – still major issues.
Floodplain Management by locality – follow minimum Federal rules in development decisions – can & should enforce higher standards .
Reason for Reform
$24 Billion in Debt – Katrina & Sandy
Premiums don’t meet Payments
No Reserves in original NFIP
Biggert-Waters 2012 – Good Ideas – affordability issues & politics.
Grimm-Waters 2014 – slows down some reforms, but keeps most.
Biggert-Waters 2012 Decreased Subsidies – Ended Grandfathering –
Increased rates on Pre-FIRM.
Start a reserve @ 5% of Premium for residential.
Accelerated Rate Increases – 10%/year for most 25%/year for Second homes, Rep Loss & SRL
New Maps trigger Actuarial (Full Risk) Rating
Substantial Improvement/Damages – 30% from 50%
Grimm-Waters 2014 Extends Grandfathering and Subsidies Deductibles - Increases minimum ($500 => $1,000) and
maximum deductibles (up to $10k) - up to 35% reduction Decelerates rate increase from BW-12, but added
Reserve Fund Assessment (5%) Federal Policy Fee ($44 - $22 for PRP – now $50 & $25) Federal Surcharges (minimum $25 primary – $250 for others)
Validation of Primary Residence Full Risk Rate Notification Substantial Damage/Improvement back to 50%
GAO says NFIP still on Crash Path
Multiply Rate X $100 of Coverage
Building Basic Limit $.88 x $60,000 = $528
Bldg Addl Limit $.08 x $140,000 = $112
Contents Basic Limit $.69 x $25,000 = $95
Content Addl Limit $.12 x $75,000 = $90
Bldg/Content Subtotal Bldg $640 / Contents $185 $825
ICC Premium $34 – typical
CRS Discount $0 for this example
Reserve Fund Assessment $43 (5%)
Probation Surcharge $0 for this example
Federal Policy Fee $44 for this example
Total $946
Premium Calculation
$200,000 building coverage - $100,000 contents coverage
Suggested Actions Discourage Floodplain Development
Strictly Enforce Floodplain & Building Codes
Encourage Retrofitting: flood vents, raise HVAC
Implement Higher Standards - Freeboard, Setbacks,
Assist with ECs, LOMAs - MT-EZ/attachments/ diagrams/FIRMettes
New Flood Studies – detail approximate areas
Talk with Insurance Agents