The National Flood Insurance Program

Table of Contents

FEMA Outline of Topics
Introduction; Section I		Page 5
	Course Material	5
	Acronyms You Should Know	6
	NFIP Background	7
	Federal Emergency Management Agency (FEMA)	9
	Community Participation	10
	Emergency Program	11
	Regular Program	12
	Community Rating System	13
	Building Eligibility	13
	Coastal Barrier Resources System and Other Protected Areas	14
	For CBRS Areas	15
	For OPAs	15
	Who Needs Flood Insurance?	15
	Mandatory Purchase of Flood Insurance in High Flood Risk Zones	16
	Recommended in Moderate and Low Flood Risk Zones	16
	Why Flood Insurance is Better Than Disaster Assistance	17
Flood Maps and Zone Determinations; Section II		17
Flood Hazard Boundary Map (FHBM)		17
	The “100-Year Flood” That Isn’t	18
	Flood Insurance Rate Map (FIRM)	18
	Pre-FIRM / Post FIRM Defined	18
	Filling out an application for coverage	19
	Properly Anchored Structure	22
	Chart: Agent’s Premium Calculation Pad	24
	Special Flood Hazard Area Defined	25
	Base Flood Elevation (BFE)	25
	Zone Determination	25
Policies and Products Available; Section III		26
	Dwelling Policy – Types of Buildings Covered	27
	General Property Policy – Types of Buildings Covered	27
	Residential Condominium Building Association (RCBAP) - Types	27
	Preferred Risk Policy – Types of Buildings Covered	28
	Definitions	28
	Damages Not Covered	29
	Single Peril Policy	29
	Mudslides Versus Mudflows	29
	Property Covered	30
	Basements	30
	Appurtenant Structures	31
	Loss Avoidance Measures (Are You Ready?)	31
	Debris Removal	32
	Improvements and Betterments	32
	Property Not Covered	33
	Increased Cost of Compliance Coverage (ICC)	34
	Chart: Premiums for $20,000 ICC Coverage	35
General Rules; Section IV		36
	Statutory Coverage Limits (with chart)	36
	Deductibles	37
	Charts	37
	Property Value Determination for Selecting Coverage Amounts	38
	Loss Settlement: Actual Cash Value (ACV)	39
	Replacement Cost Value (RCV)	39
	Co-Insurance Penalty in RCBAP	40
	Reduction and Reformation of Coverage	40
	Waiting Period / Effective Date of Policy	40
	Exceptions	41
	Policy Term	41
	Cancellations	41
Rating: Section V		42
	To complete a flood rating: steps	42
	Chart: Pre-FIRM construction annual rate table	43
	Types of Buildings	44
	Elevated Buildings	45
	Buildings With Basements	46
	When to Use an Elevation Certificate	46
	Grandfathering	47
Claims Handling Process; Section VI		48
	Helping Your Client File a Claim	48
	Appeals Process	50
	Claims Handbook	52
Requirements of the Flood Insurance Reform Act of 2004: Section VII		53
	Mitigating Repetitive Loss Properties	53
	Educating Policyholders	54
	Write Your Own Companies and the NFIP Work Together	55
	National Flood Insurance Reform Act of 1994	56
	Flood Disaster Protection Act of 1973	57
	National Flood Insurance Act of 1968	57
	2019 Summary of Changes	58
	1. Premium Increases & Surcharges	58
	Pre-FIRM Subsidized Policies	59
	Other Subsidized Policies	59
	V Zones	59
	A Zones	60
	X Zones	60
	Miscellaneous	60
	Changes that Became Effective 1/1/19	60
	2. Policy Reformation Use of Incorrect Standard Flood Policy Form	61
	3. Premium Receipt Date Guidance for Invalid Payments	61
	4. Primary Residence Determination	61
	5. Clarification of Increased Cost of Compliance Premium	62
	6. HFIAA Section 28, Clear Communication of Risk	62
	7. Datum Conversion	62
	8. Updated Claims Data Elements	63
Agent Resources; Section VIII		63
	Write Your Own (WYO) Program	63
	FEMA and Related Websites	64