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National Flood Insurance Program

National Flood Insurance Program. Objectives . Explain the origins of the National Flood Insurance Program and historical major changes. Explain how the National Flood Insurance Program works.

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National Flood Insurance Program

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  1. National Flood Insurance Program Network of State Hazard Mitigation Officers

  2. Objectives • Explain the origins of the National Flood Insurance Program and historical major changes. • Explain how the National Flood Insurance Program works. • Introduce major components of the National Flood Insurance Program and relevance to state mitigation professionals. Network of State Hazard Mitigation Officers

  3. What is the National Flood Insurance Program? • A voluntary program. • Based on agreement between local community and federal government. • Citizens can purchase flood insurance as long as community complies with agreement. Network of State Hazard Mitigation Officers

  4. Origin of the National Flood Insurance Program • Enacted in 1968 to reduce future flood damage. • If community properly manages floodplain, then • Citizens can purchase flood insurance. • 1973 - Flood Disaster Protection Act • Mandatory purchase of flood insurance if federally backed loan (& property in flood prone area) Network of State Hazard Mitigation Officers

  5. Origin of the National Flood Insurance Program • 1994 - Insurance Reform Act • Penalizes lenders for failing to require flood insurance for federally backed loans. Network of State Hazard Mitigation Officers

  6. Structure - Federal Level Federal Insurance & Mitigation Administration Engineering, Science, & Technology Hazard Mapping Mitigation Planning & Delivery Program Finance & Industry Relations Claims, Underwriting & Insurance Operations Risk Communications Network of State Hazard Mitigation Officers

  7. Two Components • Insurance • Local Insurance Agent sells the insurance • Compliance • FEMA & State Floodplain Coordinator ensure communities comply Network of State Hazard Mitigation Officers

  8. Base Flood A flood that has a 1% chance of being equaled or exceeded in any given year. Also called: Special Flood Hazard Area 100-year flood Floodplain The low lying area along a river or stream that is subject to flooding. Basic Definitions Network of State Hazard Mitigation Officers

  9. Floodway the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to keep the base flood elevation less than one foot. Also called: Regulatory Floodway Development any man-made change to improved or unimproved real estate, including: buildings mining dredging filling grading paving excavation, etc. Basic Definitions Network of State Hazard Mitigation Officers

  10. 3 Types of Flood Maps Network of State Hazard Mitigation Officers

  11. 3 Types of Maps • Flood Hazard Boundary Maps - no elevations, used until community enters program. • Flood Insurance Rate Map - adopted when community enters program (shows elevations). • Flood Boundary & Floodway Map - same as FIRM but more information on the floodway for studied streams. Network of State Hazard Mitigation Officers

  12. Mapping: Relevance to Mitigation Professionals • Date from flood maps and flood studies is useful when using FEMA’s benefit-cost software program. • Helpful for conducting risk analysis and hazard mitigation planning. Network of State Hazard Mitigation Officers

  13. Repetitive Loss Structures • Properties that have had 2 or more claims totaling more than $1,000 in a 10-year period. • Notice: This definition is different from the one used for Increased Cost of Compliance purposes. Network of State Hazard Mitigation Officers

  14. Repetitive Loss: Relevance to Hazard Mitigation Professional • FEMA has asked states to target repetitive loss structures with Hazard Mitigation Grant Program, Flood Mitigation Assistance, and Pre-Disaster Mitigation Program funds. • List of repetitive loss structures can be obtained from your FEMA regional office. Network of State Hazard Mitigation Officers

  15. Community Rating System • The Community Rating System recognizes community floodplain efforts that go beyond the minimum standards. • Points are assigned. • The more points earned, the less dollars residents have to pay for flood insurance premiums. Network of State Hazard Mitigation Officers

  16. Community Rating System • There are 18 activities communities can implement to get credits under the Community Rating System. • One of these 18 activities is to develop a Flood Risk Mitigation (CRS) Plan. Network of State Hazard Mitigation Officers

  17. Community Rating System: Relevance to Hazard Mitigation Professional • The Flood Risk Mitigation Plan developed under the Community Rating System qualifies as the Flood Risk Mitigation Plan required under the Flood Mitigation Assistance Program. Network of State Hazard Mitigation Officers

  18. Increased Cost of Compliance • Foundation for ICC: • Most properties in floodplain were built prior to flood maps and floodplain management. • When property floods and is damaged to a certain degree, after community enters program, owner must make repairs to property to comply with current floodplain rules. • For example, elevate to 1 foot above Base Flood Elevation. Network of State Hazard Mitigation Officers

  19. Increased Cost of Compliance • The cost to “comply” with current floodplain regulations can be significant. • To alleviate the financial burden to comply, if the property was flood insured, the property owner can receive up to $20,000 in basically a grant to comply. Network of State Hazard Mitigation Officers

  20. Increased Cost of Compliance • Types of Mitigation Activities that can be undertaken with ICC funds: • Elevation • Floodproofing • Relocation • Demolition Network of State Hazard Mitigation Officers

  21. Increased Cost of Compliance • ICC claim can only be made when a flood event occurs (Presidential Declaration not required) and: • Building is determined to be substantially damaged, or • Building is a repetitive loss structure. (Community official makes this determination) Network of State Hazard Mitigation Officers

  22. Increased Cost of Compliance: Relevance to Hazard Mitigation Professional • Increase Cost of Compliance claims can be used to augment Hazard Mitigation Grant Program, Flood Mitigation Assistance Program funding, and Pre-Disaster Mitigation Program funds. • For example, buyout of flooded property. HMGP used for buyout, ICC used for demolition. • ICC can be used for the local match. Network of State Hazard Mitigation Officers

  23. Summary • Explained the origins of the National Flood Insurance Program and historical major changes. • Explained how the National Flood Insurance Program works. • Introduced major components of the National Flood Insurance Program and relevance to state mitigation professionals. Network of State Hazard Mitigation Officers

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