Regardless of where you live in the United States -- whether the desert, a riverless city, by a lake, on the coast,

the Midwestern plains or atop a mountain -- your home is a flood risk. Everyone is at risk for flooding. Floods happen in all 50 states. Who Needs Flood Insurance? Since floods can happen to anybody just about anywhere, you probably should consider taking out a flood insurance policy. It's not expensive. If you live in a high-risk flood area and buy a home by taking out a loan backed by a federally insured mortgage, your lender will require that you buy flood insurance. Where Can You Buy Flood Insurance? If your community participates, you can purchase flood insurance from your insurance agent through the National Flood Insurance Program. The National Flood Insurance Program is backed by the U. S. government. Note that you can also assign an existing flood insurance policy to a new buyer; it is freely transferable. Does Homeowner Insurance Cover Flooding? Realize that your homeowner's insurance policy does not cover flooding. You will need a separate flood insurance policy. Your premiums will be much lower if the home has never had a flood claim. Here are three ways you can find out if a home you want to buy has had a claim for flooding:

Order a C.L.U.E. Report

C.L.U.E. stands for Comprehensive Loss Underwriting Exchange. It will give you the five-year history of a home. Your insurance agent can obtain this report for you, you can buy a copy online or order it in conjunction with a natural hazard disclosure report. C.L.U.E. Reports cost about $20.

Ask for Seller's Disclosure or TDS

In many states, sellers are legally required to disclose previous property problems, and those disclosures include former flooding. Transfer Disclosure Statements (TDS) and Seller Property Questionnaire forms ask sellers to disclose that type of information.

Get a Home Inspection

A qualified home inspector can conduct a visual inspection of the home and look for signs of water damage or mold. Typically, contracts are contingent on a home inspection, which means buyers, if dissatisfied with the results of the inspection, have the right to demand the refund of an earnest money deposit and cancel the transaction. You can also receive discounts if your area participates in the Community Rating System (CRS). How Do Floods Happen?

Most people think that floods occur because of hurricanes or tropical storms, but those natural disasters are not the sole causes. Some areas can also flood due to rising river waters, flash flooding from heavy rainstorms or rapid snow melt. A flood, in layman terms, is any sudden accumulation of water or mud in area that ordinarily is not wet. As we continue to cut down trees, build new subdivisions, pave parking lots and roadways, there is less natural soil available to absorb water. Moreover, some residential developments are built on top of wet lands because the land is cheap. If water has no place left to sink into the earth, it will cause a flood. A heavy rain can easily dump a couple feet of water. In two feet of water, a car can float. Assessing Your Risk for Flood Insurance First, understand that if you live in a 100-year flood plain, it does not mean your chances of a flood are one in 100 years. It's a confusing term, but a 100-year flood plain assessment means you have a 1-in-100 chance of a flood in any given year, or a one percent chance each year. Ask your insurance agent to look at the flood maps to determine if your home is located in a flood plain and, if so, find out what kind of flood plain and the level of risk. How Much Does Flood Insurance Cost? The question really is how much does it cost not to have flood insurance. One inch of water can do considerable damage and run into tens of thousands of dollars to fix.

Coastal Policies

If you live on the coast, the premium will be high. You can insure the building and its contents to a maximum of $250,000, without previous claims, for about $5,000 a year. Renter's coverage for contents only of $100,000 is about $2,200.

High Risk Policies

Without a previous claim, premiums are about $2,400 for $250,000 of coverage. Contents-only coverage of $100,000 is about $1,000. According to the government, in high-risk areas, 25% of the homes flood during the term of a 30-year mortgage.

Preferred Risk Policies

$250,000 of coverage, without a previous claim, will run you about $317 a year. Contents-only coverage of $100,000 is $196. However, if the home has had a previous flood claim, that premium for $250,000 jumps to $1,251 a year. I ran a check of the White House. You may be relieved to know it is located in a moderate- to low-risk area. To find out the estimate for a premium on your property, go to flood risk online and enter your address.

Do not wait for a storm to approach before calling an insurance agent to get flood insurance. Most policies require a 30-day waiting period.

Congress created the National Flood Insurance Program (NFIP) in 1968 in response to the ongoing unavailability of private flood insurance and the continued increase in federal disaster assistance. Few property owners purchased flood insurance in the early years of the program, and in 1973 and 1994, Congress passed laws requiring structures in Special Flood Hazard Areas (SFHAs) with loans from federally insured or regulated lenders to have flood insurance. Due in part to this mandatory purchase requirement, more than 4.5 million flood policies are now in place. The Federal Emergency Management Agency (FEMA) administers the NFIP and is now evaluating the programs goals and performance. The RAND Corporation contributed to that evaluation by developing more reliable estimates of the proportion of single-family homes (hereafter, homes) that have flood insurance (the market penetration rate); by identifying factors that determine the rate; and by examining some of the opportunities for, and benefits of, increasing the rate. While there are data on the number of policies, reliable information on the number of structures in SFHAs and on the number of structures with mortgages subject to the mandatory purchase requirement is lacking. This research addresses these gaps by using property parcel data from 100 NFIP communities nationally. The analysis is based on 5,472 homes in SFHAs and 22,195 homes in NFIP communities but not in SFHAs. What Is the Market Penetration Rate? The analysis suggests that about one-half of homes nationwide in SFHAs (out of a total of about 3.6 million homes) have flood insurance policies from the NFIP (see figure). That rate increases to between 50 and 52 percent when a rough estimate of the number of policies underwritten by private insurers is added in. The figure shows that market penetration rates vary a great deal across the four geographic regions. The rates in the South and the West within SFHAs (indicated by the left-hand bars) are much higher (about 60 percent) than rates in the Northeast or Midwest (2030 percent). Homes in SFHAs are concentrated in the South: Nearly 60 percent (2.1 million of 3.6 million homes in SFHAs) are located in the South, even though only about 20 percent of homes nationwide in NFIP communities are in the South (18 million of 79 million homes in NFIP communities). Also, while a third of NFIP policies are written outside SFHAs, the nationwide market penetration rate outside SFHAs (indicated by the right-hand bars) is only about 1 percent; the rate is higher (3 percent) in the South. Past studies imply that about 5060 percent of homes in SFHAs are subject to the mandatory purchase requirement. Under plausible assumptions, the compliance rate appears to be 7580 percent again, higher in the South and West (8090 percent) than in the Northeast and Midwest (4550 percent). Findings for the

Northeast and Midwest should be viewed as tentative, however, because they are based on relatively small sample sizes. The results suggest that compliance is lower in communities with 500 or fewer homes in the SFHA, where less than 50 percent of homes in the community are in the SFHA, and where coastal flooding is not an issue. However, the market penetration rate for homes not subject to mandatory compliance requirements is much lower, on the order of 20 percent. What Factors Determine the Rate? Many factors determine the market penetration rate. While the decision to purchase insurance is determined partly by insurance price, the effect is not strong for modest changes in price. But the number of homes in a communitys SFHA has a significant impact. The rate is 16 percent in communities with 500 or fewer homes in the SFHA; 56 percent, with 501 to 5,000 homes; and 66 percent, with more than 5,000 homes. The likelihood that insurers market less aggressively in communities with fewer homes in SFHAs, and that fewer agents there know about the program and are enthusiastic about writing policies, may explain the finding. Also, the mandatory purchase requirement appears to be less vigorously enforced in communities with few structures in SFHAs. Analysis also showed that the probability of purchasing insurance is substantially higher in communities subject to coastal flooding than in communities that are not (63 percent versus 35 percent), possibly because there is less appreciation for flood risk in inland communities and because the NFIP coverage for basements common in inland areas is limited. Similarly, market penetration is greater in the South than elsewhere, even when other factors are controlled for (such as number of homes in the SFHA and source of flooding). Finally, the mandatory purchase requirement is a critical determinant of whether a home in the SFHA has flood insurance. What Benefits Come from Increasing the Rate? Increasing the market penetration rate can have benefits along many dimensions, and this study examined benefits in a subset of these. We find little evidence that increasing market penetration would cause substantial reductions in FEMA disaster assistance outlays to individuals following floods unless flood insurance policies were broadened to cover other types of losses, particularly temporary housing assistance. The FEMA disaster assistance program is one of many forms of federal disaster assistance available to individuals, businesses, and governments following floods. We also found little evidence of a strong relationship between market penetration rates and compliance with floodplain management requirements. In some cases, other factors (such as community size or region) had more impact than market penetration rates. But our results do show that annual variability in NFIP claims payments can be reduced by increasing penetration rates outside the Southeastern part of the country and the Gulf states. Such a reduction in variability would reduce the NFIPs need to borrow from the Treasury on a short-term basis. Implications The study findings can help inform discussions of NFIP goals and potential reforms in light of the uninsured losses after Hurricanes Katrina and Rita. For NFIP managers and policymakers, low rates in communities with relatively few structures in SFHAs present an opportunity to reduce uninsured losses in future storms, but the sheer number of such communities (about 95 percent of the 20,000 communities where federal flood insurance is available) makes developing an effective strategy difficult. NFIP managers need to better understand why the rates are so much lower in communities not subject to coastal flooding an estimated 1.7 million homes are in SFHAs of inland commu-nities. Financial regulators and NFIP managers should evaluate whether and how to improve compliance with the mandatory purchase requirement in important submarkets: communities with a relatively low

number or proportion of homes in SFHAs, communities not subject to coastal flooding, and communities in the Midwest and Northeast. Finally, the study highlights the continued unwillingness of most homeowners to buy flood insurance when not required, and can be used to assess the impacts of proposals to extend the mandatory purchase requirement.

The National Flood Insurance Programs Market Penetration Rate

Estimates and Policy Implications

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by Lloyd Dixon, Noreen Clancy, Seth A. Seabury, Adrian Overton

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Click to Read Online Flooding is a major source of loss to individuals and businesses in the United States. Private insurers have historically been unable to provide flood insurance at affordable rates, and until the establishment of the National Flood Insurance Program in 1968, the primary recourse for flood victims was government disaster assistance. Congress adopted this program in response to the ongoing unavailability of private insurance and continued increases in federal disaster assistance. The Federal Emergency Management Agency is currently conducting a major evaluation of the programs goals and performance. This report contributes to that evaluation by developing more reliable estimates of the proportion of single-family homes (excluding condominiums) that have flood insurance (the market penetration rate); by identifying factors that determine the market penetration rate; and by examining some of the opportunities for, and the potential benefits of, increasing the market penetration rate.

FEMA's Appeal Policy has Changed

FEMA established an Expanded Appeals Process effective as of December 1, 2011 to provide the same due process provided for changes in Base Flood Elevations (BFEs)/base flood depths to other changes in flood hazard information shown on the Flood Insurance Rate Map (FIRM), including addition or modification of SFHA boundaries or zone designations or the regulatory floodway. SFHAs are areas subject to inundation by the base flood and include the following flood insurance risk zone designations: A, AO, AH, A1-A30, AE, A99, AR, AR/A1-A30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-V30, VE, and V. The regulatory floodway is the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water-surface elevation more than a designated height. This policy change affects both flood studies, Physical Map Revisions (PMRs), and Letters of Map Revision (LOMRs). The Expanded Appeals Process applies for all studies for which either a preliminary FIRM is issued on or after December 1, 2011 or for which a proposed flood hazard determination notice will be published in the Federal Register on or after December 1, 2011. It will apply for all LOMRs issued on or after December 1, 2011. For flood studies, PMRs and LOMRs processed under the Expanded Appeals Process, Federal Register publications and the flood hazard determination notices accessible through this webpage will no longer include specific flooding source names or BFE listings as was previously the case; instead links to online preliminary FIRMs and Flood Insurance Study (FIS) reports and LOMR documents are included in the notices. To assist users in interpreting changes that have occurred on preliminary FIRMs as the result of flood studies and PMRs, FEMA has developed the fact sheet 'Understanding the Changes to Your Community's Flood Insurance Rate Map.' For additional information on FEMA's Expanded Appeals Process, refer to the Expanded Appeals Process fact sheet.

FEMA's Watershed-Based Approach for Studies

Historically, when FEMA flood studies have been performed, they were largely driven by political boundaries. When it was time for flood hazards for a particular jurisdiction to be restudied, most often the analysis for the selected streams ended at the corporate limits. The overarching principle of the watershed-based approach to performing flood studies, implemented under FEMA's Risk MAP program, is to develop a complete, consistent, and connected flood engineering analysis within a particular watershed. This does not mean that there must be one engineering model for an entire watershed or stream segment, but it does mean that the models and methods used must agree at the transition points. FEMA continues to select areas to be restudied based on the level of risk and need. Not all flooding sources within one watershed will be studied at the same time. FIRMs will continue to be produced in a countywide format, but will be revised on a panel-by-panel basis and will only be sent to those communities affected by the revision(s).

To find out more about watersheds and to learn what watershed you are in, visit the Environmental Protection Agency's (EPA's) Surf Your Watershed website.

Additional Information on Flood Hazard Determination Notices and Appeal Periods

A flood hazard determination is defined as any addition or modification of a BFE, base flood depth, SFHA boundary or zone designation, or regulatory floodway boundary on the FIRM. SFHAs are areas subject to inundation by the base (1-percent-annual-chance) flood and include the following flood zones: A, AO, AH, A1-A30, AE, A99, AR, AR/A1-A30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-V30, VE, and V. Floodways are the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height. Section 110 of the Flood Disaster Protection Act of 1973 (Public Law 93-234) and corresponding NFIP regulations were developed to ensure an equitable balancing of all interests involved in the setting of flood hazard determinations. The legislation and regulations provide for an explicit process of notification and appeals for community officials and for private persons prior to FEMA making the flood hazard determinations final. When new or modified flood hazard data are proposed for a community, FEMA must, in accordance with Section 110 of the Flood Disaster Protection Act of 1973 (Public Law 93-234) and Section 67.4 of the NFIP regulations, provide the community with a 90-day appeal period. FEMA initiates the 90-day appeal period by:

Publishing a proposed flood hazard determination notice in the Federal Register;

Notifying the Chief Executive Officer (CEO) of the community by sending the proposed flood hazard determination letter; and

Publishing a News Release of proposed flood hazard determinations twice in a prominent local newspaper (The newspaper notice directs the viewer to this webpage for a complete listing of the communities affected, the locations where copies of the FIRM are available for review, and guidance on how to appeal.)

Immediately before the start of the statutorily required 90-day appeal period for the affected communities, FEMA sends letters to the CEOsmayors, parish presidents, county executives, etc.and floodplain administrators of the communities to notify them officially about the publication of the flood hazard determination notices. The 90-day appeal period begins on the second publication date of the notice in the local newspaper(s).

During the 90-day appeal period, any owner or lessee of real property in the mapped community who believes his or her property rights will be adversely affected by the flood hazard determinations may appeal to the community CEO, or to an agency that the CEO publicly designates. Appeals of the proposed flood hazard determinations shall be based solely on scientific or technical evidence contrary to that of the proposed FIRM and accompanying Flood Insurance Study (FIS) report, and all appeal submittals must meet the data requirements defined in Part 67.6 of the NFIP regulations. However, inquiries regarding data other than the proposed flood hazard determinations (e.g., incorrect street names, corporate limits, typographical errors, omissions) which are referred to as 'comments,' will also be considered by FEMA, and any applicable changes will be made before the FIRM and FIS report become effective. FEMA's Scientific Resolution Panel (SRP) process reinforces FEMA's commitment to work with communities to ensure the flood hazard data depicted on FIRMs and in the accompanying FIS reports is built collaboratively using the best science available. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. An SRP is an option after FEMA and a local community have been engaged in a collaborative consultation process without a mutually acceptable resolution. For additional information on SRPs, refer to FEMA's SRP fact sheet.

How To Obtain Additional Assistance

If you have any difficulty locating the flood hazard determination notice in which you are interested, or if you have any questions regarding the notice once you have located it, please refer to the FEMA Map Information eXchange home-page for additional assistance. Last Modified: Tuesday, 1-Dec-2009 17:41:32 EDT

Home Contact Us Espaol Privacy Policy Important Notices Accessibility Download Plug-ins FOIA No FEAR Act Data USA.gov DHS

* The social media links provided are for reference only. FEMA does not endorse any nongovernment Web sites, companies or applications. Federal Emergency Management Agency U.S. Department of Homeland Security

500 C Street SW, Washington, D.C. 20472 External Affairs: (202) 646-4600

(800) 621-FEMA / TTY (800) 462-7585 3 Step Guide for Assistance

Coastal Projects
The FEMA Coastal Zone website contains links to FEMA coastal projects specific to each Region, state, or U.S. territory. You will also find links to documents and related information covering the topics of regulations and guidance, technical bulletins, procedure memoranda, coastal modeling software, and general interest. A list of coastal contacts is provided. Back To Top

New Live Chat Service

FEMA Map Information eXchange (FMIX) Map Specialists are available for online chat; Monday through Friday, 9:00 am to 6:00 pm Eastern Standard Time (Eastern Daylight Time). To use Live Chat or for more information visit the FMIX page. Back To Top

LOMC Clearinghouse
FEMA's Customer and Data Services (CDS) has launched the Letters of Map Change (LOMC) Clearinghouse, which will centralize the administrative functions associated with processing MT-EZ, MT-1 and MT-2 requests. Specific activities include creation of LOMC case files, upload and scanning of data, processing of associated fees, and distribution to the appropriate Production and Technical Services (PTS) firm for processing. As a result, there is a new mailing address. Beginning immediately, requestors should mail their applications and supporting data to:
LOMC Clearinghouse 7390 Coca Cola Drive Suite 204 Hanover, MD 21076 Attn: LOMC Manager

For more information about the LOMC Clearinghouse, please contact FEMA Map Information eXchange at 1-877-FEMA MAP (1-877-336-2627) or e-mail a Map Specialist. Back To Top

Risk MAP (Mapping, Assessment, and Planning) Multi Year Plan

FEMA is initiating Risk Mapping, Assessment, and Planning (Risk MAP) and has developed a multi year plan spanning FY10-FY14. The vision for Risk MAP is to deliver quality data that increases public awareness and leads to action that reduces risk to life and property. Risk Mapping, Assessment, and Planning (Risk MAP) Multi-Year Plan: Fiscal Years 2010 - 2014 was approved on March 16, 2009. To learn more about Risk MAP, visit the Risk Map home page. Back To Top

Paper to Digital Transition

Beginning on or after October 1, 2009, FEMA will provide a single paper flood map and Flood Insurance Study (FIS) to each mapped community. FEMA will convert all other distribution of maps and FIS reports for digital delivery. FEMA will continue to provide free digital map products and data to Federal, State, Tribal, and local NFIP stakeholders. FEMA announced this change in the Federal Register, Vol. 23, No. 76, FEMA Notices Availability of Flood Hazard Maps and Data 63181, issued on October 23, 2008. Read more about the digital transition. Back To Top

User Groups

Engineers, Surveyors, and Architects Products, services, and publications available to engineers, surveyors, and architects. To obtain archival, technical, and administrative support data, please visit FEMAs Engineering Library. Floodplain Managers Resources available to floodplain managers including, guidance documents, contacts, and training resources. Homeowners Locate and obtain copies of flood maps, understand how to read them, and request a map change believed to be warranted. Insurance Professionals and Lenders Sources of information available specifically for insurance professionals and lenders involved with the NFIP.

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Flood Map Modernization (Map Mod)

Through Map Mod, FEMA is transforming the Nation's flood maps into more reliable, easier-touse, and readily available maps. The Multi-Year Flood Hazard Identification Plan (MHIP) describes the strategy, schedule, and budget developed by FEMA for producing flood hazard data and maps to administer the NFIP. It is a living document that is updated annually through a collaborative process to engage stakeholders. As part of its commitment to improve the Nation's flood hazard maps and in response to stakeholder feedback, FEMA performed a comprehensive review of Map Mod. This review is referred to as the Mid-Course Adjustment. As a result of the Mid-Course Adjustment, FEMA prioritized funding based on a goal of mapping 90 percent of the Nation's highest-risk areas. Back To Top

Cooperating Technical Partners (CTP)

The CTP Program is an innovative approach to creating partnerships between FEMA and participating NFIP communities, regional agencies, and State agencies that have the interest and capability to become more active participants in the FEMA Flood Hazard Mapping program. Back To Top

Status of Map Changes

Floodplain managers, engineers, community officials, citizens who are actively involved in updating flood hazard data and maps, and other interested stakeholders may obtain information on ongoing map change activities, priority map changes, Letters of Final Determination, and Base Flood Elevation notices. Back To Top

How to View and Obtain Flood Maps

You may view and order copies of the effective maps and other NFIP products through the Map Service Center. Your local Community Map Repository, usually located in the planning and zoning office, also has copies of flood maps. Please call the FEMA Map Information eXchange, toll free at 1-877-FEMA MAP (1-877-336-2627), or e-mail a Map Specialist to determine the location of your Community Map Repository. Back To Top

Forms, Documents, and Software

FIMA offers various application forms, documents, and software to assist the public. Back To Top

Online Tutorials
FEMA has developed several multimedia tutorials to provide in-depth training on different facets of the NFIP and to support FEMA's public education and outreach efforts as part of Map Mod. Back To Top Google Answers: FEMA flood insurance /mobile homes - post-Katrina Kalispell , MT . Search jobs and explore job opportunities with Jobs.com. Software Engineer Video Compression - video - Digital Media - C /C+ - TCP/IP - MPEG - MPEG-2 endorsement and policy processing , proofing of insurance forms , and outsourcing solutions to Life, P&C, Flood , and Reinsurance carriers, Flood Insurance Relocation Covered: Not Specified. Reference ID: 493. Location: map it! US- MT - Kalispell Property and Casualty or Flood insurance experience is required. Kalispell , Montana (MT) Car, Health, Life Insurance Agents File Format: PDF/Adobe Acrobat - Quick ViewHarleysville Insurance Flood Processing Center . C/O National Flood Services. PO Box 2057 555 Corporate Drive. Kalispell , MT 59903 Kalispell , MT 59901 Flood Insurance ( Flood Insurance Agency*) - Kalispell , Montana (MT Flood United Property & Casualty Insurance Company Flood Processing Center P.O. Box 2057. Kalispell , Mt . 59903-2057. Information For Reporting A Claim United Insurance 51 results for flood insurance processing center (0.111 seconds). National Flood Services, Inc. ( Kalispell , MT United States) Find Jobs - Statistical Analyst - Insurance Jobs in Kalispell flood insurance business is serviced at our Flood Insurance Processing Center . Kalispell , MT 59903-2057. The Flood Claims Department phone number is Flood Policy Declarations - Jun 25 09 07:57a Video Center The company performs services such as flood insurance applications processing , claims management, A subsidiary of data- processing giant Fiserv , NFS serves more than two dozen property/casualty companies issuing 5 executives listed for National Flood Services, Inc.'s Kalispell , MT location. National Flood Services, Inc. File Format: PDF/Adobe Acrobat - Quick View4. Mail all information to the following address: Philadelphia Indemnity Insurance Company. Flood Processing Center . PO Box 2057. Kalispell , MT 59903- 2057 flood insurance processing center Use this link to proceed directly to the NFS-Online Flood Policy Processing System. Copyright 2010 StoneRiver National Flood Services, Inc. All rights The Flood Insurance Agency, Kalispell MT 59901 -- MerchantCircle.com File Format: PDF/Adobe Acrobat - Quick ViewMortgagee information to be completed on reverse side of form. HARLEYSVILLE INSURANCE. Flood Insurance Processing Center . P.O. Box 2057 Kalispell , MT 59903Kalispell , MT Jobs | Jobs.com File Format: PDF/Adobe Acrobat - Quick ViewProcessed by: Flood Insurance Processing Center . P.O. Box 2057 Kalispell MT 59903-2057. To report a claim call: (800) 759-8656

policy #: 87027960632009 flood insurance processing center Flood Insurance Processing Center . P.O. Box 2057 Kalispell MT 59903-2057. To report a claim call: (800) 759-8656. John McMil. 95478G59GG p.1 First Insurance Company of Hawaii Selects TorrentFlood(R) as its Flood Insurance 450 Corporate Dr Kalispell MT . Ryan O'Rourke, (406) 755-0719, Montana First Insurance Incorporated 1088 N Meridian Rd Kalispell MT National Flood Services, Inc. | Company profile from Hoover's File Format: PDF/Adobe Acrobat - Quick ViewP.O. Box 2057 Kalispell , MT 59903-2057. TEL 888-453-0598 FAX 406-257-2008. HARLEYSVILLE INSURANCE. FLOOD INSURANCE PROCESSING CENTER

National Flood Insurance Act of 1968

From Wikipedia, the free encyclopedia Jump to: navigation, search

The National Flood Insurance Act of 1968 is a piece of legislation passed in the United States that led to the creation of the National Flood Insurance Program (NFIP).[1] The NFIP goals are two-fold: To provide flood insurance for structures and contents in communities that adopt and enforce an ordinance outlining minimal floodplain management standards. To identify areas of high and low flood hazard and establish flood insurance rates for structures inside each flood hazard area.[2] The act was motivated by a long history of property damage and loss of life due to flooding.[3] The legislation was finally promulgated because of the recent flood loss sustained in Florida and Louisiana following the destruction caused by the Hurricane Betsy flood surge in 1965.[1]

[edit] References
1. ^ a b Haddow, George D. and Jane A. Bullock, 2003, Introduction to Emergency Management, Amsterdam: Butterworth-Heinemann, ISBN 0-75067689-2 2. ^ FEMA, Actuarial Rate Review, National Flood Insurance Program,Thomas L. Hayes, Federal Insurance and Mitigation Administration Randall A. Jacobson, NOVEMBER 30, 2001www.fema.gov/pdf/nfip/rate_rev01.pdf 3. ^ Wright, James M., The Nation's Response to Flood Disasters: A Historical Account. 1 Apr 2000.

National Flood Insurance Program

From Wikipedia, the free encyclopedia Jump to: navigation, search "NFIP" redirects here. For National Foundation for Infantile Paralysis, see March of Dimes.

The National Flood Insurance Program (NFIP) is a program created by the Congress of the United States in 1968 through the National Flood Insurance Act of 1968 (P.L. 90-448). The program enables property owners in participating communities to purchase insurance protection from the government against losses from flooding. This insurance is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.[1] As of April 2010, the program insured about 5.5 million homes, the majority of which were in Texas and Florida.[2]

Contents
1 Implementation

2 Amendments 3 Criticisms 4 References

5 External links

Implementation
Participation in the NFIP is based on an agreement between local communities and the federal government which states that if a community will adopt and enforce a floodplain management ordinance to reduce future flood risks to new construction in Special Flood Hazard Areas (SFHA), the federal government will make flood insurance available within the community as a financial protection against flood losses. The SFHAs and other risk

premium zones applicable to each participating community are depicted on Flood Insurance Rate Maps (FIRMs). The Mitigation Division within the Federal Emergency Management Agency manages the NFIP and oversees the floodplain management and mapping components of the Program. The intent was to reduce future flood damage through community floodplain management ordinances and provide protection for property owners against potential losses through an insurance mechanism that requires a premium to be paid for the protection. The NFIP is meant to be self-supporting, though in 2004 Congress found that repetitive-loss properties cost the taxpayer about $200 million annually. Congress originally intended that operating expenses and flood insurance claims be paid for through the premiums collected for flood insurance policies.[3] NFIP borrows from the U.S. Treasury for times when losses are heavy, and these loans are paid back with interest. Since 1978, the National Flood Insurance Program has paid more than $38 billion in claims (as of March 31, 2011). More than 40 percent of that money has gone to residents of Louisiana.[4]

Amendments
The program was first amended by the Flood Disaster Protection Act of 1973, which made the purchase of flood insurance mandatory for the protection of property within SFHAs. In 1982, the Act was amended by the Coastal Barrier Resources Act (CBRA). The CBRA enacted a set of maps depicting the John H. Chafee Coastal Barrier Resources System (CBRS) in which federal flood insurance is unavailable for new or significantly improved structures. The National Flood Insurance Reform Act of 1994 codified the Community Rating System (an incentive program that encourages communities to exceed the minimal federal requirements for development within floodplains) within the NFIP. The program was further amended by the Flood Insurance Reform Act of 2004, with the goal of reducing "losses to properties for which repetitive flood insurance claim payments have been made."

Criticisms
As critics predicted, the NFIP encouraged people to locate in areas more susceptible to flood damage.[citation needed] Prior to the NFIP's existence, insurance coverage for flood losses was not provided by any private insurance carriers. Insurance losses stemming from flood damage were largely the responsibility of the property owner, although the consequences were sometimes mitigated through provisions for disaster aid. Today, owners of property in flood plains frequently receive disaster aid and payment for insured losses, which in many ways negates the original intent of the NFIP. Consequently, these policy decisions have escalated losses stemming from floods in recent years, both in terms of property and life.[citation needed] Moreover, certain provisions within the NFIP increase the likelihood that flood-prone properties will be occupied by the people least likely to be in a position to recover from flood disasters, which further increases demand for aid. Some factors contributing to increased demand for aid are:

Flood insurance for properties in flood prone areas is mandatory only to secure loans, which makes it somewhat more likely that flood prone properties will be owned by seniors who have paid off their mortgages, or investors who have acquired the property for rental income.

Flood insurance only covers losses for the owner of the property, and claims are subject to caps, which further increases the likelihood that the property will be occupied by renters rather than the property owner.

Flood prone properties are more likely to be offered for rent because of the owners' increased risks and/or costs associated with occupying the property themselves.

Flood prone properties are more likely to be offered for rent at a discount, which attracts lower income groups, seniors, and infirm groups.

References
1. ^ FEMA. A Unified National Program for Floodplain Management. 1 Mar 1986 [cited; Available from: http://www.fema.gov/pdf/fima/fema100.pdf. 2. ^ Holladay JS, Schwartz JA. (2010). Flooding the Market: The Distributional Consequences of the NFIP. Institute for Policy Integrity. 3. ^ Wright, James M., The Nation's Response to Flood Disasters: A Historical Account. 1 Apr 2000. 4. ^ Hurricane-battered states lead in payouts from National Flood Insurance Program http://www.insurancequotes.com/flood-insurancepayouts/

External links