Flood Insurance and Floodplain Management Flashcards
Where does property go to buy flood insurance?
Insurance agent.
What is the max amount of contents coverage available for a single family dwelling?
$100,000
List some programs that are likely to require flood insurance as a condition of financial assistance.
HUD Community Development Block Grants
Federal Disaster Assistance
Home improvement loan from bank participating in FDI
Mortgage from Federal Credit Union
Department of veteran affairs mortgage loan guarantees
Does owner need an Elevation certificate to purchase insurance on a pre-FIRM building?
No, but if he had it he could get a lower rate
Is thee much cost savings on flood insurance if the lowest floor of a Post Firm building is one foot above the BF Einstead of at the BFE?
Yes
Can owner get a good insurance rate on building in the AE Zone that is floodproofed to the BFE?
No building must be floodproofed 1 foot above the BFE to qualify
Can owner wait to buy insurance after National Weather Service has issued a flood?
Yes but no claims can be paid, there is 30 day wait until policy is in effect
What is best way to get a good flood insurance rate for a new building in an approximate A Zone?
Determine the BFE and build above it
What are some benefits of joining the Community Rating System?
Lower flood insurance rates, free assistance from ISO and government support for programs that protect life and property.
What is a CRBS?
Coastal Barrier Resource System, undeveloped coastal barrier
Can property owner request a LOMA to get property out of the CBRS Zone?
No the CBRS can’t be changed
Who sets the rates and coverage rules for flood insurance policies, FEMA or private insurance companies?
FEMA
What are the two types of flood insurance coverage available?
Building and contents
Can owner get flood insurance for furniture in a basement?
N, only appliances and utilities
Can a bank require flood insurance for a property outside the SFHA shown on the latest firm?
Yes if they feel property is at risk they can require it
What are two key factors in rating a Post Firm building?
First floor Elevation above or below the BFE, SFHA Zone and building use
How does owner know how much a flood insurance policy will cost for a Post Firm building with the lowest floor flour feet below the BFE
He can’t, must “submit for a rate” determination
How can Community help its residents get a lower flood insurance rate?
Implement the CRS program
Can a community get CRS credit for activities implemented by a state agency on behalf of the community?
Yes, rule is Credit is given for what is being done to mitigate flood damage, not who does it
Can non-CRS communities obtain and benefit from CRS publications
Yes
A restaurant is in a CBRS and was flooded? can any of these programs help rebuild damaged property? NFIP flood insurance policy, FEMA disaster assistance grant, Small Business Administration disaster loan.
No federal loans can be used for repairs in a CBRS
What are the two parts of flood insurance coverage
Coverage for Structures
Contents
Is a detached garage or building covered by structure insurance
Yes 10% of dwelling coverage can be applied to residential detached garage only not if business use
What additional items are covered in structure?
Utilities, installed carpets, built in appliances and bookcases, wallpaper and paneling
How is building defined?
Walled and roofed, principally above ground
Manufactured home or trailer with pout wheels on permanent foundation all count as structure
If building under construction but not completed is it eligible for COVERAGE?
As long as site is active and materials are contained on the site and lowest floor is above the BFE the site can be covered. Tanks, septic, fences, open sided car ports
What are exceptions for what contents are covered
Animals, vehicles, expensive items over $2500, money, items not secured in bulking that is not enclosed
What is covered in a basement? Defined as flood below ground on all sides.
Only large utilities like clothes washer, AC, freezers and food in freezer.
What is covered in and enclosure below the lowest floor of an elevated Post FIRM building.
No contents are covered, only structural coverage is for required utility connections, foundation, and anchoring system.
What’s maximum building coverage for res/ business?
$250,000/ $500,000
What is maximum contents coverage residential/ business?
$100,000/ $500,000
Why is there a 30 day waiting period?
You can take out a claim prior to anticipate flooding but no claims can be made for 30 days. This encourages everyone to keep policy at all times and helps NFIP Financilaly as everyone at risk pays their share of the premium.
What is a key requirement of the National Flood Disaster Protecton Act of 1973?
Flood insurance is a prerequisite for receiving grants or loans for acquisition or construction of buildings in floodplain from a federally late loan program.
Does the mandatory purchase requirement impact both private and public buildings in SFHA?
Yes requirement affects any loan or grant for purchase, repair, improvement of pub/priv building including machinery, equipment, fixtures and furnishings.
What about a second mortgage from a FDIC bank?
Yes, insurance will be required if in SFHA if loan is made, increased, renewed or extended at any time.
Who determines where the property is located?
Agency or lender, or may use a third party flood Hazard determination company
Are contents covered if you don’t purchace voluntary content coverage.
No
What is main difference between rating pre and Post Firm buildings?
Pre firms building rates are subsidized, and no Elevation certificate is required. If owner desires they can get a Elevation certificate and if above the BFE can end up with a better rate. Post firm rates are actualized” based on actual risk of flooding
When must agent submit policy to determine rates
If not on the FEMA table, AO/AH with basements, first floor 2 feet below BFE in AE or enclosure >300 sf or no breakaway wall in VE Zone
Why must an agent notify FEMA when they have to submit policy to determine the rat?
Looks fishy, may be non compliant with community regulation, community is not enforcing refs or result of a variance.
Why is Elevation certificate needed
Require to rate Post Firm buildings based on Elevation of the lowest floor,
How is floodproofed nonresidential building rate?
Rated is based on the Elevation of the lowest floor unless building is floodproofed to one foot above the BFE. Building must be flood proofed one foot above the BFE to get same rate as building elevated to the BFE
How can agent be assured that floodprofing meets NFIP requirements to get better rate?
A floodproofing certificate is required.
What happens if property is in unnumbered A Zone.
They are subject to very high rate unless steps are taken to determine an actual BFE?
How can a BFE be established in an unnumbered A Zone?
Community provides BFE based on historic records, or can set Rate based on height of building above the adjacent highest grade. Rates are reduced for buildings built 1, 2 and 5 feet above grade.
How does a community benefit form implementing the Community Rating System?
Can reduce flood insurance premiums up to 45% for communities that implement activities above and beyond the basic NFIP requirements.
What are the four main categories of projects in the CRS?
Public information,
Mapping and regulations
Flood damage reduction
Flood preparedness
Can having a flood plain management plan or Hazard mitigation plan increase CRS credit points?
Yes special credits AE given for addressing coastal erosion and alluvial fan flooding that are not reflected in NFIP mapping or regulatory standards
If city/ town doesn’t have flood insurance on municipal property how will this impact disaster assistance?
The amount of coverage that should have been taken out will be deducted from any disaster assistance funding
Can community take credit for programming done by the state or other regional group as part of the CRS?
Yes, community can apply for uniform minimum credit tif state applies for CRS activity that it is implementing on behalf of its communities. What counts to the CRS is what happens to the community and not who does it.
List 3 types of activities for CRS public information credits
Maintain Elevation certificates
Publicize service to help locate priorities I FIRM zones
Advise property owners in floodprone areas about the Hazard
List 3 types of activities for CRS mapping and regulations credits
Preserve open space
Impose high regulatory standards
Maintain flood data
List 3 types of activities for CRS flood damage reduction credits
Floodplain management planning
Acquisition and relocation
Retrofitting
List 3 types of activities for CRS flood preparedness activities credits
Flood warning system
Levee safety
Dam safety
What is the Coastal Barriers Resource Act of 1982?
Federal go to may not provide $$ for building and development in undeveloped portions of coastal barriers (barrier islands, spits, etc).
Is there any disaster assistance for a property located in a CRBS? Or Othrewise Protected Area (OPA)?
Disaster sssistance limited to emergency relief, the rare NO LOANS OR GRANTS for repair or rebuilding in CRBS or OPAs.
Can the boundaries of a CRBS be changed by a LOMA or LOMR?
No, can only be revised by Act of congress, interpretation of bpoundaries by USFWS or correction of error made by FEMA
What happens if an NFIP policy was issued in error and property is in fact in a CRBS?
Policy will be cancelled, premium refunded, but no claims can be paid.
