Unit 2 Learning Check NFIP Flashcards
what are the objectives of the NFIP
national flood insurance act created the national flood insurance program (NFIP) to:
transfer costs of private property flood losses from taxpayers to floodplain property owners through flood insurance premiums
provide floodplain residents and property owners with financial aid after floods, especially smaller floods that do not warrant federal disaster aid
guide development away from flood hazard areas
require that new and substantially improved buildings be constructed in ways that would minimize or prevent damage in a flood
3 basic parts of NFIP
mapping
insurance
regulations
who uses NFIP maps
communities, states, and federal agencies use them as the basis for regulating new flood prone construction
insurance agents use them when rating flood insurance policies
lenders and federal agencies use them to determine when flood insurance must be purchased as a condition of a loan or financial assistance
what should happen to buildings in NFIP communities over time
exposure to flood damage should be reduced as older pre FIRM buildings are replaced by post FIRM buildings.
eventually, a community will only have post FIRM buildings subject to little or no flood damage
what types of governmental bodies are considered to be communities by the NFIP
can vary from state to state, but includes cities, towns, villages, townships, counties, parishes, special districts, states, indian nations with statutory authority to enact and enforce regulations
what office is the state coordinating agency for your Michigan
state hazard mitigation - Dawn Schulert - michigan division of emergency management
NFIP coordinator - Les Thomas - Michigan department of environmental quality
which FEMA office works directly with communities
the ten regional offices
what is write your own program
an arrangement whereby private insurance companies write and service NFIP flood insurance policies under their own name
when a community applies to join the NFIP, what must it submit
a resolution of intent to “maintain in force… adequate land us and control measures” and to cooperate with FEMA
its adopted floodplain management ordinance
what are the sanctions if a community does not participate in the NFIP
flood insurance will not be available. no resident will be able to purchase a flood insurance policy through the NFIP
if the community withdraws or is suspended, existing flood insurance policies will not be renewed
no federal grants or loans for development map be made in identified flood hazard areas under programs administered by federal agencies such as HUD, SPEA, SBA
no federal disaster assistance may be provided to repair insurable buildings located in identified flood hazard areas for damage caused by a flood
no federal mortgage insurance or loan guarantees may be provided in identified flood hazard area. Includes policies from FHA, VA
federal insured or regulated lending institutions, such as banks and credit unions, must notify applicants seeking loans for insurable buildings in flood hazard areas that there is a flood hazard & the property is not eligible for federal disaster relief
where does most of the money come from to pay the expenses of the NFIP
premium income. NFIP is self supporting since 1986
how many communities participate in NFIP
more than 19,000
what is a pre FIRM building
building built before the effective date of the communities flood insurance rate map
is there any relation between how a community regulates new construction and flood insurance rates
yes. buildings built in accordance with community regulations have a lower risk of flooding and can be insured at lower rates
list two things your community committed itself to when it joined the NFIP
issuing or denying floodplain development/building permits
inspecting all development to assure compliance with the local ordinance
maintain records of floodplain development
assisting in the preparation and revision of floodplain maps
help residents obtain information on flood hazards, floodplain map data, flood insurance and proper construction measures
insurance companies set flood insurance rates and coverage rules. true or false
false. flood insurance rates and coverage rules are set by FEMA federal insurance administration
what can FEMA do to encourage a community to adequately enforce its floodplain management regulations
if the community is in the community rating system, it can reclassify to a class 10 (no insurance premium discount)
the community can be put on probation
the community can be suspended
what are the sanctions if a community is suspended from the NFIP
the same as for nonparticipation. suspension means the community is no longer a participant in the NFIP
