The National Flood Insurance Program
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Transcript of The National Flood Insurance Program
The National Flood Insurance Program
Edie Lohmann, FEMA Region IX NFIP Insurance Specialist
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How the NFIP Works
FEMA agrees to make flood insurance available within a community when that community agrees to adopt and enforce floodplain management regulations.
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How the NFIP Works
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National Flood Insurance Act of 1968
Flood Disaster Protection Act of 1973
National Flood Insurance Reform Act of 1994
Flood Insurance Reform Act of 2004
NFIP Background
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NFIP Background
1. Ensure long term sustainability and financial soundness
2. Respond to the rising costs and consequences of flooding
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Biggert-Waters 2012 (BW-12)
What Does it Do?Reauthorizes the
National Flood Insurance Program (NFIP) for 5 years through September 30, 2017
Signed July 6, 2012
Government Building
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BW 2012: Section by Section
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Biggert-Waters 2012 Section Break Down
Other Risk Reduction and Stud-ies
Mapping
Insurance
205 and 207
Section 205 & 207
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Build Safer and Stronger
Changing the Message About Flood Insurance
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Flood Insurance Provisions:Sections 205 and 207
Section 205• Targets:
1. Non-Primary Residences
2. Businesses
3. Severe Repetitive Losses
4. Full Risk Rate Category• Implementation began
January 1, 2013
Section 207• Impacts map changes
• Grandfathering• Preferred Risk Policy
Eligibility Extension• Not currently being
implemented – still under evaluation
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Section 205 – Biggert-Waters 2012 (BW 12)
Effective Jan. 1, 2013 Effective Oct. 1, 2013
25% Rate Increase:
Non-Primary Residences (vacation & second homes)
25% Rate Increase:1. Non-Residential Structures (businesses) 2. 1-4 Family Severe Repetitive Loss Buildings
Full Risk Rates:1. New policies applied for on or after July 6,
20122. Lapsed policies on or after October 4, 2012
Rate Increases Apply To:Pre-firm Buildings In A, V, or D Flood Zones(except AR/A99)
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Full Risk Rates
Reduce the Risk, Reduce the Rate
Zone AE Rates Effective October 1, 2012
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BW 12 Section 205 - CaliforniaTotal California NFIP Policies: 256,836
81%
14%
3%
2%
3%2%
95%
Data as of 12/31/12
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Key Takeaways - Mitigation
Understand the Risk
Buy Down the Risk
Build Safer, Stronger &
Smarter
Collaborate & Communicate
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FloodSmart
www.FloodSmart.gov