Microsoft Word - NFIP SG_Unit 9_Flood Insurance and Floodplain Management.doc

UNIT 9:

FLOOD INSURANCE AND

FLOOD MANAGEMENT

In this unit

While you are probably not an insurance agent, you should be aware of the close relationship

between floodplain management and flood insurance. Decisions made by the builder or property

owner during the construction process can have substantial impacts on flood insurance premiums

and coverages for the building.

This unit reviews:

• What a flood insurance policy covers,

• When a policy must be purchased,

• How flood insurance rates are determined,

• How the Community Rating System can reduce flood insurance premiums in

communities that do more than the minimum NFIP regulations, and

• The special rules that apply in the Coastal Barriers Resources System

Materials needed for this unit

Additional information can be found in Answers to Questions about the

National Flood Insurance Program.

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CONTENTS

A. FLOOD INSURANCE POLICIES ............................................................................9-3

Who’s Involved.............................................................................................................9-3

Coverage......................................................................................................................9-3

Building coverage..........................................................................................................................9-4

“Building” defined ..........................................................................................................................9-4

Contents coverage........................................................................................................................9-5

Basements ....................................................................................................................................9-6

Enclosures ....................................................................................................................................9-6

Amount of coverage......................................................................................................................9-6

Waiting period ...............................................................................................................................9-7

The Mandatory Purchase Requirement........................................................................................9-7

Where it applies ............................................................................................................................9-8

How it works..................................................................................................................................9-8

B. RATING BUILDINGS ............................................................................................9-11

Rating Pre-FIRM Buildings......................................................................................... 9-11

Rating New Buildings ................................................................................................. 9-14

Submit for rate.............................................................................................................................9-19

Elevation certificates...................................................................................................................9-19

Floodproofing ..............................................................................................................................9-19

Rating Unnumbered A Zones..................................................................................... 9-19

Premiums...................................................................................................................9-20

C. THE COMMUNITY RATING SYSTEM..................................................................9-22

Benefits ...................................................................................................................... 9-22

CRS Activities ............................................................................................................9-23

Public information activities.........................................................................................................9-23

Mapping and regulation activities................................................................................................9-24

Flood damage reduction activities ..............................................................................................9-25

Flood preparedness activities .....................................................................................................9-25

Publications.................................................................................................................................9-25

Community Rating System Publications.....................................................................9-26

D. THE COASTAL BARRIERS RESOURCES SYSTEM ..........................................9-27

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A. FLOOD INSURANCE POLICIES

This section is devoted to flood insurance policies: what’s covered, what’s not covered, when

a policy must be bought, and other rules. This is important information for the local permit

administrator to know because some construction decisions affect what is eligible for insurance

coverage.

If you have additional questions:

• Answers to Questions about the National Flood Insurance Program, questions 21 –

66 covers the topics in this unit.

• Local insurance agents should have additional references, including FEMA’s Flood

Insurance Manual.

These publications can be found on FEMA’s web site.

As noted in Unit 2, 97% of the communities in the NFIP are in the Regular Phase. Only a

few communities with minor flood problems or which have just recently joined the NFIP are still

in the Emergency Phase. This section only discusses the Regular Phase provisions. The only

major difference is that Emergency Phase policies have limited amounts of coverage available.

WHO’S INVOLVED

Flood insurance policies are obtained through local property insurance agents. The agents

may sell a policy from one of the

Write Your Own insurance companies or a “direct” policy

through FEMA. Both approaches will result in the issuance of a “Standard Flood Insurance

Policy” that meets all the requirements and rates set by FEMA.

If an insured property is flooded, the property owner contacts his or her insurance agent. The

agent arranges for an adjuster to review the damage and work with the insured to settle a claim.

Property owners always work through their insurance agents – they do not need to deal with

FEMA.

COVERAGE

Flood insurance coverage is provided for insurable buildings and their contents to property

owners in NFIP communities.

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Building coverage

Building coverage is for the structure. This includes all things that typically stay with the

building when it changes ownership, including:

• Utility equipment, such as a furnace or water heater

• Carpet permanently installed over unfinished flooring

• Built-in appliances

• Wallpaper and paneling

Ten percent of a dwelling’s building coverage may be applied to a detached garage.

Residential detached garages used, or held in use, for residential business or farming are not

covered under the dwelling policy. These detached garages and other appurtenant structures must

be insured under a separate policy.

“Building” defined

A “building” is defined as a walled and roofed structure, including a manufactured home that

is principally above ground and affixed to a permanent site. This definition has three parts:

• “Walled and roofed” means it has in place two or more exterior rigid walls and the

roof fully secured so that the building will resist flotation, collapse and lateral

movement.

• “Manufactured (mobile) home” is a building transportable in one or more sections,

which is built on a permanent chassis and is designed for use with or without a

permanent foundation when attached to the required utilities.

• “Principally above ground” means a building that has at least 51 percent of its actual

cash value, including machinery and equipment (but not land value), above ground.

A travel trailer, without wheels, built on a chassis and affixed to a permanent foundation that

is regulated under the community’s floodplain management and building ordinances or laws is

also a building and can be insured.

This definition is similar to, but not quite the same as, the definition for “building” or

“structure” used for floodplain management and defined in Unit 5, Section E.

Buildings in the course of construction that have yet to be walled and roofed are eligible for

coverage except when construction has been halted for more than 90 days and/or if the lowest

floor used for rating purposes is below the BFE. Materials or supplies intended for use in such

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construction, alteration, or repair are not insurable unless they are contained within the enclosed

building on the premises or adjacent to the premises.

Examples of things that are not considered insurable buildings include:

• Gas or liquid storage tanks,

• A structure with 50 percent or more of its value underground, such as an underground

pumping station, well or septic tank,

• Tents,

• Tennis and swimming pool bubbles,

• Swimming pools,

• Fences, docks, driveways,

• Open pavilions for picnic tables and bleachers,

• Detached carports with open sides,

• Recreational vehicles,

• Sheds on skids that are moved to different construction sites,

• Licensed vehicles, campers and travel trailers (unless permanently attached to the

site),

• A building declared in violation of a state or local law (see Unit 7, Section E on

Section 1316),

• Buildings over water or seaward of mean high tide which were built after October 1,

1982, and

• Landscaping, crops, and other items outside of a building.

Contents coverage

Contents coverage is for the removable items inside an insurable building. A renter can take

out a policy with contents coverage, even if there is no structural coverage.

Certain contents are not insurable. These include:

• Animals and livestock,

• Licensed vehicles,

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• Jewelry, artwork, furs and similar items valued at more than $2,500,

• Money or valuable papers, and

• Personal property that is not secured to prevent flotation located in a building that is

not fully enclosed (such as an open carport).

Basements

A basement is defined as any area of the building, including any sunken room or sunken

portion of a room, having its floor below ground level (subgrade) on all sides. There is limited

coverage for basements:

• Building coverage is not extended to wallpaper, carpeting and similar finishings.

• The only contents kept in a basement that are covered are air conditioning units

(portable or window type), clothes washers and dryers, food freezers, other than walk

in, and food in food freezers.

Despite these limitations on coverage, it is advisable for property owners with basements to

obtain flood insurance. Hydrostatic pressure from flood waters can cause structural damage to

the walls and floor of the basement that can be costly to repair. In some cases structural damage

can occur to the elevated portion of the building as a result of the failure of basement walls or

floors even though flood waters never reach the first floor of the building.

Enclosures

There is limited coverage in enclosures below the lowest floor of an elevated post-FIRM

building (including a manufactured home) located in SFHAs:

• There is no contents coverage in these enclosures.

• The only structural coverage is for the required utility connections and the foundation

and anchoring system required to support the building.

The permit official should make sure that property owners are aware that flood insurance

coverage in these areas is limited. This lack of coverage may discourage property owners from

modifying these enclosures later so that they become noncompliant.

Amount of coverage

Insurance rates for all buildings are based on a two-tiered system: a first or basic layer of

coverage and a second or additional layer. The maximum amounts available under each layer are

shown in Figure 9-1.

Note: This table is for communities in the Regular Phase of the NFIP. If your community has a Flood

Insurance Rate Map and is participating in the NFIP, it is in the Regular Phase. Coverage amounts are as

of May, 2004.

Waiting period

A 30-day waiting period follows the purchase of a flood insurance policy before it goes into

effect. There are exceptions to the 30-day waiting period for policies purchased in connection

with the making, increasing, extending, or renewing a loan or certain map changes.

The objective of this waiting period is to encourage people to keep a policy at all times.

FEMA does not want folks to wait for the river to rise before they buy their coverage. Also, to be

on a sound financial basis, the NFIP needs everyone at risk to pay their share of the premiums.

Many people have found out about the waiting period the hard way. Your community would

be wise to publicize availability of flood insurance so residents can be protected when a flood

comes.

The Mandatory Purchase Requirement

The Flood Disaster Protection Act of 1973 added a key requirement to the NFIP: if a

community participates in the program, flood insurance is a prerequisite for receiving grants or

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loans for the acquisition or construction of buildings in a designated floodplain from a federal

agency or through a federally-related loan program.

Where it applies

The mandatory purchase requirement applies to all forms of federal or federally related

financial assistance for buildings located in Special Flood Hazard Areas (SFHAs). This

requirement affects loans and grants for the purchase, construction, repair, or improvement of

any publicly or privately owned building in the SFHA, including machinery, equipment, fixtures,

and furnishings contained in such buildings.

Financial assistance programs affected include loans and grants from agencies such as the

Department of Veterans Affairs, USDA Rural and Housing Services, Federal Housing

Administration, Small Business Administration, and Federal Emergency Management Agency.

The requirement applies to secured mortgage loans from financial institutions, such as

commercial lenders, savings and loan associations, savings banks, and credit unions that are

regulated, supervised or insured by Federal agencies such as the Federal Deposit Insurance

Corporation and the Office of Thrift Supervision.

The requirement comes into play if a loan is made, increased, renewed or extended – at any

of those steps, the lender must check to see if the building is in an SFHA at that time. For

example, a building in an X Zone when the original mortgage was taken out would be affected if

the area is remapped in the SFHA and the loan is later refinanced.

The requirement also applies to all mortgage loans purchased by Fannie Mae or Freddie Mac

in the secondary mortgage market.

How it works

Before a person can receive a loan or other financial assistance from one of the affected

agencies or lenders, there must be a check to see if the building is in an SFHA on the Flood

Insurance Rate Map (FIRM). It is the agency's or the lender's responsibility to check the FIRM to

determine if the building is in an SFHA, although many communities provide assistance.

Usually, the lender will have the determination done by a third party flood hazard

determination company that provides a guarantee that the determination is correct. The lender

must document the determination and whether flood insurance is required on a Standard Flood

Hazard Determination Form (FEMA Form 81-93). The lender will notify the borrower if flood

insurance is required.

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If the building is in an SFHA, the agency or lender is required by law to require the recipient

to purchase a flood insurance policy on the building. The requirement is for building coverage

equal to the value of building (not the land),

the amount of the loan (or other financial assistance) or the maximum amount of flood

insurance available, whichever is less.

Note: Many people who were required to get building coverage do not realize that their contents are

not covered unless they voluntarily purchase contents coverage. A local public information program

would help residents by informing them of this and other basic facts, such as the 30-day waiting

period and the availability of insurance for properties outside the floodplain.

The mandatory purchase requirement does not affect loans or financial assistance for items

that are not covered by a flood insurance policy, such as vehicles, business expenses,

landscaping, and vacant lots.

It does not affect loans for buildings that are not in the floodplain, even though a portion of

the lot may be floodprone. While not mandated by law, a lender may require a flood insurance

policy as a condition of a loan for a property in any zone on a FIRM.

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Flood Insurance for your Community

As a recipient of federal financial assistance, your community may have been

required to purchase flood insurance under the mandatory purchase require-

ment. You should determine if there are any insurable publicly owned buildings in

your floodplain. If so, see if they received federal aid in the past. Likely prospects

include:

• A wastewater treatment plant (which are always located near a body of

water), which received a grant from the Environmental Protection

Agency.

• Public housing or neighborhood center funded with help from the De-

partment of Housing and Urban Development or the Community

Development Block Grant.

• Any facility that received disaster assistance after a flood or other

disaster declaration.

Whether there was a requirement to buy insurance or not, you should advise

your risk manager or other appropriate office about the buildings exposed to

flooding. Many agencies find out too late that their “all risk” insurance policies

don’t cover flooding.

Over the last few years, Congress has taken steps to encourage public agencies

and private property owners to purchase flood insurance instead of relying on

disaster assistance for help after a flood. Disaster assistance for a public building

will be reduced by the amount of insurance coverage a community should carry

on the building (regardless whether the community is carrying a policy).

In effect, disaster assistance for public agencies now has a very large deductible

equal to the insurance policy it should carry. Why wait for the disaster to be

caught short? You should advise the appropriate people of the need to purchase

flood insurance coverage on your community’s buildings.

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B. RATING BUILDINGS

The insurance agent calculates the premium for a flood insurance policy on a property. The

premiums on new buildings are based on the risk of flooding and flood damage. If a building is

built incorrectly, the owner may be faced with very high premiums or insufficient coverage. On

the other hand, if a building is built properly, the owner will pay less than what it costs to insure

a pre-FIRM building under the “subsidized” rates.

The two aspects of the NFIP – insurance and regulations – reinforce each other. How well

local floodplain management regulations are enforced affects the flood insurance rates paid by

the citizens of your community. Consequently, it is important for you to know how flood

insurance rates are set for new and substantially improved buildings.

As noted earlier, 97% of the communities in the NFIP are in the Regular Phase. Only a few

communities with minor flood problems are still in the Emergency Phase. This section only

discusses the Regular Phase rates. Emergency Phase policies are rated similarly to pre-FIRM

policies.

RATING PRE-FIRM BUILDINGS

Pre-FIRM buildings are those built before the effective date of your first Flood Insurance

Rate Map (FIRM). This means they were built before detailed flood hazard data and flood

elevations were provided to the community and usually before your community enacted

comprehensive regulations on floodplain construction.

Pre-FIRM buildings are rated using “subsidized” rates that, for most pre-FIRM buildings are

significantly less than actuarial rates that fully reflect their risk of flooding. They are designed to

help people afford flood insurance even though their buildings were not built with flood

protection in mind and were an incentive for communities to join the NFIP.

The “subsidy” in the subsidized rate is really premium income that is foregone by the NFIP

and is not being funded by taxpayers. In the short term, it is funded through an insurance

mechanism called cross-subsidization. Surpluses from premiums paid by Post-FIRM SFHA and

B, C and X Zone policyholders are, in effect, being borrowed to help their Pre-FIRM

counterparts obtain affordable flood insurance coverage. The NFIP also has statutory authority to

borrow a specified amount of money from the U.S. Treasury and exercises this authority to even

out good years and bad. However, this borrowing must be paid back with interest. If catastrophic

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flooding occurred over several years and the NFIP exceeded its statutory borrowing authority,

the program may have to obtain an appropriation from Congress to pay back this “subsidy”.

The Pre-FIRM building rates are shown in Table 2 reproduced from the NFIP

Flood Insurance

Manual.

They are based on the building type and FIRM zone and not on the building’s elevation

in relation to the BFE. If there is an Elevation Certificate for the building and it is in a Regular

Program community, the building can be rated using Post-FIRM rates at the option of the

policyholder. If the building has its lowest floor at or above the BFE, Post-FIRM rates on the

building will generally be lower than Pre-FIRM rates.

If a Pre-FIRM building has been substantially damaged or substantially improved, it becomes

Post-FIRM and is rated using Post-FIRM rates. Some Pre-FIRM buildings that have lateral

additions that are substantial improvements may continue being rated as Pre-FIRM if certain

conditions are satisfied (determining substantial damage and substantial improvement is

explained in Unit 8).

Rates are per $100 coverage. The two numbers under each category (Building or Contents)

reflect the rates for the basic and additional layers of coverage explained in Table 2. The FIRM

zones designations are explained in Figure 3-10.

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RATING NEW BUILDINGS

The flood insurance premium rates for Post-FIRM construction are actuarial, meaning that

they are based on a building’s risk of flooding. In those zones where base flood elevations

(BFEs) have been established, Post-FIRM Rates are determined based on the elevation of the

lowest floor (including basement) of the building in relation to the BFE. In zones where BFEs

have not been established, the rates are based on the overall loss experience and expected

damages for all buildings within that zone.

Several of the rate tables from the NFIP Flood Insurance Manual are reproduced on the

following pages. The entire NFIP Flood Insurance Manual can be viewed on FEMA’s website at

www.fema.gov

. You cannot rate a building using just these tables since there are other rules and

factors that must be applied to the building besides the elevation of its lowest floor. However,

they do illustrate the differences in rates for various building types, zones and building

elevations.

Table 3A shows the Post-FIRM rates for buildings in Zones A99, B, C, X, and D and in

Zones AO and AH zones. Since no BFEs are available, buildings in these zones are not rated

based on elevation. Policyholders in Zones B, C, and X zones can also obtain a Preferred Risk

Policies at lower rates provided that they have had a favorable loss experience.

Table 3B shows the rates for Post-FIRM buildings in Zones AE and A1-30. Note that the

rates are significantly lower for buildings built to elevations one foot or more above BFE.

Requiring freeboard in your ordinance (elevation to one foot or more above BFE) will lower

insurance rates on buildings in your community. These lower rates will offset any additional

costs of construction. Buildings with their lowest floors below the BFE are charged significantly

higher flood insurance rates. In fact, rates for buildings 2 feet or more below BFE are not

published in the Flood Insurance Manual since these buildings must be individually rated due to

their high risk of flooding.

Table 3E shows the Post-FIRM rates for elevated buildings in Zones VE and V 1-30 that

have no obstructions (such as enclosures) below the elevated floor. These rates are higher than

rates in Zones AE and A1-30 because of the greater damages that can be caused by wave

impacts. Table 3F shows the same rates for buildings that have enclosures below their elevated

floors that are less than 300 square feet. The rates for buildings with enclosures are higher than

those without enclosures due to the increased loads placed on the building’s foundation when

waves impact on the enclosure. Buildings with enclosures 300 square feet or greater have an

even higher risk and must be individually rated by the insurance company or FEMA.

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Submit for rate

Certain properties at high flood risk, because of peculiarities in their exposure to flooding, do

no lend themselves to preprogrammed rates. Rates for these properties are not included in the

Flood Insurance Manual. These risks require an indepth underwriting analysis and must be

submitted to the NFIP or WYO Insurance Company for an individual (specific) rate. Examples

include buildings with their lowest floors two feet or more below BFE, buildings with below

grade crawlspaces, certain buildings with enclosures 2 feet or more below BFE, some buildings

in unnumbered A zones, and similar risks.

Since a submit-for-rate policy often is an indicator of the property owner’s noncompliance

with a community’s regulations, the community’s failure to enforce its regulations, or the result

of a variance action, these cases are forwarded to the appropriate FEMA Regional Office for

investigation.

Elevation certificates

Elevation Certificates are required to rate most Post-FIRM Buildings. The Elevation

Certificate provides the data the insurance agent or company needs to determine the lowest floor

of the building and calculate the flood insurance premium using the appropriate rates from the

preceding pages. The Elevation Certificate is discussed in Unit 7, Section G.

Floodproofing

A floodproofed nonresidential building is rated based on the elevation of its lowest floor,

unless it is floodproofed to one foot above the BFE. Then, one foot is subtracted from the flood

protection level. Thus, a building must be floodproofed to one foot above the BFE in order to get

the same rates as a building elevated to the BFE.

If a building is only floodproofed to the BFE or lower, this floodproofing credit cannot be

used and it will be rated based on the floor elevation. If the lowest floor is two or more feet

below the BFE, it will be a submit to rate.

Buildings that are floodproofed need floodproofing certificates, as explained in Unit 7,

Section G.

RATING UNNUMBERED A ZONES

Unnumbered A Zones are floodplains that are mapped on the FIRM using approximate

methodologies that do not have BFEs. Unnumbered A Zones are sometimes referred to as

approximate A Zones. The approximate studies used to designate these areas are discussed in

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Unit 3, Section E. A Post-FIRM building in an unnumbered A Zone cannot be rated using tables

like Table 3B.

A Post-FIRM single-family home in an unnumbered A Zone will be subject to a rate of

$2.43/1.15 for building coverage and $3.26/1.70 for contents coverage. This rate is much higher

than the rates in Tables 2 and 3B. This can be a real disincentive for people to buy flood

insurance on Post-FIRM buildings in unnumbered A Zones.

There are two ways to obtain lower rates in unnumbered A Zones. In either case, an elevation

certificate is needed.

If the community provides a locally developed BFE and the building is elevated to or above

that BFE, the rates are comparable to those for buildings in AE Zones. Communities are

encouraged to do this, as explained in Unit 5, Section B.

If there is no base flood elevation from any source, rates can be set based on the height of the

building above its highest adjacent grade. Rates are reduced for buildings 1 foot, 2 feet and 5 or

more feet above grade (the higher the building, the lower the rate). For buildings built at or

below grade, the submit for rate approach is used.

PREMIUMS

A policy holder’s total payment is calculated by:

Multiplying the amount of building coverage desired times the rate (done once for the basic

coverage and again for the additional limits),

Multiplying the amount of contents coverage times the rate desired (done once for the basic

coverage and again for the additional limits),

Applying the deductible factor,

Adding the premium for Increased Cost of Construction coverage (which varies from $4 to

$75, depending on the type of building and FIRM zone. See Unit 8, Section B on ICC coverage),

Adding the Federal policy fee (currently $30 to help pay for administrative costs, such as

floodplain mapping).

The rates can vary based on the community’s floodplain management program. If the

community has not properly enforced its floodplain management ordinance, it could be put on

probation. Under probation, all policies have an additional $50 surcharge. If a community does

not take remedial or corrective measures while on probation, it can be suspended.

Conversely, a community that has an exemplary program that includes

floodplain management activities above and beyond the minimum NFIP

criteria may apply for a Community Rating System (CRS) classification.

Residents in CRS communities can receive up to 45% insurance discounts.

The CRS is explained in more detail in the next section.

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C. THE COMMUNITY RATING SYSTEM

The Community Rating System (CRS) is one of the best programs

around for encouraging and recognizing broadbased local flood hazard

mitigation programs.

The CRS provides a reduction in flood insurance premium rates of up to 45 percent for

communities that implement activities above and beyond the minimum requirements of the

NFIP. The CRS provides credits for a variety of community flood protection activities.

To receive a CRS flood insurance premium reduction, a community can apply to its FEMA

Regional Office or the Insurance Services Office, Inc. (ISO) which manages the program for

FEMA. This involves application worksheets and presentation of appropriate documentation to

demonstrate that the community has undertaken activities that go beyond NFIP minimum

requirements. The ISO/CRS Specialist can assist in preparing the application and reviews the

application for FEMA to determine the community’s classification and flood insurance discount.

An ISO/CRS Specialist will visit the community and verify that the activities are being

implemented as described in the application.

The ISO/CRS Specialist is kept abreast of any changes in the community's program and

conducts periodic visits to verify continued implementation.

BENEFITS

The CRS offers some non-financial benefits. First, the community's flood program would

receive recognition from a national evaluation program.

Second, technical assistance in designing and implementing some activities is available at no

charge from ISO.

Third, the CRS keeps track of the community’s floodplain management program. If future

governing boards consider eliminating a flood-related program or reducing the regulatory

requirements for new developments, it could affect the community's CRS status. This may give

them second thoughts about reducing the community's flood protection efforts.

A similar system used in fire insurance rating has had a strong impact on the level of support

local governments give their fire protection programs. In other words, the CRS encourages

communities to keep their flood programs going during times of drought and diminished interest.

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CRS ACTIVITIES

The CRS Coordinator's Manual describes the 18 floodplain management activities credited by

the Community Rating System and the documentation required to receive credit for each activity.

The credits and formulae used to calculate credits are also included.

The CRS Application provides a simpler summary of the activities and the initial steps needed

to apply for credit.

These activities are divided into four categories, or series:

• 300 Public information

• 400 Mapping and regulations

• 500 Flood damage reduction

• 600 Flood preparedness

The activities' credit points can be increased if they are part of a comprehensive floodplain

management or flood hazard mitigation plan. Special credits are provided for activities that affect

special hazards, such as coastal erosion and alluvial fan flooding, that aren’t reflected in the

NFIP mapping or regulatory standards.

The activities do not all have to be implemented at local expense. Many communities can

qualify for “uniform minimum credit” whereby a state or regional agency can apply for a CRS

activity that it is implementing on behalf of its communities.

Communities can receive credit for retrofitting projects funded by the owners, regulatory

programs administered by the state or a regional district, or similar projects or programs

implemented by another agency or organization. What counts to the CRS is what happens in the

community, not who does it.

Public information activities

This series credits programs that advise people about the flood hazard, flood insurance and

ways to reduce flood damage. These activities also provide data needed by insurance agents for

accurate flood insurance rating:

• 310 (Elevation Certificates) Maintain FEMA elevation certificates for new

construction in the floodplain. Keeping certificates after the date of CRS application

is required of all CRS communities.

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• 320 (Map Information) Respond to inquiries about what FIRM zone a property is in

and publicize this service.

• 330 (Outreach Projects) Send information about the flood hazard, flood insurance and

flood protection measures to residents.

• 340 (Hazard Disclosure) Advise potential purchasers of floodprone property about the

flood hazard or require a notice of the flood hazard. ♦ 350 (Flood Protection Library)

The public library maintains references on flood insurance and flood protection.

• 360 (Flood Protection Assistance) Give inquiring property owners technical advice on

how to protect their buildings from flooding and publicize this service.

Mapping and regulation activities

This series credits programs that provide increased protection to new development. The

credit points for the activities in this series are increased for growing communities:

• 410 (Additional Flood Data) Develop new flood elevations, floodway delineations,

wave heights or other regulatory flood hazard data for an area that was not mapped in

detail by the flood insurance study; or have the flood insurance study based on a

higher state or local standard.

• 420 (Open Space Preservation) Guarantee that currently vacant floodplain lands will

be kept free from development; additional credit is given for areas still in, or restored

to, their natural state.

• 430 (Higher Regulatory Standards) Require freeboard; require engineered

foundations; require compensatory storage; zone the floodplain for minimum lot sizes

of one acre or larger; have regulations to protect critical facilities, or have other

standards for new construction that exceed the minimum NFIP requirements.

• 440 (Flood Data Maintenance) Keep flood and property data on computer records;

use better base maps; or maintain elevation reference marks.

• 450 (Stormwater Management) Regulate new development throughout the watershed

to ensure that post-development runoff is no worse than pre-development runoff

and/or protects or improves water quality.

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Flood damage reduction activities

This series credits programs for areas in which existing development is at risk. There is no

CRS credit for new structural flood control measures because greater reductions in flood

insurance rates are provided through the FIRM revision process.

• 510 (Floodplain Management Planning) Prepare, adopt and implement a

comprehensive plan that addresses the community’s flood problem, and evaluate and

revise the plan annually.

• 520 (Acquisition and Relocation) Acquire and/or relocate floodprone buildings so

that they are out of the floodplain.

• 530 (Retrofitting) Protect floodprone buildings through elevation, on-site barriers, or

floodproofing.

• 540 (Drainage System Maintenance) Conduct periodic inspections of all channels

and retention basins, and remove debris as needed. \

Flood preparedness activities

This series is oriented toward preparing for and responding to a flood due to natural causes, a

levee failure or a dam breach. The community’s emergency manager usually coordinates these

activities:

• 610 (Flood Warning Program) Provide early flood warnings to the public and have a

detailed flood response plan keyed to flood crest predictions.

• 620 (Levee Safety) Maintain levees that are not reflected on the FIRM as providing

base flood protection.

• 630 (Dam Safety) All communities in a state with an approved dam safety program

receive credit.

Publications

Even if you are not in the CRS, its publication series can be helpful. It includes the references

on ordinance language and planning mentioned in other sections of this course. CRS publications

are free. They can also be downloaded from the web site for the CRS Resource Center by

clicking on the following link:

http://training.fema.gov/EMI/Web/CRS

A CRS publications order form is on the next page. The key document for nonparticipating

communities is the

CRS Application. CRS and non-CRS communities are welcome to order any of

the publications that will assist their floodplain management programs.

Flood Insurance 9-26

COMMUNITY RATING SYSTEM PUBLICATIONS

The following publications can be obtained free by folding and mailing this form (to the address

on the back) or faxing it to (317) 848-3578. If you want more than one copy, call (317) 848-

2898. All of the “General and Application” and “Specific Activities” publications are available

for downloading from FEMA’s website,

http://www.fema.gov, or on an IBM-compatible

compact disk.

Check here if you would prefer a paper copy of individual documents instead of the CD.

General and Application

CRS Coordinator's Manual

CRS Activity Worksheets

CRS Application

The National Flood Insurance Program's Community Rating System (color brochures)

CRS Record Keeping Guidance

Specific Activities

CRS Credit for Drainage System Maintenance

CRS Credit for Flood Warning Programs CRS

Credit for Outreach Projects

CRS Credit for Higher Regulatory Standards

CRS Credit for Stormwater Management

Example Plans

Software

“Computerized Calculations for the Community Rating System” (IBM-compatible compact disk)

“Computerized Format for FEMA Elevation Certificates” (IBM-compatible compact disk)

Special Hazards

CRS Credit for Management of Areas Subject to Uncertain Flow Path Hazards

CRS Credit for Management of Areas Adjacent to Closed Basin Lake Hazards

CRS Credit for Management of Ice Jam Hazards

CRS Credit for Management of Floodprone Areas Subject to Land Subsidence Hazards

CRS Credit for Protecting Coastal Dunes and Beaches

CRS Credit for Management of Mudflow Hazards

CRS Credit for Management of Coastal Erosion Hazards

CRS Credit for Management of Tsunami Hazards

Please send these publications to (please specify a street address, not a post office box):

Name: _________________________________________________________________________

______

Address: _________________________________________________________________________

____

City: __________________

_______State:_________ Zip:__________________

Community Name: _______________________________________________

______________________

Flood Insurance 9-27

D. THE COASTAL BARRIERS RESOURCES SYSTEM

The Coastal Barriers Resources Act of 1982 (CBRA) and later amendments, removed the

Federal government from financial involvement associated with building and development in

undeveloped portions of coastal barriers such as barrier islands, spits, and similar land forms.

These areas were mapped and designated as units of the Coastal Barrier Resources System

(CBRS). In 1990 additional units were added to the CBRS and Otherwise Protected Areas

(OPAs) were designated. OPAs are portions of coastal barriers that are owned by Federal, State

or local governments or by certain non-profit organizations and used primarily for natural

resources protection. CBRS units can be found on the Atlantic and Gulf Coasts and on the Great

Lakes CBRS and OPA units are colloquially called CBRA zones.

Any Federal program which may have the effect of encouraging development on coastal

barrier islands is restricted by CBRA. These include “any form of loan, grant, guarantee,

insurance, payment, rebate, subsidy or any other form of direct or indirect Federal assistance”

with specific and limited exceptions. For example, Federal disaster assistance is limited to

emergency relief – there are no loans or grants to repair or rebuild buildings in CBRS or OPA

areas.

CBRA also banned the sale of NFIP flood insurance for structures built or substantially

improved on or after a specified date. For the initial CBRS designations, this date is October 1,

1983. For all subsequent designations, this date is the date the CBRS or OPA was identified.

CBRS and OPA areas and their identification dates are shown on Flood Insurance Rate Maps.

Flood insurance can be written in OPAs on some new structures that support conservation uses.

If an owner of a building in a CBRS or OPA area wanted to buy flood insurance, he or she

would need a copy of the building permit showing that the building was built before the

designation date and a signed statement from the floodplain ordinance administrator that it had

not been substantially damaged or improved since then. The insurance agent would provide more

information on the format for this documentation.

The boundaries of a CBRS or OPA area cannot be revised through the Letter of Map

Amendment or Revision (LOMA/LOMR) process. They can only be revised by the following:

• Congressional action,

• Interpretation of boundaries by the U. S. Department of the Interior, Fish and Wildlife

Service, or

• Cartographic modifications by FEMA to correct errors in the transcription of the

Flood Insurance 9-28

Department of the Interior maps onto FIRMs.

If an NFIP policy is issued in error in a CBRS or OPAs area, it will be cancelled and the

premium refunded. No claim can be paid, even if the mistake is not found until a claim is made.

If a grand fathered building with flood insurance is substantially improved or substantially

damaged, the policy will be cancelled. Determining substantial improvements and substantial

damage is covered in Unit 8.

Banks can make conventional loans in the CBRS, but are hesitant to do so because of the

uninsured risk and because conventional loans are often sold to the secondary loan market, and

that transfer will require flood insurance. Although some private flood insurance is available, it is

generally far more expensive than NFIP coverage. While lenders cannot require NFIP flood

insurance on newer buildings in CBRS or OPA areas since none is available, they are required to

notify borrowers of the flood hazard and the lack of disaster assistance.