Presentation is loading. Please wait.

Presentation is loading. Please wait.

This is an audio-enhanced PowerPoint presentation. To hear the audio, please open this presentation in Slide Show view. Biggert-Waters Flood Insurance.

Similar presentations


Presentation on theme: "This is an audio-enhanced PowerPoint presentation. To hear the audio, please open this presentation in Slide Show view. Biggert-Waters Flood Insurance."— Presentation transcript:

1

2 This is an audio-enhanced PowerPoint presentation. To hear the audio, please open this presentation in Slide Show view. Biggert-Waters Flood Insurance Reform Act of 2012 (BW12) – Oct 2013 Changes

3 Biggert-Waters Flood Insurance Reform Act of 2012 (BW12) Understanding the October 1, 2013 Changes

4 3 BW-12 Timeline DATE BW-12 IMPLEMENTATION STEP July 6, 2012BW-12 becomes law; reauthorizes the NFIP for five years and requires FEMA to eliminate discounts and subsidies January 2013Subsidized rates phased out for non-primary residences October 2013Subsidized rates anticipated to phase out for business properties, SRL properties, and others. Move to full-risk rates after sale/purchase of property, substantial damage/improvement or policy lapse. Late 2014FEMA anticipates implementing phase-in of full risk rates for properties affected by map changes

5 4 BW-12: Whats Changing Subsidies being phased out Non-primary residences (January 1, 2013) Business properties Severe repetitive loss properties (1-4 family residences), and properties where claims payments exceed fair market value New policies to be issued at full-risk rates After the sale/purchase of a property After a lapse in insurance coverage After substantial damage/improvement For properties uninsured as of BW-12 enactment As new or revised Flood Insurance Rate Maps are issued (grandfathered policies planned to be phased out over 5 years)

6 5 Changes to Other Subsidized Rates Changes as of October 1, 2013 Rates on pre-FIRM commercial buildings Increase by 25% a year until they reach full-risk rates. Rates for repetitively flooded buildings (known as Severe Repetitive Loss properties) of one to four family residences increase 25% a year until they reach full-risk rates Includes buildings with cumulative flood insurance payments that meet or exceed fair market value

7 6 Direct Move to Full-Risk Rates Changes as of October 1, 2013 After the sale/purchase of a property Subsidized rates can no longer be assigned to the new owner. After a policy lapse Policyholders should know that allowing a policy to lapse could be costly. When a new policy is issued Policies for buildings uninsured as of the date BW-12 was enacted

8 7 Percent of subsidized Policies per state (as of December 31, 2012)

9 8 Interactive Map

10 9 Notice to Policyholders W (March 29, 2013) October 1,2013, Program Changes W (June 14, 2013) Procedures for Processing Renewals of Certain Pre-FIRM Subsidized Policies that are New, Lapsed, or Assigned W (July 10, 2013) Additional Guidance on the Procedures for Processing Renewals of Certain Pre-FIRM Subsidized Policies that are New, Lapsed, or Assigned W (August 8, 2013) Final Letter Related to Processing Renewals of Certain Pre- FIRM Subsidized Policies that are New, Lapsed, or Assigned

11 10 W

12 11 WYO Bulletin W Documentation needed : Elevation Certificate Clear exterior photographs of the front and back of the building Application completed and signed by the agent Annual premium determined with full-risk premium rates or tentative premium rates

13 12 WYO Bulletin W Final Letter Related to Processing Renewals of Certain Pre- FIRM Subsidized Policies that are New, Lapsed, or Assigned: New policies written with an effective date on or after July 6, 2012 Policies written as new business, or existing policies assigned to a new owner as a result of a property purchase on or after July 6, 2012 Policies that have lapsed and been reinstated on or after October 4, 2012

14 13 W

15 14 Example #1: Buying/Selling a House in a Special Flood Hazard Area For Sale Flood insurance required Full-risk rates apply, not pre-FIRM subsidized rates Plan ahead: consider risk as you plan and budget Obtain an Elevation Certificate (EC) as soon as possible to learn your full- risk rate – you could save money Consider mitigating, including elevating the home, before listing it for sale SOLD

16 15 Example #2: Building/Rebuilding a Home in a Special Flood Hazard Area Be aware of building in a high-risk flood zone Risk changes over time, so consider current and future flood risks Build higher/stronger than current standards to lower risk and flood insurance premiums Talk to local floodplain manager to learn about new maps or data that may be available Building higher may increase home value

17 16 Example #3: Policy Renewal (Subsidized) Primary Home Policy purchased Prior to July 6, 2012 Retain subsidized rate as long as home is a primary residence and continuous coverage is maintained Rates subject to routine actuarial adjustment plus increase for Reserve Fund Effective after October 2013, full-risk rates would apply if : New purchase Policy lapses Severe Repetitive Loss Substantial improvement or damage

18 17 Example #4: Policy Renewal (Subsidized) SRL Home, Non-Primary or Business Property Previous premium did not reflect the homes full flood risk Premium will increase 25 percent a year until it reaches the full-risk rate Rates subject to routine actuarial adjustment plus increase for Reserve Fund Obtain an Elevation Certificate (EC) as soon as possible to learn your full-risk rate – you could save money

19 18 Saving Money on Flood Insurance FEMA has programs to help owners reduce their risk and save money on flood insurance Community-wide discounts through the Community Rating System (CRS) FEMA grant programs support rebuilding and relocating Use of higher deductibles to lower premium costs But the smartest way to save may be to build higher

20 19 STAY INSURED Letting your flood insurance policy lapse could be costly Elevation Certificate LEARN YOUR RISK Get an Elevation Certificate for your home (risk can change) GET INSURED Be proactive: dont risk the Dconsequences of a flood REDUCE YOUR RISK Building or Rebuilding? Build Higher Than current standards Resilient Address Your Risk

21 Tools and Resources

22 21 Insurance Agent Training & Info Sign up for WYO Alerts – Toll Free numbers : Training is available through FEMA for insurance agents, adjusters and lenders Sign up for agent training s - https://public.govdelivery.com/accounts/USDHSFEMA/subscriber/new?topic_id =USDHSFEMA_212 NFIP Training offers workshops and webinars FEMA Flood Map Changes Course YouTube BW12 Video

23 22 Resources Fact Sheets - FloodSmart for Consumers - FloodSmart for Agents – Flood Insurance Manual - Risk Communication Guidebook for Local Officials - Flood Insurance Reform Act Webpage - Audio PPT in English – Understanding the Impacts of the NFIP - %20NFIP-%20Understanding%20BW12_Stakeholder_AudioPPT.ppt NFIP iService Bureau - Region 6 Mitigation -

24 23 FEMA Region 6 –


Download ppt "This is an audio-enhanced PowerPoint presentation. To hear the audio, please open this presentation in Slide Show view. Biggert-Waters Flood Insurance."

Similar presentations


Ads by Google