1. N ATIONAL F LOOD I NSURANCE P ROGRAM (NFIP): T HE B ASICS & U PDATE ON THE C URRENT S TATE OF A FFAIRS Mary-Carson Stiff, JD, CFM Shannon Hulst Jarbeau, CFM Closing the Deal: How to respond to the new realities of flood insurance May 19, 2015 F LOODPLAINS IN V IRGINIA

2. T HE N ATIONAL F LOOD I NSURANCE P ROGRAM (NFIP) – O VERVIEW Voluntary insurance program that local governments (cities, counties, towns, etc.) may choose to join. Created in 1968 by the National Flood Insurance Act Managed by the Federal Emergency Management Agency (FEMA)

3. T HE N ATIONAL F LOOD I NSURANCE P ROGRAM (NFIP) MAP: Mapping Flood Hazards Where will it flood during storms? RISK: Managing Floodplains (High Risk Areas) To receive the benefits of enrolling in the NFIP, local governments must meet a number of minimum regulatory requirements Ex: Reducing flooding through zoning, building codes, etc. INSURE: Providing Flood Insurance Flood insurance premiums at a low-cost

4. T HE N ATIONAL F LOOD I NSURANCE P ROGRAM (NFIP) – BENEFITS Joining the NFIP allows citizens and businesses within a locality to receive flood insurance that is typically low-cost, as compared to many private companies Joining the NFIP makes local governments eligible to receive certain disaster assistance grant $$ after storm events Over time, localities become safer by implementing regulations to protect people and property from flooding

5. NFIP: M APPING F LOOD H AZARDS – T HE SFHA When a local government enrolls in the NFIP, FEMA creates maps for the land according to different levels of flood risk Maps are divided by ZONES that identify levels of risk The high-risk areas, or those areas most prone to flooding, are called “Special Flood Hazard Areas” (SFHA) The SFHA represents how far and how high flood waters will reach during the 100-year-storm The 100-year-storm is a storm producing flooding that has a 1% chance of happening in any given year

6. NFIP: W HY D O W E C ARE A BOUT SFHA S ? RISK: There is a 26% chance that a property located in the SFHA will experience flooding over the course of a 30-year mortgage INSURANCE: Properties located in the SFHA that have a mortgage from a federally regulated or insured lender, then flood insurance is required. Flood insurance is NOT included in traditional homeowners insurance NOTE: Banks may require property owners to purchase flood insurance, even if the property is located outside the SFHA.

7. M APPING F LOOD H AZARDS : S PECIAL F LOOD H AZARD A REA (SFHA) ON V IRGINIA ’ S P ENINSULAS Dark Blue = SFHA Source: http://riskmap3.com/VAhttp://riskmap3.com/VA

8. M APPING F LOOD H AZARDS : FEMA F LOOD M AP FOR M ATHEWS, V IRGINIA SFHA = Flood Zones that begin with A or V Red = Zone VE Blue = Zone AE Yellow/Tan = Zone X SFHA = Red & Blue Source: http://maps.riskmap3.com/VA/Mathews/

9. M APPING F LOOD H AZARDS : FEMA F LOOD M AP FOR M ATHEWS, V IRGINIA (Z OOMED I N ) SFHA = Flood Zones that begin with A or V Red = Zone VE Blue = Zone AE Yellow/Clear = Zone X SFHA = Red & Blue Source: http://maps.riskmap3.com/VA/Mathews/

10. M APPING F LOOD H AZARDS : S PECIAL F LOOD H AZARD A REA

11. M APPING F LOOD H AZARDS : D IRECTING P ROPERTY O WNERS, B UYERS, S ELLERS TO F LOOD M APS In Person: Individuals can call the city/county office and ask to speak with the floodplain manager to see whether a property is located in the SFHA and whether flood insurance is required Online: Individuals can determine their own flood risk by accessing flood maps for coastal Virginia online: http://riskmap3.com/VA http://riskmap3.com/VA

12. NFIP: P ROVIDING F LOOD I NSURANCE NFIP offers affordable coverage & is available almost everywhere in US Get NFIP policy through local agents FEMA determines flood insurance rates for the NFIP using flood maps Required for properties located in the SFHA zones Flood insurance is not included in homeowners insurance

13. NFIP: P OLICIES IN U NITED S TATES

14. NFIP: F LOOD I NSURANCE R EFORMS NFIP is $24 Billion in debt Congress passed law reforming the NFIP to resolve debt Rates are increasing for ALL POLICYHOLDERS Some policyholders have been paying way less than they should based on flood risk These policyholders will experience the greatest rate increases

15. NFIP: F LOOD I NSURANCE R EFORMS Average Rate Increase = 20% Maximum Rate Increase = 37%

16. R ECOMMENDATIONS & T IPS Encourage SFHA policyholders to get an elevation certificate Elevation certificates ensure accurate premium ratings - contact a surveyor Structural renovations to reduce flood risk and lower NFIP premium Example: Elevating a structure, installing flood vents Encourage localities to participate in the NFIP’s Community Rating System to reduce flood insurance premiums Advise property-buyers to purchase NFIP policies early in transaction process Be aware of 30-day waiting period and force-placement

17. R ESOURCES Floodsmart.gov FEMA Resources Coastal Virginia Flood Maps Wetlands Watch Policyholder Guide

18. Q UESTIONS ? Mary-Carson Stiff, mc.stiff@wetlandswatch.org Shannon Hulst Jarbeau, shannon.hulst@wetlandswatch.org