1. Presenter’s Name June 17, 2003 Flood 101

2. Presenter’s Name June 17, 2003 What is the National Flood Insurance Program?  A Federal program enabling property owners in participating communities to purchase flood insurance protection  An alternative to disaster assistance  Based on an agreement between the community and the Federal Government.

3. Presenter’s Name June 17, 2003 History of the NFIP Section 1304 of the 1968 Act authorizes the Director of FEMA to establish and carry out “a national flood insurance program which will enable interested persons to purchase insurance against loss resulting from physical damage to or loss of real property or personal property” resulting from flood.

4. Presenter’s Name June 17, 2003 Benefits of the NFIP  Protects property owners from risk  Lowers the cost to taxpayers  Helps businesses re-open

5. Presenter’s Name June 17, 2003 Disaster assistance vs. Flood insurance  Presidential declaration  S.B.A loans  Average Grants $2500  Loan payment on $50,000 is over $300 per month  Claims are always paid  No payback  Losses paid up to $250,000 on building and $100,000 on contents

6. Presenter’s Name June 17, 2003 Mission of the NFIP  To educate American property owners about the risk of flood  To provide flood insurance  To accelerate recovery from flood  To mitigate future flood losses  To reduce the personal and national costs of disaster

7. Presenter’s Name June 17, 2003 What is the Write Your Own (WYO) program?  An agreement between FEMA and the insurance industry

8. Presenter’s Name June 17, 2003 Introduction to Write-Your-Own Program In 1981 the Federal Insurance Administrator (FIA) contracted :  insurance company representatives  Insurance trade organizations In July of 1983 the “model” arrangement for the WYO Program was made final.

9. Presenter’s Name June 17, 2003 On August 16, 1983, an invitation was extended to all licensed property insurance companies to participate in WYO for fiscal year 1984. Since 1983 the WYO Program has become the primary vehicle for the delivery and service of flood insurance.

10. Presenter’s Name June 17, 2003 Goals of the WYO program  To increase the NFIP policy base  To improve service to the NFIP policyholders  To encourage private insurance industry’s participation in the flood insurance program

11. Presenter’s Name June 17, 2003 The number of NFIP policies in force has increased from about 95,000 before the Flood Disaster Protection Act of 1973, to 2.2 million in 1989, to approximately 5.6 million currently. As of January, 2010 -  The amount of flood insurance coverage in force is $1,218,776,526,200.  Written Premium is $3,198,025,198

12. Presenter’s Name June 17, 2003 Top 5 States Florida2,146,451 Texas682,874 Louisiana483,326 California275,491 New Jersey228,982

13. Presenter’s Name June 17, 2003 National Flood Insurance Fund The instrument through which the Federal Government fulfills its financial responsibilities for the NFIP. Annual revenue consists mostly of premiums and a Federal Policy fee on each policy sold or renewed.

14. Presenter’s Name June 17, 2003 NFIP Debt Borrowing authority: $20.775 billion Outstanding Treasury borrowing: $18.75 billion as of March 2010 Most recent repayment: $250 million in December 2009

15. Presenter’s Name June 17, 2003 Who can buy flood insurance?  For any eligible structures  A homeowner, renter, or business owner residing in a participating community  There are 20,532 participating communities nationwide

16. Presenter’s Name June 17, 2003 What buildings cannot be insured for flood?  Buildings in violation of floodplain management ordinances  New construction located in coastal barrier resource areas (CBRA Zones)

17. Presenter’s Name June 17, 2003 What is the Community Rating System?  Goal is to reduce flood losses  Provides incentives for carrying out activities above the minimum requirements  Each insured gets a 5% to 45% discount on their flood policy

18. Presenter’s Name June 17, 2003 Is flood insurance mandatory?  National Flood Disaster Protection Act (1973)  Mandates the purchase of flood insurance under certain conditions if a property is in a Special Flood Hazard Area (SFHA).  National Flood Insurance Reform Act (1994)  Increases participation in the NFIP

19. Presenter’s Name June 17, 2003 The Standard Flood Insurance Policy (SFIP)  Three forms  Dwelling Form  General Property Form  Residential Condominium Building  Association Policy (RCBAP) Effective 08/01/2004

20. Presenter’s Name June 17, 2003 Policy term is one year

21. Presenter’s Name June 17, 2003 Waiting Period  NFIP cannot “bind” coverage  Must wait 30 days from the date of application and premium presented before policy becomes effective  Does not apply when a new flood policy is required.

22. Presenter’s Name June 17, 2003 Program Limits  Residential Building (1-4 family)$250,000  Contents$100,000  Other Residential(more than 4)$250,000  Contents$100,000  Non Residential Building$500,000  Contents$500,000

23. Presenter’s Name June 17, 2003 NFIP Marketing

24. Presenter’s Name June 17, 2003 NFIP Marketing Goals  Grow number of flood insurance policies in force by 5% annually  Lessen financial consequences of flooding for homeowners and small businesses  Increase understanding of the risks and consequences of flooding

25. Presenter’s Name June 17, 2003 FloodSmart Marketing Campaign FloodSmart Marketing Campaign Overview:  Informs the public about flood risks and the availability of flood insurance  Combats misconceptions  Engages partners and influencers  Connects consumers to agents  Provides useful tools for insurance agents

26. Presenter’s Name June 17, 2003 Audiences  Consumers  Homeowners, renters and businesses  Prospects, current policyholders and former policyholders  Agents/Industry  Influencers  Federal/Regional/State/Local Partners FloodSmart Marketing Campaign

27. Presenter’s Name June 17, 2003 Sources of Flooding

28. Presenter’s Name June 17, 2003 Testimonials of real life floods that occur from a number of sources Sources of Flooding

29. Presenter’s Name June 17, 2003 Fact Sheets provided to local influencers and media outlets help outline localized messaging about flood risks Sources of Flooding

30. Presenter’s Name June 17, 2003 Combating Misconceptions Messaging around misconceptions such as: Flood Insurance is too expensive Homeowners insurance does cover flooding How much damage a couple of inches of floodwater can cause in terms of cost I don’t qualify/can’t get flood insurance I don’t live near the water Tools such as: Premium Estimator Co-op ads for agents to help combat misconception Commercials that speak directly to the misconceptions most people have

31. Presenter’s Name June 17, 2003 Combating Misconceptions

32. Presenter’s Name June 17, 2003 Combating Misconceptions

33. Presenter’s Name June 17, 2003 Consequences  Messages such as:  Two inches of water can leave you knee deep in debt  A flood can cost more than you think  Tools such as:  Online Cost of Flooding tool  Ads showcasing the real life cost of a flood  Receipt samples of repair costs to accompany mailers Consequence Messaging

34. Presenter’s Name June 17, 2003 Consequence Messaging “Use innovative ways to get people talking about preparedness actions with others” - Dennis S. Mileti

35. Presenter’s Name June 17, 2003 Consequence Messaging

36. Presenter’s Name June 17, 2003 Seasonality: Hurricane Season Outreach Hurricane Season IS Flood Season messaging to urge consumers to protect themselves from flooding during hurricane season Created a "hurricane season countdown clock" widget tool for agent and stakeholder websites which reminds their visitors just how much time they have to get ready for the upcoming Hurricane Season. Relevant Triggers

37. Presenter’s Name June 17, 2003

38. Presenter’s Name June 17, 2003 What is the application process for becoming a certified Adjuster? The application form and information about the process and requirements are located on FEMA's Adjuster Participation in the NFIP page. For additional details regarding application submission and processing, please refer to the NFIP iServices page. Adjuster Participation in the NFIPNFIP iServices

39. Presenter’s Name June 17, 2003 How can I get a current year ID card? For assistance with your ID card or certification application, contact NFIP iServices at iService_Claims@ostglobal.com or (301)386-6356.iService_Claims@ostglobal.com I have forgotten my FCN (Flood Certification Number). Contact the NFIP iServices help desk at iService_Claims@ostglobal.com or (301)386-6356. iService_Claims@ostglobal.com

40. Presenter’s Name June 17, 2003 Where to get help?  WWW.FEMA.GOV  NFIP Regional Offices  FEMA Regional Offices  NFIP Web site  Tele-registration  Disaster Hotline

41. Presenter’s Name June 17, 2003 Rethinking the NFIP

42. Presenter’s Name June 17, 2003 FEMA is engaged in a comprehensive effort to address the concerns of the wide array of stakeholders involved in an ongoing dialog about the National Flood Insurance Program (NFIP). The initiative is a multi-staged process designed to engage stakeholders and consider the largest breadth of public policy options. FEMA believes this important process will ensure the program can efficiently and effectively meet the needs of the public. The results of this analysis will inform decisions regarding the future of the NFIP.

43. Presenter’s Name June 17, 2003 Why is FEMA undertaking this effort?

44. Presenter’s Name June 17, 2003 Who will be conducting the analysis?

45. Presenter’s Name June 17, 2003 What process will FEMA use in this analysis?

46. Presenter’s Name June 17, 2003 What is the timeline for this effort?

47. Presenter’s Name June 17, 2003 Will FEMA engage stakeholders through this process?

48. Presenter’s Name June 17, 2003 NFIP Listening Session Available from FEMA website at: http://www.fema.gov/business/nfip/nfip_listening_sessi on.shtm

49. Congress What’s next for the NFIP? Stay tuned.