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Meet today’s trainers!

GeoLearning/H2O Partners

NFIP Training

Before we get started, let’s perform a warm up exercise.

You all have some questions flashed on your screens. Attempt all the questions and click Submit.

The Preferred Risk Policy (PRP)

Section 1

After completing this training, participants will be able to:

•Describe the Goals and Benefits of the Preferred Risk Policy Eligibility

Extension

•Explain how the Preferred Risk Policy Eligibility Extension works

•Understand the required documentation

•Identify who determines eligible property owners

•Find available resources

The duration of the training program is 1.5 hrs.

Online at the Flood Insurance Library:

http://www.fema.gov/business/nfip/manual.shtm

Hard copy can be obtained from:

FEMA Map Service Center

P.O. Box 1038 Jessup

Maryland 20794-1038

(877) 336-2627

NFIP Flood Insurance Manual

Training Agenda

•Section 1

- Training Overview

•Section 2

- Defining Terms

•Section 3

- Goals and Benefits of the PRP Extension

•Section 4

- PRP Eligibility Extension

•Section 5

- Case Studies

•Section 6

- Required Documentation

•Section 7

- Who Determines Eligible Property

Section 2

…LET’S DEFINE SOME TERMS

• Preferred Risk Policy (PRP)

• Pre-FIRM and Post-FIRM

• Map Grandfather Rules

Before we get started…

•Low Cost Flood Insurance

•Owners and Tenants

•Eligible Residential or Non Residential buildings

•Located in Moderate to Low Risk Zones – Zones B, C and X

What is a Preferred Risk Policy (PRP)?

Loss History Requirements

• 2 claims or disaster relief payments

for flood of $1,000 or more* –

Ineligible for PRP

• 3 claims or disaster relief payments

for flood of any amount* -

Ineligible

for PRP

What is a Preferred Risk Policy (PRP)?

12 *within any 10-year period

Coverage

• $129 –

for $20,000 in building and $8,000 in contents

• $405 –

for $250,000 building and $100,000 contents

• $323 to $1,635 -

Standard X-Zone rated policy.

• $49 -

Residential tenant/renter for $8,000 in contents only

What is a Preferred Risk Policy (PRP)?

Poll Question

14

How many Preferred Risk Policies (PRP) have you written in the past month?

a. None

b. Less than 10

c. 10 or more

…LET’S DEFINE SOME TERMS

• Preferred Risk Policy (PRP)

• Pre-FIRM and Post-FIRM

• Map Grandfather Rules

Before we get started…

Pre-FIRM

Built before initial FIRM or

On or before 12/31/1974

Post-FIRM

…LET’S DEFINE SOME TERMS

• Preferred Risk Policy (PRP)

• Pre-FIRM and Post-FIRM

• Map Grandfather Rules

Before we get started…

BENEFIT OPTIONS*:

 Use the current rating criteria for that property; or

 Have the premium rate determined by:

• the BFE and/or flood zone on the FIRM (old map) in effect when

the building was originally constructed

(for those built in

compliance); or

• when coverage was first obtained

(for those with continuous

coverage)

Map “Grandfather” Rules

Section 3

To ease the financial burden on property owners whose

buildings have been newly remapped to a Special Flood Hazard

Zone and allow time to prepare and plan for the added cost.

Goal

•Before 2003, 70% of flood maps were at least

10 years old

•In 2003, Congress created the Flood Map

Modernization program

•Many property owners are now in high-risk

areas

•For buildings newly included in SFHAs after

map revisions, lenders are requiring the

purchase flood insurance

•FEMA recognizes the financial burden

Why the Extension

•Provides temporary financial relief

•Additional time to prepare for standard rates

•A PRP policy for a home without a basement is

$343

for $200,000 in building

and $80,000 in contents

•A standard-rated policy in an X zone is more than

$1,400

for a savings of

more than

$1,000+ a year

•Even more if rated in a high-risk flood zone ( A & V zones)

•Provides more time for the communities to upgrade or mitigate flood control

structures to meet FEMA standards and reduce the flood risk and financial

impact.

Benefits

Section 4

“1st Window of Opportunity”

Two-Year PRP Eligibility Extension

24

Date of the Effective Map between 10/1/08 before 1/1/11

PRP Extension Policy Eligibility

25

Eligible for 2 Policy Years

Starting 1/1/11 until 12/31/12

2012

2008 2009 2010 2011 2013

Buildings Eligible for PRP

Extension

2 Policy Years

“2

_{Window of Opportunity”}

Two-Year PRP Eligibility Extension

26

Buildings that are

newly designated

within an SFHA due

to a map revision

on

or after January 1,

2011,

will be eligible

for a PRP for 2 policy

years from the

Date of the Effective Map on or after 1/1/11

PRP Extension Policy Eligibility

27 1/1/11

Eligible for 2 Policy Years

Is this building eligible?

PRP

Eligibility

Rules

Map

Effective

Date

Policy

Effective

Date

Let’s see how this applies

Case Study 1

On 6/15/10, Mary A. Wash purchased a flood insurance policy for the first time as a result of her lender’s

requirement following a map change effective 5/1/10 that put her home into a SFHA.

When her policy comes up for renewal on 6/15/11, is she eligible for the PRP extension?

a.

Yes

b.

No

2010

Policyholder : Mary A. Wash – Bldg-$200,000, Contents $80,000

Case Study 2

Will Flood purchased a policy on his home just before the map changed in his community on 12/2/09. Since he

purchased the policy while he was still in Zone X, he was eligible for a PRP.

His initial policy was effective 11/15/09. On the 12/2/09 map revision, his house was placed into zone AE. When his policy comes up for renewal on 11/15/10, is he eligible to continue his PRP under the PRP extension?

a. YES

b. NO

Case Study 3

34

Sorry Charlie wants to buy a PRP for his building. He has a Standard A Zone Policy as a result of a Map Change on 5/1/08 that put his building into a SFHA. Now he wants it converted to a PRP on the 5/1/11 renewal date which is the first renewal date after the rule change on 1/1/11. Is this building Eligible?

a. YES

EXAMPLE : Sorry Charlie – Standard A Zone Policy

PRP Extension Eligibility

Standard A Zone Policy

• Must meet PRP Loss Eligibility Requirements

 See FI Manual, page PRP 1 (Effective 1/1/2011)

• Eligible structures may be renewed as standard-rated policies at the end

of the 2-year eligibility

 See FI Manual, pages Rate 22-23 (Oct 2010 edition)

Key Points to Remember

• A new policy effective during the 2nd year of the extension period will

receive only one year of PRP eligibility

 See FI Manual, page PRP 6 (Oct 2010 edition)

• No Policy Refunds prior to 01/11/2011 unless policy issued in error

 See FI Manual, page PRP 6 (Oct 2010 edition)

Key Points to Remember (cont’d)

Poll Question

This building has a PRP policy. It also will be moving into a V zone as the result of a Map change on Sept 22, 2011. It has three previous flood claims.

Is this Building Eligible?

a.

Yes

b.

No

Section 6

Acceptable forms of documentation for the current and prior map

information include:

• A Letter of Map Amendment

(LOMA)

• A Letter of Map Revision

(LOMR)

• A Letter of Determination Review

(LODR)

• A

copy of flood map

marked to show the location and flood zone of the

building

• A signed and dated

letter from a local community official

indicating the

address, flood zone, map panel and map effective date

Required Documentation

Acceptable forms of documentation for the current and prior

map information include:

• An

Elevation Certificate (EC),

indicating the address and flood zone of the

building, that is signed and dated by a surveyor, engineer, architect, or

local community official

• A

flood zone determination certification

that guarantees the accuracy of

the information

• A

FIRMette

produced on the FEMA Map Service Center web site that

shows the flood zone of the building on the map in effect immediately

prior to the current effective map.

• Ask your

WYO Company

Required Documentation

Section 7

 NFIP and WYOs will attempt to

identify all eligible policyholders

in communities with new maps

that are effective 10/1/2008 or

later.

 WYO Companies will be sending

out letters 90 days prior to Policy

renewal – to all Policyholders

identified by them as being

eligible.

Determining Eligible Property Holders

•Community Status List

•Local Community Official

Where can I find out if a Map in my Community has

changed?

http://www.fema.gov/fema/csb.shtm

Community Status List

•Community Status List

•Local Community Official

Where can I find out if a Map in my Community has

changed?

FEMA’s Map Service Center

• http://www.msc.fema.gov

Where Can I find Flood Maps?

56

FEMA’s Map Service Center

• http://www.msc.fema.gov

Where Can I find Historic Flood Maps?

Resources

62

• NFIP Flood Manual

• Community Status Book

www.fema.gov

• FIRMettes for Documentation • Current Effective Maps

• Historical Maps

• FEMA Map Information eXchange (FMIX) 1-877-336-2676

www.msc.fema.gov

• Agent Talking Points

• www.floodsmart.gov/PRPExtension

www.floodsmart.gov

•Your WYO Company

•WYO Bulletin W-10076 at www.nfipiservice.com

Poll Question

Where can I get more information about the PRP Extension?

a. My WYO Company

b. NFIP Flood Insurance Manual

c. FloodSmart (www.floodsmart.gov)

d. WYO Bulletins (www.nfipiservice.com)

e. All of the Above

www.nfipiservice.com/training

http://fema.webex.com

Melanie Graham

[email protected]

Dorothy Martinez

[email protected]

Rich Slevin

[email protected]

Sonja Wood

[email protected]

Agent Training

All attendees will be receiving an email with a link to a survey

and feedback form.

Please Take Time to complete and help us improve our training

effort!

THANKS

Evaluations - Online