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What
factors determine flood insurance premiums? A number
of factors determine premiums for National Flood Insurance
Program (NFIP) insurance coverage. Major factors include the
amount of coverage purchased; the deductible; and the location,
age, occupancy and type of building to be insured. For newer
buildings in floodplains, the elevation of the lowest floor
relative to the elevation of the 1 percent annual chance flood
can also be used to rate the policy.
My
house is not in a floodplain according to the current map,
but the new map will show it as being in a floodplain. Will
I have to purchase flood insurance when the new map officially
takes effect? If you have federal or federally
related financing for the property in question and you do
not already have flood insurance, your lender may contact
you once the new map takes effect and require that you purchase
flood insurance. If you do not purchase the insurance within
45 days after being informed that flood insurance is required,
the lender can force place the insurance and charge you the
cost of it. If you dispute the lender's determination that
your property is located in a floodplain, you and your lender
can jointly request a Letter of Determination Review from
the Federal Emergency Management Agency (FEMA) within 45 days
of being informed by your lender that your property is located
in a floodplain. If you have insurance before the new map
takes effect, the basis for rating that policy remains unchanged
(i.e., you can use the rate that was charged to you when your
property was located outside the floodplain).
I
have flood insurance, and my house is in a floodplain according
to the current map. The new map, however, will show my house
as being outside the floodplain. Will I have to continue carrying
flood insurance when the new map officially takes effect?
If you have federal or federally related financing
for the property in question, you will no longer have a federal
requirement to purchase flood insurance when the new maps
take effect; however, lenders retain the prerogative to require
flood insurance, even for property that is not in a floodplain.
If you wish to continue coverage once the new maps take effect,
you may be eligible for preferred risk rates based on your
property being outside the floodplain. You should have your
policy re-rated using the new maps, which should lower your
premium. Even if you are not required to purchase flood insurance,
we encourage homeowners to continue coverage at the preferred
risk rates, because you may be flooded by an event greater
than the 1 percent annual chance event.
My
house was built to the flood elevation shown on the current
map (or a previous map). On the new map, my house will remain
in the floodplain, but the flood elevation will increase.
What will happen to my insurance premium when the new map
officially takes effect? If you can show that
your house was built in compliance with local floodplain management
regulations and the flood map in effect at the time of construction,
the basis for rating your policy does not change, and your
premium will be the same. If you cannot show that your house
was built in compliance at the time of construction, your
policy will be re-rated using the new flood map, which may
raise your premium. However, if you can show that your home
has been continuously insured since before the map change,
your premium will not be affected. If you do not have federal
or federally related financing, you are not required by federal
regulations to have flood insurance, although it is available
to you.
My
house was built to the flood elevation shown on the current
map (or a previous map). On the new map, my house will remain
in the floodplain, but the elevation will decrease. What will
happen to my insurance premium when the new map officially
takes effect? You should contact your insurance agent
to ensure that the policy is re-rated when the new map officially
takes effect. The lower flood elevation may result in a lower
premium.
My
house was built in Zone AE to the flood elevation in effect
at the time of construction. On the new map, my house will
remain in the floodplain, but the zone designation will be
changed to Zone VE. What will happen to my insurance premium
when the new map officially takes effect? If
you can show that your house was built in compliance with
local floodplain management regulations and the flood map
in effect at the time of construction, the basis for rating
your policy does not change and your premium will be the same
when the new map officially takes effect. If you cannot show
that your house was built in compliance at the time of construction,
your policy will be re-rated when the new map takes effect
using the new flood zone designation and flood elevations,
which may raise your premium. However, if you can show that
your home has been continuously insured since before the map
change, your premium will not be affected.
My
house is shown as being in Zone VE on the current map. On
the new map, my house will remain in the floodplain, but the
zone designation will be changed to Zone AE. What will happen
to my insurance premium when the new map officially takes
effect? You should contact your insurance agent to
ensure the policy is re-rated when the new map officially
takes effect. The change to a Zone AE designation will likely
lower your premium.
My
house is in a floodplain according to the current map. On
the new map, my house will remain in the floodplain, but the
flood elevation will be increased. Will my house be considered
to be in violation of NFIP regulations when the new map officially
takes effect? Any house that can be shown to have
been built in compliance with local floodplain-management
regulations and the flood map at the time of construction
will continue to be considered compliant, even if the new
maps will show an increase in flood elevation or a change
to a more restrictive zone designation. However, should your
house be substantially damaged (damage of 50 percent or more
of the pre-damage market value) and you wish to repair it,
you will be required to bring the entire structure into compliance
with the zone designation and flood elevations in effect at
the time the repairs take place. If the structure is less
than substantially damaged, you do not need to refer to the
flood map when repairing damages. Please note, however, that
there may be more stringent local requirements that take precedence
over those stated here. Regardless of whether your building
is substantially damaged, you will likely need a building
permit to make repairs and need to contact your local building
official.
My
house is in a floodplain. What do I do if I want to build
an addition or otherwise improve it? If the value
of the addition of improvements to the house is less than
50 percent of the market value of the existing structure,
you need only make sure that the improvement meets or exceeds
the standards that were used in constructing the existing
structure (assuming the existing structure was built in compliance
at the time it was constructed). Additions or other improvements
valued at 50 percent or more of the market value of the existing
structure are considered substantial improvements. In such
cases, the entire structure must be brought into compliance
with the elevations on the map in effect at the time the improvement
begins. Under certain circumstances only the addition needs
to be elevated to the flood elevations shown on that map.
Please note, however, there may be more stringent local requirements
that take precedence over those stated here. Regardless of
whether your building is substantially improved, you will
likely need a building permit to make the improvement and
need to contact your local building official.
My
lending institution said I'm in the floodplain and they require
flood insurance on my loan/mortgage. I don't believe I'm in
a flood zone. What can I do? All federally regulated
lending institutions must review the community Flood Insurance
Rate Map (FIRM) to determine if your structure is located
in a Special Flood Hazard Area (SFHA). If such a determination
is made, it must require the borrower to purchase flood insurance.
These determinations are based on in/out (horizontal) and
do not involve the vertical elevation of the structure. If
you disagree, you may request that FEMA review the lender's
determination. FEMA will review the information that the institution
used and issue a letter of findings. Your request (FEMA Standard
Flood Hazard Determination) must be postmarked no later than
45 days after the lender notifies you of its determination.
FEMA's responses to these requests are called LODRs and offer
two basic dispositions: (1) the lender's determination stands,
or (2) it is overturned. FEMA's response does not amend or
revise the NFIP map for your community. Occasionally, a lending
institution may require insurance if it determines that a
part of your lot is in the SFHA. The NFIP does not insure
land. However, even if you submit evidence that your building
is out of the floodplain, the lender may still decide to require
flood insurance on your building.
Where
can I buy flood insurance? You may purchase flood
insurance from the same agency that carries your homeowner's/renter's
insurance or directly from the federal government. To get
the name of an agent in your community, call the NFIP's toll
free number at 1-888-FLOOD29.
Where
can I view the flood map for my property? Your local
floodplain manager has copies of the appropriate FIRM and
MEMA maintains a copy in its office. You can also access the
online FEMA Flood Map Store. You may also order a map by calling
FEMA's Map Service Center at 1-800-358-9616.
Who
can I call for specific questions concerning the NFIP? For
general information, call 1-800-427-4661. To order any current
FEMA publications, call 1-800-480-2520. For lender questions
on flood policy coverage and rates, call 1-800-611-6125. For
insurance agent questions on policy coverage and rates, call
1-800-720-1093.
Why
do I need to complete an elevation certificate in order to
build or place my home in a flood zone? If you are
building in the floodplain, you will be given an elevation
certificate to complete and return. This form is important!
It proves that you built correctly, and it is used to determine
your compliance with your community's Flood Damage Prevention
Ordinance. Additionally, this form is used to set your flood
insurance premium.
My
LOMA/LOMR-F was invalidated by the new FIRM, what do I do
to reinstate it? You will need to submit the following:
- Submit a written request asking for re-issuance of the
LOMA/LOMR-F.
- A copy of the original LOMA/LOMR-F letter.
- A copy of the new effective FIRM panel, marked to indicate
the location of the property in question.
These documents
should be mailed to:
LOMA Depot
PO Box 2210
Merrifield, VA 22116-2210
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