The National Flood Insurance Program Edie Lohmann FEMA

The National Flood Insurance Program Edie Lohmann, FEMA Region IX NFIP Insurance Specialist

How the NFIP Works FEMA agrees to make flood insurance available within a community when that community agrees to adopt and enforce floodplain management regulations. 2

How the NFIP Works 3

NFIP Background § National Flood Insurance Act of 1968 § Flood Disaster Protection Act of 1973 § National Flood Insurance Reform Act of 1994 § Flood Insurance Reform Act of 2004 4

NFIP Background 1. Ensure long term sustainability and financial soundness 2. Respond to the rising costs and consequences of flooding 5

Biggert-Waters 2012 (BW-12) § What Does it Do? ØReauthorizes the National Flood Insurance Program (NFIP) for 5 years through September 30, 2017 ØSigned July 6, 2012 Government Building 6

BW 2012: Section by Section 205 & 207 Biggert-Waters 2012 Section Break Down 2 16 18 Other Risk Reduction and Studies Mapping Insurance 205 and 207 13 7

Build Safer and Stronger Changing the Message About Flood Insurance 8

Flood Insurance Provisions: Sections 205 and 207 Section 205 Section 207 • Targets: • Impacts map changes 1. Non-Primary • Grandfathering Residences 2. Businesses 3. Severe Repetitive Losses 4. Full Risk Rate Category • Preferred Risk Policy Eligibility Extension • Not currently being implemented – still under evaluation • Implementation began January 1, 2013 9

Section 205 – Biggert-Waters 2012 (BW 12) Effective Jan. 1, 2013 25% Rate Increase: Non-Primary Residences (vacation & second homes) Rate Increases Apply To: Pre-firm Buildings In A, V, or D Flood Zones (except AR/A 99) Effective Oct. 1, 2013 25% Rate Increase: 1. Non-Residential Structures (businesses) 2. 1 -4 Family Severe Repetitive Loss Buildings Full Risk Rates: 1. New policies applied for on or after July 6, 2012 2. Lapsed policies on or after October 4, 2012 10

Full Risk Rates § Reduce the Risk, Reduce the Rate Zone AE Rates Effective October 1, 2012 11

BW 12 Section 205 - California Total California NFIP Policies: 256, 836 3% 3% 2% 2% 14% 81% 95% Data as of 12/31/12 12

Key Takeaways - Mitigation Understand the Risk Buy Down the Risk Collaborate & Communicate 13 Build Safer, Stronger & Smarter

Flood. Smart www. Flood. Smart. gov 14