"Flood Insurance Sample Cancellation Letter"
Table of Contents History 3 Definition of Flood 6 . Community Participation 7 Types of Policies/Policy Forms 11 Eligibility 18 Property Covered 21 Property Not Covered 23 Exclusions 24 General Conditions 25 Rating 26 Applications 32 Endorsements 33 Renewals 35 Cancellations 38 Exhibits: 40 - Community Rating System (CRS) Page - Sample Flood Hazard Boundary Map (FHBM) - Sample Flood Insurance Rate Map (FIRM) - Sample Flood Hazard Zone Determination Form - NFIP Application Forms (Standard and PRP) - NFIP Endorsement Form - NFIP Cancellation Form - Instructional Elevation Certificate - FEMA Elevation Certificate and Instructions - Building Diagrams June 2008 2 History Overview Floods are generally considered to be the most costly calamity in this country. United States history has recorded over 10,000 floods. From these natural disasters, thousands of lives have been lost, and property damage sometimes has exceeded one billion dollars a year. Throughout the years, the private insurance industry had avoided insuring property against loss or damage from flooding. The problem, from the insurance industry’s perspective, was the impossibility of spreading the risk over enough policyholders to make a flood insurance program solvent. The only people who would buy insurance were those who were almost certain to be flooded. Timeline The flood insurance timeline below depicts the major events that have occurred in the development of the National Flood Insurance Program. In 1965, after several devastating hurricanes, Congress directed the Secretary of the Department of Housing and Urban Development (HUD) to undertake a study of various programs, including insurance programs, which might be established to help provide financial assistance to those suffering property losses resulting from floods and other natural disasters. In 1966 a presidential task force recommended to Congress a flood plain management program by state and local governments. HUD conducted a study to explore the value and need for a federally sponsored flood insurance program. In 1967 Congress considered a number of proposals for a flood insurance program, and in 1968 a comprehensive blueprint for the establishment of such a program began. The National Flood Insurance Act of 1968 contained detailed specifications for the scope and priorities of the program. The federal government became an insurer against flood damage and the National Flood Insurance Program (NFIP) was established. The NFIP is a flood program in which local communities formally agree to adopt and enforce floodplain management ordinances to reduce flood risk. In return the federal government makes flood insurance coverage available for eligible buildings and their contents. June 2008 3 History The initial program suffered through a lack of public participation, with fewer than 3,000 communities participating. In 1973, after a series of disastrous floods, notably those resulting from Hurricane Agnes, Congress passed the Flood Disaster Protection Act. This act changed the basic nature of the program from a voluntary program to a mandatory program for those structures located in Special Flood Hazard Areas (SFHAs). Purchase of flood insurance was now required as a condition of obtaining any federally regulated financing. The Federal Government initiated the Write-Your-Own (WYO) Program in 1983. This program allows property and casualty insurance companies to write and service flood insurance policies in their own name. The companies are responsible for marketing, policy processing, claims administration, and financial/statistical reporting to the Federal Government. The companies receive an expense allowance for policies written and claims processed, while the Federal Government retains responsibility for underwriting losses. All WYO companies that write flood insurance through the NFIP are subject to the same rules, regulations, underwriting guidelines and rates. In 1994, in order to strengthen the financial condition of the NFIP and to increase its policy base, Congress enacted the National Flood Insurance Reform Act. A primary purpose of this legislation was to improve compliance with the mandatory purchase requirements of the NFIP by lenders, servicers and secondary market purchasers. This act also brought other changes to the NFIP, including: increase in maximum coverage limits, 30-day policy waiting period, and addition of Increased Cost of Compliance (ICC) coverage. The Flood Insurance Reform Act of 2004 (FIRA) was enacted as a result of post-catastrophe experiences. These experiences bought to light the lack of understanding among insurance agents and NFIP policyholders about NFIP coverages and the claims process. Among other things FIRA requires state insurance departments to mandate flood insurance training for insurance agents. In addition it ensures that policyholders receive certain information about the NFIP including summaries of coverage, a claims hand book and a loss history of the insured property. June 2008 4 The NFIP is currently administered by the Federal Emergency Management Agency (FEMA). In March 2003, FEMA became part of the newly created U.S. Department of Homeland security. June 2008 5 Definition of Flood What is Under the NFIP, a flood is defined as a general but temporary A Flood? condition of partial or complete Inundation of two or more acres of normally dry land area, or of two or more properties (at least one of which is the insured property) from: Overflow of inland or tidal waters. Unusual and rapid accumulation or runoff of surface waters from any source. Mudflow (Defined as a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water). The collapse and subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in flood, as defined above. General All of the following must be present in order to qualify an Condition occurrence as a flood as defined under the NFIP: The flood or inundation of water must affect either adjacent properties, or must be displaced over two or more acres if the water is confined to the insured premises. The flood must be of a temporary duration, it must have both a beginning point and ending point. The occurrence should consist of inundation of normally dry land (for all but erosion losses). Flood must be fortuitous (i.e., unintentional, accidental) from the insured’s standpoint. The occurrence can result from natural causes or from other sources provided it satisfies all the necessary conditions of the definition. June 2008 6 Community Participation Overview Flood Insurance can only be written in those communities that have been designated as participating in the NFIP by FEMA/FIMA. Community participation is completely voluntary. In order to participate in the NFIP, a community has to adopt a set of floodplain management ordinances, which meet minimal NFIP standards. If the community elects not to participate, buildings within that community are not eligible for insurance. Nearly 19,000 communities participate in the NFIP. Definition A community is defined as that political entity which has the authority to adopt and enforce floodplain ordinances for the area under its jurisdiction. In most cases, the community is an incorporated city, township, village, Indian reservation, Alaskan native village, borough, parish or the unincorporated area of a county. The Community Status Book provides a listing, by state, of all of the participating communities and the date they entered the Flood Program. Some territories of the United States are also considered to be communities. Territories that may be eligible for flood insurance are: Puerto Rico, Guam, the U.S. Virgin Islands, and the Pacific Trust Territories (America Samoa). Emergency The Emergency Program is an interim phase designed to provide Program a basic layer of coverage at subsidized rates, while the detailed maps stating the types and degrees of flood hazard are being drawn and accepted by the community. The map in place during this phase is the Flood Hazard Boundary Map (FHBM), which contains no zone designations. Amount of Insurance Available in the Emergency Program: Building Occupancy Building Limits Content Limits Single and 2-4 Family $35,000* $10,000 Residential Structures Other Residential Structures $100,000** $10,000 Non-Residential Structures $100,000** $100,000 * Alaska, Guam, Hawaii, and U.S. Virgin Islands - $50,000 ** Alaska, Guam, Hawaii, and U.S. Virgin Islands - $150,000 June 2008 7 Community Participation Regular A community is converted to the Regular Program once the Program detailed flood risk study has been completed and the community adopts stringent floodplain management ordinances to manage development and construction. The Flood Insurance Rate Map (FIRM) is the result of the detailed flood study and is used by the communities in the Regular Program. This map includes flood risk zones (FIRM zones), specific Base Flood Elevations (BFE), and Base Flood Depths (BFD). Higher limits of coverage are available, based upon risk, zone, and elevations determined in the flood study. Amount of Insurance Available in the Regular Program: Building Occupancy Basic Additional Total SINGLE and 2-4 FAMILY DWELLINGS Building $50,000 $200,000 $250,000 Contents $20,000 $80,000 $100,000 OTHER RESIDENTIAL Building $150,000 $100,000 $250,000 Contents $20,000 $80,000 $100,000 NON-RESIDENTIAL Building $150,000 $350,000 $500,000 Contents $130,000 $370,000 $500,000 Community Regular Program community participation in the NFIP requires the Rating community to adopt and enforce specific floodplain management System ordinances and guidelines. Some Regular Program communities exceed the NFIP requirements to make their community more flood resistant, enhance the building safety standards, and create a greater consumer awareness of the hazard of flood. To encourage these types of activities the NFIP developed the Community Rating System (CRS) to evaluate the communities and classify them on their additional efforts. Based on the classification, a community can earn discounts of 5% to 45% off flood insurance premiums for all policyholders within the community. Structures located in an SFHA where the lowest floor elevation used for rating is 1 foot or more below the BFE (with the exception of Post-FIRM V zone buildings with unfinished breakaway wall enclosures) are not eligible for the CRS discount. Currently over 900 communities throughout the United States receive CRS discounts, ranging from 5% to 35%. June 2008 8 Community Participation Flood Flood zones reflect the severity and type of flooding that could Zones occur, and are divided into two groups: Special Flood Hazard Areas (SFHAs) and Moderate to Minimal hazard zones. All properties within a community participating in the Regular Program are located in a flood zone as designated on the FIRM. The SFHA is an area that has a 1% or more chance of flooding in any given year. The table below lists the specifics for each flood zone Flood Zone Description Special Flood Hazard Areas A Subject to inundation by a Base Flood. Base Flood Elevations (BFEs) are not determined. An estimated BFE may be established by the community. AE Subject to inundation by a Base Flood. BFEs are (A1-A30) determined. AH Subject to inundation by shallow water depths (usually areas of ponding) and/or unpredictable flow paths between 1 and 3 feet. BFEs are determined. AO Subject to inundation by shallow water paths (usually sheet flow on sloping terrain) and/or unpredictable flow paths between 1 and 3 feet. BFEs are not determined. Base Flood Depths may be provided. A99 Area to be protected by a flood protection system (dikes, dams, levees) under construction, where enough progress has been made to consider it complete for insurance rating purposes. BFEs are not provided. AR Area that results from the de-certification of a previously accredited flood protection system that is determined to be in the process of being restored to provide Base Flood protection. V Subject to inundation by tidal floods with velocity hazard VE (coastal high hazard area). BFEs are determined for Zone (V1-V30) VE (V1-30). VO Subject to inundation by shallow water depths and/or predictable flow paths between 1 and 3 feet with velocity. Moderate, Minimal Hazard Area B, C, X Subject to flooding from severe storm activity, or local drainage problems. D Areas of undetermined flood hazard and which are usually very sparsely populated. June 2008 9 Community Participation Coastal The Coastal Barrier Resource Act of 1982 and the Coastal Barrier Resource Barrier Improvement Act of 1990 are federal laws that were implemented as Acts part of an initiative to minimize loss of human life by discouraging development in high-risk areas, reduce wasteful expenditures of federal resources, and preserve the ecological integrity of areas designated as part of the Coastal Barrier Resources System (CBRS) or Otherwise Protected Areas (OPAs). These laws provide protection by prohibiting ALL federal expenditures or financial assistance, including flood insurance, for development in the identified areas. These areas are shown on appropriate flood insurance map panels. To determine if a building is eligible for flood insurance coverage, the producer should consult the list of communities where CBRS and/or OPAs have been identified. If the community is on the list, and a review of the FIRM shows the property in a designated area, eligibility depends upon which Act identified the community as having such areas and the date of construction or substantial improvement. Detailed eligibility requirements are outlined in the NFIP Flood Manual and should be reviewed before submitting an application for a building located in designated CBRS or OPAs. Sanctions To remain in good standing in the NFIP, the communities must continue to enforce its floodplain ordinances. If a community is unwilling or unable to enforce the ordinances, it could be subject to certain sanctions by FEMA. Probation – Occurs as a result of noncompliance with NFIP floodplain management criteria. A community is placed on probation for 1 year (may be extended) during which time a $50.00 penalty surcharge is assessed on every new and renewal policy issued on or after the Probation effective date. Probation is terminated if deficiencies are corrected. Suspension – If a community does not take remedial or corrective measures while on probation, it can be suspended. Flood insurance cannot be sold or renewed in suspended communities. When a community is suspended, coverage already in force will continue until policy expiration. Non-Participating – A community can choose to not participate in the NFIP, and thus no property in the community is eligible for NFIP flood insurance. June 2008 10 Types of Policies Overview The National Flood Insurance Program offers a variety of flood insurance policies based on the insured’s building occupancy and insurance needs. Each policy has benefits and specific processing requirements. The available policy types include: Standard Flood Insurance Policy (SFIP) Preferred Risk Policy (PRP) Residential Condo Building Association Policy (RCBAP) Scheduled Building Policy Mortgage Portfolio Protection Program (MPPP) Policy (Force Placed – Lender Product) Standard The Standard Flood Insurance Policy (SFIP) is the most common Flood policy type available to the insured. A SFIP can insure both the Insurance building and contents, the building only, or the contents only. It is Policy available for all occupancy types and for structures located in all flood zones, regardless of program type. The Standard application is completed to obtain a SFIP. The application must be signed and dated by the agent in order to apply for insurance. Electronic signature is also acceptable. An insured can select any combination of building and/or contents coverage they desire up to the maximum amount of coverage available. An insured can elect to have an optional higher deductible if desired to reduce the premium. The Federal Policy Fee is added to the policy premium. Preferred The purpose of the Preferred Risk Policy (PRP) is to help meet the NFIP Risk Policy goal of increasing the policy base to insureds who are not necessarily required to purchase flood insurance, but want the “peace of mind” of coverage at a reasonable premium. The PRP offers combined building/contents coverage for residential and non-residential buildings. It also offers contents-only coverage for all occupancies. The building must be located in B, C, or X zone on the effective date of the current policy term and in a community in the Regular Program. Limited loss history eligibility requirement, which means that if any of the conditions listed below has occurred, the structure is NOT eligible for the PRP: - 2 loss payments, each more than $1,000 - 3 or more loss payments, regardless of amount - 2 Federal Disaster Relief payments, each more than $1,000 June 2008 11 Types of Policies - - 3 Federal Disaster Relief payments, regardless of amount - 1 flood insurance claim payment, and 1 flood disaster relief payment, each more than $1,000. Proper documentation of eligibility required with new applications. Valid documentation includes: - A letter of Map Amendment (LOMA/LOMR) - A letter of Determination Review (LODR) - A copy of the most recent flood map marked to show the exact location and flood zone of the building. - A letter containing the same information and signed by the local community official. - An Elevation Certificate containing the same information and signed by a surveyor, engineer, architect, or local community official. - A Flood Zone Determination certificate that guarantees the accuracy of the information. If there has been a map change during the policy term that may affect the insured property, proof of the property’s continued eligibility for the PRP must be provided for the policy to be renewed. If during the policy term the risk fails to meet the eligibility requirements, it cannot be renewed as a PRP. It can be rewritten as a SFIP at renewal and grandfather the B, C, or X flood zone. The simplified PRP application is completed to apply for a PRP. The $500 deductible is applied separately for building and contents coverage, no optional deductibles available. The premium includes the Federal Policy Service Fee and ICC premium. The Dwelling Form is used for PRPs. The premiums are fixed and depend on the coverage option selected. Valid Coverage Combinations are listed below: One-Four Family Residential Building and Contents Coverage Combinations. With Basement/Enclosure Without Basement/Enclosure Building Contents Premium Building Contents Premium $20,000 $8,000 $144 $20,000 $8,000 $119 $30,000 $12,000 $173 $30,000 $12,000 $148 $50,000 $20,000 $221 $50,000 $20,000 $196 $75,000 $30,000 $260 $75,000 $30,000 $230 $100,000 $40,000 $287 $100,000 $40,000 $257 $125,000 $50,000 $307 $125,000 $50,000 $277 $150,000 $60,000 $326 $150,000 $60,000 $296 $200,000 $80,000 $361 $200,000 $80,000 $326 $250,000 $100,000 $388 $250,000 $80,000 $348 Note: Rates as of 5/1/2008 June 2008 12 Types of Policies All Residential Contents- Only Coverage. Contents Above Ground Level All other locations More than one full floor (Basement-only not eligible) Contents Premium Contents Premium $8,000 $39 $8,000 $58 $12,000 $53 $12,000 $80 $20,000 $81 $20,000 $113 $30,000 $93 $30,000 $130 $40,000 $105 $40,000 $147 $50,000 $117 $50,000 $164 $60,000 $129 $60,000 $181 $80,000 $153 $80,000 $201 $100,000 $177 $100,000 $221 Note: Rates as of 5/1/2008 Other Residential Building and Contents Coverage Combinations. (With Basement or Enclosure) B CONTS $8k $12k $20k $30k $40k $50k $60k $80k $100k L $20,000 $151 $165 $178 $191 $203 $214 $225 $235 $245 D $30,000 $165 $179 $192 $205 $217 $228 $239 $249 $259 G $50,000 $199 $213 $226 $239 $251 $262 $273 $283 $293 $75,000 $215 $229 $242 $255 $267 $278 $289 $299 $309 $100,000 $237 $251 $264 $277 $289 $300 $311 $321 $331 $125,000 $244 $258 $271 $284 $296 $307 $318 $328 $338 $150,000 $249 $263 $276 $289 $301 $312 $323 $333 $343 $200,000 $280 $294 $307 $320 $332 $343 $354 $364 $374 $250,000 $297 $311 $324 $337 $349 $360 $371 $381 $391 Note: Rates as of 5/1/2008 Other Residential Building and Contents Coverage Combinations. (Without Basement or Enclosure) B CONTS $8k $12k $20k $30k $40k $50k $60k $80k $100k L $20,000 $123 $135 $146 $157 $167 $177 $186 $195 $203 D $30,000 $141 $152 $163 $174 $184 $194 $203 $212 $220 G $50,000 $176 $187 $198 $209 $219 $229 $238 $247 $255 $75,000 $196 $207 $218 $228 $238 $248 $257 $266 $274 $100,000 $214 $225 $236 $246 $256 $266 $275 $284 $292 $125,000 $223 $234 $245 $255 $265 $274 $283 $292 $300 $150,000 $230 $241 $252 $262 $272 $281 $290 $299 $307 $200,000 $258 $269 $280 $290 $300 $309 $318 $326 $334 $250,000 $273 $284 $295 $305 $315 $324 $333 $341 $349 Note: Rates as of 5/1/2008 June 2008 13 Types of Policies Non-Residential Building and Contents Coverage Combinations. (With Basement or Enclosure) B CONTS $50k $100k $150k $200k $250k $300k $350k $400k $450k 500K L D $50,000 $880 $1139 $1387 $1623 $1848 $2062 $2265 $2456 $2636 $2805 G $100,000 $1254 $1513 $1760 $1996 $2221 $2435 $2638 $2829 $3009 $3178 $150,000 $1529 $1788 $2035 $2271 $2496 $2710 $2913 $3104 $3284 $3453 $200,000 $1678 $1937 $2184 $2420 $2645 $2859 $3062 $3253 $3433 $3602 $250,000 $1783 $2042 $2289 $2525 $2750 $2964 $3167 $3358 $3538 $3707 $300,000 $1899 $2158 $2405 $2641 $2866 $3080 $3283 $3474 $3654 $3823 $350,000 $2027 $2286 $2533 $2769 $2994 $3208 $3410 $3601 $3781 $3950 $400,000 $2111 $2370 $2617 $2853 $3078 $3292 $3494 $3685 $3865 $4034 $450,000 $2207 $2466 $2713 $2949 $3174 $3388 $3590 $3781 $3961 $4130 $500,000 $2312 $2571 $2818 $3054 $3279 $3493 $3695 $3886 $4066 $4235 Note: Rates as of 5/1/2008 Non-Residential Building and Contents Coverage Combinations. (Without Basement or Enclosure) B CONTS $50k $100k $150k $200k $250k $300k $350k $400k $450k 500K L D $50,000 $550 $688 $820 $946 $1066 $1180 $1288 $1390 $1486 $1576 G $100,000 $742 $880 $1012 $1138 $1258 $1372 $1480 $1582 $1678 $1768 $150,000 $885 $1023 $1155 $1281 $1401 $1515 $1623 $1725 $1821 $1911 $200,000 $1034 $1172 $1304 $1430 $1550 $1664 $1772 $1874 $1970 $2060 $250,000 $1134 $1272 $1404 $1530 $1650 $1764 $1872 $1974 $2070 $2160 $300,000 $1240 $1378 $1510 $1636 $1756 $1870 $1978 $2080 $2176 $2266 $350,000 $1297 $1435 $1567 $1693 $1813 $1927 $2035 $2137 $2233 $2323 $400,000 $1360 $1498 $1630 $1756 $1876 $1990 $2098 $2200 2296 $2386 $450,000 $1429 $1567 $1699 $1825 $1945 $2059 $2167 $2269 $2365 $2455 $500,000 $1504 $1642 $1774 $1900 $2020 $2134 $2242 $2344 $2440 $2530 Note: Rates as of 5/1/2008 Non-Residential Contents-Only Policy Contents Above Ground Level More All other locations than one full floor (Basement-only not eligible) Contents Premium Contents Premium $50,000 $145 $50,000 $330 $100,000 $220 $100,000 $500 $150,000 $295 $150,000 $670 $200,000 $370 $200,000 $840 $250,000 $445 $250,000 $1010 $300,000 $520 $300,000 $1180 $350,000 $595 $350,000 $1350 $400,000 $670 $400,000 $1520 $450,000 $745 $450,000 $1690 $500,000 $820 $500,000 $1860 Note: Rates as of 5/1/2008 June 2008 14 Types of Policies RCBAP The Residential Condominium Building Association Policy (RCBAP) is available for residential condominium associations, which meet the RCBAP eligibility qualifications. The RCBAP policy provides coverage on a Replacement Cost Value (RCV) basis. To qualify for the RCBAP the policy is written in the name of the condo association, the floor area of the condo building must be at least 75% residential, and the condo building must be located in a Regular Program community. The following types of residential condo buildings are eligible for the RCBAP: - Low-Rise - High-Rise - Single Family - Townhouse - Rowhouse The entire building is covered under one policy, including both the common and individually owned building elements. Maximum building coverage available equals the Replacement Cost Value of the building, or the total number of units times $250,000; whichever is less. The RCBAP was designed to insure the building to at least 80% of the value. Buildings insured for less than 80% of the Replacement Cost Value or the maximum amount of insurance available under the NFIP program, are subject to a coinsurance penalty on any covered losses. The formula used to determine the limit of recovery is as follow: Insurance Carried X Amount of Loss = Limit of Recovery Insurance Required Example: Insurance Carried: $500,000 RCV: $1,000,000 Amount of Loss: $240,000 $500,000 X $240,000 = $150,000 $1,000,000x80% ($800,000) (less deductible) Note: The balance of the loss ($90,500) is not covered. Contents owned in common are covered on an Actual Cash Value (ACV) basis up to a maximum of $100,000. The following documentation is required to process an RCBAP: - Standard application, with all condo questions completed - Elevation Certificate (if applicable) - Two photographs of building - Documentation of the Replacement Cost Value of the building June 2008 15 - Types of Policies Scheduled The Scheduled Building Policy is available to cover 2 to 10 buildings Building which have the same ownership and the same location. The properties Policy on which the buildings are located must be contiguous. Each building must submit a separate application and the applications should be stapled together and indicate the building # on each. MPPP The Mortgagee Portfolio Protection Program (MPPP) is designed to assist lenders in complying with the mandatory purchase requirements of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994. When a borrower does not provide a lender with evidence of the required flood insurance, these policies are force placed for the insured at a higher premium than a flood policy might normally have if all of the necessary underwriting information was provided. At a minimum, the MPPP data requirements for processing are: Name and mailing address of insured (mortgagor) Address of insured (mortgaged) property Name and mailing address of mortgagee Mortgage loan number Community information (community number, map panel, suffix and map date) Flood Zone (no Elevation Certificates required, regardless of zone) Occupancy type (if available) Amount of Coverage Zone Building Contents ICC Premium Rates Rates Emergency $3.18 $3.21 n/a Program Community A zones $3.181.60 3.21/1.53 $75.00 V zones $4.74/4.74 $4.45/4.45 $75.00 A99, AR, AR dual $.81/.48 $1.09/0.43 $6.00 zones Note: Rates as of 5/1/06 June 2008 16 Types of Policies Policy Forms Dwelling Form – Used to provide coverage for the following: - Single Family dwellings, including detached houses, townhouses/rowhouses, residential manufactured (mobile) homes, and double-wide manufactured (mobile) homes, and/or their household contents - 2 to 4 Family residential buildings and/or their household contents - Residential condo units, if not insured under a RCBAP - Residential condo units household contents - Buildings qualified for the PRP - 1 to 4 Family residential buildings in the course of construction General Property Form – Used to provide coverage for the following: - Residential buildings with 5 or more units and/or their contents - Residential condo buildings not eligible for the RCBAP - Non-residential condo buildings and/or their contents - Non-residential condo units (contents coverage only) - Non-residential buildings, including non-residential manufactured (mobile) homes and double-wide manufactured (mobile) homes, and/or their contents - Appurtenant private structures, if separately insured, and/or their contents - Other than 1 to 4 Family buildings in the course of construction - Non-household contents located in a residential building Residential Condo Building Association Policy (RCBAP) Form – Used to provide coverage for the following: - Residential condo buildings owned by an association, located in a Regular Program community, with at least 75% of the floor area of the building as residential space June 2008 17 Eligibility Overview Flood Insurance can only be written on eligible buildings and contents. Eligible Not all buildings are eligible for flood insurance. In order for a building to be Buildings eligible for flood insurance the building must meet all of the following criteria: Walled and roofed – The structure must have two or more rigid exterior walls and a fully secured roof. Principally above ground – At least 51% of the Actual Cash Value of the building (including machinery and equipment) must be above ground. Affixed to a permanent site – The structure must be anchored to resist flotation, collapse, and lateral movement. Some Examples of Eligible Some Examples of Ineligible Buildings include: Buildings include: Residential Buildings: Boat repair dock Single Family Boat storage over water 2-4 Family Buildings entirely over water (DOC Other Residential Buildings: on or after 10/1/82) 5 or more units Camper Non-Residential Buildings: Container-type buildings Office Buildings Drive-in Bank Teller unit Hotels/Motels Fuel Pump Hospitals Open stadium Silos/Grain Storage Buildings Pavilion Cisterns Storage tanks (gas, water, Buildings in the Course of chemicals, etc.) Construction Swimming pools, hot tubs, spas Appurtenant Structures and pool bubbles Manufactured (Mobile) Homes/ Tent Travel Trailers Water treatment plants Buildings in the Course of Construction are structures, which are not yet walled and roofed. These buildings are eligible for coverage but with the following guidelines: Cannot be assigned or transferred to another party Cannot be renewed Deductible is two times the deductible that would apply to a completed building Coverage ceases if construction is halted for more than 90 days June 2008 18 Eligibility The only Appurtenant Structure covered by the SFIP is a detached garage located on the described location, covered under the Dwelling Form. These structures are insured under the policy if the structure is used solely for parking or storage, and has no residential, business or farming purposes. Up to ten percent of the total building coverage limits can be applied to the eligible appurtenant structure. A Manufactured (Mobile) Home is a structure built on a permanent chassis, transported to its site in one or more sections, anchored to the permanent site, and affixed to a permanent foundation. A Travel Trailer without wheels is a structure built on a chassis, affixed to a permanent foundation, and regulated under a community’s floodplain management and building ordinances or laws. All references to Manufactured (Mobile) Homes include Travel Trailers without wheels. To be insurable a Manufactured (Mobile) Home must be anchored to a permanent foundation. June 2008 19 Eligibility Eligible Eligible Contents must be located inside a fully enclosed building Contents or secured to prevent flotation out of the building. Some Examples of Eligible Some Examples of Ineligible Contents include: Contents include: Household personal property Accounts, bills, bullion, coins, owned by the insured or household currency, deeds, manuscripts, members medals, money, postage stamps, Household personal property scrip, securities, or other valuable belonging to guests, servants/ papers domestic workers Aircraft Non-household personal property Animals (General Property Form) Automobiles – including Dealer’s - Furniture and fixtures; stock Machinery and equipment; Bailee’s customer goods Stock; and Contents located in an ineligible Other personal property owned by building insured and used in business Motorcycles – including Dealer’s Self-propelled vehicles or stock machines not licensed for use on Motorized equipment – including public road, which service the Dealer’s stock insured property (lawn mower, Plants, shrubs, crops, etc. tractor, etc.) or assist handicapped Recreational vehicles persons Self-propelled vehicles (except Contents in silos, grain storage those described as eligible) bins and cisterns Watercraft June 2008 20 Property Covered Coverage A The flood policy insures against direct physical loss by or from flood to: Building Property The building at the described location Additions or extensions attached to or in contact with the building A detached garage at the described location for up to 10% of the Coverage A limit (Dwelling Form only) Materials and supplies to be used for construction, alteration or repair of the building Building under construction, alteration or repair at the described location (subject to certain conditions) A manufactured (mobile) home or travel trailer (subject to certain conditions) Specific items of property Awnings, blinds, built-in appliances, machinery and equipment, light fixtures, plumbing fixtures, kitchen major appliances, permanently installed cabinets/bookcases/paneling/carpets, etc. Limited specific items of property in a basement or enclosure Machinery and equipment, unfinished drywall, insulation, foundation elements, etc. Coverage B The flood policy insures against direct physical loss by or from flood to: Personal Property Personal property (contents) as described in each policy form, inside a fully enclosed building Personal property in a building that is not fully enclosed, that is secured to prevent flotation out of the building Specific items of personal property – portable appliances, carpets-not permanently installed or installed over finished flooring, clothes washers/dryers, food freezers, cookout grills, outdoor equipment and furniture, etc. Limited specific items of personal property in a basement or enclosure – clothes washers/dryers, food freezers, etc. Special limits – no more than $2,500 for any one loss to one or more of: artwork, photos, collectibles, memorabilia, rare books, autographed items, jewelry, watches, articles of gold/silver/platinum, furs, etc. Functional value of antiques June 2008 21 Property Covered Coverage C The flood policy provides some other coverages in addition to Coverage A and Other B or in conjunction with them, including: Coverages Debris Removal – Does not increase the Coverage A or B limits of liability, but is paid from within those limits. Loss Avoidance Measures – Up to $1,000 for sandbags, supplies and labor to protect the insured property from a flood or imminent danger of flood. Condo Loss Assessments (Dwelling Form) – Up to the Coverage A limit of liability for the unit owner’s share of loss assessment charged against them by the condo association as a result of direct physical loss from or by flood, subject to certain limitations. Pollution Damage (General Property Form) – Up to $10,000 for damage caused by pollutants to the covered property caused by or as a result from a flood. This coverage does not increase the Coverage A or B limits of liability. Coverage D Mandatory coverage to provide payment for the insured to comply Increased with a State or local floodplain management law or ordinance Cost of affecting repair or reconstruction of the building suffering flood Compliance damage. Eligible compliance activities include: Elevation Floodproofing Relocation, and/or Demolition $30,000 limit of liability, in addition to the Coverage A limit of liability, subject to the maximum allowable under the Act. Coverage is subject to certain eligibility guidelines, conditions, exclusions and provisions. Cost for this coverage ranges from $4 to $75, depending on zone, building coverage amount and date of construction. June 2008 22 Property Not Covered Property The flood policy does not cover any of the following, in addition to Not the items previously reviewed under eligibility: Covered Personal property not inside a fully enclosed building Personal property located in a basement or enclosure – with the exception of clothes washers/dryers, food freezers and portable air conditioning units, all of which must be installed in their functioning location and connected to a power source Finished elements (paint, wallpaper, flooring, etc.) in a basement or enclosure Land, land values, lawns or trees Walks, walkways, decks, driveways, patios, etc. outside perimeter, exterior walls of the building Fences, retaining walls, seawalls, bulkheads, wharves, piers, bridges or docks Underground structures and equipment – wells, septic tanks and septic systems Property not eligible for flood insurance June 2008 23 Exclusions Exclusions The policy only provides coverage for direct physical loss by or from flood, which means that it does not cover losses caused by other hazards or losses for other than direct physical loss to the covered property. Examples Economic loss – Other causes of loss – - Loss of revenue or profit - Pressure or weight of ice - Loss of access - Freezing and thawing - Loss of use - Rain, sleet, snow, hail or water - Interruption of business or spray production - Theft, fire, explosion, wind or - Additional living expenses windstorm - Ordinance or law (except for - Pressure or weight of water, ICC-Coverage D) unless there is a flood in the - Other economic loss area and that is the proximate Loss caused directly by earth cause movement – - Water, moisture, mildew or - Earthquake mold damage that results - Landslide primarily from any condition - Land subsidence substantially confined to the - Sinkholes building, or within the control of - Destabilization from water the insured accumulation in subsurface Loss caused by alteration to the land are insured property that significantly - Gradual erosion increases the risk for flooding Loss already in progress at the Loss to any building or personal time of policy inception property located on land leased Loss caused by a deliberate act of from the Federal Government insured June 2008 24 General Conditions Provisions Each policy form includes various provisions within the General Conditions section of the policy, including the following: Concealment or Fraud and Policy Voidance Other Insurance Amendments, Waivers, Assignment - The policy cannot be changed, nor can any of its provisions be waived. - The insured may assign the policy, in writing, when the title is transferred to someone else. Cancellation of Policy by Insured - Policy may only be cancelled in accordance with the applicable rules and regulations of the NFIP. - The insured may be entitled to a full or partial refund of premium based on the reason for cancellation and the rules and regulations of the NFIP. Non-Renewal of Policy by Insurer - The policy will not be renewed if the community where the property is located discontinues participation in the NFIP, or if the insured building has been declared as ineligible under Section 1316 of the Act. Reduction and Reformation of Coverage - If the premium amount received is not enough to purchase the kind and amount of coverage requested, only the amount of coverage that can be purchased for the premium payment will be provided. - The policy can be reformed to increase it back to the amount requested if the additional premium is paid within 30 days from the date of the notice for additional premium. Loss Settlement - Policies written using the Dwelling and RCBAP forms provide three methods of settling losses: Replacement Cost, Special Loss Settlement, and Actual Cash Value. - Policies written using the General Property form will pay the least of the following amounts after application of the deductible: The applicable amount of insurance under this policy; The actual cash value; or The amount it would cost to repair or replace the property with material of like kind and quality within a reasonable time after the loss. June 2008 25 Rating Essential Rating flood insurance is not that difficult. It’s actually quite easy Elements once the basics are understood. In order to rate a flood policy you will need specific information: Community Information (Name, Number, Map Panel and Suffix, Program Status, CRS Status/Discount and Probation Status) Flood Zone Building Occupancy Building Type Basement/Enclosure Status Elevated Building Status Contents Location/Type Date of Construction (Pre-FIRM or Post-FIRM) Elevation Information (If applicable) Coverage Amounts (Building and/or Contents) Building Replacement Cost Value Deductibles (Building and/or Contents) Effective Date Here is more detailed information on several of the essential elements for rating: Building Occupancy is required to correctly rate the policy and refers to the use and Occupancy type of building. Single Family – A single-family residential home, typically occupied by one family unit. 2 to 4 Family – A 2 to 4 family residential home designed to house two, three or four family units. Other Residential – Other residential buildings designed with more than four units; including apartments, residential condos, co-ops, etc. Non-Residential – A building designed primarily for commercial use; including office buildings, factories, churches, schools, stores, etc. Building Type is required to correctly rate the policy and refers to the number of floors, Type including a basement, in the building. One Floor Two Floors Three or More Floors Split Level Manufactured (Mobile) Home/Travel Trailer on Foundation June 2008 26 Rating Basement A basement is any area of a building, which has its floor below grade (ground) on all sides. Basements are classified as Finished or Unfinished depending on features and use. The policy provides limited coverage for basements, only unfinished building elements and machinery/equipment (i.e., furnace, hot water heater, etc.) are afforded coverage. Enclosure An enclosure is the portion of a building beneath the lowest elevated floor that is either partially or fully shut in by rigid walls. Elevated Building An elevated building is a building that has no basement and has its lowest elevated floor risen above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. The purpose of an elevated building is to allow floodwaters to flow below the lowest elevated floor and protect the structure from direct water damage and the force of the floodwaters. If there is an obstruction (i.e., enclosure) below the lowest elevated floor additional information regarding the enclosure will be required. Date of This information is needed to determine if the structure is Pre-FIRM or Post- Construc- FIRM for rating purposes. tion Pre-FIRM buildings are defined as structures constructed or substantially improved on or before December 31, 1974, or before the effective date that the community entered the Regular Program (initial FIRM date), whichever is later. Post-FIRM buildings are defined as structures constructed or substantially improved on or after the effective date that the community entered the Regular Program (initial FIRM date) or after December 31, 1974, whichever is later. Examples: Building A – Constructed on January 1, 1974. Regardless of the community’s initial FIRM date, it would be Pre-FIRM as it was built prior to December 31, 1974. Building B – Community’s initial FIRM date is January 1, 1978. Building was constructed on July 1, 1975. It would be Pre-FIRM as it was built prior to the initial FIRM date of January 1, 1978. Building C – Community’s initial FIRM date is June 1, 1978. Building was constructed on September 1, 1978. It would be Post-FIRM as it was built after the initial FIRM date of June 1, 1978. June 2008 27 Rating Elevation Buildings that are Post-FIRM construction and located in Special Information Flood Hazard Areas (SFHA) require an Elevation Certificate to be rated. The Elevation Certificate must include the following items: Property address, consistent with application. Building diagram number Base Flood Elevation/Depth Lowest Floor Elevation Other required elevation levels Valid certification of the elevation information Certification date 2 photos (front & back) - required for policies with effective dates of 1/1/2007 or later - photos must be taken within 90 days of application submission date - split-level or multi level buildings require 2 additional photos (showing views of both sides of the building) Coverage The amount of building and/or contents coverage up to the Amounts maximum available for that building occupancy/type. Building and contents coverage are rated and purchased separately. Only the Preferred Risk Policy (PRP) automatically includes a package of both building and contents coverage. Building All building occupancies are required to provide the building Replace- replacement cost value as part of the underwriting information. ment Cost Deductibles The deductibles are applied separately to building and contents coverage. The standard deductibles are: $500, if building is located in non-SFHA zones (B, C, X and D) $500, if building is located in SFHA zones, is Post-FIRM construction $500, if building is located in SFHA zones, is Pre-FIRM construction rated Post-FIRM (with Elevation Certificate) $1,000, if building is located in an Emergency Program community, or located in SFHA zone, is Pre-FIRM construction rated using Pre-FIRM rates Optional higher deductibles are also available which would provide a discount on the premium. There is also an optional buy-back down to $500 from the $1,000 standard deductible which would result in an additional charge to the premium. June 2008 28 Rating Effective Since flooding is seasonal in nature, there is a standard 30-day Date waiting period for new applications and endorsements to increase or add coverage. The following outlines the application of the waiting period on new applications under different circumstances: Not due to loan activity, map revision, or change in policy type: IF the receipt date is... THEN add... TO... 1-10 days after the application 30 days The application date to date determine the effective date. 11 days or more after the 30 days The receipt date to determine application date the effective date. In connection with making, increasing, extending, or renewing a loan: IF… THEN... Both the application submission The effective date will be the loan closing date. date and the premium presentment date are at or prior to the loan closing date The premium presentment date is If the payment is from the insured, the effective date after the loan closing but within 29 is the later of the application submission date or the days after the loan closing date premium presentment date. If the payment is NOT from the insured, the effective date is the later of the application submission date or loan closing date. The premium presentment is MORE If the structure is NOT located in a SFHA, the than 29 days after the loan closing Standard 30 day wait rule applies. date If the structure IS located in a SFHA, the Mortgagee Portfolio Review Rules apply. *If a loss occurs within the first 30 days of the policy period, evidence that the loan closing occurred must be provided before the loss can be adjusted and settled. June 2008 29 Rating Due to Mortgagee Portfolio Review - Determined to be located in a SFHA: If the receipt date is… THEN… 1-10 days after the application date The effective date will be the application date. 11 days or more after the application date The effective date will be the receipt date. Due to Map Revision: IF the receipt date is... THEN add... TO... 1-10 days after the application date 1 day The application date to and the application date is within 13 determine the effective date. months from the map revision date* 11 days or more after the application 1 day The receipt date to date and the application date is determine the effective date. within 13 months from the map revision date* *If the application and premium are not received within 13 months from the map revision date, the 30- day waiting period would be applied. Submit for Some risks, because of their unique underwriting characteristics Rate and exposure to flooding, cannot be rated using the manual rates. These risks require an in-depth underwriting analysis and must be submitted to determine the individual (specific) rate to be charged. To determine the rate the underwriter will require documentation to evaluate the risk characteristics, including: Completed application Elevation Certificate Elevated Building Determination Form (EBDF) Variance from local community, or statement of no variance granted Recent photos (front and back) or blueprints if building is under construction Square footage of any enclosure(s) and the use of the enclosure June 2008 30 Rating List of any machinery and/or equipment with values that are located in the enclosure Certified letter from local building official, engineer, or architect verifying that enclosure(s) are designed/built with breakaway walls Statement that enclosure was built at same time as building, or at a later date (provide date) If building has a basement, a list of any machinery and/or equipment with values that are located in the basement If the building is insurable, the underwriter will deliver a written rate and the applicable ICC premium to the agent. Since a rate must be determined on these risks, no premium is to accompany the original submission. The rates developed in this process are valid for 90-days. Coverage will be effective 30-days after the receipt of the premium, with exceptions for policies purchased in conjunction with a loan activity or as a result of a map revision, as addressed previously. Rate Tables The Flood Insurance Manual contains the current rate tables used for calculating flood insurance premiums. The manual can be accessed on-line at: http://www.fema.gov/business/nfip/manual200610.shtm It should be noted that flood insurance rates are per $100 of coverage. Under each category on the rate chart, two rates are printed that look similar to the following: .51/.06 The first rate (e.g., .51 in the example above) is applied to the basic amount of flood insurance. The second rate (e.g., .06 in the example above) is applied to the additional amount of flood insurance. You will notice that some rate tables reflect a series of asterisks (***). This indicates that an underwriter must calculate the premium rate on a Submit for Rate basis, as referenced above. June 2008 31 Applications Overview When submitting an application, it is important that a correct and complete application be prepared. There are two application forms: The Standard application is used for SFIP, RCBAP, MPPP, and Scheduled Building policies. The application requests information specific to these policy types. The PRP application should be completed for the PRP policy. It is a simplified application that requests information unique to PRP eligibility and provides the available coverage combinations and premiums. Regardless of the type of application submitted, the agent must complete ALL fields on the application, sign and date the application, and mail it to our office with the full annual premium and any required supporting documentation. Since flood coverage cannot be bound, applications with missing or inconsistent information will pend, causing a potential delay in coverage for the applicant. June 2008 32 Endorsements Overview An endorsement is a change, correction, deletion, or addition to an existing policy. A non-money endorsement is a change which does not require additional premium in order to process. Examples of non-money endorsements include the following: Mortgagee Clauses Mailing Address Insured Name A money endorsement is a change, which requires additional premium in to process. Examples of money endorsements include the following: Additional or Increased Coverage Reduction in Deductibles Change in Rating Elements Some Endorsements require the insured’s signature to process. Examples of these endorsements include the following: Change of Agent Decrease in Coverage Change/Addition/Removal of an insured name Some endorsements require additional documentation in order to process. Examples of these endorsements include the following: Correction only of property address due to an error – requires proof, i.e., tax bill, closing documents, etc. Correction only of property address due to 911 or other mandatory changes – requires proof of mandatory change or written statement Decrease in Coverage – requires proof of building replacement cost value to verify over-insurance Decrease in Deductible – requires letter from mortgagee Some policy elements cannot be changed through an endorsement. The following items cannot be endorsed: Complete Change in Property Address Policy Effective Dates Policy Type (SFIP, PRP, RCBAP or MPPP) June 2008 33 Endorsements Effective Just like new business, there are very specific rules regarding Date calculating effective dates for endorsements. Non-money Rules endorsements should be effective the date the change actually went into effect. For increased or additional coverage requests, the 30-day waiting period applies. Refer to the rules below for specific guidelines in calculating effective dates for endorsements. Not Due to Loan Activity or Map Revision IF the receipt date is... THEN add... TO... 1-10 days after the endorsement 30 days The endorsement date to date determine the effective date. 11 days or more after the 30 days The receipt date to endorsement date determine the new effective date. In connection with making, extending, or renewing a loan IF… THEN... Both the endorsement submission The effective date will be the loan closing date. date and the premium presentment date are on or prior to the loan closing date The premium presentment date is If the payment is from the insured, the effective date after the loan closing date but within is the later of the endorsement submission or the 29 days after the loan closing date premium presentment date. If the payment is NOT from the insured, the effective date is the later of the endorsement submission date or loan closing date. The premium presentment date is The Standard 30 day wait rule applies. more than 29 days after the loan closing date *If a loss occurs within the first 30 days of the endorsed policy period, evidence that the loan closing occurred must be provided before the loss can be adjusted and settled. Due to Map Revision IF the receipt date is... THEN add... TO... 1-10 days after the endorsement 1 day The endorsement date to date and the endorsement date determine the effective date. is within 13 months from the map revision date* 11 days or more after the 1 day The receipt date to endorsement date determine the new effective date. June 2008 34 Renewals Overview A flood insurance policy is not a continuous policy. It expires at 12:01 a.m. on the last day of the policy term. To facilitate the renewal of the policy, a renewal notice is mailed for all policies eligible for renewal. Some policies may not be eligible for renewal due to the reasons listed below. In these cases, an underwriter will contact the agent to obtain the necessary information if applicable so a renewal bill can be generated. Ineligible Renewal Reason Action To Be Taken By Agent. Property Exceeds PRP loss The company is notified by the NFIP requirements or is no longer located in in advance of the expiration date an eligible PRP flood zone. regarding any change in eligibility for PRPs. For those policies no longer eligible for a PRP, a Standard flood policy renewal-offer at the same coverage amounts will be provided. Repetitive Loss Targeted Property The agent and insured will be advised that the policy can not be renewed by the company, but that a renewal-offer will be provided by the NFIP-Special Direct Facility (SDF) Tentative/Provisional Rates The agent will need to provide all required underwriting information necessary to rate the policy. Builder’s Risk The agent will need to provide the date construction was completed. If an Elevation Certificate was originally submitted, a new certificate based on completed construction must be provided to certify the elevations. Community Suspended The policy cannot be renewed. Timeline The list below outlines the renewal timeline. This timeline should assist agents in determining what to expect. 45 days prior to the policy expiration – First Renewal Notice is mailed to the payor of the policy. The Renewal Notice will display two options: Option A provides the premium amount required to renew the policy at the same amount of coverage as the previous year. June 2008 35 Renewals Option B provides the premium amount required to renew at an inflationary factor of 10% for the building and 5% for the contents. 1 day prior to policy expiration – Second Renewal Notice is mailed to the agent, insured, and lender if premium payment has not yet been received. 15 days past policy expiration – Final Renewal Notice is mailed to the lender on the file. 30 days past policy expiration – Policy lapses and a new effective date will be determined based upon the receipt date of the premium beyond the 30- day grace period after the policy expiration date. 90 days past policy expiration – The agent must submit a new application. The policy will get a new policy number and new effective dates based on the receipt date of the new application and premium. Effective As a rule, the next renewal term is effective on the expiration date Date of the previous term. This allows for continuous coverage. The Rules payor is encouraged to submit the renewal premium prior to policy expiration, however a lapse in coverage will not occur until the end of the 30-day grace period after policy expiration. The rules below will assist in understanding how the effective date rules apply to renewals. Renewals at the same coverage amount (Option A), inflationary coverage amount (Option B), or next higher PRP option: IF the premium is received... THEN... 1-29 days after the expiration date The policy will retain the original effective date. 30-89 days after the expiration date 30 days will be added to the receipt date to determine the new effective date. 90 days or greater than the expiration date The agent MUST submit a new application. Renewals at increased coverage amounts other than the inflationary coverage amount or more than the next higher PRP option: IF the premium is received ... THEN... 29 days or more prior to the renewal The policy will be renewed for the limits requested and will retain the original effective date. June 2008 36 Renewals IF the premium is received ... THEN... Between 29 days prior to the expiration date The policy will be renewed with inflation factor and 29 days after the expiration date limits. The remainder of the increase will be processed as an endorsement with an effective date 30 days from the receipt of the premium. 30-89 days after the expiration date The policy will be renewed for the limits requested with an effective date calculated by adding 30 days to the receipt date. 90 days or greater than the expiration date The agent must submit a new application. June 2008 37 Cancellations/Nullifications Overview Flood insurance may be terminated at any time, however, a refund will only be provided under certain instances. Because of the seasonal nature of flooding, the Federal Government has strict guidelines regarding when a cancelled flood insurance policy will receive a full or partial refund. A cancellation is the termination of an insurance policy before the end of the policy period. A nullification declares a transaction invalid from its inception. Valid A policy can only be cancelled with a refund, if there is a Reasons valid cancellation reason. The chart below provides a list of the cancellation reasons and the required documentation. All cancellation requests require the insured’s signature. Most nullification reasons do not require the insured’s signature. Reason Explanation Required Documentation Code 1 Building sold or removed Completed cancellation request with insured & agent signatures, proof of sale 2 Contents sold or removed (Contents Completed cancellation request with only policies) insured & agent signatures, proof of removal 3 Rewritten to establish common Completed cancellation request with effective dates with other insurance insured & agent signatures, evidence coverage of new policy (i.e. dec page) 4 Duplicate policies Completed cancellation request with insured and agent signatures, evidence of duplicate policy (i.e. dec page) 5 Non-payment Completed cancellation request with agent signature, evidence of insufficient funds from agent’s bank 6 Risk not eligible for coverage Completed cancellation request with agent signature, a detailed explanation (i.e. tax records, 1316 declaration, photos ) 7 Property closing did not occur Completed cancellation request with insured & agent signature, proof (i.e. statement from Title co., lender, attorney) 8 Policy not required by mortgagee – Completed cancellation request with prior to closing insured & agent signature, mandatory purchase letter, a statement from the mortgagee and revised zone determination 9 No longer located in SFHA – not Completed cancellation request with required by mortgagee insured & agent signature, a letter from the mortgagee, revised map June 2008 38 Cancellations/Nullifications Reason Explanation Required Documentation Code 10 Condo policy converting to RCBAP Completed cancellation request with insured & agent signature, and evidence of new RCBAP policy & value of unit 12 Mortgage paid off Completed cancellation request with insured & agent signature, and statement from mortgagee re: loan payoff & original requirement for insurance 13 Voidance prior to effective date – prior Completed cancellation request with to end of 30-day waiting period or insured & agent signature effective date 15 No longer located in SFHA – by FEMA Completed cancellation request with review – not required by mortgagee insured & agent signature, copy of FEMA determination letter, and statement from mortgagee 16 Duplicate policies – private insurance Completed cancellation request with insured & agent signature, evidence duplicate private insurance, statement from mortgagee accepting the non-NFIP policy 18 Mortgage paid off on MPPP Completed cancellation request with agent & insured signature, statement from mortgagee re: loan payoff & original requirement for insurance 19 No longer located in SFHA – by LOMA Completed cancellation request with or LOMR – not required by mortgagee insured & agent signature, copy of LOMA or LOMR, and statement from mortgagee 20 Policy was written to wrong facility – Completed cancellation request with Repetitive Loss Property insured & agent signature, copy of RLTG report from NFIP 21 Continuous Lake Flooding or Closed Completed cancellation request with Basin Lakes insured & agent signature, FEMA notification 22 Cancel/Rewrite – Misrating Internal Use 23 Fraud Handled by NFIP 24 Cancel/Rewrite Standard to PRP due Copy of revised map, LOMA or to Map Revision, LOMA, LOMR LOMR June 2008 39 Exhibits Exhibit A Community Rating System (CRS) Page 41 Exhibit B Sample Flood Hazard Boundary Map (FHBM) 42 Exhibit C Sample Flood Insurance Rate Map (FIRM) 43 Exhibit D Flood Hazard Zone Determination Form 44 Exhibit E NFIP Application Form – Standard 45 Exhibit F NFIP Application Form – PRP 47 Exhibit G NFIP Endorsement Form 48 Exhibit H NFIP Cancellation Form 49 Exhibit I Instructional Elevation Certificate 50 Exhibit J FEMA Elevation Certificate and Instructions 52 Exhibit K Building Diagrams (A zones) 62 June 2008 40 June 2008 41 June 2008 42 June 2008 43 June 2008 44 June 2008 45 June 2008 46 June 2008 47 June 2008 48 June 2008 49 June 2008 50 June 2008 51 June 2008 52 June 2008 53 June 2008 54 June 2008 55 June 2008 56 June 2008 57 June 2008 58 June 2008 59 June 2008 60 June 2008 61 June 2008 62 June 2008 63