October 2011 Flood Insurance Manual

Transcription

1 FEMA NFIP C h a n g e s October 2011 Flood Insurance Manual 1

2 Significant Revisions The Changes Where to find the Change Building Occupancy Classification Updates Improvements and Betterments Coverage Rate Increases New Elevation Rating Requirement Individual Non-residential Unit Owners Contents Coverage Attached Garages for Single-family Non-elevated Buildings GR, APP, PRP, and DEF Sections GR Section RATE, CONDO, MPPP, PR, and LFP Sections RATE and CONDO Sections GR and CONDO Sections LFG Section Significant Revisions The Changes Optional Reduction of Coverage when Converting a PRP Updates to years of refund eligibility and receipt date requirements Updated Documentation Requirements In CBRS or OPAS Updated SRL processing and sample letters for policyholders, agents, and lenders New Definitions For Foundation Walls And Masonry Walls Where to find the Change PRP Section CN Section CBRS Section SRL Section DEF Section 2

3 Building Occupancy Classification Updates Single-Family Dwelling A residential single family dwelling, or a single family dwelling unit in a condo building. Incidental occupancies are permitted if limited to less than 50% of the building s total floor area. Incidental occupancies: Offices, private schools, studios, or small service operations within a residential building. Single Family Dwelling Coverage: $250,000/building. Building Occupancy Classification Updates 2 4 Family Dwelling A residential building that contains 2-4 units. Incidental occupancies are permitted if the total area of such occupancies is limited to less than 25% of the total floor area within the building. Excludes hotels and motels with normal room rentals for less than 6 months. 2-4 Family Dwellings: $250,000/building 3

4 Building Occupancy Classification Updates Other Residential Building Any residential building with more than 4 units. The total area of incidental occupancy is limited to less than 25% of the total floor area within the building. Other Residential: $250,000/building Building Occupancy Classification Updates Non-Residential Building A commercial or non-habitational building. Includes hotels & motels with guest occupancy less than 6 months, small business, schools, churches, condominium buildings with less than 75% of its total floor area in residential use, and even agricultural buildings Non-Residential: $500,000/building 4

5 Improvements and Betterments Coverage Personal Property Coverage Improvements and Betterments Coverage Personal Property Coverage 10% of personal property coverage limit Applies to fixtures, alterations, installations or additions Made or acquired solely at the tenant s expense Reduces amount of coverage for personal property For Example: Insured purchased $100,000 personal property coverage $10,000 available for improvements or betterments If insured uses $10,000 coverage Coverage B is reduced to $90,000 for all other personal property items 5

6 Improvements and Betterments Coverage Building Coverage Improvements and Betterments Coverage Building Coverage Tenant may purchase higher improvements and betterments limits if: Lease agreement requires tenant purchase insurance coverage for tenant s improvements and betterments States that tenant is responsible for repair of building and/or improvements or betterments NOTES: Duplicate coverage not permitted Only one policy for building coverage Building coverage cannot exceed program maximum Policy issued in either name of building owner, or Names of building owner and the tenant 6

7 Rate Changes Rate Increases Flood Zone 4% Overall Rate Increase Average, Post-FIRM V Zones 5% A Zones, X Zones, MPPP 7% Pre-FIRM V Zones FIM PR Page 3 FIM Rate Page 11 Provisional Rate Increases and Tentative Rate Increases New Elevation Rating Requirement A or AH = EC Required AO = EC Required or Letter of Compliance from community official 7

8 New Elevation Rating Requirement Optional Rating for Zones AO, AH: Individual Non-residential Unit Owners Contents Coverage Dwelling Form General Property Form 10% Personal Property Limit of Liability Additions and Alterations Reduces amount of personal property coverage 8

9 Non-elevated Buildings Exclusions & Attached Garages for Single Family Buildings Clarification of May 2011 Manual Change Non-Elevated Buildings A Zone Rule: The Lowest Floor used for rating is the building s lowest floor including a basement. Example Diagram 1A Slab on Grade C2a SLAB 18 9

10 Non-Elevated Buildings A Zone Rule : If a building described and rated as a single-family dwelling located in an A Zone has an attached garage floor elevation at or above the Base Flood Elevation (BFE), the garage floor may be excluded for rating. C2a C2d (HAG) BFE SLAB BFE (LAG) 19 Non-Elevated Buildings A Zone Rule : An attached garage floor below the BFE can be excluded as the lowest floor for rating, if the garage has no machinery or equipment. C2a C2d (HAG) BFE SLAB BFE (LAG) 20 10

11 Non-Elevated Buildings A Zone Rule : An attached garage floor below the BFE has machinery and equipment, it can be excluded as the lowest floor for rating, if: 1. Building is a single family dwelling, Non-elevated, A Zone building 2. Garage floor is below the level of the building and below the BFE 3. Garage has proper openings C2a C2d (HAG) BFE SLAB H W BFE (LAG) 21 Changes, Requirements, & Effects Change Requirements and Effects Optional Reduction of Coverage when Converting a PRP PRP must be canceled and rewritten to standard policy. Policyholders have 30 days to pay additional premium, or 60 days to obtain additional rating information followed by 30 days to remit premium. Option to delete or reduce coverage to wholly or partially reduce underpayment amount. Cancel and Rewrites Due to Misrating Standard rated policy is eligible for PRP Support documentation: LOMA s, LOMR s, zone determinations, copies of maps 11

12 Changes, Requirements, & Effects Change Requirements and Effects Coastal Barrier Resources System (CBRS) and/or Otherwise Protected Area (OPA) Acceptable Documentation includes one of the following: A copy of the most recent flood map panel marked to show the exact location of the building; A letter indicating that the building is not located in a CBRS or OPA, signed and dated by a local community official or U.S. Fish & Wildlife Services; An EC indicating that the building is not located in a CBRS area or OPA, signed and dated by a surveyor, an engineer, an architect, or a local community official; A flood zone determination certification indicating that the building is not located in a CBRS area or OPA, that guarantees the accuracy of the information Severe Repetitive Loss Processing Requirements 12

13 Updated SRL Sample Letters New Definitions For Foundation Walls and Masonry Walls 13

14 October 2011 Changes