National Flood Insurance Program Bureau and Statistical Agent

National Flood Insurance Program Bureau and Statistical Agent Flood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager i. Service Team, Region X KMinich@ostglobal. com P: 360 -658 -8188

Housekeeping • Attendees may be muted to reduce background noise • To increase efficiency and so that we can end on time, – Use “Raise Hand” icon if you want to speak – Use “Q&A” feature to ask a question • Please do NOT put your phone on “hold”, it plays the hold music for everyone else on this call. – If you have to step away, mute your phone or hang up and rejoin the call later. 2

National Flood Insurance Program Bureau and Statistical Agent Flood Insurance Two-Year Preferred Risk Policy Eligibility Extension Kristin Minich, Regional Manager i. Service Team, Region X KMinich@ostglobal. com P: 360 -658 -8188

Two-Year PRP Eligibility Extension A New Low-Cost Flood Insurance Option Two-Year Preferred Risk Policy (PRP) Eligibility Extension

Lesson One The Basics • PRP Background – A Low Risk Rating Structure – Moderate-Low Risk Flood Zones • B, C, D and X Zones – Standard Flood Insurance Policy • Dwelling Form – Favorable Loss History

The Basics, continued • Learn more about the PRP, FEMA offers additional information online in the FEMA Library – Search Preferred Risk Policy eligibility to find: – a PRP Study Guide – Talking Points – Fact Sheet and FAQ’s

The PRP Eligibility Extension • Expanding the PRP – Eligibility Criteria – Risk • Likelihood of Loss – Special Flood Hazard Area – Map Changes – Insurance Concept • The lower the risk, the lower the insurance premium.

The PRP Eligibility Extension FEMA Map Service Center website for assistance at: WWW. MSC. FEMA. gov

Outreach Materials Exhibit A Exhibit B

The PRP Eligibility Extension • To learn more about CRS, visit the FEMA website: – FEMA Library Community Rating System (CRS) Coordinator's Manual

Expanding the PRP, continued • Reasons for Expanding the PRP Eligibility Criteria – Cost Savings • Transitioning to Standard Rating – Mandatory Purchase • Regulatory Mandate – Buying Time • Time to Make Changes

Expanding the PRP, continued • More information about the Mandatory Purchase Requirement can be found at the FEMA website: – FEMA Library Mandatory Purchase Guidelines

Expanding the PRP, continued • How the Process Works – – Notify Validate Offer Prepare Property Owner

Expanding the PRP, continued • The Impact Revised Flood Maps Have on NFIP Flood Insurance – – – Newly Designated Flood Zones High-Risk Property Grandfathering Positive of Negative? Be A Hero

Weather, Landscape, or Development changes affect our Lives Rains cause flooding in Oregon December 29 -30, 2011 – Between 8 -10” Snohomish, Washington November 2011 Cordova, Alaska snow in early January 2012 – Between 4 -5’ Flooding is the most common natural disaster

Lesson Two-Year PRP Eligibility Extension Period • How the Two-Year Extension is Determined – Primary Responsibility • Insurance Agent – Teamwork • Floodplain Manager • Insurance Agents

Eligibility Period, continued • How the Two-Year Extension Period is Determined – Either January 1, 2011 or the effective date of the map revision, whichever is later – Map revision is between October 1, 2008 and December 3, 2010 – Map revision on or after January 1, 2011 – New policy, second year of extension

Properties Not Eligible The following properties are ineligible for the extension: • Properties located in an Emergency Program community • Properties newly designated within an SFHA by the initial FIRM, where the initial FIRM is the current FIRM • Properties constructed in an SFHA after the effective date of the most recent FIRM • Repetitive loss properties – including those with a “disqualifying loss” during the eligibility period • Properties insured in the name of a residential condominium association eligible under the Residential Condominium Building Association Policy • Leased Federal Properties • Non-residential condominium units are ineligible for building coverage under the PRP • Residential units in a non-residential condominium building are ineligible for building coverage under the PRP

Lesson Three – Notification and Documentation • Who Notifies – Write-Your-Own – Direct Side • Documentation – – – – LOMA LOMR LODR Recent Map Current and Previous Map Letter Elevation Certificate Flood Zone Determination New 2 -Year PRP Eligibility Extension

Lesson Four - Benefits • Cost Savings • Buys Time – Community and Insured • Education – Risk – Property owners • Prepare and Protect

Grandfathering Benefit At the end of the PRP extension, Policies on these buildings must be written upon its anniversary as standard-rated X-Zone policies. So in reality, The properties as shown on the old map moving from a B, C, D or X zone to SFHAs on the new map will not have to be rated at a SFHAs rate if the policy stays in force throughout the extension and is “grandfathered” after the extension period.

Benefits, Continued Disaster Assistance is not always the answer – Presidential Declaration • Most flooding events are not declared – Loan • Have to be paid back – Must purchase flood insurance • If located in a high-risk flood zone Insurance vs. SBA loan: $50, 000 loan would require $320 monthly for 18. 5 years (average); same $50, 000 insurance coverage would cost $350 for annual premium

Benefits, Continued

Summary • The Basics • What You Need to Know • Acceptable Documentation Congratulations! You’ve completed the Basics!

Summary, Continued • Rating Option • Moderate-Low Risk = Low Premium • PRP Eligibility

Questions? (There will be a test) • Q & A will be open for up to 15 minutes following the class • Use “Raise Hand” feature to address the class verbally 26

Ask the Help Desk • The Region X Help Desk is available for all your questions about the NFIP: Region. XHelp. Desk@starr-team. com

TEST TIME Required for Continuing Education Credit 28

Test FAQ • Required for Continuing Education Credit • 70% is passing • Two attempts • You will receive results via email • Certificate of attendance will be emailed upon completion 29

Thank you!