CHANGES IN FEMA FLOOD MAPPING FLOOD INSURANCE – BUILDING REQUIREMENTS


Ongoing and New Changes in Flood Insurance and Building Requirements for your properties impacted by the flood plain

Yavapai County adopted the Flood Damage Prevention Ordinance in 1981    YCFCD

Yavapai County joined the National Flood Insurance Program in 1985

Joined the Community Rating System in 1991

  • Receiving credits for going beyond the minimum standards now a Class 6
  • Giving 20% discounts to Policyholders in high-risk areas
  • Reduced risk & created community resilience

Realty, Insurance and Lending Professionals are better able to inform clients around buying/selling and flood insurance requirements and options.  

YCFCD is here to provide info and expertise to you the consumer~

  • Depth Grids
  • Changes since last FIRM (Federal Insurance Rate Maps)

Results of new or restudy mapping~

  • Insurance and building implications
  • Changes in Base Flood Elevation may occur
  • Properties that are newly identified as moderate or low risk (coming OUT of the Mapped hazard – risk reduced not removed,
  • Properties with no change – but time to review your risk!

Sedona Verde Valley new mapping areas~

  • Verde Village effective Feb 9, 2015
  • Mescal Gulch Clarkdale New maps become effective on May 14, 2015
  • Verde River Restudy Clarkdale Cottonwood Camp Verde areas. Project has been ongoing for a few years mapping is complete but awaiting FEMA publication.

Tentative publication effective in the Fall 2015

EFFECTS OF MAP CHANGES ON BUILDING

Building~

Where the BFE (Base Flood Elevation) has increased or newly mapped into a Zone A.  You will have to build to codes based on these new changes.

IMPACTS OF MAP CHANGES FLOOD INSURANCE

Moderate and low-Risk zones~ B, C, X Shaded X  over 35% of Arizona Flood claims occur here

High-Risk zones~ AE, A#, A, AO, AH  26% chance of flooding in 30 years

Undetermined Risk~  Zone D

Preferred Risk vs Standard Rates

Preferred Risk Policy Rates~

Must be in Zone C, C or X and the time of application AND each subsequent renewal

Fixed Premiums, fixed limits limited loss history.

STANDARD RATES

  • Rate Tables provided in Flood Insurance Manual
  • Risks not eligible for Preferred Risk Policy
  • Flexible limits

NOTE:  Effective April 1, 2015 Newly mapped into high-risk get PRP rates for 12 months after a new map becomes effective.  Rates then increase up to 18% annually.  One time application to all properties newly mapped in since October 2008 – through April 2016.

Moderate or Low Risk going into High Risk from Newly Mapped areas.

DON’T WAIT!!  Buy PRP now as risk is higher than previously identified

Lower BFE into Higher BFE can be eligible to be grandfather the lower BFE for future ratings!!

Procedure~

  • Ensure property is eligible for PRP (e.g. losses, zone)
  • Chose proper PRP building limit (note: contents are included)
  • Rewrite existing SFIP as a PRP, using last renewal date before map change Conversion

Results~

  • No gaps in coverage (no 30-day wait)
  • A refund to the policyholder (“Stay covered and get money back”)
  • Strengthened customer loyalty for the agent
  • Agent keeps commission on old and new policy

 

REFORM FLOOD INSURANCE ENACTED July 6, 2012 to September 30, 2017~

  • Required changes to all major components of the NFIP
  • Ensure rates more accurately reflect the risk

Reform Legislations Impacts on Insurance~

  • Determinations full risk rate
  • Obtain an Elevation Certificate (EC)
  • Ask their insurance agent to rate using EC
  • Estimate when phase in = full-risk Premium
  • Existing each year to year 9
  • Non-primary residence

Surcharges~

  • Are not subject to Premium increase caps
  • $25 Primary Residences
  • $250. For all other buildings
  • Goes to the National Insurance Reserve Fund

VITAL Resources~

General Information

www.YCFlood.com

Technical Questions about the Flood Maps

FEMA Map Informastion eXchange   http:msc.fema.gov

FEMAMapSpecialist@riskmapcds.com

FloodSmart’s Cost of Flooding Tool

www.floodsmart.gov/Partners   Find an Insurance Agent

Be Informed~  On properties you now own or are anticipating purchasing check into the new rules and go to Yavapai or Coconino county flood control department.  They will be very helpful to let you know how your property fits into the new rules and the implications of any flood insurance or building requirements. . . . .

Realtors will lead you in the right direction of where to go to find out where you stand.

Authored by Esther Talbert, Broker CEO Yavapai Realty

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