TABLE OF CONTENTS SECTION PAGE GENERAL RULES ..................................................................................................................... GR 1 I. COMMUNITY ELIGIBILITY .......................................................................................... GR 1 A. Participating (Eligible) Communities .................................................................... GR 1 B. Emergency Program ............................................................................................ GR 1 C. Regular Program.................................................................................................. GR 1 D. Maps..................................................................................................................... GR 1 E. Probation.............................................................................................................. GR 1 F. Suspension........................................................................................................... GR 1 G. Non-Participating (Ineligible) Communities.......................................................... GR 1 H. Coastal Barrier Resources Act............................................................................. GR 1 I. Federal Land ........................................................................................................ GR 1 II. POLICIES AND PRODUCTS AVAILABLE................................................................... GR 1 A. Standard Flood Insurance Policy ......................................................................... GR 1 B. Insurance Products .............................................................................................. GR 2 III. BUILDING PROPERTY ELIGIBILITY .......................................................................... GR 3 A. Eligible Buildings .................................................................................................. GR 3 B. Single Building...................................................................................................... GR 5 C. Walls..................................................................................................................... GR 5 D. Determination of Building Occupancy.................................................................. GR 5 IV. CONTENTS ELIGIBILITY............................................................................................. GR 6 A. Eligible Contents .................................................................................................. GR 6 B. Vehicles and Equipment ...................................................................................... GR 6 C. Silos, Grain Storage Buildings, and Cisterns ....................................................... GR 6 D. Commercial Contents Coverage.......................................................................... GR 6 V. EXAMPLES OF ELIGIBLE RISKS ............................................................................... GR 6 A. Building Coverage................................................................................................ GR 6 B. Contents Coverage .............................................................................................. GR 7 C. Condominiums ..................................................................................................... GR 7 VI. INELIGIBLE PROPERTY ............................................................................................. GR 7 A. Buildings............................................................................................................... GR 7 B. Container-Type Buildings..................................................................................... GR 7 C. Buildings Entirely Over Water .............................................................................. GR 7 D. Buildings Partially Underground........................................................................... GR 7 E. Basement/Elevated Building Enclosures ............................................................. GR 7 VII. EXAMPLES OF INELIGIBLE RISKS............................................................................ GR 7 A. Building Coverage................................................................................................ GR 7 B. Contents Coverage .............................................................................................. GR 8 C. Non-Residential Condominium Unit..................................................................... GR 8 VIII. POLICY EFFECTIVE DATE......................................................................................... GR 8 A. Evidence of Insurance.......................................................................................... GR 8 B. Start of Waiting Period ......................................................................................... GR 8 C. Presentment of Premium Date Requirements ..................................................... GR 8 D. Effective Date....................................................................................................... GR 9 IX. COVERAGE ................................................................................................................. GR 12 A. Limits of Coverage ............................................................................................... GR 12 B. Deductibles........................................................................................................... GR 12 C. Coverage D -Increased Cost of Compliance (ICC) Coverage ............................ GR 12 TABLE OF CONTENTS SECTION PAGE D. Reduction of Coverage Limits or Reformation..................................................... GR 12 E. Loss Assessments ............................................................................................... GR 13 F. Improvements and Betterments and Tenant’s Coverage .................................... GR 14 X. SPECIAL RATING SITUATIONS ................................................................................. GR 14 A. Tentative Rates .................................................................................................... GR 14 B. Submit-For-Rate................................................................................................... GR 14 C. Provisional Rates ................................................................................................. GR 14 D. Buildings in More Than One Flood Zone ............................................................. GR 14 E. Different Base Flood Elevations (BFEs) Reported............................................... GR 15 F. Flood Zone Discrepancies ................................................................................... GR 15 XI. MISCELLANEOUS RULES.......................................................................................... GR 15 A. Policy Term .......................................................................................................... GR 15 B. Application Submission ........................................................................................ GR 15 C. Delivery of the Policy............................................................................................ GR 15 D. Assignment........................................................................................................... GR 15 E. Producers’ Commissions (Direct Business Only) ................................................ GR 15 F. Contract Agent Rule............................................................................................. GR 15 APPLICATION............................................................................................................................ APP1 I. USE OF THE FORM .................................................................................................... APP 1 II. BUILDING DESCRIPTION........................................................................................... APP 1 III. SCHEDULED BUILDING POLICY ............................................................................... APP 1 IV. COMPLETING PART 1 OF THE FLOOD INSURANCE APPLICATION FORM ......... APP 1 A. Policy Status......................................................................................................... APP 1 B. Policy Term (Billing/Policy Period) ....................................................................... APP 1 C. Agent Information................................................................................................. APP 2 D. Insured Mail Address ........................................................................................... APP 2 E. Disaster Assistance.............................................................................................. APP 2 F. Property Location ................................................................................................. APP 2 G. First Mortgagee .................................................................................................... APP 2 H. Second Mortgagee Or Other................................................................................ APP 2 I. Community Rating Map Information .................................................................... APP 2 J. Current Community Map Information................................................................... APP 3 K. State-Owned Property and Buildings on Federal Land ...................................... APP 3 L. Building................................................................................................................. APP 3 M. Contents ............................................................................................................... APP 6 N. Construction Data ................................................................................................ APP 5 O. Coverage and Rating ........................................................................................... APP 6 P. Signature.............................................................................................................. APP 7 V. COMPLETING PART 2 OF THE FLOOD INSURANCE APPLICATION FORM ......... APP 7 Section I -All Building Types........................................................................................ APP 8 Section II -Elevated Buildings...................................................................................... APP 8 Section III -Manufactured (Mobile) Homes/Travel Trailers.......................................... APP 8 VI. MAILING INSTRUCTIONS........................................................................................... APP 8 VII. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS ............................ APP 9 TABLE OF CONTENTS (Continued) SECTION PAGE RATING ...................................................................................................................................... RATE 1 I. AMOUNT OF INSURANCE AVAILABLE ..................................................................... RATE 1 II. RATE TABLES ............................................................................................................. RATE 1 III. DEDUCTIBLES ............................................................................................................ RATE 12 A. Buy-Back Deductibles .......................................................................................... RATE 12 B. Changes in Deductible Amount............................................................................ RATE 12 IV. INCREASED COST OF COMPLIANCE (ICC) COVERAGE ....................................... RATE 14 V. RATING STEPS ........................................................................................................... RATE 15 VI. PREMIUM CALCULATION .......................................................................................... RATE 16 A. Emergency Program ............................................................................................ RATE 16 B. Regular Program.................................................................................................. RATE 16 VII. KEY POINTS FOR RATING......................................................................................... RATE 17 A. Basic Limits and Additional Limits........................................................................ RATE 17 B. Whole Dollars....................................................................................................... RATE 17 C. Increased Cost of Compliance (ICC) Premium.................................................... RATE 17 D. Federal Policy Fee ............................................................................................... RATE 17 E. Buildings in More Than One Flood Zone ............................................................. RATE 17 F. Different Base Flood Elevations (BFEs) Reported............................................... RATE 17 G. Flood Zone Discrepancies ................................................................................... RATE 17 H. Mortgagee on Policy--Higher Deductible Requested........................................... RATE 17 VIII. REGULAR PROGRAM, POST-FIRM ELEVATION-RATED RISKS............................ RATE 17 A. Elevation Difference ............................................................................................. RATE 17 B. Examples.............................................................................................................. RATE 18 C. Optional Elevation Rating..................................................................................... RATE 19 IX. PRE-FIRM ELEVATED BUILDING RATED AT PRE-FIRM RATES............................ RATE 19 X. AR ZONE AND AR DUAL ZONE RATING................................................................... RATE 19 XI. POST-FIRM AO ZONE RATING.................................................................................. RATE 19 XII. POST-FIRM RATING OF ELEVATED BUILDINGS IN ZONES B, C, X, A99, AND D......................................................................................................................... RATE 19 XIII. REGULAR PROGRAM V ZONE POST-FIRM CONSTRUCTION............................... RATE 19 A. Rating All V Zone Buildings.................................................................................. RATE 19 B. Zones VE and V1-V30--Enclosure Containing Machinery or Equipment Below BFE ........................................................................................ RATE 19 C. 1975-81 Post-FIRM V Zone Construction............................................................ RATE 20 D. 1981 Post-FIRM V Zone Construction ................................................................. RATE 20 E. Elevated Buildings--Post-FIRM V Zone Construction.......................................... RATE 20 XIV. SPECIAL RATING SITUATIONS ................................................................................. RATE 21 A. Tentative Rates .................................................................................................... RATE 21 B. Alternative Rates.................................................................................................. RATE 21 C. Map "Grandfather" Rules--Effect of Map Revisions on Flood Insurance Rates .. RATE 22 D. Post-’81 V Zone Optional Rating.......................................................................... RATE 23 E. Policies Requiring Re-Rating ............................................................................... RATE 23 TABLE OF CONTENTS (Continued) SECTION PAGE F. Submit-for-Rate.................................................................................................... RATE 24 G. Crawlspace........................................................................................................... RATE 25 XV. CONTENTS LOCATION .............................................................................................. RATE 26 A. Single Family Dwellings ....................................................................................... RATE 26 B. Multi-Family and Non-Residential Buildings ........................................................ RATE 26 XVI. FIRMS WITH WAVE HEIGHTS ................................................................................... RATE 30 A. Procedure for Calculating Wave Height Adjustment............................................ RATE 30 B. Wave Heights in Numbered Zones V1-V30 and VE 1981 Post-FIRM Construction ... RATE 30 C. Unnumbered V Zones 1981 Post-FIRM Construction ......................................... RATE 31 D. Rate Selection Procedure .................................................................................... RATE 31 XVII. FLOODPROOFED BUILDINGS................................................................................... RATE 31 A. Elevation Difference ............................................................................................. RATE 31 B. Rating ................................................................................................................... RATE 31 XVIII.THE V-ZONE RISK FACTOR RATING FORM ............................................................ RATE 32 A. Use ..................................................................................................................... RATE 32 B. Submission........................................................................................................... RATE 32 XIX. RATING EXAMPLES.................................................................................................... RATE 49 CONDOMINIUMS ..................................................................................................................... CONDO 1 I. METHODS OF INSURING CONDOMINIUMS............................................................. CONDO 1 A. Residential Condominium: Association Coverage on Building and Contents .... CONDO 1 B. Residential Condominium: Unit Owner's Coverage on Building and Contents. . CONDO 1 C. Nonresidential (Commercial) Condominium: Building and Contents.................. CONDO 1 D. Nonresidential (Commercial) Condominium: Unit Owner's Coverage (Contents)............................................................................................................. CONDO 2 II. POLICY FORM............................................................................................................. CONDO 6 III. ELIGIBILITY REQUIREMENTS ................................................................................... CONDO 6 A. General Building Eligibility.................................................................................... CONDO 6 B. Condominium Building in the Course of Construction ......................................... CONDO 6 IV. COVERAGE ................................................................................................................. CONDO 7 A. Property Covered ................................................................................................. CONDO 7 B. Coverage Limits ................................................................................................... CONDO 7 C. Replacement Cost................................................................................................ CONDO 7 D. Coinsurance ......................................................................................................... CONDO 7 E. Assessment Coverage ......................................................................................... CONDO 7 V. DEDUCTIBLES AND FEES ......................................................................................... CONDO 8 A. Deductibles........................................................................................................... CONDO 8 B. Federal Policy Fee ............................................................................................... CONDO 8 VI. TENTATIVE RATES AND SCHEDULED BUILDINGS ................................................ CONDO 8 VII. COMMISSIONS (DIRECT BUSINESS ONLY)............................................................. CONDO 8 VIII. CANCELLATION OR ENDORSEMENT OF TABLE OF CONTENTS (Continued) SECTION PAGE UNIT OWNERS' DWELLING POLICIES...................................................................... CONDO 8 IX. APPLICATION FORM .................................................................................................. CONDO 8 A. Type of Building ................................................................................................... CONDO 8 B. Replacement Cost Value .................................................................................... CONDO 9 C. Coverage.............................................................................................................. CONDO 9 D. Rates and Fees.................................................................................................... CONDO 9 X. CONDOMINIUM RATING EXAMPLES........................................................................ CONDO 23 PREFERRED RISK POLICY...................................................................................................... PRP 1 I. GENERAL DESCRIPTION........................................................................................... PRP 1 II. ELIGIBILITY REQUIREMENTS ................................................................................... PRP 1 A. Flood Zone .......................................................................................................... PRP 1 B. Occupancy .......................................................................................................... PRP 1 C. Loss History......................................................................................................... PRP 1 III. INELIGIBILITY.............................................................................................................. PRP 2 IV. DOCUMENTATION...................................................................................................... PRP 2 V. RENEWAL.................................................................................................................... PRP 2 VI. COVERAGE LIMITS..................................................................................................... PRP 2 VII. REPLACEMENT COST COVERAGE .......................................................................... PRP 2 VIII. DISCOUNTS/FEES/ICC PREMIUM............................................................................. PRP 2 IX. DEDUCTIBLES ............................................................................................................ PRP 2 X. ENDORSEMENTS ....................................................................................................... PRP 6 XI. CONVERSION OF STANDARD RATED POLICY TO PRP DUE TO MISRATING .... PRP 6 XII. CONVERSION OF STANDARD RATED POLICY TO PRP DUE TO MAP REVISION, LOMA, OR LOMR .......................................................................... PRP 6 XIII. CONVERSION OF PRP TO STANDARD RATED POLICY ........................................ PRP 6 XIV. COMPLETING THE FLOOD INSURANCE PREFERRED RISK POLICY APPLICATION............................................................. PRP 6 A. Policy Status......................................................................................................... PRP 6 B. Policy Term .......................................................................................................... PRP 6 C. Agent Information................................................................................................. PRP 7 D. Insured’s Mailing Address .................................................................................... PRP 7 E. Disaster Assistance.............................................................................................. PRP 7 F. First Mortgagee .................................................................................................... PRP 7 G. Second Mortgagee or Other................................................................................. PRP 7 H. Property Location ................................................................................................. PRP 7 I. Community ........................................................................................................... PRP 7 J. Building and Contents .......................................................................................... PRP 8 K. Notice ................................................................................................................... PRP 8 L. Premium ............................................................................................................... PRP 8 M. Signature.............................................................................................................. PRP 8 TABLE OF CONTENTS (Continued) SECTION PAGE LEASED FEDERAL PROPERTIES ........................................................................................... LFP 1 I. GENERAL DESCRIPTION........................................................................................... LFP 1 II. NOTIFICATION REQUIREMENTS .............................................................................. LFP 1 III. TENTATIVE RATES..................................................................................................... LFP 1 IV. APPEALS ..................................................................................................................... LFP 1 INDEX ...................................................................................................................................... IND 1 vi October 1, 2009 GENERAL RULES I. COMMUNITY ELIGIBILITY F. Suspension A. Participating (Eligible) Communities Flood insurance may be written only in those communities that have been designated as participating in the National Flood Insurance Program (NFIP) by the Federal Emergency Management Agency (FEMA). B. Emergency Program The Emergency Program is the initial phase of a community's participation in the NFIP. Limited amounts of coverage are available. C. Regular Program The Regular Program is the final phase of a community's participation in the NFIP. In this phase, a Flood Insurance Rate Map is in effect and full limits of coverage are available. D. Maps Maps of participating communities indicate the degree of flood hazard so that actuarial premium rates can be assigned for insurance coverage on properties at risk. Additional information is provided in the Flood Maps section of this manual. 1. Flood Hazard Boundary Map (FHBM) ­Usually the initial map of a community. Some communities entering the Regular Program will continue to use FHBMs renamed a Flood Insurance Rate Map (FIRM), if there is a minimum flood hazard. 2. Flood Insurance Rate Map (FIRM) -The official map of the community containing detailed actuarial risk premium zones. 3. Rescission -Participating communities in the Emergency Program remain in the Emergency Program if an FHBM is rescinded. E. Probation Probation, imposed by the FEMA Regional Director, 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 surcharge is applied to all NFIP policies, including the Preferred Risk Policy, issued on or after the Probation Surcharge effective date. Probation is terminated if deficiencies are corrected. However, if a community does not take remedial or corrective measures while on probation, it can be suspended. Flood insurance may not be sold or renewed in communities that are suspended from the NFIP. When a community is suspended, coverage remains in effect until expiration. These policies cannot be renewed. G. Non-Participating (Ineligible) Communities When FEMA provides a non-participating community with a Flood Hazard Boundary Map (FHBM) or Flood Insurance Rate Map (FIRM) delineating its flood-prone areas, the community is allowed 1 year in which to join the NFIP. If the community chooses not to participate in the NFIP, flood insurance is not available. H. Coastal Barrier Resources Act Flood insurance may not be available for buildings and/or contents located in coastal barriers or otherwise protected areas. See the Coastal Barrier Resources System section for additional information. I. Federal Land Buildings and/or contents located on land owned by the federal government are eligible for flood insurance if the federal agency having control of the land has met floodplain management requirements. All federal land is recorded under the local community number even if that local community does not have jurisdiction. Certain Leased Federal Property must be actuarially rated. This includes buildings that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. See the Leased Federal Property section for additional information. II. POLICIES AND PRODUCTS AVAILABLE A. Standard Flood Insurance Policy The Standard Flood Insurance Policy (SFIP) consists of the Dwelling Form, the General Property Form, and the Residential Condominium Building Association Policy (RCBAP) Form. The three SFIP forms are reproduced in the Policy section of this manual. The table on the next page shows how agents can use the three SFIP forms to insure a variety of residential and non-residential building and contents risks. Matching Standard Flood Insurance Policy Forms with Specific Risks SFIP FORM ELIGIBILITY Dwelling Form Issued to homeowner, residential renter, or owner of residential building containing two to four units. In NFIP Regular Program community or Emergency Program community, provides building and/or contents coverage for: • Detached, single-family, non-condominium residence with incidental occupancy limited to less than 50% of the total floor area; • Two-to four-family, non-condominium building with incidental occupancy limited to less than 25% of the total floor area; • Dwelling unit in residential condominium building; • Residential townhouse/rowhouse; • Personal contents in a non-residential building. General Property Form Issued to owner of residential building with five or more units. In NFIP Regular Program community or Emergency Program community, provides building and/or contents coverage for these and similar “other residential” risks: • Hotel or motel with normal guest occupancy of 6 months or more; • Tourist home or rooming house with five or more lodgers; • Apartment building; • Residential cooperative building; • Dormitory; • Assisted-living facility. Issued to owner or lessee of non-residential building or unit. In NFIP Regular Program community or Emergency Program community, provides building coverage and/or contents coverage for these and similar non-residential risks: • Hotel or motel with normal guest occupancy of less than 6 months; • Licensed bed-and-breakfast inn; • Retail shop, restaurant, or other business; • Mercantile building; • Grain bin, silo, or other farm building; • Agricultural or industrial processing facility; • Factory; • Warehouse; • Poolhouse, clubhouse, or other recreational building; • House of worship; • School; • Nursing home; • Non-residential condominium; • Condominium building with less than 75% of its total floor area in residential use; • Detached garage; • Tool shed; • Stock, inventory, or other commercial contents. Residential Condominium Building Association Policy (RCBAP) Issued to residential condominium association on behalf of association and unit owners. In NFIP Regular Program community only, provides building coverage and, if desired, coverage of commonly owned contents for residential condominium building with 75% or more of its total floor area in residential use. B. Insurance Products 1. Preferred Risk Policy The Preferred Risk Policy (PRP) is available in moderate-risk flood zones B, C, and X. Formerly, only single-family and two-to four-family dwellings were eligible for coverage. Other residential and non-residential buildings became eligible for coverage effective May 1, 2004. Greatly expanded coverage options for residential and non­residential buildings are effective May 1, 2008. Information about coverage options and eligibility requirements for the Preferred Risk Policy is provided in the PRP section of this manual. 2. Mortgage Portfolio Protection Program (MPPP) The Mortgage Portfolio Protection Program (MPPP) offers a force-placed policy available only through a Write Your Own Company. Additional information is provided in the MPPP section of this manual. 3. Scheduled Building Policy 2. Manufactured (Mobile) Homes/Travel The Scheduled Building Policy is available to cover 2 to 10 buildings. The policy requires a specific amount of insurance to be designated for each building. To qualify, all buildings must have the same ownership and the same location. The properties on which the buildings are located must be contiguous. 4. Group Flood Insurance Group Flood Insurance is issued under the NFIP Direct Program in response to a Presidential disaster declaration. Disaster assistance applicants, in exchange for a modest premium, receive a minimum amount of building and/or contents coverage for a 3-year policy period. The Group Flood Insurance Policy cannot be cancelled. However, an applicant may purchase a regular Standard Flood Insurance Policy through the NFIP. When this is done, the group flood certificate for the property owner is void, and premium will not be refunded. III. BUILDING PROPERTY ELIGIBILITY A. Eligible Buildings Insurance may be written only on a structure with two or more outside rigid walls and a fully secured roof that is affixed to a permanent site. Buildings must resist flotation, collapse, and lateral movement. At least 51 percent of the actual cash value of buildings, including machinery and equipment, which are a part of the buildings, must be above ground level, unless the lowest level is at or above the Base Flood Elevation (BFE) and is below ground by reason of earth having been used as insulation material in conjunction with energy-efficient building techniques. 1. Appurtenant Structures The only appurtenant structure covered by the SFIP is a detached garage at the described location, which is covered under the Dwelling Form. Coverage is limited to no more than 10 percent of the limit of liability on the dwelling. Use of this insurance is at the policyholder’s option but reduces the building limit of liability. Appurtenant structure coverage does not apply to any detached garage used or held for use for residential (dwelling), business, or farming purposes. Trailers Eligible buildings also include: • A manufactured home (a “manu­factured home,” also known as a mobile home, is a structure built on a permanent chassis, transported to its site in one or more sections, and affixed to a permanent foundation); or • A travel trailer without wheels, built on a chassis and affixed to a permanent foundation, that is regulated under the community’s floodplain management and building ordinances or laws. NOTE: All references in this manual to manufactured (mobile) homes include tra­vel trailers without wheels. a. Manufactured (Mobile) Homes -New Policies Effective on or After October 1, 1982 To be insurable under the NFIP, a mobile home: • Must be affixed to a permanent foundation. A permanent foun­dation for a manufactured (mobile) home may be poured masonry slab or foundation walls, or may be piers or block supports, either of which support the mobile home so that no weight is supported by the wheels and axles of the mobile home. • Must be anchored if located in a Special Flood Hazard area. For flood insurance coverage, all new policies and subsequent renewals of those policies must be based upon the specific anchoring requirements identified below: A manufactured (mobile) home located within a Special Flood Hazard Area must be anchored to a permanent foundation to resist flotation, collapse, or lateral movement by providing over-the-top or frame ties to ground anchors; or in accordance with manufacturer’s specifications; or in compliance with the community’s floodplain man­agement requirements. b. Manufactured (Mobile) Homes ­Continuously Insured Since September 30, 1982 All manufactured (mobile) homes on a foundation continuously insured since September 30, 1982, can be renewed under the previously existing require­ments if affixed to a permanent foundation. Manufactured (mobile) homes in compliance with the foundation and anchoring requirements at the time of placement may continue to be renewed under these requirements even though the requirements are more stringent at a later date. To be adequately anchored, the manufactured (mobile) home is attached to the foundation support system, which in turn is established (stabilized) into the ground, sufficiently to resist flotation, collapse, and lateral movement caused by flood forces, including wind forces in coastal areas. 3. Silos and Grain Storage Buildings 4. Cisterns 5. Buildings Entirely Over Water -Constructed or Substantially Improved Before October 1, 1982 Follow "submit for rate" instructions in the Rating section for insurance on Post-FIRM buildings located entirely in, on, or over water or seaward of mean high tide for these buildings. Pre-FIRM buildings constructed before October 1, 1982, are eligible for normal Pre-FIRM rates. If the building was constructed or substan­tially improved on or after October 1, 1982, the building is ineligible for coverage. 6. Buildings Partially Over Water Follow “submit for rate” instructions in the Rating section for buildings partially over water. However, Pre-FIRM buildings are eligible for normal Pre-FIRM rates. 7. Boathouses Located Partially Over Water The non-boathouse parts of a building into which boats are floated are eligible for coverage if the building is partly over land and also used for residential, commercial, or municipal purposes and is eligible for flood coverage. The area above the boathouse used for purposes unrelated to the boathouse use (e.g., residential occupancy) is insurable from the floor joists to the roof including walls. A common wall between the boathouse area and the other part of the building is insurable. The following items are not covered: a. The ceiling and roof over the boathouse portions of the building into which boats are floated. b. Floors, walkways, decking, etc., within the boathouse area, or outside the area, but pertaining to boathouse use. c. Exterior walls and doors of the boathouse area not common to the rest of the building. d. Interior walls and coverings within the boathouse area. e. Contents located within the boathouse area, including furnishings and equipment, relating to the operation and storage of boats and other boathouse uses. The Flood Insurance Application form with photographs, but without premium, must be submitted to the NFIP for premium determination. No coverage becomes effective until the NFIP approves the insurance application, determines the rate, and receives the premium. However, buildings in existence prior to October 1, 1982, may continue to be rated using the published rate. 8. Buildings in the Course of Construction The NFIP rules allow the issuance of an SFIP to cover a building in the course of construction before the building is walled and roofed. These rules provide lenders an option to require flood insurance coverage at the time that the development loan is made to comply with the mandatory purchase requirement outlined in the Flood Disaster Protection Act of 1973, as amended. The policy is issued and rated based on the construction designs and intended use of the building. Buildings in the course of construction that have yet to be walled and roofed are eligible for coverage except when construction has been halted for more than 90 days and/or if the lowest floor used for rating purposes is below the Base Flood Elevation (BFE). Materials or supplies intended for use in such construction, alteration, or repair are not insurable unless they are contained within an enclosed building on the premises or adjacent to the premises. To determine the eligibility of a residential condominium building under construction, see page CONDO 6 in this manual. 9. Severe Repetitive Loss Properties These must be processed by the NFIP Special Direct Facility. See the Severe Repetitive Loss section of this manual for information. B. Single Building To qualify as a single building structure and be subject to the single building limits of coverage, a building must be separated from other buildings by intervening clear space or solid, vertical, load-bearing division walls. A building separated into divisions by solid, vertical, load-bearing walls from its lowest level to its highest ceiling may have each division insured as a separate building. A solid load-bearing interior wall cannot have any openings and must not provide access from one building or room into another (partial walls). However, if access is available through a doorway or opening, then the structure must be insured as one building unless the building is self contained; it is a separately titled building contiguous to the ground; it has a separate legal description; and it is regarded as a separate property for other real estate purposes, meaning that it has most of its own utilities and may be deeded, conveyed, and taxed separately. Additions and Extensions The NFIP insures additions and extensions attached to and in contact with the building by means of a rigid exterior wall, a solid load-bearing interior wall, a stairway, an elevated walkway, or a roof. At the insured’s option, additions and extensions connected by any of these methods may be separately insured. Additions and extensions attached to and in contact with the building by means of a common interior wall that is not a solid load-bearing wall are always considered part of the building and cannot be separately insured. C. Walls 1. Breakaway Walls For an enclosure's wall to qualify as breakaway, it must meet all of the following criteria: a. Above ground level; and b. Below the elevated floor of an elevated structure; and c. Non-structurally supporting (non-load­bearing walls); and d. Designed to fail under certain wave force conditions; and e. Designed so that, as a result of failure, it causes no damage to the elevated portions of the elevated building and/or its supporting foundation system. 2. Shear Walls Shear walls are used for structural support, but are not structurally joined or enclosed at the ends (except by breakaway walls). Shear walls are parallel (or nearly parallel) to the flow of the water and can be used in any zone. 3. Solid Perimeter Foundation Walls Solid perimeter foundation walls are used as a means of elevating the building in A Zones and must contain proper openings to allow for the unimpeded flow of floodwaters more than 1 foot deep. Solid perimeter foundation walls are not an acceptable means of elevating buildings in V/VE Zones. D. Determination of Building Occupancy The following terms should be used to determine the appropriate occupancy classification: 1. Single Family Dwellings These are non-condominium residential buildings designed for principal use as a dwelling place for one family, or a single-family dwelling unit in a condominium building. Residential single family dwellings are permitted incidental occupancies, including structures with office, professional, private school, or studio occupancies, including a small service operation, if such occupancies are limited to less than 50 percent of the building's total floor area. 2. 2-4 Family Dwellings These are non-condominium residential buildings designed for principal use as a dwelling place of two to four families. Residential buildings, excluding hotels and motels with normal room rentals for less than 6 months' duration and containing no more than 4 dwelling units, are permitted incidental occupancies (see D.1 above). The total area of incidental occupancy is limited to less than 25 percent of the total floor area within the building. 3. Other Residential Buildings These include hotels or motels where the normal occupancy of a guest is 6 months or more, or a tourist home or rooming house which has more than four roomers. This also includes residential buildings, excluding hotels and motels with normal room rentals for less than 6 months' duration and containing more than four dwelling units. These buildings are permitted incidental occupancies (see D.1 above). The total area of incidental occupancy is limited to less than 25 percent of the total floor area within the building. Examples of other residential buildings include dormitories and assisted living facilities. 4. Non-Residential Buildings This category includes all other eligible occupancies (e.g., garages, poolhouses, recreational buildings, agricultural buildings, licensed bed and breakfasts, nursing homes, etc.). IV. CONTENTS ELIGIBILITY A. Eligible Contents Contents must be located in a fully enclosed building. However, under the Dwelling form, in a building that is not fully enclosed, contents must be secured to prevent flotation out of the building. B. Vehicles and Equipment The NFIP covers self-propelled vehicles or machines, provided they are not licensed for use on public roads and are: 1. Used mainly to service the described location; or 2. Designed and used to assist handicapped persons; while the vehicles or machines are inside a building at the described location. C. Silos, Grain Storage Buildings, and Cisterns Contents located in silos, grain storage buildings, and cisterns are insurable. D. Commercial Contents Coverage Commercial contents in a residential property must be insured on the General Property Form. V. EXAMPLES OF ELIGIBLE RISKS Examples of eligible risks are provided below. A. Building Coverage 1. Cooperative Building--Entire Building in Name of Cooperative (General Property Form) Cooperative buildings where at least 75 percent of the area of the building is used for residential purposes are considered as residential occupancies, and can be insured for a maximum building coverage of $250,000 in a Regular Program community under the General Property Form. Since they are not in the condominium form of ownership, they cannot be insured under the RCBAP. 2. Time Sharing Building--Entire Building in Name of Corporation (General Property Form) Timeshare buildings not in the condominium form of ownership where at least 75 percent of the area of the building is used for residential purposes are considered as residential occupancies under the NFIP, and can be insured for a maximum building coverage of $250,000 under the General Property Form. Timeshare buildings in the condominium form of ownership are eligible for coverage and must be insured under the RCBAP. These buildings are subject to the same eligibility, rating, and coverage requirements as other condominiums, including the requirement that 75 percent of the area of the building be used for residential purposes. B. Contents Coverage Parts and equipment as open stock—not part of specific vehicle or motorized equipment—are eligible for coverage. C. Condominiums Refer to pages CONDO 3-5. VI. INELIGIBLE PROPERTY A. Buildings Coverage may not be available for buildings that are constructed or altered in such a way as to place them in violation of state or local floodplain management laws, regulations, or ordinances. Contents and personal property contained in these buildings are ineligible for coverage. For example, section 1316 of the National Flood Insurance Act of 1968 allows the states to declare a structure to be in violation of a law, regulation, or ordinance. Flood insurance is not available for properties that are placed on the 1316 Property List. Insurance availability is restored once the violation is corrected and the 1316 Declaration has been rescinded. B. Container-Type Buildings Gas and liquid tanks, chemical or reactor container tanks or enclosures, brick kilns, and similar units, and their contents are ineligible for coverage. C. Buildings Entirely Over Water Buildings newly constructed or substantially improved on or after October 1, 1982, and located entirely in, on, or over water or seaward of mean high tide are ineligible for coverage. D. Buildings Partially Underground If 50 percent or more of the building's actual cash value, including the machinery and equipment, which are part of the building, is below ground level, the building or units and their contents are ineligible for coverage unless the lowest level is at or above the BFE and is below ground by reason of earth having been used as insulation material in conjunction with energy efficient building techniques. E. Basement/Elevated Building Enclosures Certain specific property in basements and under elevated floors of buildings is excluded from coverage. See the policy contract for specific information. VII. EXAMPLES OF INELIGIBLE RISKS Some specific examples of ineligible risks are provided below. See the policy for a definitive listing of property not covered. A. Building Coverage 1. Boat Repair Dock 2. Boat Storage Over Water 3. Boathouses (exceptions on page GR 4) 4. Camper 5. Cooperative Unit Within Cooperative Building 6. Decks (except for steps and landing; maximum landing area of 16 sq. ft.) 7. Drive-In Bank Teller Unit (located outside walls of building) 8. Fuel Pump 9. Gazebo (unless it qualifies as a building) 10. Greenhouse (unless it has at least two rigid walls and a roof) 11. Hot Tub or Spa (unless it is installed as a bathroom fixture) 12. Open Stadium 13. Pavilion (unless it qualifies as a building) 14. Pole Barn (unless it qualifies as a building) 15. Pumping Station (unless it qualifies as a building) 16. Storage Tank--Gasoline, Water, Chemicals, Sugar, etc. 17. Swimming Pool Bubble 18. Swimming Pool (indoor or outdoor) 19. Tennis Bubble 20. Tent 21. Time Sharing Unit Within Multi-Unit Building 22. Travel Trailer (unless converted to a permanent onsite building meeting the community's floodplain management permit requirements) 23. Water Treatment Plant (unless 51 percent of its actual cash value is above ground) B. Contents Coverage 1. Automobiles--Including Dealer's Stock (assembled or not) 2. Bailee's Customer Goods--Including garment contractors, cleaners, shoe repair shops, processors of goods belonging to others, and similar risks 3. Contents Located in a Structure Not Eligible for Building Coverage 4. Contents Located in a Building Not Fully Walled and/or Contents Not Secured Against Flotation 5. Motorcycles--Including Dealer's Stock (assembled or not) 6. Motorized Equipment--Including Dealer's Stock (assembled or not) C. Non-Residential Condominium Unit The owner of a non-residential condominium unit cannot purchase a unit owner's policy. The association can purchase a condominium association policy to cover the entire building. Contents-only coverage may be purchased by the unit owner. VIII. POLICY EFFECTIVE DATE A. Evidence of Insurance A copy of the Flood Insurance Application and premium payment, or a copy of the declarations page, is sufficient evidence of proof of purchase for new policies. The NFIP does not recognize binders. However, the NFIP recognizes Certificates of Property Insurance or Evidence of Insurance forms provided for renewal policies if the following information is included: • Policy Form/Type (GP, DP, RCBAP*, PRP) • Policy Term • Policy Number • Insured’s Name and Mailing Address • Property Location • Flood Risk Zone • Grandfathered: Y/N • Mortgagee Name and Address • Coverage Limits; Deductibles • Annual Premium B. Start of Waiting Period There is a standard 30-day waiting period for new applications and for endorsements to increase coverage. 1. If the application or endorsement form and the premium payment are received at the NFIP within 10 days from the date of application or endorsement request, or if mailed by certified mail within 4 days from the date of application or endorsement request, then the waiting period will be calculated from the application or endorsement date. Use the application date or endorsement date plus 9 days to determine if the application or endorsement and premium payment were received within 10 days. When sent by certified mail, use the application date or endorsement date plus 3 days to determine if the application or endorsement and premium payment were mailed within 4 days. 2. If the application or endorsement form and the premium payment are received at the NFIP after 10 days from the date of application or endorsement request, or are not mailed by certified mail within 4 days from the date of application or endorsement request, then the waiting period will be calculated from the date the NFIP receives the application or endorsement. As used in VIIl.B.1. and 2. above, the term “certified mail” extends to not only the U.S. Postal Service but also certain third-party delivery services. Acceptable third-party delivery services include Federal Express (FedEx), United Parcel Service (UPS), and courier services and the like that provide proof of mailing. Third-party delivery is acceptable if the delivery service provides documentation of the actual mailing date and delivery date to the NFIP insurer. Bear in mind that third-party delivery services deliver to street addresses but cannot deliver to U.S. Postal Service post office boxes. C. Presentment of Premium Date Requirements for Loan Closing FEMA requires the Write-Your-Own companies and the NFIP Servicing Agent to record the presentment of premium date, the closing date and, the premium payer (insured, lender, title company, settlement attorney, etc.). * For an RCBAP, include the number of units and RCV of the building. The NFIP rules allow the policy to be effective at closing provided that the coverage is applied for at or before the closing and the premium is received by the writing company within 10 days of the closing date. Presentment of premium is defined as: 1. The date of the check or credit card payment by the applicant or the applicant’s representative if the premium payment is not part of a loan closing. 2. The date of the closing, if the premium payment is part of a loan closing. For a loan closing, premium payment from the escrow account (lender’s check), title company, or settlement attorney is considered made at closing, if the premium is received by the writing company within 30 days of the closing date. NOTE: An agency check may be used if settlement paperwork or a photocopy of the original check from the lender, title company, or settlement attorney is provided as documentation. If the premium payment is not part of the closing, the closing date is the effective date only if the application date is on or before the closing and the payment is received by the writing company within 10 days of the closing date. D. Effective Date 1. New Policy – Standard 30-Day Waiting Period The effective date of a new policy will be 12:01 a.m., local time, on the 30th calendar day after the application date and the presentment of premium. (Example: a policy applied for on May 3 will become effective 12:01 a.m., local time, on June 2.) The effective date of coverage is subject to the waiting period rule listed under B.1 or B.2 above. 2. New Policy – No Waiting Period (in connection with making, increasing, extending, or renewing a loan, whether conventional or otherwise) Flood insurance that is initially purchased in connection with the making, increasing, extending, or renewal of a loan shall be effective at the time of loan closing, provided that the policy is applied for and the presentment of premium is made at or prior to the loan closing. (Example: presentment of premium and application date--April 3, refinancing--April 3 at 3:00 p.m., policy effective date--April 3 at 3:00 p.m.). Use the rules below to determine the effective date. 1. Premium payment from the escrow account (lender’s check), title company, or settlement attorney is considered made at closing if the check is received by the writing company within 30 days of the closing date (closing date plus 29 days) and the application is dated on or before the closing date. If received after 30 days, the effective date is the receipt date regardless of flood zone. 2. If premium payment is from other than escrow account (lender’s check), title company, or settlement attorney, and the application is dated on or before the loan closing date, the effective date is the closing date if the application and premium are received within 10 days of the closing date (closing date plus 9 days). If received after 10 days, the effective date is the receipt date regardless of flood zone. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as settlement papers, to verify the effective date of the policy before adjusting the loss. 3. New Policy – No Waiting Period (in connection with lender requirement) The 30-day waiting period does not apply when flood insurance is required as a result of a lender determining that a loan on a building in a Special Flood Hazard Area (SFHA) that does not have flood insurance coverage should be protected by flood insurance. The coverage is effective upon the completion of an application and the presentment of payment of premium. Buildings currently located in an SFHA but grandfathered to a non-SFHA for rating are eligible for this exception to the standard 30­day waiting period. This rule also applies to buildings in SFHAs that are eligible for coverage under the 2-year PRP eligibility extension. (See page PRP 1.) (Example: presentment of premium and application date--April 3, policy effective date--April 3.) The waiting period rule listed under B.1 or B.2 must be used. If a loss occurs during the first 30 days of the policy period, the insurer must obtain a copy of the letter requiring mandatory purchase, to verify the effective date of the policy before adjusting the loss. The letter must be dated on or before the policy effective date. 4. New Policy – 1-Day Waiting Period (when the initial purchase of flood insurance is in connection with the revision or updating of a Flood Hazard Boundary Map or Flood Insurance Rate Map) During the 13-month period beginning on the effective date of the map revision, the effective date of a new policy shall be 12:01 a.m., local time, following the day after the application date and the presentment of premium. This rule only applies where the Flood Hazard Boundary Map (FHBM) or Flood Insurance Rate Map (FIRM) is revised to show the building to be in a Special Flood Hazard Area (SFHA) when it had not been in an SFHA. (Example: FIRM revised-­January 1, 2009, policy applied for and presentment of premium--August 3, 2009, policy effective date--August 4, 2009.) The waiting period rule listed under B.1 or B.2 above must be used. This rule applies to all property owners including condominium associations. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as a copy of the previous and current map or other documentation confirming the map revision or update, to verify the effective date of the policy before adjusting the loss. 5. New Policy – No Waiting Period (in connection with the purchase of an RCBAP) When a condominium association is purchasing a Residential Condominium Building Association Policy (RCBAP), the 30-day waiting period does not apply if the condominium association is required to obtain flood insurance as part of the security for a loan under the name of the condominium association. The coverage is effective upon completion of an application and presentment of premium. The waiting period rule listed under B.1 or B.2 applies unless the premium payment was made from the escrow account (lender’s check), title company, or settlement attorney. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as settlement papers, to verify the effective date of the policy before adjusting the loss. 6. New Policy (Submit-for-Rate application) With three exceptions (described below), the effective date of a new policy will be 12:01 a.m., local time, on the 30th calendar day after the presentment of premium. The three exceptions are as follows. First, there is no waiting period if the initial purchase of flood insurance on a submit-for­rate application is in connection with making, increasing, extending, or renewing a loan, provided that the policy is applied for and the presentment of premium is made at or prior to the loan closing. The waiting period rule listed under B.1 or B.2 applies unless the premium payment was made from the escrow account (lender’s check), title company, or settlement attorney. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as settlement papers, to verify the effective date of the policy before adjusting the loss. Second, the 30-day waiting period does not apply when flood insurance is required as a result of a lender determining that a loan which does not have flood insurance coverage should be protected by flood insurance, because the building securing a loan is located in an SFHA. The coverage is effective upon the completion of an application and the presentment of payment of premium. This exemption from the 30-day waiting period applies only to loans in SFHAs, i.e., those loans for which the statute requires flood insurance. The waiting period rule listed under B.1 or B.2 above does not apply. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as a copy of the letter requiring mandatory purchase, to verify the effective date of the policy before adjusting the loss. Third, during the 13-month period beginning on the effective date of a map revision, the effective date of a new policy shall be 12:01 a.m., local time, following the day after the date the increased amount of coverage is applied for and the presentment of additional premium is made. This rule applies only on an initial purchase of flood insurance where the Flood Hazard Boundary Map (FHBM) or Flood Insurance Rate Map (FIRM) is revised to show the building to be in an SFHA when it had not been in an SFHA. The waiting period rule listed under B.1 or B.2 must be applied. If a loss occurs during the first 30 days of the policy period, the insurer must obtain documentation, such as a copy of the previous and current map or other documentation confirming the map revision or update, to verify the effective date of the policy before adjusting the loss. 7. New Policy (rewrite Standard to PRP) The 30-day waiting period does not apply when an insured decides to rewrite the existing policy at the time of renewal from Standard to a Preferred Risk Policy (PRP), provided that the selected PRP coverage limit amount is no higher than the next highest PRP amount above that which was carried on the Standard policy using the highest of building and contents coverage. In those cases where the Standard policy has only building coverage and is rewritten as a PRP that includes contents coverage, the 30-day waiting period applies. If the Standard policy has only contents coverage and is rewritten as a contents-only PRP, the 30-day waiting period does not apply. However, when converting a standard-rated policy to a PRP due to the 2-year PRP eligibility extension, the 30-day waiting period will not apply if the standard-rated policy has only building coverage and is rewritten as a PRP that includes contents coverage. In addition, if the structure is no longer eligible under the PRP or the insured decides to rewrite the existing PRP at renewal time to a Standard policy, the 30­day waiting period does not apply provided the coverage limit amount is no more than the previous PRP coverage amount or the next higher PRP amount above that. 8. New Policy (contents only) Unless the contents are part of the security for a loan, the 30-day waiting period applies to the purchase of contents-only coverage. 9. New Policy (documentation required) The insurer may rely on an agent’s representation on the application that the loan exception applies unless there is a loss during the first 30 days of the policy period. In that case, the insurer must obtain documentation of the loan transaction, such as settlement papers, to verify the effective date of the policy before adjusting the loss. 10. Community Participation Date (Community's Initial Entry or Conversion from Emergency to Regular Program) Process according to rules 1 through 9 above and 11 below. 11. Endorsements With two exceptions (described below), the effective date for a new coverage or an increase in limits on a policy in force shall be 12:01 a.m., local time, on the 30th calendar day following the date of endorsement and the presentment of additional premium, or on such later date set by the insured to conform with the reason for the change. The waiting period rule listed under B.1 or B.2 above must be used. The two exceptions are as follows. First, during the 13-month period beginning on the effective date of a map revision, the effective date of an endorsement of an existing policy shall be 12:01 a.m., local time, following the day after the application date and the presentment of premium. This rule applies only where the FHBM or FIRM is revised to show the building to be in an SFHA when it had not been in an SFHA. The waiting period rule listed under B.1 or B.2 above does not apply. Second, the 30-day waiting period does not apply when the additional amount of flood insurance is required in connection with the making, increasing, extending, or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. The increased amount of flood coverage shall be effective at the time of loan closing, provided that the increased amount of coverage is applied for and the presentment of additional premium is made at or prior to the loan closing. The waiting period rule listed under B.1 or B.2 above does not apply. The insurer may rely on an agent’s representation on the endorsement that the loan exception applies unless there is a loss during the first 30 days after the endorsement effective date. In that case, the insurer must obtain documentation of the loan transaction, such as settlement papers, before adjusting the loss. 12. Renewals with inflation increase option The 30-day waiting period does not apply when an additional amount of insurance is requested at renewal time that is no more than the amount of increase recommended by the insurer on the renewal bill to keep pace with inflation. If a revised renewal offer results from an endorsement that increases coverage more than the previously offered inflation increase option and becomes effective at least 30 days before renewal, the revised limits will apply at policy renewal. The revised renewal offer must be generated at least 30 days before the policy renewal in order for these revised limits to take effect at renewal. In either situation, the increased amount of coverage will be effective at 12:01 a.m. on the date of policy renewal provided the premium for the increased coverage is received before the expiration of the grace period. 13. Renewals with higher PRP limits The waiting period does not apply to a renewal offer to the insured for the next higher limits available under the PRP. 14. Renewals with deductible reduction The 30-day waiting period does not apply to a reduction of the deductible effective as of the renewal date. IX. COVERAGE A. Limits of Coverage Coverage may be purchased subject to the maximum limits of coverage available under the Program phase in which the community is participating. Duplicate policies are not allowed. See page RATE 1 for additional information regarding coverage limits. B. Deductibles Deductibles apply separately to building coverage and to contents coverage. See pages RATE 12 and RATE 13 for deductible options and factors. C. Coverage D -Increased Cost of Compliance (ICC) Coverage For all new and renewal policies effective on or after May 1, 2003, the ICC limit of liability is $30,000. The Standard Flood Insurance Policy (SFIP) pays for complying with a State or local floodplain management law or ordinance affecting repair or reconstruction of a structure suffering flood damage. Compliance activities eligible for payment are: elevation, floodproofing, relocation, or demolition (or any combination of these activities) of the insured structure. Eligible floodproofing activities are limited to non­residential structures and residential structures with basements that satisfy FEMA's standards published in the Code of Federal Regulations [44 CFR 60.6 (b) or (c)]. ICC coverage is mandatory for all SFIPs, except that coverage is not available for: 1. Policies issued or renewed in the Emergency Program. 2. Condominium units, including townhouse/ rowhouse condominium units. (The condominium association is responsible for complying with mitigation requirements.) 3. Group Flood Insurance Policies. 4. Appurtenant structures, unless covered by a separate policy. ICC coverage contains exclusions in addition to those highlighted here. See the policy for a list of exclusions. To be eligible for claim payment under ICC, a structure must: a. Be a repetitive loss structure as defined, for which NFIP paid a previous qualifying claim, in addition to the current claim. The state or community must have a cumulative, substantial damage provision or repetitive loss provision in its floodplain management law or ordinance being enforced against the structure; OR b. Be a structure that has sustained substantial flood damage. The state or community must have a substantial damage provision in its floodplain management law or ordinance being enforced against the structure. The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium for each policy year. D. Reduction of Coverage Limits or Reformation In the event that the premium payment received is not sufficient to purchase the amounts of insurance requested, the policy shall be deemed to provide only such insurance as can be purchased for the entire term of the policy for the amount of premium received. With two exceptions, where the discovery of insufficient premium or incomplete rating information is discovered after a loss, the complete provisions for reduction of coverage limits or reformation are described in: • Dwelling Form, section VII, paragraph G. • General Property Form, section VII, paragraph G. • Residential Condominium Building Asso­ciation Policy (RCBAP), section VIII, paragraph G. The property must be insured using the correct SFIP form in order for these two exceptions to apply. The two exceptions are following and apply only when after a loss it is discovered that the premium is insufficient to provide the coverage requested, or there is critical rating information missing that is necessary to properly rate the policy: 1. Any additional premium due will be calculated prospectively from the date of discovery; and 2. The automatic reduction in policy limits is effective the date of discovery. This will provide policyholders with the originally requested limits at the time of a claim arising before the date of discovery without paying any additional premium. Policyholders will have 30 days to pay the additional premium due, or 60 days to obtain additional information and then 30 days to pay the additional premium due, for the remainder of the policy term to restore the originally requested limits without a waiting period. In addition, payment of the claim will not be delayed because of additional information needed to calculate the correct payment. If a claim occurs after the notice requesting additional information or additional premium due is sent to the policyholder, that claim cannot be processed with the originally requested amount of coverage until the information, if required, and the premium are received by the company within the required time. However, all claim payments will be based on the coverage provided in accordance with the correct flood zone for the building location and not on the zone shown on the flood policy if it is in error. For example, if a policy for a Post-FIRM, elevated building is written incorrectly in a non-Special Flood Hazard Area, Zone X, and at the time of the loss the property is determined to be located in Zone AE, then the claim is paid in accordance with the coverage limitations applicable to Zone AE. E. Loss Assessments The SFIP provides limited coverage for loss assessments against condominium unit owners for flood damage to common areas of any building owned by the condominium association. The RCBAP does not provide assessment coverage. The Dwelling Form provides assessment coverage only under the circumstances, and to the extents, described below. 1. No RCBAP • If the unit owner purchases building coverage under the Dwelling Form and there is no RCBAP, the Dwelling Form responds to a loss assessment against the unit owner for damages to common areas, up to the building coverage limit under the Dwelling Form. • If there is damage to building elements of the unit as well, the building coverage limit under the Dwelling Form may not be exceeded by the combined settlement of unit building damages, which would apply first, and the loss assessment. 2. RCBAP Insured to at Least 80 Percent of the Building Replacement Cost • If the unit owner purchases building coverage under the Dwelling Form and there is an RCBAP insured to at least 80 percent of the building replacement cost at the time of loss, the loss assessment coverage under the Dwelling Form will pay that part of a loss that exceeds 80 percent of the association’s building replacement cost. • The loss assessment coverage under the Dwelling Form will not cover the association’s policy deductible purchased by the condominium association. • If there is damage to building elements of the unit as well, the Dwelling Form pays to repair unit building elements after the RCBAP limits that apply to the unit have been exhausted. The coverage combination cannot exceed the building coverage limit under the Dwelling Form. 3. RCBAP Insured to Less than 80 Percent of the Building Replacement Cost • If the unit owner purchases building coverage under the Dwelling Form and there is an RCBAP insured to less than 80 percent of the building replacement cost at the time of loss, the loss assessment coverage cannot be used to reimburse the association for its coinsurance penalty. • The covered damages to the condo­minium association building must be greater than 80 percent of the building replacement cost at the time of loss before the loss assessment coverage becomes available under the Dwelling Form. Covered repairs to the unit, if applicable, would have priority over loss assessments. For more information on this topic, see “E. Assessment Coverage” on page CONDO 7 and Section III. C. 3. of the Dwelling Form, “Condominium Loss Assessments,” on page POL 8. F. Improvements and Betterments and Tenant’s Coverage Under the Standard Flood Insurance Policy, coverage for improvements and betterments is provided for tenants who have purchased personal property coverage. The maximum amount payable for this coverage, which applies to fixtures, alterations, installations, or additions made or acquired solely at the tenant’s expense and comprising part of an insured building, is 10 percent of the personal property limit of liability shown on the Declarations Page. Use of improvements and betterments coverage reduces the amount of coverage available for personal property. A tenant may purchase higher limits of coverage for improvements and betterments under the building coverage if the lease agreement with the building owner: • Requires that the tenant purchase insurance coverage for the tenant’s improvements and betterments that are made or acquired; and • States that the tenant is responsible for the repair of the building and/or improvements and betterments that become damaged. Duplicate coverage is not permitted under the NFIP, so only one policy can be issued for building coverage, and the amount of building coverage cannot exceed the maximum allowable under the Act. The policy may be issued either in the name of the building owner or in the names of the building owner and the tenant. X. SPECIAL RATING SITUATIONS A. Tentative Rates Tentative rates are applied when producers are unable to provide all required underwriting information necessary to rate the policy. Tentatively rated policies cannot be endorsed to increase coverage limits or renewed for another policy term until required actuarial rating information and full premium payment are received by the NFIP. If a loss occurs on a tentatively rated policy, the loss payment will be limited by the amount of coverage that the premium initially submitted will purchase (using the correct actuarial rating information), and not the amount requested by application (see Tentative Rates on page RATE 21). B. Submit-For-Rate Some risks, because of their unique underwriting characteristics, cannot be rated using this manual. Certain risks must be submitted to the NFIP Underwriting Unit to determine the appropriate rate. Refer to page GR 10 for the applicable waiting period. Submit-for-rate policies must be re-rated annually using the newest rates. If the NFIP Direct or WYO company does not have all the underwriting information, it must request the missing information from the insured in order to properly rate the risk. Pre-FIRM risks may not be rated using the submit-for-rate process except for buildings with subgrade crawlspaces as described on page RATE 25A, paragraph H. C. Provisional Rates Rules applicable to provisionally rated policies are provided in the Provisional Rating section of this manual. D. Buildings in More Than One Flood Zone Buildings, not the land, located in more than one flood zone must be rated using the more hazardous zone. This condition applies even though the portion of the building located in the more hazardous zone may not be covered under the SFIP, such as a deck. (This rule applies for decks only if the deck foundation system extends into the more hazardous flood risk zone/BFE and is attached to the main building foundation.) E. Different Base Flood Elevations (BFEs) Reported When the BFE shown on a Flood Zone Determination Company’s form is different than the BFE shown on the property owner’s Elevation Certificate, and the community number and zone are the same, the BFE shown on the Elevation Certificate must be used to rate the policy. F. Flood Zone Discrepancies When presented with two different flood zones, use the more hazardous flood zone for rating unless the building qualifies for the grandfathering rule (see XIV.D. on page RATE 22). The community number and BFE must come from the same source as the zone used to rate the policy. XI. MISCELLANEOUS RULES A. Policy Term The policy term available is 1 year for both NFIP Direct business policies and policies written through WYO Companies. B. Application Submission Flood insurance applications and presentment of premium must be mailed promptly to the NFIP. The date of receipt of premium for the NFIP insurer is determined by either the date received at its offices or the date of certified mail. In the context of submission of applications, endorsements, and premiums to the NFIP, the term “certified mail” has been broadened to include not only the U.S. Postal Service but also certain third-party delivery services. For details, see the paragraph following VIII.B.2. on page GR 8. Producers are encouraged to submit flood insurance applications by certified mail. Certified mail ensures the earliest possible effective date if the application and premium are received by the NFIP insurer more than 10 days from the application date. The date of certification becomes the date of receipt at the NFIP. C. Delivery of the Policy The producer is responsible for delivering the declarations page and the policy contract of a new policy to the insured and, if appropriate, to the lender. Renewal policy documentation is sent directly to the insured. D. Assignment A property owner's flood insurance building policy may be assigned in writing to a purchaser of the insured property upon transfer of title without the written consent of the NFIP. Policies on buildings in the course of construction and policies insuring contents only may not be assigned. E. Producers' Commissions (Direct Business Only) The earned commission may be paid only to property or casualty insurance producers duly licensed by a state insurance regulatory authority. It shall not be less than $10 and is computed for both new and renewal policies as follows: Based on the Total Prepaid Amount (less the Federal Policy Fee) for the policy term, the commission will be 15 percent of the first $2,000 of annualized premium and 5 percent on the excess of $2,000. Calculated commissions for mid-term endorse­ments and cancellation transactions will be based upon the same commission percentage that was paid at the policy term's inception. Commissions for all Scheduled Building Policies are computed as though each building and contents policy was separately written. For calculation of commission on an RCBAP, see the CONDO section. F. Contract Agent Rule A “Contract Agent” is an employee of a WYO Company, or an agent under written contract with WYO Company, empowered to act on the company’s behalf and with authority to advise an applicant for flood insurance that the company will accept the risk. The effective date for a policy written through a Contract Agent has a waiting period that begins on the agent’s or employee’s receipt of the premium and completion of the application. An agent under written contract to a WYO Company is not a Contract Agent if the WYO Company reserves the right to reject the risk. The effective date for a policy not written through a Contract Agent has a waiting period that begins on the WYO Company’s receipt of the premium and completed application. To establish a Contract Agent relationship acceptable to the NFIP, the WYO Company must include the stipulations above in its written contract with the agent or employee. GR 16 October 1, 2010 APPLICATION I. USE OF THE FORM The NFIP Flood Insurance Application form, or a similar form for WYO companies, must be used for all flood insurance policies except the Preferred Risk Policy. This section includes important guidance to carry out the regulatory intent and instructions on the rating of the different building types. The flood insurance rate to be applied to a building in the NFIP is determined by establishing: • Whether the building is Post-FIRM construction or Pre-FIRM construction. • The building description with regard to: - Building occupancy - Building type - Basement type - Elevated building type • The flood risk zone • The elevation of the building II. BUILDING DESCRIPTION For purposes of the NFIP, distinctions have been made among the following building types: • Building Occupancy -Single family -2-4 family -Other residential -Non-residential (including hotel/motel) • Basement, Enclosure, Crawlspace -None -Finished Basement/Enclosure -Unfinished Basement/Enclosure -Crawlspace -Subgrade Crawlspace • Number of floors in entire building -1 -2 -3 or more -Split level -Townhouse/Rowhouse (RCBAP lowrise only) - Manufactured (mobile) home on foundation, including doublewide or travel trailer • Elevated building An elevated building is a building that has no basement and that has its lowest elevated floor raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. For Post-FIRM buildings in V Zones, elevated on solid perimeter foundation walls, submit the Application to the NFIP Bureau’s Underwriting Department for rating. III. SCHEDULED BUILDING POLICY 1. To obtain a Scheduled Building Policy, an Application must be completed for each building and/or contents for which coverage is requested. 2. For each scheduled building (building and/or contents coverage), the Federal Policy Fee is $40.00 per building. 3. All Flood Insurance Application forms must be completed in accordance with all Flood Insurance Manual rules and the Scheduled Building Policy qualifications. 4. If requesting a Scheduled Building Policy, indicate Building #1, Building #2, etc., in the upper right corner of each Application. Staple together the Applications as a single unit. IV. COMPLETING PART 1 OF THE FLOOD INSURANCE APPLICATION FORM The following are instructions for completing Part 1 of the Flood Insurance Application form. A. Policy Status In the upper right corner of the form, check the appropriate box to indicate if the application is for a NEW policy or a RENEWAL of an existing policy. If the application is for a renewal, enter the current 10-digit NFIP policy number. B. Policy Term (Billing/Policy Period) Check the appropriate box to indicate who should receive the renewal bill. If BILL FIRST MORTGAGEE is checked, complete "First Mortgagee" section. If BILL SECOND MORTGAGEE, BILL LOSS PAYEE, or BILL OTHER is checked, provide mailing instructions in the "Second Mortgagee or Other” section. Enter the policy effective date and policy expiration date (month-day-year). The effective date of the policy is determined by adding the appropriate waiting period to the date of application listed in the "Signature" section. The standard waiting period is 30 days. NOTE: Refer to the General Rules section, page GR 9-10, for exceptions to the standard waiting period. C. Agent Information Enter the producer’s name, agency name and number, address, city, state, ZIP Code, telephone number, and fax number. Enter the producer’s Tax I.D. Number. D. Insured Mail Address Enter the name, mailing address, city, state, ZIP Code, and telephone number of the insured. If the insured’s mailing address is a post office box or a rural route number, or if the address of the property to be insured is different from the mailing address, the "Property Location" section of the Application must be completed. If there is more than one building at the property location, see "H. Property Location" in the next column for further instructions. E. Disaster Assistance Check YES if flood insurance is being required for disaster assistance. Identify the Government (disaster) agency, and enter the insured’s case file number. If NO is checked, no further information is required. F. Property Location Check YES if the location of the property being insured is the same as the insured’s mailing address entered in the "Insured Mail Address" section. Leave the rest of the section blank unless there is more than one building at the property location. If more than one building is at the location of the insured property, use the "Property Location" section to specifically identify the building. An example would be where five buildings with the APP 2 same mailing address and location are insured with separate policies. Describe briefly the building (barn, silo, etc.) in this section or submit a sketch showing the location of insured buildings to assist the NFIP in matching the policy number to the specific building insured. A clear description of the insured’s property is important. If NO, provide address or location of the property to be insured. If the insured’s mailing address is a post office box or rural route number, give the street address, legal description, or geographic location of the property. G. First Mortgagee Enter the name, mailing address, city, state, ZIP Code, telephone number, and fax number of the first mortgagee. Enter the loan number. If not available at the time of application, the loan number should be added to the policy by submitting a General Change Endorsement form. For condominium association applications, the mortgagees for the individual condominium unit owners must not be entered here. The General Property Form and RCBAP provide coverage for the entire building and the real property elements, including all units within the building and the improvements within the units. H. Second Mortgagee, Loss Payee or Other Identify additional mortgagees by checking the appropriate box and entering the loan number, the mortgagee's name, mailing address, telephone number, and fax number. For condominium associations, follow the appropriate instructions provided under “G. First Mortgagee.” If more than one additional mortgagee or disaster assistance agency exists, provide the requested information on the insurance agency’s letterhead and attach the letterhead to the Application form. Provide the disaster assistance case number. I. Community Rating Map Information Enter the map information that will be used for rating. Enter name of the county or parish where the property is located. October 1, 2009 NOTE: The mailing address may or may not reflect the community where the property is located. Do not rely on the mailing address when determining community status and identification. Because of possible changes in the Flood Insurance Rate Map (FIRM), do not rely on information from a prior policy. Enter the community identification number, map panel number, and revision suffix of the map that will be used for rating for the community where the building is located. When there is only one panel (i.e., a flat map), the community number will consist of only six digits. Use the FIRM in effect and that has been published at the time of presentment of premium and completion of application. NOTE: Not all communities that have been assigned NFIP community numbers are participating in the National Flood Insurance Program. Policies may not be written in nonparticipating com­munities. Community number and status may be obtained by calling the NFIP insurer, by consulting a local community official, or by checking the NFIP Community Status Book online (http://www.fema.gov/fema/csb.shtm). Enter the FIRM zone in the space provided. If the program type is Emergency, leave this area blank. Check if the community is in the Regular Program or Emergency Program. If the community program type is Regular and the building is Pre-FIRM construction, enter the FIRM zone, if known; otherwise, enter UNKNOWN and follow the Alternative Rating procedure explained in the Rating section of this manual. UNKNOWN cannot be used for manufactured homes or other buildings located in a community having flood Zones V or V1-V30 (VE). Determine whether the community is located in a Coastal Barrier Resource System (CBRS) or Otherwise Protected Area. See CBRS section for additional information. J. Current Community Map Information Complete this section only if the grandfathering rule is being applied. Check YES if grandfathering; otherwise check NO. If YES: • Check whether the building was built in compliance or has had continuous coverage. • Enter the prior policy number if grand-fathering for continuous coverage. • Enter the current community identification number, map panel number, suffix, FIRM zone, and, if applicable, the BFE. K. State-Owned Property and Buildings on Federal Land Check YES if the building is owned by a state government; otherwise, check NO. Check YES if the building is located on federal land; otherwise, check NO. NOTE: If the property is federally leased, refer to the Leased Federal Property Section for guidance. L. Building Complete all required information in this section. • Building Occupancy Indicate the type of occupancy for the building (i.e., single family, 2-4 family, other residential, or non-residential). • Basement/Enclosure/Crawlspace/Subgrade Crawlspace Indicate whether the building contains a basement (i.e., lowest floor below ground on all sides). If an enclosure is the lowest floor for rating, use the "With Basement/ Enclosure/Crawlspace/Subgrade Crawlspace" Rate Table to determine the rate. (See Crawlspace on page RATE 25.) If the enclosure/crawlspace is not the lowest floor for rating, use the “Without Basement/ Enclosure/Crawlspace/Subgrade Crawlspace” Rate Table and describe the building as “Without Basement/Enclosure/Crawlspace/ Subgrade Crawlspace.” In Post-FIRM rated A zones, this means that the enclosure was designed with proper openings. In Post-FIRM V zones constructed before October 1, 1981, the enclosure is less than 300 square feet with breakaway walls and no machinery or equipment in the enclosure is below the BFE. • Number of Floors or Building Type Indicate the number of floors in the entire building, including the basement/enclosed area if applicable, in the appropriate space. If the building type is a townhouse/rowhouse being covered under an RCBAP, check "Townhouse/Rowhouse (RCBAP Lowrise Only)." If the building is a manufactured (mobile) home or travel trailer on a foundation, check "Manufactured (Mobile) Home on Foundation" regardless of the building’s size. Dimensions of manufactured (mobile) homes and travel trailers are used only for determining replacement cost eligibility, not for rating. • Number of Occupancies (Units) For other than single family dwellings, indicate the number of units. • Condominium Form of Ownership Check YES if the building is under a Condominium Form of Ownership; otherwise check NO. (A homeowners association [HOA] may differ from a condominium form of ownership.) Refer to pages CONDO 8-9 for rating guidelines. • Condo Coverage If condominium coverage is being purchased, indicate whether the coverage is for a condominium unit or the entire condominium building. • Residential Condominium Building Asso­ciation Policy For a Residential Condominium Building Association Policy (RCBAP), enter the total number of units (including non-residential) within the building and indicate whether the building is a high-rise or low-rise. The RCBAP covers only a residential condominium building in a Regular Program community. • Estimated Replacement Cost Using normal company practice, estimate the replacement cost value and enter the value in the space provided. Include the cost of the building foundation when determining the replacement cost value. • Insured's Principal Residence Indicate whether the building is the policyholder's principal residence. • Building in Course of Construction Indicate whether the building is in the course of construction. • Building Walled and Roofed Indicate whether the building is walled and roofed. (See Building definition on page DEF 1.) • Elevated Building Indicate whether this is an elevated building. If it is, also indicate, in the next block, whether the area below the lowest elevated floor is free of obstruction or with obstruction. For all elevated buildings using elevation for rating, complete Part 2 on the back of the Flood Insurance Application after you have completed Part 1. • Buildings Over Water Check NO if the building is not located over water. If building is located over water, indicate partially or entirely. (See Buildings Over Water on page GR 4.) • Describe Building and Use For other than 1-4 family dwellings, describe the insured building and its use. This includes manufactured (mobile) homes and travel trailers, other residential structures, and non-residential buildings. For all manufactured (mobile) homes and travel trailers, complete Part 2 on the back of the Flood Insurance Application after you have completed Part 1. M. Contents Check the box that describes the location of the contents to be insured. Describe any contents that are not personal property household contents. If only building insurance is to be purchased, be sure to notify the applicant of the availability of contents insurance. It is recommended that the applicant initial the contents coverage section if no contents insurance is requested. This will make the applicant aware that the policy will not provide payment for contents losses. N. Construction Data 1. Construction Date Check one of the five blocks in the first part of this section, and enter the appropriate date for the date of construction or building permit date. (For substantial improvement, see the “Substantial Improvement Exception” instructions that follow.) In the Emergency Program, provide the month/day/year of construction. If the month and day are unknown, enter July 1 (07/01) and enter the best information for the year of construction. The rest of the sections should be left blank. If the building was constructed or substantially improved on or before December 31, 1974, or before the effective date of the initial FIRM for the community, the building is considered Pre-FIRM construction. Otherwise, the building is considered Post-FIRM. If the building was substantially improved, enter the actual month, day, and year that substantial improvement started or the building permit date. If the building was substantially damaged, enter the actual month, day, and year that substantial damage occurred. Substantial improvement includes buildings that have incurred “substantial damage” regardless of the actual repair work performed. The agent must obtain and submit a statement from a community official before the building can be considered substantially damaged. If the policy is for a manufactured (mobile) home or travel trailer located outside a manufactured (mobile) home park or subdivision, enter the date of permanent placement of the manufactured (mobile) home. See the Rating section of this manual for rules for manufactured (mobile) homes located in manufactured (mobile) home parks and subdivisions. Compare the date of construction or substantial improvement with the effective date of the initial FIRM to determine if the building was constructed Pre-or Post-the effective date of the initial FIRM. • Substantial Improvement Exception For new applications, renewal applications, and endorsements when making a rating correction concerning a substantial improvement to a Pre-FIRM building where the improvement is an addition to the building and it meets the conditions of Pre-FIRM construction, found on pages RATE 15-16 of this manual, the producer should complete the Construction Data section of the Application as follows: a. Enter the date of construction for the Pre-FIRM part of the building (not the date of construction of the addition). This date will be shown as the construction date on the declarations page. b. Do not respond to the question IS BUILDING POST-FIRM CON­STRUCTION? Instead, complete the top part of this section as follows: "Substantial Improvement but continues to be Pre-FIRM." c. Supply the elevation data for the ADDITION. d. Complete the remainder of both parts of the Construction Data section in the usual manner. If a policyholder elects to use the normal Post-FIRM rating for substantial improvement, the producer must complete Part 2 of the Application as indicated. • Post-FIRM Construction Check YES if the building is Post-FIRM construction or substantially improved; otherwise check NO. 2. Elevation Information Elevation information must be completed in the second part of the Construction Data section. • Building Diagram Number and Lowest Adjacent Grade Provide the building diagram number and lowest adjacent grade from the Elevation Certificate (EC). NOTE: Elevation Certificates certified on or after April 1, 2010, must be submitted on the 2009 EC form (OMB expiration 2012). The EC must meet all of the photograph requirements that are described on pages CERT 1-2 of this manual. An EC submitted without the required photographs is not considered valid for rating. The lowest adjacent grade is not required for buildings without estimated BFE located in AO and unnumbered A and V zones. Policies rated using the Floodproofing Certificate do not require either the lowest adjacent grade or the diagram number. In communities that participate in the NFIP’s Community Rating System (CRS), building elevation information may be available from the community office in charge of building permits or floodplain management. • Elevation Certification Enter the elevation certification date for all new business applications. • Elevation Information for Buildings in the Course of Construction When the building is in the course of construction, the elevation information provided by the surveyor on the EC must be based on the proposed architectural plans. The NFIP requires the agent to describe and rate the structure based on the proposed plans. Building photographs are not required. Buildings in the course of construction are to be rated the same as completed construction. A renewal application and a new EC with required building photographs must be submitted at renewal time. For example, if the building is elevated and the proposed plans show an enclosure, the building must be described as elevated with an enclosure. The only exception is when an EC was prepared in the course of construction, and the surveyor was able to provide all as-built elevation information required on the EC. • Lowest Floor Elevation and Related Items Use the building diagrams on pages CERT 23-25 to determine the correct lowest floor. See pages LFG 1-7 for information about determining the lowest floor for rating. When entering elevation data, drop hundredths of a foot and show only tenths of a foot. For example, if the elevation difference is 10.49’, enter 10.4’; do not round up to 10.5’. • Wave Height Adjustment In Zones V, V1-V30, and VE, if NO is checked for the question about Effects of Wave Action, refer to pages RATE 30-31 for guidelines for FIRMS with wave heights. • Floodproofing If YES is checked for Floodproofed and the FIRM zone entered in the Community section of the Application is V, V1-V30, or VE, the Application must be submitted to the NFIP for underwriting and rating. For all other zones, refer to pages RATE 31-32 for elevation difference and rating guidelines. To receive credit for floodproofing, the completed floodproofing certificate must be submitted. The residential floodproofing rating credit may be grandfathered for those residential buildings with a valid Residential Basement Floodproofing Certificate that were constructed between the effective date of the community’s floodproofing eligibility and their rescission date, but not on or after the rescission date. (See pages CERT 5-6 for a list of communities approved for residential basement floodproofing.) O. Coverage and Rating • Deductible and Deductible Buyback Enter the deductible amount for building and/or contents. Also indicate whether the applicant is “buying back” a $1000 deductible. Refer to page RATE 12 to buy back a $1000 deductible. (See deductible factors on pages RATE 13 and CONDO 22.) • Coverage Check desired coverage against the “Amount of Insurance Available” table on page RATE 1. Then enter the limits. • Rating Enter the rates. Add additional charges/ credits, i.e., deductible reduction/increase, ICC Premium, CRS Premium Discount, Probation Surcharge (if any), and Federal Policy Fee. Calculate the Total Prepaid Amount. • Rate Type Select rate type. Note that a new rate type, Leased Federal Property (LFP), has been added. (For more information on Leased Federal Property, see LFP Section.) • Community Rating System Effective May 1, 2008, the Community Rating System (CRS) discount is not available on NFIP policies for Post-FIRM structures located in a Special Flood Hazard Area (SFHA) where the lowest floor elevation used for rating is at least 1 foot or more below the Base Flood Elevation (BFE), with the exception of (1) Post-FIRM V-Zone buildings with unfinished breakaway wall enclosures and machinery or equipment at or above the BFE, and (2) subgrade crawlspaces with certification. The subgrade crawlspace exception must be certified by a community official letter containing the following statement: "I certify that the building located at [address] has a crawlspace that was built in compliance with the NFIP requirements for crawlspace construction as outlined in FEMA Technical Bulletin 11-01, Crawlspace Construction for Buildings Located in Special Flood Hazard Areas.” P. Signature The producer must sign the Application and is responsible for the completeness and accuracy of the information provided on it. Enter the date of application (month/day/year). The waiting period is added to this date to determine the policy effective date of the policy listed in the Policy Term section. A check or money order APP 7 for the Total Prepaid Amount, payable to the NFIP, must accompany the application. Electronic transactions are permitted if the business process includes authentication of signatures and dates of receipt of premium. WYO companies are responsible for determining the business practices and transaction authentication methods they will use to ensure the security and integrity of such transactions. A credit card payment by VISA, MasterCard, Discover, or American Express will also be acceptable if a disclaimer form, signed by the insured, is submitted with the Flood Insurance Application. The disclaimer will state that cancellation of a policy due to a billing dispute will be permitted only for a billing error or fraud. If the credit card information is taken over the telephone by the producer, the producer may sign the authorization form on behalf of the payor only after having read the disclaimer to the payor. V. COMPLETING PART 2 OF THE FLOOD INSURANCE APPLICATION FORM After completing Part 1 of the Flood Insurance Application, the producer must complete all relevant items in Part 2 of the Application for all buildings. Part 2 of the Application collects information about risk factors affecting the building, occupancy information, and elevation data relative to the ground level. A completed Elevation Certificate must be attached to the Application before sending it to the NFIP. To complete Part 2 of the Application, the producer must: • Obtain all necessary information from the applicant. Then select the building diagram that best illustrates the applicant's building. These diagrams are shown in the Elevation Certificate and Instructions, which are reproduced in the Special Certifications section of this manual. Transcribe the information from the applicant and Elevation Certificate onto Part 2 of the Application. For renewal applica­tions, enter the policy number in the space at the top of the form. Be sure to have the applicant or the applicant's representative sign and date the bottom of the form. The applicant or the applicant's representative must complete all numbered sections of the form, check all appropriate boxes, provide all October 1, 2010 information, and respond to all YES/NO questions that are applicable to the building. (For example, Section II should be completed only for Elevated Buildings.) SECTION I—ALL BUILDING TYPES 1. The number of the building diagram selected is entered here. Use the diagrams shown at the end of the Elevation Certificate and Instructions. 2.-4.The agent may obtain the requested elevation information from Section C of the Elevation Certificate, or the applicant or the applicant’s representative may provide this information. If the applicant or the applicant’s representative furnishes these measurements, they must be taken with a ruler or tape measure. All measurements are rounded to the nearest foot using the ground (grade) immediately next to the building. NOTE: The terms "grade" and "ground" are used interchangeably. The intent is that man-made alterations of the grade, such as a declining driveway into a building or a dugout entrance to a basement, do not represent ground level. 5. If "OTHER" is checked in Question 5b, a brief description of the source must be provided. 6. If the answer to Question 6a is NO, Question 6b should be disregarded. 7. If the answer to Question 7a is NO, Questions 7b, 7c, 7d, and 7e should be ignored. SECTION II—ELEVATED BUILDINGS If the building is a manufactured (mobile) home/travel trailer that has been elevated, complete this section in addition to Sections I and III. 8. Check the type of foundation used for the building. 9. If YES is checked, check the appropriate item(s). 10. Refer to page LFG 1 to verify that the area below the elevated floor satisfies the definition of an enclosed area. If Question 10a is NO, do not answer Questions 10b through 10f. In Question 10b, enter the size of the area in square feet. If Question 10c is YES, check the single most appropriate of boxes 1-4. In Question 10d, check YES if the area is constructed with openings (excluding doors), within 1 foot of adjacent grade, to allow the passage of flood waters. Enter the number of openings and their total area in square inches. If Question 10e is YES, provide a description. In Question 10f, check YES if the enclosed area/garage has more than 20 linear feet of finished wall, paneling, etc; otherwise, check NO. SECTION III—MANUFACTURED (MOBILE) HOMES/TRAVEL TRAILERS 11. Fill in the make, year of manufacture, model number, and serial number. 12. Enter the dimensions, excluding any permanent addition or extension to the manufactured (mobile) home or travel trailer. 13. Check YES if permanent additions or extensions are present; otherwise, check NO. If YES, enter dimensions. 14. If OTHER is checked, describe the anchoring system. 15. Check the appropriate box for how the manufactured (mobile) home was installed. 16. Check YES if the manufactured (mobile) home is located in a manufactured (mobile) home park or subdivision; otherwise, check NO. VI. MAILING INSTRUCTIONS After completing all sections on the Application, attach all required certifications or other documents to the applicant's check, draft, or money order, payable to the NFIP for the Total Prepaid Amount. A credit card payment by VISA, MasterCard, Discover, or American Express will also be acceptable if a disclaimer form, signed by the insured, is submitted with the Flood Insurance Application. The disclaimer will state that cancellation of a policy due to a billing dispute will be permitted only for a billing error or fraud. If the credit card information is taken over the telephone by the producer, the producer may sign the authorization form on behalf of the payor only after having read the disclaimer to the payor. Mail the original copy of the Application with the Total Prepaid Amount to the NFIP. Distribute copies of the Application to the agency file, the applicant, and the mortgagee. A copy of the Application and a copy of the premium payment are sufficient to satisfy the mortgagee's proof-of­purchase requirements. After receipt of the Application and total prepaid amount, the NFIP will process the Application and issue the policy. The policy contract and declarations page will be mailed to the insured. Copies of the declaration page will be mailed to the producer and mortgagee(s). VII. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS If an Application is not complete, or if the information presented on the Application is not correct, the Application will not be processed but will be placed in a pending file until the completed or corrected information is provided by the producer. For the NFIP direct business, if the missing information is not provided, a policy will be issued using Tentative Rates. If insufficient information is available to tentatively rate the policy, the flood insurance will be rejected and the premium remittance refunded. For NFIP direct business, in the case of incom­plete applications, the NFIP Servicing Agent will send the producer a transmittal document and a letter requesting the incomplete or missing information. Copies of this letter will be provided to the named insured and mortgagee(s). The producer should provide the additional or corrected information to the NFIP Servicing Agent along with the transmittal document. Since coverage cannot be conferred in excess of the coverage that can be purchased for the amount presented (received by the NFIP), it is important that underpayment errors be corrected immediately. In the case of an underpayment, when both building and contents coverage have been requested, the coverage reduction will be prorated between building and contents in accordance with NFIP rules. The ratio of building to contents coverage for the full requested coverage will be used to determine the portion of the submitted premium available to purchase building and contents coverage. This page is intentionally left blank. RATING This section contains information, including rate tables, required to accurately rate a flood insurance policy. Information and rates for the Preferred Risk Policy (PRP) and Residential Condominium Building Association Policy (RCBAP) are found in their respective sections. The detailed drawings, and accompanying text and tables, in the Lowest Floor Guide section are to be used as a guide for identifying the lowest floor for rating buildings. This guide will assist in developing the proper rate for the building. I. AMOUNT OF INSURANCE AVAILABLE Examples of some rating situations are shown on pages RATE 49 through RATE 63. A premium table for single family Pre-FIRM buildings located in Special Flood Hazard Areas (SFHAs) is located on page RATE 11. These premiums were calculated using Rate Table 2. This premium table is included in this manual to help the agent more easily quote premiums for buildings that do not require elevation certification. BUILDING COVERAGE Single Family Dwelling 2-4 Family Dwelling Other Residential Non-Residential EMERGENCY PROGRAM REGULAR PROG RAM Basic Insurance Limits Additional Insurance Limits Total Insurance Limits $ 35,000 * $ 35,000 * $100,000** $100,000** $ 60,000 $ 60,000 $175,000 $175,000 $190,000 $190,000 $ 75,000 $325,000 $250,000 $250,000 $250,000 $500,000 CONTENTS COVERAGE Residential Non-Residential $ 10,000 $100,000 $ 25,000 $150,000 $ 75,000 $350,000 $100,000 $500,000 * In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $50,000. ** In Alaska, Guam, Hawaii, and U.S. Virgin Islands, the amount available is $150,000. NOTE: For RCBAP, refer to CONDO Section for basic insurance limits and maximum coverage available. II. RATE TABLES Rate tables are provided for the Emergency $100 of coverage. Table 6 provides Program and for the Regular Program according precalculated Pre-FIRM premiums for various to Pre-FIRM, Post-FIRM, and zone coverage limits. See Table 7 for Federal Policy classifications. Tables 1-5 show annual rates per Fee and Probation Surcharge. TABLE 1. EMERGENCY PROGRAM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) Building Contents Residential .76 .96 Non-Residential .83 1.62 TABLE 2. REGULAR PROGRAM – PRE-FIRM CONSTRUCTION RATES1, 2 ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES A, AE, A1-A30, AO, AH, D OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home3 Basement & Above4 Enclosure & Above5 Lowest Floor Only -Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level -More than One Full Floor Manufactured (Mobile) Home3 OCCUPANCY No Basement/Enclosure With Basement With Enclosure Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home3 Basement & Above4 Enclosure & Above5 Lowest Floor Only -Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level -More than One Full Floor Manufactured (Mobile) Home3 OCCUPANCY No Basement/Enclosure With Basement With Enclosure Elevated on Crawlspace Non-Elevated with Subgrade Crawlspace Manufactured (Mobile) Home3 Basement & Above4 Enclosure & Above5 Lowest Floor Only -Above Ground Level Lowest Floor Above Ground Level and Higher Floors Above Ground Level -More than One Full Floor Manufactured (Mobile) Home3 CONTENTS BUILDING CONTENTS BUILDING CONTENTS LOCATION TYPE LOCATION TYPE LOCATION .76 / .60 .96 / 1.07 .76 / .60 .76 / 1.24 .76 / .60 .96 / .90 .76 / .60 .76 / 1.24 .76 / .60 .96 / 1.07 .96 / .90 .96 / .90 .96 / 1.07 .96 / 1.07 FIRM ZONES V, VE, V1-V30 Single Family 2-4 Family Other Residential Building Contents Building Contents Building Contents .99 / 1.54 1.23 / 2.64 .99 / 1.54 .99 / 2.85 1.06 / 2.30 1.23 / 2.23 1.06 / 2.30 1.06 / 4.26 1.06 / 2.72 1.23 / 2.63 1.06 / 2.72 1.06 / 4.76 .99 / 1.54 1.23 / 2.64 .99 / 1.54 .99 / 2.85 .99 / 1.54 1.23 / 2.23 .99 / 1.54 .99 / 2.85 .99 / 6.11 1.23 / 2.63 1.23 / 2.23 1.23 / 2.23 1.23 / 2.63 1.23 / 2.63 1.23 / 2.63 1.23 / 2.63 1.23 / 2.32 1.23 / 2.32 .47 / .34 .47 / .34 FIRM ZONES A99, B, C, X Single Family 2-4 Family Other Residential Building Contents Building Contents Building Contents .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .98 / .33 1.49 / .47 .98 / .33 1.04 / .33 .98 / .37 1.49 / .54 .98 / .37 1.04 / .37 .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .86 / .42 1.32 / .41 1.68 / .62 1.68 / .62 1.68 / .71 1.68 / .71 .83 / 1.19 .83 / 1.19 .83 / 1.19 1.62 / 2.00 1.62 / 2.39 1.62 / 1.05 1.62 / .90 .24 / .14 1.62 / 1.05 Non-Residential Building Contents 1.10 / 2.96 1.16 / 4.40 1.16 / 4.91 1.10 / 2.96 1.10 / 2.96 1.10 / 10.49 2.14 / 5.20 2.14 / 5.61 2.14 / 4.70 2.14 / 4.06 .45 / .45 2.14 / 9.80 Non-Residential Building Contents .81 / .23 1.04 / .33 1.04 / .37 .81 / .23 .81 / .23 1.04 / .43 1.73 / .67 1.73 / .80 1.06/ .47 1.06 / .34 .24 / .13 .93 / .58 Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). If FIRM Zone is unknown, use rates for Zones A, AE, A1-A30, AO, AH, D. 2 Pre-FIRM buildings with subgrade crawlspaces that are below the Base Flood Elevation (BFE) may use optional Post-FIRM elevation rating. Follow the procedures from the Specific Rating Guidelines for policy processing. 3 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 4 Includes subgrade crawlspace. 5 Includes crawlspace. TABLE 3A. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES A99, B, C, X OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents BUILDINGTYPE No Basement/Enclosure .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 With Basement .98 / .33 1.49 / .47 .98 / .33 1.04 / .33 1.04 / .33 With Enclosure .98 / .37 1.49 / .54 .98 / .37 1.04 / .37 1.04 / .37 Elevated on Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Non-Elevated with Subgrade Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Manufactured (Mobile) Home1 .86 / .42 1.32 / .41 1.04 / .43 CONTENTSLOCATION Basement & Above 5 1.68 / .62 1.68 / .62 1.73 / .67 Enclosure & Above6 1.68 / .71 1.68 / .71 1.73 / .80 Lowest Floor Only -Above Ground Level 1.32 / .65 1.32 / .65 1.06 / .47 Lowest Floor Above Ground Level and Higher Floors 1.32 / .41 1.32 / .41 1.06 / .34 Above Ground Level -More than One Full Floor .39 / .13 .39 / .13 .24 / .13 Manufactured (Mobile) Home1 .93 / .58 FIRM ZONE D OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents BUILDINGTYPE No Basement/Enclosure 1.24 / .35 1.11 / .65 1.24 / .35 1.20 / .60 1.20 / .60 With Basement *** *** *** *** *** With Enclosure *** *** *** *** *** Elevated on Crawlspace 1.24 / .35 1.11 / .65 1.24 / .35 1.20 / .60 1.20 / .60 Non-Elevated with Subgrade Crawlspace 1.24 / .35 1.11 / .65 1.24 / .35 1.20 / .60 1.20 / .60 Manufactured (Mobile) Home1 1.61 / .70 1.31 / .75 2.45 / .87 CONTENTSLOCATION Basement & Above 5 *** *** *** Enclosure & Above6 *** *** *** Lowest Floor Only -Above Ground Level 1.11 / .65 1.11 / .65 1.75 / .56 Lowest Floor Above Ground Level and Higher Floors 1.11 / .45 1.11 / .45 1.75 / .54 Above Ground Level -More than One Full Floor .35 / .12 .35 / .12 .22 / .12 Manufactured (Mobile) Home1 1.75 / .56 FIRM ZONES AO, AH (No Basement/Enclosure/Crawlspace/Subgrade Crawlspace Buildings Only)2 Building Contents OCCUPANCY 1-4 Family Other Res & Non-Res Residential Non-Residential With Certification of Compliance3 .28 / .08 .23 / .08 .38 / .13 .23 / .13 Without Certification of Compliance or Elevation Certificate4 1.02 / .21 1.10 / .32 1.17 / .22 1.97 / .29 1 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 2 Zones AO, AH Buildings With Basement/Enclosure/Crawlspace/Subgrade Crawlspace: Submit for Rating 3 “With Certification of Compliance” rates are to be used when the Elevation Certificate shows that the lowest floor is equal to or greater than the community's elevation requirement. 4 “Without Certification of Compliance” rates are to be used only on Post-FIRM structures without an Elevation Certificate or when the Elevation Certificate shows that the lowest floor elevation of a Post-FIRM structure is less than the community’s elevation requirement. 5 Includes subgrade crawlspace. 6 Includes crawlspace. ***SUBMIT FOR RATING TABLE 3B. REGULAR PROGRAM --POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES AE, A1-A30 --BUILDING RATES Elevation of Lowest Floor Above or Below BFE1 One Floor No Basement/Enclosure/ Crawlspace 4 More than One Floor No Basement/Enclosure/ Crawlspace4 More than One Floor With Basement/ Enclosure/Crawlspace4 Manufactured (Mobile) Home2 1-4 Family Other Residential & Non-Residential 1-4 Family Other Residential & Non-Residential 1-4 Family Other Residential & Non-Residential Single Family Non-Residential +4 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .24/ .08 .20 / .08 .26 / .09 .22 / .09 +3 .27 / .08 .22 / .09 .25 / .08 .20 / .08 .25 / .08 .20 / .08 .28 / .09 .24 / .09 +2 .42 / .08 .29 / .09 .28 / .08 .23 / .08 .27 / .08 .22 / .08 .48 / .09 .37 / .10 +1 .73 / .10 .52 / .11 .52 / .09 .32 / .09 .34 / .09 .26 / .09 .92 / .11 .75 / .13 0 1.60 / .12 1.47 / .14 1.17 / .11 .88 / .17 .82 / .10 .67 / .16 2.39 / .13 1.92 / .20 -13 4.30 / 1.25 5.39 / 1.28 3.70 / 0.97 3.65 / .59 2.15 / .60 1.93 / .66 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES AE, A1-A30 --CONTENTS RATES Elevation of Lowest Floor Above or Below BFE1 Lowest Floor Only – Above Ground Level (No Basement/Enclosure/ Crawlspace4) Lowest Floor Above Ground Level & Higher Floors (No Basement/Enclosure/ Crawlspace4) More than One Floor With Basement/Enclosure/ Crawlspace4 Manufactured (Mobile) Home2 Residential Non-Residential Residential Non-Residential Residential Non-Residential Single Family Non-Residential +4 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .13 +3 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .13 .24 / .13 +2 .38 / .12 .24 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .15 .34 / .15 +1 .52 / .12 .35 / .16 .38 / .12 .25 / .12 .38 / .12 .22 / .12 .58 / .17 .53 / .23 0 1.18 / .12 .81 / .31 .67 / .12 .59 / .20 .41 / .12 .32 / .12 1.12 / .23 1.11 / .31 -13 3.45 / .70 2.29 / .90 2.00 / .47 1.53 / .60 .66 / .14 1.06 / .14 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES AE, A1-A30 --CONTENTS RATES Elevation of Lowest Floor Above Ground Level More than One Full Floor Above or Below BFE1 Single Family 2-4 Family Other Residential Non-Residential +4 .35 / .12 .35 / .12 .22 / .12 +3 .35 / .12 .35 / .12 .22 / .12 +2 .35 / .12 .35 / .12 .22 / .12 +1 .35 / .12 .35 / .12 .22 / .12 0 .35 / .12 .35 / .12 .22 / .12 -1 .35 / .12 .35 / .12 .22 / .12 -2 .35 / .12 .35 / .12 .22 / .12 1 If Lowest Floor is –1 because of attached garage, submit application for special consideration. Rate may be lower. 2 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 3 Use Submit-for-Rate guidelines if either the enclosure below the lowest elevated floor of an elevated building or the crawlspace (under-floor space) that has its interior floor within 2 feet below grade on all sides, which is used for rating, is 1 or more feet below BFE. 4 Includes subgrade crawlspace. *** SUBMIT FOR RATING TABLE 3C. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) UNNUMBERED ZONE A – WITHOUT BASEMENT/ENCLOSURE/CRAWLSPACE1,6 1 Zone A building with basement/enclosure/crawlspace/subgrade crawlspace – Submit for Rating. 2 For elevation rated risks other than Single Family, when contents are located one floor or more above lowest floor used for rating – use .35 /.12. 3 Elevation difference is the measured distance between the highest adjacent grade next to the building and the lowest floor of the building. 4 Elevation difference is the measured distance between the estimated BFE provided by the community or registered professional engineer, surveyor, or architect and the lowest floor of the building. 5 For building without basement, enclosure, or crawlspace, Elevation Certificate is optional. 6 Pre-FIRM buildings with basement/enclosure/crawlspace/subgrade crawlspace may use this table if the rates are more favorable to the insured. For optional rating, follow the Submit for Rate procedures on pages RATE 25-25A. *** SUBMIT FOR RATING TABLE 3D. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES '75-81, V1-V30, VE – BUILDING RATES1 Elevation of One Floor, No Basement/Encl/ Crawlspace5 More than One Floor, No Basement/Encl/ Crawlspace5 More than One Floor, With Basement/Encl/ Crawlspace5 Manufactured (Mobile) Home2 1-4 Family Other 1-4 Family Other 1-4 Family Other Single Non- Lowest Floor Residential & Residential Residential Family Residential Above or Non­ & Non­ & Non- Below BFE Residential Residential Residential 03 2.81 / .51 3.40 / 1.32 2.28 / .51 2.47 / 1.23 1.97 / .51 2.20 / 1.00 4.22 / .42 6.02 / .38 -14 6.00 / 3.07 8.95 / 4.93 5.49 / 3.07 7.70 / 3.75 3.90 / 2.79 4.08 / 3.81 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES '75-81, V1-V30, VE – CONTENTS RATES Elevation of Lowest Floor Only -­Above Ground Level (No Basement/Encl/ Crawlspace5) Lowest Floor Above Ground Level & Higher Floors (No Basement/Encl/ Crawlspace5) More than One Floor With Basement/Enclosure/ Crawlspace 5 Manufactured (Mobile) Home2 Lowest Floor Residential Non- Residential Non- Residential Non- Single Non- Above or Residential Residential Residential Family Residential Below BFE 03 4.36 / .61 3.85 / 2.82 2.83 / .67 2.69 / 1.69 1.60 / .61 1.60 / .61 4.19 / .67 4.37 / 3.60 -14 9.55 / 4.64 9.37 / 8.18 5.63 / 3.60 6.43 / 5.10 1.88 / .61 5.73 / .61 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES '75-81, V1-V30, VE – CONTENTS RATES Elevation of Lowest Floor Above Ground Level More than One Full Floor Above or Below BFE Single Family 2-4 Family Other Residential Non-Residential 03 .56 / .25 .56 / .25 .42 / .25 -14 .56 / .25 .56 / .25 .42 / .25 -2 .56 / .25 .56 / .25 .46 / .25 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 3 These rates are to be used if the lowest floor of the building is at or above BFE. 4 Use Submit-for-Rate guidelines if the enclosure below the lowest elevated floor of an elevated building, which is used for rating, is 1 or more feet below BFE. 5 Includes subgrade crawlspace. ***SUBMIT FOR RATING FIRM ZONES '75-'81, UNNUMBERED V ZONE TABLE 3E. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE 1981 POST-FIRM V1-V30, VE ZONE RATES1 Elevation of the lowest floor above or below BFE adjusted for wave height2 Elevated Buildings Free of Obstruction3 Contents Building Residential Non-Residential Replacement Cost Ratio .75 or More4 Replacement Cost Ratio .50 to .744 Replacement Cost Ratio Under .504 +4 or more .44 .44 .71 .94 1.44 +3 .44 .44 .86 1.17 1.75 +2 .64 .69 1.12 1.50 2.26 +1 1.11 1.19 1.63 2.18 3.04 0 1.90 2.04 2.34 3.13 4.39 -1 2.73 2.81 3.07 4.05 5.26 -2 3.90 4.11 4.15 5.44 6.94 -3 5.35 5.67 5.35 7.15 9.06 -4 or below *** *** *** *** *** 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2 Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. 3 Free of Obstruction – The space below the lowest elevated floor must be completely free of obstructions or any attachment to the building, or may have: (1) Insect screening, provided that no additional supports are required for the screening; or (2) Wooden or plastic lattice with at least 40 percent of its area open and made of material no thicker than ½ inch; or (3) Wooden or plastic slats or shutters with at least 40 percent of their area open and made of material no thicker than 1 inch. (4) One solid breakaway wall or a garage door, with the remaining sides of the enclosure constructed of insect screening, wooden or plastic lattice, slats, or shutters. Any of these systems must be designed and installed to collapse under stress without jeopardizing the structural support of the building, so that the impact on the building of abnormally high tides or wind-driven water is minimized. Any machinery or equipment below the lowest elevated floor must be at or above the BFE. 4 These percentages represent building replacement cost ratios, which are determined by dividing the amount of building coverage being purchased by the replacement cost. See pages RATE 20-21 for more details. *** SUBMIT FOR RATING 1981 POST-FIRM V1-V30, VE ZONE Non-Elevated Buildings SUBMIT FOR RATING 1981 POST-FIRM UNNUMBERED V ZONE SUBMIT FOR RATING TABLE 3F. REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE 1981 POST-FIRM V1-V30, VE ZONE RATES1,2 Elevation of the lowest floor above or below BFE adjusted for wave height3 Elevated Buildings With Obstruction4 Contents Building Residential Non-Residential Replacement Cost Ratio .75 or More 5 Replacement Cost Ratio .50 to .745 Replacement Cost Ratio Under .505 +4 or more .57 .57 1.58 2.10 3.12 +3 .58 .58 1.77 2.33 3.55 +2 .76 .76 2.09 2.73 4.17 +1 1.28 1.37 2.62 3.51 5.07 0 2.05 2.16 3.18 4.35 5.90 -16 2.81 2.97 3.75 4.98 6.69 -26 4.01 4.28 4.80 6.31 8.19 -36 5.48 5.83 6.18 8.04 10.33 -4 or below6 *** *** *** *** *** 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2 Rates provided are only for elevated buildings, except those elevated on solid perimeter foundation walls. For buildings elevated on solid perimeter foundation walls, and for non-elevated buildings, use the Specific Rating Guidelines document. 3 Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. 4 With Obstruction –The space below has an area of less than 300 square feet with breakaway solid walls or contains equipment below the BFE. If the space below has an area of 300 square feet or more, or if any portion of the space below the elevated floor is enclosed with non-breakaway walls, submit for rating. If the enclosure is at or above the BFE, use the “Free of Obstruction” rate table on the preceding page. The elevation of the bottom enclosure floor is the lowest floor for rating (LFE). See page RATE 20 for more details. 5 These percentages represent building replacement cost ratios, which are determined by dividing the amount of building coverage being purchased by the replacement cost. See pages RATE 20-21 for more details. 6 For buildings with obstruction, use Submit-for-Rate guidelines if the enclosure below the lowest elevated floor of an elevated building, which is used for rating, is 1 or more feet below BFE. *** SUBMIT FOR RATING 1981 POST-FIRM UNNUMBERED V ZONE TABLE 4. REGULAR PROGRAM – FIRM ZONE AR AND AR DUAL ZONES RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) 1, 2 PRE-FIRM NOT ELEVATION-RATED RATES OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents BUILDINGTYPE No Basement/Enclosure .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 With Basement .98 / .33 1.49 / .47 .98 / .33 1.04 / .33 1.04 / .33 With Enclosure .98 / .37 1.49 / .54 .98 / .37 1.04 / .37 1.04 / .37 Elevated on Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Non-Elevated with Subgrade Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Manufactured (Mobile) Home3 .86 / .42 1.32 / .41 1.04 / .43 CONTENTSLOCATION Basement & Above 1.68 / .62 1.68 / .62 1.73 / .67 Enclosure & Above 1.68 / .71 1.68 / .71 1.73 / .80 Lowest Floor Only -Above Ground Level 1.32 / .65 1.32 / .65 1.06 / .47 Lowest Floor Above Ground Level and Higher Floors 1.32 / .41 1.32 / .41 1.06 / .34 Above Ground Level -More than One Full Floor .39 / .13 .39 / .13 .24 / .13 Manufactured (Mobile) Home3 .93 / .58 1 Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). 2 Base Deductible is $2,000. 3 The definition of Manufactured (Mobile) Home includes travel trailers. See Page APP 3. POST-FIRM NOT ELEVATION-RATED RATES1 OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents BUILDINGTYPE No Basement/Enclosure .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 With Basement .98 / .33 1.49 / .47 .98 / .33 1.04 / .33 1.04 / .33 With Enclosure .98 / .37 1.49 / .54 .98 / .37 1.04 / .37 1.04 / .37 Elevated on Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Non-Elevated with Subgrade Crawlspace .86 / .23 1.32 / .41 .86 / .23 .81 / .23 .81 / .23 Manufactured (Mobile) Home2 .86 / .42 1.32 / .41 1.04 / .43 CONTENTSLOCATION Basement & Above 1.68 / .62 1.68 / .62 1.73 / .67 Enclosure & Above 1.68 / .71 1.68 / .71 1.73 / .80 Lowest Floor Only -Above Ground Level 1.32 / .65 1.32 / .65 1.06 / .47 Lowest Floor Above Ground Level and Higher Floors 1.32 / .41 1.32 / .41 1.06 / .34 Above Ground Level -More than One Full Floor .39 / .13 .39 / .13 .24 / .13 Manufactured (Mobile) Home2 .93 / .58 1 Base Deductible is $1,000. 2 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. TABLE 5. REGULAR PROGRAM – PRE-FIRM AND POST-FIRM ELEVATION-RATED RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) FIRM ZONES AR and AR Dual Zones – BUILDING RATES Elevation of Lowest Floor Above or Below BFE One Floor, No Basement/Encl/ Crawlspace 4 More than One Floor, No Basement/Encl/ Crawlspace 4 More than One Floor, With Basement/Encl/ Crawlspace4 Manufactured (Mobile) Home1 1-4 Family Other Residential & Non-Residential 1-4 Family Other Residential & Non-Residential 1-4 Family Other Residential & Non-Residential Single Family Non-Residential +4 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .26 / .09 .22 / .09 +3 .27 / .08 .22 / .09 .25 / .08 .20 / .08 .25 / .08 .20 / .08 .28 / .09 .24 / .09 +2 .42 / .08 .29 / .09 .28 / .08 .23 / .08 .27 / .08 .22 / .08 .48 / .09 .37 / .10 +1 .73 / .10 .52 / .11 .52 / .09 .32 / .09 .34 / .09 .26 / .09 .86 / .42 .75 / .13 0 .86 / .23 .81 / .23 .86 / .23 .81 / .23 .82 / .09 .67 / .16 .86 / .42 1.04 / .43 -12 See Footnote2 FIRM ZONES AR and AR Dual Zones – CONTENTS RATES Elevation of Lowest Floor Above or Below BFE Lowest Floor Only – Above Ground Level (No Basement/Encl/ Crawlspace4) Lowest Floor Above Ground Level & Higher Floors (No Basement/Encl/ Crawlspace4) More than One Floor With Basement/Enclosure/ Crawlspace4 Manufactured (Mobile) Home1 Residential Non-Residential Residential Non-Residential Residential Non-Residential Single Family Non-Residential +4 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .13 +3 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .13 .24 / .13 +2 .38 / .12 .24 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .15 .34 / .15 +1 .52 / .12 .35 / .16 .38 / .12 .25 / .12 .38 / .12 .22 / .12 .58 / .17 .53 / .23 0 1.18 / .12 .81 / .31 .67 / .12 .59 / .20 .41 / .12 .32 / .12 1.12 / .23 .77 / .48 -12 See Footnote2 FIRM ZONES AR and AR Dual Zones – CONTENTS RATES Elevation of Lowest Floor Above or Above Ground Level More than One Full Floor Below BFE +4 +3 Single Family 2-4 Family .35 / .12 .35 / .12 Other Residential .35 / .12 .35 / .12 Non-Residential .22 / .12 .22 / .12 +2 .35 / .12 .35 / .12 .22 / .12 +1 .35 / .12 .35 / .12 .22 / .12 0 .35 / .12 .35 / .12 .22 / .12 -13 .35 / .12 .35 / .12 .22 / .12 -23 .35 / .12 .35 / .12 .22 / .12 1 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 2 Use Table 4 Pre-FIRM and Post-FIRM Not Elevation-Rated AR and AR Dual Zones Rate Table. 3 These rates are only applicable to Contents-only policies. 4 Includes subgrade crawlspace. RATE 10 October 1, 2010 TABLE 6. PRECALCULATED PRE-FIRM PREMIUM TABLE FOR SINGLE-FAMILY DWELLINGS AMOUNT OF INSURANCE PREMIUM1 EXCLUDING ICC2 AND FEDERAL POLICY FEE3 A, AE, A1-A30, AH, AO, D V, VE, V1-V30 w/bsmt w/o bsmt w/bsmt w/o bsmt BUILDING $ 20,000 $ 162 $ 152 $ 212 $ 198 $ 30,000 $ 243 $ 228 $ 318 $ 297 $ 40,000 $ 324 $ 304 $ 424 $ 396 $ 50,000 $ 405 $ 380 $ 530 $ 495 $ 60,000 $ 486 $ 456 $ 636 $ 594 $ 70,000 $ 574 $ 516 $ 866 $ 748 $ 80,000 $ 662 $ 576 $1,096 $ 902 $ 90,000 $ 750 $ 636 $1,326 $1,056 $100,000 $ 838 $ 696 $1,556 $1,210 $125,000 $1,058 $ 846 $2,131 $1,595 $150,000 $1,278 $ 996 $2,706 $1,980 $175,000 $1,498 $1,146 $3,281 $2,365 $200,000 $1,718 $1,296 $3,856 $2,750 $225,000 $1,938 $1,446 $4,431 $3,135 $250,0004 $2,158 $1,596 $5,006 $3,520 CONTENTS $ 5,000 $ 48 $ 48 $ 62 $ 62 $ 10,000 $ 96 $ 96 $ 123 $ 123 $ 15,000 $144 $144 $ 185 $ 185 $ 20,000 $192 $192 $ 246 $ 246 $ 25,000 $240 $240 $ 308 $ 308 $ 30,000 $285 $294 $ 419 $ 440 $ 40,000 $375 $401 $ 642 $ 704 $ 50,000 $465 $508 $ 865 $ 968 $ 60,000 $555 $615 $1,088 $1,232 $ 70,000 $645 $722 $1,312 $1,496 $ 80,000 $735 $829 $1,534 $1,760 $ 90,000 $825 $936 $1,757 $2,024 $100,000 $915 $1,043 $1,980 $2,288 1 Premium before applying any CRS credits or optional deductible factors. 2 For building coverage amounts of $230,000 and less, add $70 to the building premium selected from the table above to cover ICC cost, except for D zones. For D zones add $5. For building coverage amounts above $230,000, see Footnote 4 below. 3 Add $40 to the premium selected from the table above to cover Federal Policy Fee. 4 Add $55 to cover the ICC cost for the $250,000 building limit, except for D zones. For D zones add $4. TABLE 7. FEDERAL POLICY FEE AND PROBATION SURCHARGE TABLE FEDERAL POLICY FEE1 PROBATION SURCHARGE $40 $50 1 For the Preferred Risk Policy, the Federal Policy Fee is $20.00. III. DEDUCTIBLES As shown in Table 8A below, the NFIP standard deductible is either $1,000 or $2,000. The insured may choose a deductible amount different from the standard $1,000 for Post-FIRM or the standard $2,000 for structures in the Emergency Program and those rated using Pre-FIRM rates in Zones A, AO, AH, A1-A30, AE, VO, V1-V30, VE, V, AR, and AR Dual Zones (AR/AE, AR/AH, AR/AO, AR/A1-A30, AR/A). The optional deductible amount may be applied to policies insuring properties in either Emergency Program or Regular Program communities. Refer to page CONDO 22 for Residential Condominium Building Association Policy optional deductibles. A. Buy-Back Deductibles Policyholders who wish to reduce their deductibles from the standard deductibles of $2,000 for Pre-FIRM SFHA risks may opt to purchase separate $1,000 deductibles for building and contents coverages, for an additional premium. The deductible factors provided on pages RATE 13 and CONDO 22 must be used to calculate the deductible surcharge. B. Changes in Deductible Amount The amount of the deductible may be increased during the policy term by submitting a completed General Change Endorsement form. The deductible amount may be reduced through the submission of a new Application at the time of renewal. This procedure does not require the completion of the entire Flood Insurance Application. Deductibles cannot be reduced mid term unless required by the mortgagee and written authorization is provided by the mortgagee. A 30-day waiting period will be applied to reduce the deductible. TABLE 8A. STANDARD DEDUCTIBLES EMERGENCY PROGRAM REGULAR PROGRAM Flood Zone Pre-FIRM Pre-FIRM with Optional Post-FIRM Elevation Rating Post-FIRM $2,000 B, C, X, A99, D $1,000 $1,000 A, AO, AH, A1-A30, AE, VO, V1-V30, VE, V, AR, AR/AE, AR/AH, AR/AO, AR/A1-A30, AR/A $2,000 $1,000 $1,000 TABLE 8B. DEDUCTIBLE FACTORS Single Family and 2-4 Family Building and Contents Policies1,2,3 Deductible Options: Building/Contents Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Deductible Options: Building/Contents Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000/$1,000 1.000 1.100 $4,000/$3,000 .800 .875 $2,000/$1,000 .950 1.030 $4,000/$4,000 .775 .850 $2,000/$2,000 .925 1.000 $5,000/$1,000 .825 .900 $3,000/$1,000 .900 .980 $5,000/$2,000 .800 .875 $3,000/$2,000 .875 .950 $5,000/$3,000 .780 .850 $3,000/$3,000 .850 .925 $5,000/$4,000 .765 .830 $4,000/$1,000 .850 .900 $5,000/$5,000 .750 .810 $4,000/$2,000 .825 .900 Single Family and 2-4 Family Building Only or Contents Only Policies1,2,3 Building Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000 1.000 1.075 $2,000 .935 1.000 $3,000 .885 .945 $4,000 .835 .890 $5,000 .785 .840 Contents4 Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000 1.000 1.100 $2,000 .900 1.000 $3,000 .825 .915 $4,000 .750 .830 $5,000 .675 .750 Other Residential and Non-Residential Policies1,2,5 Bldg./Contents Discount From Amount Building Only Contents Only Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000/$1,000 1.000 1.050 $1,000 1.000 1.050 1.000 1.050 $2,000/$2,000 .960 1.000 $2,000 .960 1.000 .965 1.000 $3,000/$3,000 .930 .970 $3,000 .925 .965 .940 .975 $4,000/$4,000 .910 .950 $4,000 .900 .935 .915 .950 $5,000/$5,000 .890 .930 $5,000 .875 .910 .890 .925 $10,000/$10,0005 .815 .855 $10,000 .775 .800 .815 .850 $15,000/$15,0005 .765 .800 $15,000 .700 .725 .740 .775 $20,000/$20,0005 .715 .750 $20,000 .625 .650 .670 .700 $25,000/$25,0005 .665 .700 $25,000 .575 .600 .620 .650 $50,000/$50,0005 .565 .600 $50,000 .475 .500 .550 .575 1 Deductible factors for the RCBAP are located on page CONDO 22. 2 The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium, for each policy year. 3 These deductible factors apply for condominium unit owners. 4 Also applies to residential unit contents in Other Residential building or in multi-unit condominium building. 5 Deductibles of $10,000 to $50,000 are available only for Non-Residential Policies. IV. INCREASED COST OF COMPLIANCE (ICC) COVERAGE Coverage is afforded under the Standard Flood Insurance Policy for the increased cost to rebuild, or otherwise alter, a flood-damaged structure to bring it into conformance with State or local floodplain management ordinances or laws. ICC coverage is mandatory for all Standard Flood Insurance Policies except for (1) those sold in Emergency Program communities, (2) contents-only policies, (3) Dwelling Forms on individual condominium units, and (4) Group Flood Insurance. For these four cases, ICC coverage is not available. In a condominium building, ICC coverage is only available through the Condominium Association’s flood policy. The current ICC coverage limit is $30,000 per building or, for non-condominium townhouse construction, per unit, per policy. This coverage amount is in addition to the Building Amount of insurance purchased. However, for any one flood event, the amount of combined loss payment received from Building coverage and ICC coverage cannot exceed the maximum program limits of $250,000 for residential structures and $500,000 for non-residential structures. TABLE 9. STANDARD FLOOD INSURANCE POLICY INCREASED COST OF COMPLIANCE (ICC) COVERAGE Premiums for $30,000 ICC Coverage All Except RCBAP, MPPP, Preferred Risk Policies, and Submit-For-Rate Policies FIRM Zone Residential Non-Residential Building Amount of Insurance Building Amount of Insurance $1 ­$230,000 $230,001 ­$250,000 $1 ­$480,000 $480,001 ­$500,000 Post-FIRM A, AE, A1-A30, AO, AH AR, AR DUAL ZONES POST-’81 V1-V30, VE ‘75-’81 V1-V30, VE A99, B, C, X, D $ 5 $ 5 $18 $30 $ 5 $ 4 $ 4 $13 $20 $ 4 $ 5 $ 5 $18 $30 $ 5 $ 4 $ 4 $13 $20 $ 4 Pre-FIRM A, AE, A1-A30, AO, AH AR, AR DUAL ZONES V, VE, V1-V30 A99, B, C, X, D $70 $ 5 $70 $ 5 $55 $ 4 $55 $ 4 $70 $ 5 $70 $ 5 $55 $ 4 $55 $ 4 NOTES: (1) ICC coverage does not apply to the Emergency Program, individually owned condominium units insured under the Dwelling Form or General Property Form, contents-only policies, and Group Flood Insurance Policies. (2) The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium. (3) Use only one ICC premium amount listed above for each building to be insured. (4) For scheduled building policies, apply ICC premium for each building. (5) Add Federal Policy Fee and Probation Surcharge, if applicable, when computing the premium. (6) Elevation-rated Pre-FIRM buildings should use Post-FIRM ICC premiums. (7) See RATE 19 for AR Zone and AR Dual Zone Rating information. (8) For flood policies issued through the Mortgage Portfolio Protection Program, use the rates and ICC premiums in the table on page MPPP 1. (9) For Submit for-Rate policies, use the ICC premium table contained in the Specific Rating Guidelines. V. RATING STEPS A. Determine the exact location of the building and/or contents to be insured. IF THE MAILING ADDRESS DIFFERS FROM THE PROPERTY ADDRESS, USE THE PROPERTY ADDRESS ONLY. B. Determine if the building is located in an eligible community. Not all communities participate in the NFIP. There is NO COVERAGE available in non­participating communities. If you are uncertain, call the NFIP insurer, consult a local community official, or check the NFIP Community Status Book online (http://www.fema.gov/fema/csb.shtm). C. Determine the NFIP program phase (Emergency or Regular) and the community in which the property is located. Some communities may be eligible for premium discounts under the Community Rating System (CRS). See the CRS Section for a list of eligible communities, the corresponding discounts, and an example showing how to apply the CRS discount. D. Determine the location of the contents in the building. E. Determine the date of construction as described below. • Date of Construction—Buildings For flood insurance purposes, the date of construction for buildings under the NFIP must be determined in order to establish whether the building is Pre-FIRM or Post-FIRM construction. The start of construction or substantial improvement for insurance purposes means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, or improvement was within 180 days of the permit date. For the Coastal Barrier Resources System, the start of construction or substantial improvement, for insurance purposes, must be determined in accordance with the documentation requirements set forth by the Coastal Barrier Resources Act (CBRA). (See the Coastal Barrier Resources System Section.) • Date of Construction—Manufactured (Mobile) Homes/Travel Trailers The date of construction for a manufactured (mobile) home is different from a standard building and depends upon the location of the manufactured (mobile) home. For manufactured (mobile) homes located in manufactured (mobile) home parks or subdivisions, the date of construction is the date facilities were constructed for servicing the manufactured (mobile) home site, or the date of the permit, provided that construction began within 180 days of the permit date. This rule applies to all manufactured (mobile) homes even if the manufactured (mobile) home is rated and classified as single family. For manufactured (mobile) homes not located in manufactured (mobile) home parks or subdivisions, but located on individually owned lots or tracts of land, the date of construction is the date the manufactured (mobile) home was permanently affixed to the site or the permit date if affixed to the site within 180 days of the date of permit. • Pre-FIRM Construction For the purpose of determining insurance rates, buildings for which the start of construction or substantial improvement was on or before December 31, 1974, or before the effective date of the initial FIRM for the community, are considered Pre-FIRM construction. However, for insurance purposes, manufactured (mobile) homes that are located or placed in existing manufactured (mobile) home parks or subdivisions, or expansions to existing manufactured (mobile) home parks or subdivisions, are considered Pre-FIRM. All historic buildings are considered Pre-FIRM as long as the building meets the definition of a historic building. (See the Definitions Section.) Pre-FIRM buildings that are substantially improved may continue being rated as Pre-FIRM if certain conditions are satisfied. Pre-FIRM rating is applicable ONLY when ALL of the following conditions are met: -The building must be Pre-FIRM. -The substantial improvement must be an ADDITION to the building. (This condition excludes substantial improvements made as interior remodeling or repair projects.) -The ADDITION and extension must be next to and in contact with the existing building. (This condition does not apply to substantial improvements consisting of the construction of additional floors.) -An Elevation Certificate must be submitted to the NFIP Underwriting Unit with the application or renewal. The Elevation Certificate must verify that the lowest floor elevation of the ADDITION is at or above the applicable Base Flood Elevation in effect at the time the addition is started. NOTE: Elevation Certificates certified on or after April 1, 2010, must be submitted on the 2009 EC form (OMB expiration 2012). The Elevation Certificate must meet all photograph requirements described on pages CERT 1-2 of this manual. An Elevation Certificate submitted without the required photographs is not considered valid for rating. If all of the above conditions are satisfied, the entire building is eligible for Pre-FIRM rates. (Except for some V-Zone risks and some manufactured [mobile] home risks, Post-FIRM rates provide less costly coverage and, therefore, the coverage may be rated using the lower Post-FIRM rates.) If the above conditions are not satisfied, the entire building MUST be rated as Post-FIRM. • Post-FIRM Construction For insurance rating purposes, buildings for which the start of construction or substantial improvement was after December 31, 1974, or on or after the effective date of the initial FIRM for the community, whichever is later, are considered Post-FIRM construction. This would include all manufactured (mobile) homes located in either new manufactured (mobile) home parks or subdivisions or outside of existing manufactured (mobile) home parks or subdivisions. VI. PREMIUM CALCULATION A. Emergency Program 1. Determine Occupancy Type: Residential or Non-Residential. 2. Calculate premium using appropriate rates. 3. Apply appropriate deductible factor if an Optional Deductible is selected. 4. Add Federal Policy Fee. B. Regular Program 1. Determine if the property to be insured is Pre-FIRM or Post-FIRM. A Pre-FIRM premium table for standard risk, single family property is located on page RATE 11. 2. Determine Zone. 3. Determine Occupancy: Single Family, 2-4 Family, Other Residential, Non-Residential, or Manufactured (Mobile) Home. 4. Determine Building Type (including basement or enclosure, if any): one floor, two floors, three or more floors, split level, or manufactured (mobile) home on foundation. 5. Determine if building has basement (or enclosed area below an elevated building): none, finished, or unfinished. 6. Determine Elevation Difference. 7. Calculate premium using the appropriate rates. 8. Apply appropriate deductible factor if an Optional Deductible is selected. 9. The ICC premium is not subject to deductible factors. First calculate the deductible amount, then add in the ICC premium. 10. Apply CRS discount, if applicable. 11. Add $50.00 Probation Surcharge if building is located in a community on probation. 12. Add Federal Policy Fee. VII. KEY POINTS FOR RATING A. Basic Limits and Additional Limits For rating purposes in the Regular Program, separate rates have been established for the Basic Limits and the Additional Limits. B. Whole Dollars NFIP accepts premium only in WHOLE DOLLARS. If the discount for an optional deductible does not result in a whole dollar premium, round up if 50¢ or more; round down if less. ALWAYS SUBMIT GROSS PREMIUM. C. Increased Cost of Compliance (ICC) Premium Total Prepaid Amount will include ICC premium. The ICC premium is not subject to deductible factors, but the CRS discount will apply. D. Federal Policy Fee A Federal Policy Fee shall be charged for all new and renewal policies, including the Preferred Risk Policy. This fee is fully earned on the effective date of the policy, except as indicated in the Cancellation/Nullification Section. This fee is not subject to earned commissions and, as such, is not considered part of the Total Prepaid Premium. The Federal Policy Fee must, however, be added to the Total Prepaid Premium in order to figure the Total Prepaid Amount. Under the Residential Condominium Building Association Policy, the Federal Policy Fee is based on the number of units. (See CONDO Section.) E. Buildings in More Than One Flood Zone Buildings, not the land, located in more than one zone must be rated using the more hazardous zone. This condition applies even though the portion of the building located in the more hazardous zone may not be covered under the SFIP, such as a deck. F. Different Base Flood Elevations (BFEs) Reported When the BFE shown on a Flood Zone Determination Company’s form is different than the BFE shown on the property owner’s Elevation Certificate, and the community number and the zone are the same, the BFE shown on the Elevation Certificate must be used to rate the policy. G. Flood Zone Discrepancies When presented with two different flood zones, use the more hazardous flood zone for rating unless the building qualifies for the grandfathering rule (see XIV.D. on page RATE 22). The community number and BFE must come from the same source as the zone used to rate the policy. H. Mortgagee on Policy—Higher Deductible Requested When a mortgagee is listed on the policy, their written consent should be secured before requesting a deductible higher than the applicable SFIP deductible. VIII. REGULAR PROGRAM, POST-FIRM ELEVATION-RATED RISKS A. Elevation Difference The elevation difference is the difference between the lowest floor used for rating and the Base Flood Elevation (BFE). The elevation difference must be determined if the building is Post-FIRM located in a Special Flood Hazard Area (SFHA) and within a Regular Program community. Refer to the Lowest Floor Guide section for a guide to determining the lowest floor. Note that, in Puerto Rico, elevations are based on meters rather than feet. Before rating the flood insurance premium, the agent must convert the meter elevations into feet. For rating purposes, the elevation difference is the difference, measured in feet, between the lowest floor elevation of the building to be rated, and the BFE for that zone. The elevation difference can be a number of feet above (+) or below (-) the BFE. If the BFE and/or the lowest floor elevation is shown in tenths (e.g., 10.5’), the agent must apply the rounding rule to the difference between the BFE and the lowest-floor-for-rating elevation. If the difference is negative, the final figure is rounded up from .5. If the difference is positive, the final figure is rounded up from .5. Always round to the higher elevation. For example, -3’ is higher than -3.5’ and +4’ is higher than +3.5’. Rounding Rule Example: 11’ BFE -3’ -2’ -1’ 0’ +1’ +2’ +3’ 10.5’ LF -11.0’ BFE = -0.5’ Because the difference is negative, it is rounded up to 0’. 11.5’ LF – 11.0’ BFE = +0.5’ Because the difference is positive, it is rounded up to 1.0’. B. Examples Examples to illustrate how to determine the elevation difference are provided below. 1. Zones A1-A30, AE, AR, AR Dual Zones, Post-‘81 V1-V30, VE, and A (With Estimated BFE) Lowest Floor Elevation -Base Flood Elevation (BFE) = Elevation Difference Examples: a. Lowest Floor Elevation (+10') -BFE (+6') = Elevation Difference of (+4'). b. Lowest Floor Elevation (+8.3') -BFE (+6.0') = Elevation Difference of (+2.3'); therefore, (+2.3') is rounded down to (+2.0'). c. Lowest Floor Elevation (+12.4') -BFE (+8.8') = Elevation Difference of (+3.6'); therefore, (+3.6') is rounded up to (+4.0'). d. Lowest Floor Elevation (+9.5') -BFE (+12.0') = Elevation Difference of (-2.5'); therefore, (-2.5') is rounded down to (-2'). 2. Zone AH Lowest Floor Elevation -Base Flood Elevation (BFE) = Elevation Difference Examples: a. Lowest Floor Elevation (+4') -BFE (+2') = (+2'); use With Certification of Compliance rates. b. Lowest Floor Elevation (+6') -BFE (+8') = (-2'); use Without Certification of Compliance rates. c. Lowest Floor Elevation (+3.9') -BFE (+4') = (0'); use With Certification of Compliance rates. 3. Zone AO In AO zones, the difference between the top of the bottom floor and the highest adjacent grade is the lowest floor elevation used for rating. If the lowest floor elevation is equal to or greater than the Base Flood Depth printed on the FIRM, use With Certification of Compliance rate. If the elevation difference is less than the Base Flood Depth, use Without Certification of Compliance rates. When no Base Flood Depth is printed on the FIRM, a depth of 2 feet must be used for rating purposes. Examples: a. Lowest Floor Elevation (distance between the top of the bottom floor and the highest adjacent grade) (+2.9') ­Base Flood Depth (3') = (0'); use With Certification of Compliance rates. b. Lowest Floor Elevation (0') -Base Flood Depth (+1') = (-1'); use Without Certification of Compliance rates. c. Lowest Floor Elevation (+2') -(+2') (no published Base Flood Depth) = (0'); use With Certification of Compliance rates. 4. Zone A (With No Estimated BFE) In Zone A where there is no established BFE, the difference between the top of the bottom floor and the highest adjacent grade is the lowest floor elevation used for rating. Examples: a. Lowest Floor Elevation (distance between the top of the bottom floor and the highest adjacent grade) (+3') = (+3') for rating purposes (use No Estimated BFE rate table). The top of the bottom floor is 3' above the highest adjacent grade. b. Lowest Floor Elevation (-2') = (-2') for rating purposes. The top of the bottom floor is below the highest adjacent grade by 2'. 5. Zones V1-V30, VE Post-FIRM 1975-81 Lowest Floor Elevation -Base Flood Elevation (BFE) = Elevation Difference C. Optional Elevation Rating Pre-FIRM construction, at the option of the applicant, may be rated using Pre-or Post-FIRM rating. Once it is determined which rating will provide a lower premium, a policy may be endorsed to obtain a lower rate. Pre-FIRM buildings with subgrade crawlspaces that are below the Base Flood Elevation (BFE) may use optional Post-FIRM elevation rating. For policy processing, follow the Submit-for-Rate procedures on pages RATE 25-25A. This is the only Pre-FIRM construction that can be rated using the Submit-for-Rate procedure. IX. PRE-FIRM ELEVATED BUILDING RATED WITH PRE-FIRM RATES Pre-FIRM elevated buildings with no enclosures beneath the lowest elevated floor are to be rated using the No Basement rates. Pre-FIRM elevated buildings with enclosures beneath the lowest elevated floor are to be rated using the With Enclosure rates. X. AR ZONE AND AR DUAL ZONE RATING NOTE: AR Dual Zones appear on the FIRM as AR/AE, AR/AH, AR/AO, AR/A1­ A30, and AR/A. For Pre-FIRM construction and Post-FIRM non-elevation rated risks, use the rates provided in Table 4. Structures in AR and AR Dual Zones with an Elevation Certificate may be rated using the rates provided in Table 5. XI. POST-FIRM AO ZONE RATING In Zone AO, when the base flood depth number is not printed on the FIRM, a base flood depth of 2 feet is an acceptable standard unless modified by community ordinance or state law. The difference from the top of the lowest floor to the highest adjacent ground (grade) must be greater than or equal to 2 feet in order to use the more favorable With Certification of Compliance rates. If the difference is less than 2 feet, the Without Certification of Compliance rates are to be used. XII. POST-FIRM RATING OF ELEVATED BUILDINGS IN ZONES B, C, X, A99, AND D Post-FIRM elevated buildings in the above zones with no enclosures beneath the lowest elevated floor are to be rated using the No Basement/Enclosure rates. Post-FIRM elevated buildings in the above zones with enclosures beneath the lowest elevated floor are to be rated using the With Enclosure rates. XIII. REGULAR PROGRAM V ZONE POST­FIRM CONSTRUCTION A. Rating All V Zone Buildings For an elevated building (building on posts, piles, or piers only) rated without an enclosure or obstruction, the Zone V, V1-V30, and VE rates do not take into consideration the flood risk associated with any addition of a habitable area (finished or used as living or work area) below the lowest elevated floor. Further, rates do not allow for any flood risk to the machinery or equipment used to service the building located below the lowest elevated floor. NOTE: A 1975-81 elevated building with an unfinished enclosure under 300 square feet, with breakaway walls, and without machinery or equipment, can be rated without taking into account the enclosure, but an elevated Post-FIRM building constructed on or after October 1, 1981, cannot. For all Post-FIRM non-elevated buildings constructed on or after October 1, 1981, the Submit-for-Rate procedures should be followed. B. Zones VE and V1-V30—Enclosure Con­taining Machinery or Equipment Below BFE Follow these steps when determining the lowest floor for rating in Zones VE and V1-V30 where there is an enclosure containing machinery or equipment located below the BFE: • The bottom of the enclosure slab is the correct floor for rating. Determine whether the elevation in Item C2.c on the Elevation Certificate (EC) (bottom of lowest horizontal structural member) reflects the top or the bottom of the slab. • If the lowest horizontal structural member is equal to or higher than Item C2.f on the EC (lowest adjacent grade), deduct (for 1-4 family residences) 12 inches from the elevation found in Item C2.c and 18 inches for buildings other than 1-4 family. This estimated elevation is the elevation figure used for rating the flood insurance policy. • If the surveyor has used Item C2.a on the EC (top of bottom floor including basement or enclosure) to indicate the elevation of the enclosure slab, then the bottom of the enclosure slab is the correct floor for rating. Determine whether the elevation in Item C2.a or Item C3.a reflects the top or the bottom of the slab. -If Item C2.a is equal to or higher than Item C2.f, deduct (for 1-4 family residences) 12 inches from the elevation found in Item C2.a and 18 inches for buildings other than 1-4 family. This estimated elevation is the elevation figure used for rating the flood insurance policy. C. 1975-81 Post-FIRM V Zone Construction 1975-81 Post-FIRM V-Zone Construction refers to any V-Zone Post-FIRM building for which the start of construction or substantial improvement began January 1, 1975, through September 30, 1981. D. 1981 Post-FIRM V Zone Construction 1981 Post-FIRM V-Zone Construction refers to any V Zone Post-FIRM building for which (1) the permit application date for the construction or substantial improvement is on or after October 1, 1981, or (2) the permit was issued before October 1, 1981, and the actual start date of construction did not begin within 180 days of the permit date. E. Elevated Buildings—Post-FIRM V Zone Construction 1. Elevated Building Without Obstruction The area below the lowest elevated floor is open, with no obstruction, to allow the flow of floodwaters. Insect screening is permis­sible. Wooden or plastic lattice, slats, or shutters are also permissible if at least 40 percent of their area is open. Lattice can be no thicker than ½ inch; slats or shutters can be no thicker than 1 inch. In addition, buildings are considered without obstruction if the area below the lowest elevated floor is enclosed by a combination of one solid breakaway wall or garage door, and the other sides of the enclosure are insect screening, or wooden or plastic lattice, slats, or shutters. Machinery or equipment below the lowest elevated floor must be at or above the BFE. Use the rates from Table 3E. For unnumbered Zone V, use Submit-for-Rate guidelines. 2. Elevated Building With Obstruction Buildings are rated With Obstruction if any of the following conditions are met: -The area below the lowest elevated floor is enclosed fully by solid breakaway walls. -The area below the lowest elevated floor is enclosed by a combination of two or more solid breakaway walls, with the remaining sides constructed of insect screening, or wooden or plastic lattice, slats, or shutters. -Machinery or equipment below the lowest elevated floor is also below the BFE. Use the rates from Table 3F provided that the enclosure is less than 300 square feet with solid breakaway walls, or any machinery or equipment is below the BFE. For unnumbered Zone V, use Submit-for-Rate guidelines. NOTE: -For elevated buildings with non-breakaway walls below their lowest elevated floors, elevated buildings with habitable or finished areas located below their lowest elevated floors, or buildings with enclosures 300 square feet or greater, the Submit-for-Rate procedures should be followed. Producers should be sure to include a recent photograph or blueprints, including a site grading plan if ocean front, a copy of the variance, and an Elevation Certificate with the Application form. Any addition to a building during a policy term that changes the applicable rates must be endorsed to the policy. Any additional premium must be paid by the insured. 3. Replacement Cost Ratio The replacement cost ratio is needed to select the proper rate for insurance on buildings in 1981 Post-FIRM Construction V, V1-V30, and VE Zones on or after October 1, 1981. The estimated building replacement cost is used in conjunction with the amount of the building insurance desired to determine the insurance-to­replacement-cost ratio. Replacement cost is defined as the amount of money required to replace or repair the insured building in the event of loss or damage, without a deduction for depreciation. The replacement cost ratio is determined by dividing the amount of building coverage by the replacement cost of the building. If the replacement cost of the building exceeds the maximum statutory building limit, use the replacement cost, not the maximum statutory building limit, in calculating the ratio. For example, if the building replacement cost is $1,000,000 and the amount of building coverage requested is the maximum statutory building limit of $250,000, the rate is .25, so use the rate listed for “Replacement Cost Ratio Under .50.” Place the rate in the appropriate box on the Application and continue with the premium calculation. 4. Elevation Information The lowest floor elevation must be identified for buildings in Zones V, V1-V30, and VE. Note that the lowest floor elevation is measured at the bottom of the lowest floor beam or slab, whichever is appropriate. The BFE, including wave height, must be identified for any building located in Zones V1-V30 and VE. XIV. SPECIAL RATING SITUATIONS A. Tentative Rates Tentative rates are used to issue policies when producers fail to provide the required actuarial rating information. With tentative rates, a policy will be generated with coverage limits based on the actual premium received. Tentatively rated policies cannot be endorsed to increase coverage limits, or renewed for another policy term, until the required actuarial rating information and full premium payment are received. Tentative rates are generally higher than the rates published in this manual (ranging from $2 to $10 per $100 of coverage). When tentative rates are applied, a Declarations Page and a Tentative Rate Letter will be forwarded to the policyholder, producer, and mortgagee (if any), requesting the necessary information so that the proper rate can be determined. (Refer to page LFP 3 in the Leased Federal Property Section for tentative rates.) If a loss occurs on a tentatively rated property, payment will be limited by the amount of coverage that the initially submitted premium will purchase using the correct actuarial rating information. B. Alternative Rates When a building is Pre-FIRM and the FIRM zone is unknown, an alternative rating procedure can be used only if the building is located in a community that does not have any V Zones. In these cases, the NFIP will presume that the building is located in a Special Flood Hazard Area, and the FIRM zone should be shown as Zone AA. AA is not a valid flood zone designation; rather, it is a rating method used when the flood zone is unknown. The rates for FIRM Zone A for Pre-FIRM properties should then be used to compute the premium. The alternative rating procedure is also used by the NFIP for renewal of policies in communities that have converted from the Emergency Program to the Regular Program during a policy's term. Again, this procedure can be used only when the community has no V Zones. In these cases, the NFIP assigns an AS Zone designation, which is not a valid flood zone designation, but rather a rating method, and uses the Pre-FIRM Zone A rates to compute the premium. In both of the above situations, the producer should determine the actual FIRM zone and submit a General Change Endorsement to correct the FIRM zone and premium. All corrections should be made as soon as possible within the initial policy term after an AA or AS Zone designation has been made. If the correct flood zone is not provided, no Renewal Premium Notice will be issued. C. Special Rates Certain risks may be eligible for FEMA Special Rates consideration. These risks include Post-FIRM high-rise residential condominium buildings, eligible under the Residential Condominium Building Association Policy, where the lowest floor elevation is below the BFE, unfinished, and used for building access, parking, or storage only. The other eligible risks are Post-FIRM buildings with hanging floors elevated on posts, piers, pilings, or columns and with the lowest elevated floor that is below the BFE unfinished and used for building access only. (For examples of hanging floors, see pages LFG 16, LFG 34, LFG 51, and LFG 61.) To request FEMA Special Rates, the company must submit the appropriate documentation to the NFIP Bureau and Statistical Agent along with a complete application and Elevation Certificate. The required additional documentation includes the following: • For High-Rise Residential Condominium Buildings -Recent photographs of the building (front and back), or a blueprint (layout of the building) if the building is under construction. -Elevated Building Determination Form signed by the insured -Structural plans -Replacement cost documents -Value and use of the floor(s) below the BFE -Clear pictures of interior of the floor(s) below the BFE -List and value of machinery and equipment below the BFE • For Hanging Floors -Pictures of the interior and exterior of the unfinished lowest elevated floor -Value of the unfinished lowest elevated floor - List and value of machinery and equipment and appliances D. Map “Grandfather” Rules--Effect of Map Revisions on Flood Insurance Rates A community will occasionally make structural improvements (dams, levees, etc.) to reduce the potential effects of flooding; experience new development aggravating the flooding situation, thereby expanding the floodplain; revise geographical boundaries resulting in the designation of additional flood hazard areas; or provide information to better delineate the BFE and/or flood insurance risk zones. When these situations occur, the FIRM is revised and republished. The implementation of a new FIRM raises the question--HOW DOES THE NEW MAP AFFECT FLOOD INSURANCE RATES? 1. Grandfather Rules--Eligibility To recognize policyholders who have built in compliance with the FIRM and/or maintained continuous coverage, FEMA has “Grandfather rules.” These rules allow such policyholders to benefit in the rating for that building. A. Built in Compliance Buildings that are built in compliance with the FIRM in effect at the time of construction are eligible for grandfathering. For elevated buildings, the lowest finished floor must be at or above the BFE. The enclosures must be unfinished and used solely for parking, storage, or building access. For A zones, proper openings are required (see pages LFG 1 and 2 for guidance for proper openings). For V zones, the enclosures must be constructed with breakaway walls (see pages LFG 2 and 2A for guidance). The insured would have the option of using the current rating criteria for that property or having the premium rate determined by using the BFE and/or flood zone on the FIRM (old map) in effect when the building was originally constructed. B. Continuous Coverage Policyholders who have remained loyal customers of the NFIP by maintaining continuous coverage (since coverage was first obtained on the building) are eligible for grandfathering rules. This will result in a cost savings to insureds when the new map resulting from a map revision would result in a higher premium rate. Buildings insured under the PRP during the 2-year eligibility extension may be rated using X-Zone rates when the policies are renewed as standard-rated policies at the end of the 2-year eligibility period. To document continuous coverage when policies are moved from one WYO company to another, the receiving company must obtain the immediately prior year’s policy declaration page from the previous WYO company. To document continuous coverage when there is a transfer of property ownership, the new property owner or the producer must obtain the immediately prior year’s policy declaration page and submit a copy with the application. 2. General Rule of Rating Always use the new map if it will provide a more favorable premium (lower rate). 3. Existing Business--Renewal Policies Policies written to cover either Post-FIRM or Pre-FIRM construction may be renewed and rated based on the FIRM and/or BFE in effect when the policy was initially rated as long as the coverage is continuous and the building has not been altered to make the lowest finished floor level lower than the BFE on that FIRM. For elevated buildings, the lowest finished floor must be at or above the BFE. The enclosures must be unfinished and used solely for parking, storage, or building access. For A zones, proper openings are required (see pages LFG 1 and 2 for guidance for proper openings). For V zones, the enclosures must be constructed with breakaway walls (see pages LFG 2 and 2A for guidance). a. Examples--Post-FIRM Construction • A building was constructed in 1980. Coverage was purchased at the time of construction. The FIRM zone in effect was A1. The BFE was 10’. The Lowest Floor was 11’. The elevation difference was +1, and the policy was rated using a +1 elevation difference. This policy was written and continuously renewed for 3 years. In 1983 a new map for the community was issued. The property remained in an A1 Zone. However, the BFE became 12’. Because the lowest floor did not change, the elevation difference was -1. Since the building was built in compliance and was not altered in any way, the policy can be rated using a +1 elevation difference. • A building was constructed in 1980. The FIRM zone in effect was A. In 1983 the map was revised, which placed the building in a VE zone. Since continuous coverage existed and the building was not altered, the policyholder can continue to use Zone A in determining the rate. b. Example--Pre-FIRM Construction At the time flood insurance coverage was applied for, the building was located in Zone A99. A new map designated the zone as AE. The policy may continue to be rated using Zone A99 rates on the old map as long as there is no interruption in coverage. 4. New Business--Applications for Coverage a. Post-FIRM Construction NOTE: These rules apply to buildings in all zones, including Zone D. If a new policy is applied for, the rates can be based on the FIRM zone and the BFE on the old map in effect on the date the building was constructed provided that: • The building was built in compliance with the map in effect at the time of construction. For elevated buildings, the lowest finished floor must be at or above the BFE. The enclosures must be unfinished and used solely for parking, storage, or building access. For A zones, proper openings are required (see pages LFG 1 and 2 for guidance for proper openings). For V zones, the enclosures must be constructed with breakaway walls (see pages LFG 2 and 2A for guidance). • The building has not been altered in any way that has resulted in a lowest floor, for rating purposes, lower than the BFE on that FIRM (e.g., enclosing the area below an elevated building). • The building has not been substantially improved. The property owner or producer must provide proper documentation to the WYO company or NFIP Servicing Agent. The documentation must show: the date of the FIRM; the zone on that FIRM in which the property is located; the BFE, if any, for that zone; a copy of the map panel showing the location of the building; and the rating element that is to be grandfathered. A letter from a community official verifying this information, or an Elevation Certificate, also is acceptable. Example: A building was constructed in 1980 and, according to the FIRM in effect at that time, was located in Zone AE. No insurance policy was purchased until 1990. At that time remapping had occurred and the zone had been changed to a more hazardous area, Zone VE. The new policy can use Zone AE as the rating zone if the required documentation is provided. b. Pre-FIRM Construction Because there was no FIRM in effect on the date of construction, most Pre-FIRM construction is ineligible for the “built in compliance” grandfathering rule. The limited exceptions are those communities with initial FIRM dates prior to December 31, 1974. The “built in compliance” rule applies to Pre-FIRM construction only if the date of construction was on or before December 31, 1974, and was also on or after the FIRM date. Example: A building was constructed in November 1974 and the FIRM date was May 3, 1973. The old map showed the building’s location as Zone C. Ten years later in 1984, a new map placed the building in an A zone. Flood insurance coverage was applied for after the map was revised. To use the old map showing Zone C as the rating zone, proper documentation must be submitted. E. Post-’81 V Zone Optional Rating This optional rating is available for new and renewal policies and endorsements with effective dates on or after October 1, 1997. Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 are allowed to use the Post-’81 V Zone rate tables (Tables 3E or 3F) if the rates are more favorable to the insured. In order to qualify, the following criteria must be met: 1. The policy must be rated using the BFE printed on the FIRM panel that includes wave height. The effective date of the FIRM panel must be on or after 10/1/81. 2. The building rates are determined based on the ratio of the estimated building replacement cost and the amount of insurance purchased. 3. The building must be elevated free of obstruction or with obstruction less than 300 square feet. All machinery and equipment located below the BFE are considered obstructions. F. Policies Requiring Re-Rating The following conditions require that the policies be rated using the new map: 1. If an elevation-rated building is altered, making the lowest floor for rating purposes below the BFE. Example: An elevated building is located in an AE Zone at the time of construction. The Lowest Floor Elevation (LFE) was 18’. The BFE was 10’. The Lowest Floor rating was a +8 elevation differential. The map was revised, changing the BFE to 11’. The insured decided to enclose the area beneath the elevated floor and use it as a living area. This changed the LFE to 9’. Due to the alteration, the new map must be used and the building is rated as -2. 2. If a Pre-FIRM or Post-FIRM building is substantially improved, the building must be re-rated using the FIRM in effect at the time that the substantial improvement occurred. A newer FIRM can always be used if it will result in a more favorable rating. Example: A building was constructed in 1972 and, when flood insurance was applied for in 1976, was found to be located in Zone C. The FIRM was revised in 1984. The building was substantially improved in 1985. Due to the improvement, the building must now be re-rated as Post-FIRM construction using the 1984 map, or the most recent map can be used if it will result in a more favorable rating. If ineligible for renewal as a Preferred Risk Policy because of a map change, the risk must be rewritten as a Standard Flood Insurance Policy. 3. If a Pre-FIRM or Post-FIRM building has been declared substantially damaged by a local community official, the agent must verify that the repair and/or reconstruction of the building has been made before the policy can be re-rated using the FIRM in effect at the time of the substantial improvement. In the event that the repair and/or reconstruction have not been made, the writing company may renew the policy using the proper rating prior to the loss. The agent/insured must notify the writing company when the actual repair is completed so the policy can be re-rated usign the correct FIRM. Example: A building was constructed in 1986. Late that year, when the building was purchased and flood insurance was applied for, the building was found to be located in Zone A15. The FIRM was revised in February 2005. In August 2005, a major hurricane caused severe flooding and wind damage in the county in which the building is located. The community declared the building substantially damaged by flood. However, because of widespread devastation throughout the area, the property owner had difficulty finding a repair contractor. When the policy came up for renewal in December, repair of the building had barely begun. The policy may be renewed under its pre-flood rating. G. Submit-for-Rate Certain properties at high flood risk, because of peculiarities in their exposure to flooding, do not lend themselves to preprogrammed rates. These risks require an in-depth underwriting analysis and must be submitted to the NFIP for an individual (specific) rate. As with other lines of property insurance, the underwriter requires documentation to evaluate those risk characteristics that make up the basis for a proper rate. The NFIP's two-fold goal of establishing sound actuarial rates and obtaining information for enforcing floodplain management requires that the following documentation be supplied for risks that fall within the submit-for-rate category: 1. Completed NFIP Flood Insurance Application. 2. Completed current Elevation Certificate. 3. Variance issued by the local community stating that permission was granted to construct the building. If no variance was granted, a statement to that effect signed by the applicant or the applicant's representative is required. 4. Recent photographs of the building (front and back), or a blueprint (layout of the building) if the building is under construction. 5. The square footage of any enclosures or crawlspaces below the elevated floor, the use of the enclosure/crawlspace, a list of machinery and equipment, and the approximate value of each item located in the enclosure/crawlspace. 6. If the area below the elevated floor is enclosed using masonry walls and these walls are represented as being breakaway walls in V Zones, a signed letter of verification from a local building official, an engineer, or an architect. 7. A statement from the applicant or the applicant's representative that the enclosure was built at the time that the building was originally constructed, or at a later date (give date). 8. If the building has a basement, a list of machinery and equipment located in the basement and each item's approximate value. 9. For elevated buildings, an Elevated Building Determination Form signed by the insured. 10. For all Post ’81 V-Zone, non-elevated buildings, foundation/structural plans or, if foundation/structural plans are not available, a written statement from the applicant or agent providing the same information. For Submit-for-Rate policies written as NFIP direct business, all of the appropriate documentation listed above must be mailed to the NFIP Servicing Agent, P.O. Box 2965, Shawnee Mission, KS 66201-1365. If the building is insurable, the Servicing Agent will deliver a written rate and the applicable ICC premium to the producer. Since a rate must be determined on these risks, no premium is to accompany the submission. Coverage will be effective 30 days after the receipt of the premium at the NFIP, with the following three exceptions: • If the coverage is in conjunction with the making, increasing, extending, or renewing of a loan, the effective date is on the day and time of the loan closing, provided that the policy is applied for and the presentment of premium is made at or prior to the loan closing. • If a lender determines that a loan on a building located in an SFHA does not have flood insurance coverage but should be covered, then the coverage is effective upon the completion of an application and presentment of premium. • If the new policy is being obtained as a result of a revision to a community’s flood map, during the 13-month period beginning on the effective date of the map revision, the effective date shall be 12:01 a.m., local time, following the day after the presentment of premium. For the NFIP direct business, the presentment of premium is the same as the receipt date of the full premium at the NFIP Servicing Agent. Submit-for-Rate quotations, excluding the ICC premium, Federal Policy Fee, and Probation Surcharge, if applicable, are valid for 90 days. After 90 days, the Flood Insurance Application and supporting documentation must be resubmitted for another determination of the rating. H. Crawlspace A building with a “crawlspace” (under-floor space) has its interior floor area (finished or not) no more than 5 feet below the top of the next higher floor. If a crawlspace is below grade on all sides, and the elevation of the crawlspace floor is below the Base Flood Elevation (BFE), the crawlspace must be rated according to the guidelines found on pages LFG 28-29. For the purpose of completing the Flood Insurance Application, the building must be described as a “non-elevated building with basement.” NFIP rules and regulations specify that a crawlspace with its interior floor below grade on all sides is considered a “basement”; therefore, the Standard Flood Insurance Policy basement coverage limitations apply to such crawlspaces. A building with a crawlspace that is not subgrade must be described as an elevated building. Pre-FIRM buildings with subgrade crawlspaces that are below the BFE may use optional Post-FIRM elevation rating. Follow the Submit-for-Rate procedures when using this optional rating. XV. CONTENTS LOCATION A. Single Family Dwellings For rating purposes, contents in a single family dwelling are considered to be located throughout the entire building regardless of the building type, with limited coverage in a basement and an enclosed area beneath the lowest elevated floor. Refer to the Standard Flood Insurance Policy. B. Multi-Family and Non-Residential Buildings The shaded areas in the illustrations below identify the location of the contents. The rates for contents located in the area indicated will be established based on the zone, construction date, and building description. 1. Non-Elevated Buildings (contents in shaded areas) ON APPLICATION FORM Building Type Basement Contents (including basement if any) • One Floor • None • Lowest Floor or Only Above • Two Floors Ground Level • Two Floors • Finished • Basement Only or • Three or More Floors LIMITED COVERAGE IN BASEMENT • Two Floors or • Three or More Floors • Two Floors or • Three or More Floors • Lowest Floor Above Ground Level and Higher Floors • Basement and Above LIMITED COVERAGE IN BASEMENT • Two Floors • Unfinished • Basement or and Above • Three or More Floors LIMITED COVERAGE IN BASEMENT ON APPLICATION FORM Building Type Basement Contents (including basement if any) • Two Floors • Finished • Lowest Floor or or Above Ground • Three or More Floors Unfinished Level and Higher Floors • Two Floors • None • Above Ground or or Level More • Three or More Floors • Finished Than One Full or Floor Unfinished 2. Elevated Buildings (contents in shaded areas) Elevated building, multiple occupancy, no enclosure XVI. FIRMS WITH WAVE HEIGHTS The producer must determine whether or not the BFE on the FIRM includes wave height. With very few exceptions (for communities on the West Coast) the Flood Insurance Rate Maps (FIRMs) published prior to January 1, 1981, give still water levels that do not include wave height. FIRMs published January 1, 1981, and later indicate whether or not wave height is included. If wave height is included, the following statement appears on the map legend: "Coastal base flood elevations shown on this map include the effects of wave action." These adjustments apply to 1981 Post-FIRM construction (after October 1, 1981) for Zones V1-V30 and VE. A. Procedure for Calculating Wave Height Adjustment The following information is needed: • A completed Elevation Certificate. • BFE from the Elevation Certificate (Item B9) or from the FIRM. • Lowest Adjacent Grade from Item C2.f of the Elevation Certificate completed by a registered professional engineer, architect, or surveyor. • Depth of Still Water Flooding (subtract the Lowest Adjacent Grade from the BFE). The additional elevation due to wave crest in V Zone areas will normally vary from a minimum of 2.1 feet to 0.55 times the still water depth at the site. (BFE including wave height adjustment = still water BFE + 0.55 x [still water BFE -lowest adjacent grade elevation].) For example, a building's site is determined to be located in Zone V8 with a BFE of 14' NGVD on the appropriate FIRM. Using the information from the Elevation Certificate, the BFE is calculated as follows: Example 1: Base flood elevation 14´ Lowest adjacent grade -6´ Difference 8´ Factor x 0.55 Wave height adjustment (2.1´ minimum) 4.4´ Base flood elevation + 14´ BFE adjusted 18.4´ Example 2: Base flood elevation 14´ Lowest adjacent grade -11´ Difference 3´ Factor x 0.55 Wave height adjustment (2.1´ minimum) 1.65´ 2.1´* Base flood elevation + 14´ BFE adjusted 16.1´ * In Example 2, if the calculation results in less than the minimum 2.1 feet, use 2.1 feet in the calculation of the BFE adjusted. B. Wave Heights in Numbered Zones V1­V30 and VE 1981 Post-FIRM Construction For most communities that have Coastal High Hazard Areas, the Wave Height Adjustment to the Base Flood Elevation (BFE) has been included on the FIRM. No wave height adjustment is required for any numbered V Zone area included on a FIRM for any Pacific Coast community since the wave action effects have already been considered in establishing the BFEs on the Pacific Coast. The 1981 and later FIRMs for the Atlantic and Gulf Coast communities indicate whether or not wave height is included. If wave height is included, the following statement appears under “Notes to User” on the map legends: “Coastal base flood elevations shown on this map include the effects of wave action.” C. Unnumbered V Zones 1981 Post-FIRM Construction Determining wave heights in coastal communities is a very important additional risk consideration in the engineering or architectural certification that the structure is securely anchored to adequately anchored pilings or columns in order to withstand velocity waters and hurricane wave wash. In these rare instances, it will be necessary to obtain, review, and reasonably utilize any BFE data available from a Federal, state, or other source, until such other data have been provided by the Federal Emergency Management Agency as criteria to determine the BFEs, including wave heights. D. Rate Selection Procedure Factors used in determining the appropriate insurance rate are: 1. The elevation of the building relative to the BFE adjusted by the wave height factor for an individual building site or the actual FIRM BFEs on the appropriate FIRM (include the effect of wave action [wave height]), and 2. The existence or non-existence of obstructions under the beam supporting the building's lowest floor. The replacement cost ratio is used to select the specific rate. Complete the appropriate section of the Application. XVII. FLOODPROOFED BUILDINGS Floodproofing and the completion of the Floodproofing Certificate are described in detail in the Special Certifications section. A. Elevation Difference To determine the elevation difference used for the rating of floodproofed buildings, the following procedures should be used if rounding is necessary: 1. Round floodproofed elevation to the nearest foot if the BFE is shown in feet. Convert the floodproofed elevation to tenths of feet if the BFE is shown in tenths of feet. 2. The elevation difference should be rounded to the nearest higher elevation. Use 0.5 feet as the midpoint and always round up. (Example: +1.5 becomes +2; -0.5 becomes 0; -1.4 becomes -1; -1.5 becomes -1; -1.6 becomes -2.) In order to qualify for floodproofing credit, buildings in unnumbered A Zones with estimated BFE and buildings in AE, A1-A30, and AH Zones must be floodproofed to at least 1 foot higher than their BFEs. Buildings in AO Zones must be floodproofed to at least 1 foot higher than their Base Flood Depths. B. Rating When computing a premium for a floodproofed building, use the following procedure: 1. Determine how far above the BFE the building is floodproofed. (For example, the building will be floodproofed at +1 foot, +2 feet, and so forth above BFE.) 2. Subtract 1 foot to determine the elevation to be used in determining the rate and computing the premium for the building. 3. Find the rate for the given building in the proper zone at the "adjusted" elevation. 4. Compute the premium as usual. The building must be floodproofed to +1 foot in order to receive a rate equivalent to a building with its lowest floor elevated to the BFE. For example, if the building is located in Zone AO and the community's floodproofing standards have been approved to a level of 3 feet above the highest adjacent grade (HAG) for the lowest floor of a nonfloodproofed building, to qualify for With Certification of Compliance rates, a building must meet the following standards: • Be floodproofed to an elevation of 4 feet above HAG (1 foot above the community's minimum standard of 3 feet above HAG). • The floodproofing must be certified by a registered professional engineer or architect on the Floodproofing Certificate or by a responsible local official in a letter containing the same information requested on the Floodproofing Certificate. • The certification, certificate, or letter must accompany the NFIP Flood Insurance Application. In order to be eligible for lower rates, the insured must have a registered professional engineer or architect certify that the floodproofing conforms to the minimum floodproofing specifications of FEMA. This means that the building must be floodproofed to at least 1 foot above the BFE. If floodproofed to 1 foot above the BFE or flood depth, it can then be treated for rating purposes as having a "0" elevation difference from the BFE. This certification must be submitted with the Application for flood insurance. To further illustrate, if the building is certified to be floodproofed to 2 feet above the BFE, flood depth, or comparable community approved floodplain management standards, whichever is highest, then it is credited for floodproofing and is to be treated for rating purposes as having a +1 foot elevation. XVIII. THE V-ZONE RISK FACTOR RATING FORM A. Use In conjunction with Table 10 (V-Zone Risk Rating Relativities Table), this optional form (see page RATE 35) may be used to evaluate the coastal risk when it is believed that the design, placement, and/or construction of a building is such that the usual criteria used to establish actuarially appropriate rates do not reflect the lessened risk of a particular structure. The form may be used to either: • Establish a rate prior to issuing a new policy, or • Appeal the rate charged on an existing policy. Submit the V-Zone Risk Factor Rating Form for review, along with a copy of the site grading and structural plans, the Elevation Certificate (EC), and photographs. See pages CERT 1-2 of this manual for photograph requirements pertaining to the EC. B. Submission The completed form should be submitted to the NFIP Bureau and Statistical Agent, Underwriting Department, 8400 Corporate Drive, Suite 350, Landover, MD 20785. Confirmation of the relativity and established rate will be returned to the submitting producer, engineer, and builder/applicant in approximately 30 business days. TABLE 10. V-ZONE RISK RATING RELATIVITIES TABLE Building Point Total1 No Obstruction Rates With Obstruction Rates Replacement Cost Ratio .75 or More Replacement Cost Ratio .50 to .74 Replacement Cost Ratio Under .50 Replacement Cost Ratio .75 or More Replacement Cost Ratio .50 to .74 Replacement Cost Ratio Under .50 Less than 225 1.000 1.000 1.000 1.000 1.000 1.000 225 – 275 1.000 1.000 1.000 1.000 1.000 1.000 276 – 325 1.000 1.000 1.000 0.950 0.950 1.000 326 – 375 0.900 0.950 1.000 0.950 0.975 1.000 376 – 425 0.800 0.850 0.900 0.875 0.925 0.950 426 – 475 0.700 0.750 0.800 0.800 0.850 0.900 476 – 525 0.600 0.650 0.700 0.725 0.775 0.825 526 – 575 0.500 0.575 0.650 0.650 0.700 0.750 576 – 625 0.400 0.500 0.600 0.600 0.650 0.700 1 Subtract from your Building Point Total all points assigned for Item I. LOWEST FLOOR ELEVATION and Item IV.A.1. Free of Obstruction because these factors are included in the rate prior to application of any V-Zone Risk Factor Rating Credit. This page is intentionally left blank. , RATE 42 October 1, 2010 XIX. RATING EXAMPLES TABLE OF CONTENTS EXAMPLE PAGE Example 1 Emergency Program, Standard Deductible .......................................................RATE 50 Example 2 Regular Program, Pre-FIRM Construction, $2,000/$1,000 Deductible Option, Zone B.................................................................................RATE 51 Example 3 Regular Program, Pre-FIRM Construction, $1,000 Deductible Option (Surcharge), Zone AE........................................................................................RATE 52 Example 4 Regular Program, Pre-FIRM Construction, $3,000/$2,000 Deductible Option, Zone A15.............................................................................RATE 53 Example 5 Regular Program, Post-FIRM, Elevation Rated, $5,000/$5,000 Deductible Option, Zone AE ..............................................................................RATE 54 Example 6 Regular Program, 1975-81 Post-FIRM V1-V30, Elevation Rated, Zone V13 ...RATE 55 Example 7 Regular Program, Post-1981 VE or V1-V30, with Enclosure, Zone VE ............RATE 56 Example 8 Regular Program, Post-FIRM Construction, Contents-Only Policy, Zone A17 .RATE 57 Example 9 Regular Program, Post-FIRM, Elevation Rated, $5,000/$5,000 Deductible Option, Zone AO..............................................................................RATE 58 Example 10 Regular Program, Post-FIRM, Elevation Rated, $1,000/$1,000 Deductible Option, Zone AO (With Certification of Compliance).......................RATE 59 Example 11 Regular Program, Post-FIRM, Elevation Rated, $3,000/$2,000 Deductible Option, Zone AH ..............................................................................RATE 60 Example 12 Regular Program, Post-FIRM, Elevation Rated, $1,000/$1,000 Deductible Option, Zone AH (With Certification of Compliance) .......................RATE 61 Example 13 Regular Program, Post-FIRM, Elevation Rated, $1,000/$1,000 Deductible Option, Zone A (with Estimated BFE)..............................................RATE 62 Example 14 Regular Program, Post-FIRM, Elevation Rated, $1,000/$1000 Deductible Option, Zone A (without Estimated BFE) ........................................RATE 63 RATE 49 October 1, 2009 EXAMPLE 1 EMERGENCY PROGRAM, STANDARD DEDUCTIBLE Data Essential To Determine Appropriate Rates and Premium: • Emergency Program • Flood Zone: N/A • Occupancy: Single-Family Dwelling • # of Floors: 1 Floor • Basement/Enclosure: None • Deductible: $2,000/$2,000 • Deductible Factor: 1.000 • Contents Location: Lowest Floor Above Ground Level • Date of Construction: Pre-FIRM • Elevation Difference: N/A • Flood Proofed Yes/No: No • Building Coverage: $35,000 • Contents: $10,000 • ICC Premium: N/A • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .76 Contents: .96 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 35,000 .76 266 0 35,000 266 CONTENTS 10,000 .96 96 0 10,000 96 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 362 ICC PREMIUM . SUBTOTAL 362 CRS PREMIUM DISCOUNT % . SUBTOTAL 362 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 402 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $266 / Contents: $96 2. Apply Deductible Factor: Building: 1.000 x $266 = $266 / Contents: 1.000 x $96 = $96 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $362 5. Add ICC Premium: N/A 6. Subtract CRS Discount: N/A 7. Subtotal: $362 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $402 RATE 50 May 1, 2010 EXAMPLE 2 REGULAR PROGRAM, PRE-FIRM CONSTRUCTION, $2,000/$1,000 DEDUCTIBLE OPTION, ZONE B Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: B • Occupancy: Single-Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $2,000/$1,000 • Deductible Factor: 0.95 • Contents Location: Lowest Floor Above Ground Level and Higher Floors • Date of Construction: Pre-FIRM • Elevation Difference: N/A • Flood Proofed Yes/No: No • Building Coverage: $150,000 • Contents Coverage: $60,000 • ICC Premium: $5 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .86/.23 Contents: 1.32/.41 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $723 / Contents: $474 2. Apply Deductible Factor: Building: 0.95 x $723 = $687 / Contents: 0.95 x $474 = $450 3. Premium Decrease: Building: $723 -$687 = $36 / Contents: $474 -450 = $24 4. Subtotal: $1,132 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $1,142 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $1,182 EXAMPLE 3 REGULAR PROGRAM, PRE-FIRM CONSTRUCTION, $1000 DEDUCTIBLE OPTION (SURCHARGE), ZONE AE Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AE • Occupancy: Single-Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: Enclosure • Deductible: $1000/$1000 • Deductible Factor: 1.100 • Contents Location: Enclosure and Above • Date of Construction: Pre-FIRM • Elevation Difference: N/A • Flood Proofed Yes/No: No • Building Coverage: $150,000 • Contents Coverage: $60,000 • ICC Premium: $70 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .81/1.06 Contents: .96/1.07 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,440 / Contents: $615 2. Apply Deductible Factor: Building: 1.100 x $1,440 = $1,584 / Contents: 1.100 x $615 = $677 3. Premium Increase: Building: $1,584 -$1,440 = $144 / Contents: $677 -$615 = $62 4. Subtotal: $2,261 5. Add ICC Premium: $70 6. Subtract CRS Discount: N/A 7. Subtotal: $2,331 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $2,371 REGULAR PROGRAM, PRE-FIRM CONSTRUCTION, $3,000/$2,000 DEDUCTIBLE OPTION, ZONE A15 Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: A15 • Occupancy: Single-Family Dwelling • # of Floors: 3 Floors • Basement/Enclosure: Basement • Deductible: $3,000/$2,000 Building and Contents • Deductible Factor: .950 • Contents Location: Basement and Above • Date of Construction: Pre-FIRM • Elevation Difference: N/A • Flood Proofed Yes/No: No • Building Coverage: $250,000 • Contents Coverage: $100,000 • ICC Premium: $55 • CRS Rating: 4 • CRS Discount: 30% Determined Rates: Building: .81/.88 Contents: .96/.90 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $2,158 / Contents: $915 2. Apply Deductible Factor: Building: .950 x $2,158 = $2,050/ Contents: .950 x $915 = $869 3. Premium Reduction: Building: $2,158 -$2,050 = $108 / Contents: $915 -$869 = $46 4. Subtotal: $2,919 5. Add ICC Premium: $55 6. Subtract CRS Discount: -$892 (30%) 7. Subtotal: $2,082 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $2,122 EXAMPLE 5 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $5,000/$5,000 DEDUCTIBLE OPTION, ZONE AE Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AE • Occupancy: Non-Residential • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $5,000/$5,000 • Deductible Factor: .890 • Contents Location: Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: +4 • Flood Proofed Yes/No: No • Building Coverage: $500,000 • Contents Coverage: $500,000 • ICC Premium: $4 • CRS Rating: 5 • CRS Discount: 25% Determined Rates: Building: .20/.08 Contents: .22/.12 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 175,000 .20 350 325,000 .08 260 -67 500,000 543 CONTENTS 150,000 .22 330 350,000 .12 420 -82 500,000 668 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 1,211 ICC PREMIUM 4 SUBTOTAL 1,215 CRS PREMIUM DISCOUNT 25% -304 SUBTOTAL 911 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 951 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $610 / Contents: $750 2. Apply Deductible Factor: Building: .890 x $610 = $543 / Contents: .890 x $750 = $668 3. Premium Reduction: Building: $610 -$543 = $67 / Contents: $750 -$668 = $82 4. Subtotal: $1,211 5. Add ICC Premium: $4 6. Subtract CRS Discount: -$304 (25%) 7. Subtotal: $911 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $951 EXAMPLE 6 REGULAR PROGRAM, 1975-81 POST-FIRM V1-V30, ELEVATION RATED, ZONE V13 Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: V13 • Occupancy: Single-Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Contents Location: Lowest Floor Above Ground Level and Higher Floors • Date of Construction: 1975 -81 (Post-FIRM) • Elevation Difference: +1 • Flood Proofed Yes/No: No • Building Coverage: $150,000 • Contents Coverage: $100,000 • ICC Premium: $30 • CRS Rating: 8 • CRS Discount: 10% Determined Rates: Building: 2.28/.51 Contents: 2.83/.67 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 60,000 2.28 1,368 90,000 .51 459 0 150,000 1,827 CONTENTS 25,000 2.83 708 75,000 .67 503 0 100,000 1,211 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 3,038 ICC PREMIUM 30 SUBTOTAL 3,068 CRS PREMIUM DISCOUNT 10% -307 SUBTOTAL 2,761 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 2,801 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,827 / Contents: $1,211 2. Apply Deductible Factor: Building: 1.000 x $1,827 = $1,827/Contents:1.000 x $1,211 = $1,211 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $3,038 5. Add ICC Premium: $30 6. Subtract CRS Discount: -$307 (10%) 7. Subtotal: $2,761 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $2,801 EXAMPLE 7 REGULAR PROGRAM, POST-1981 VE OR V1-V30, WITH ENCLOSURE, ZONE VE Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: VE • Occupancy: Single-Family Dwelling • # of Floors: 3 or More Floors • Basement/Enclosure: Enclosure (< 300 sq. ft., w/o M&E) • Deductible: $3,000/$3,000 • Deductible Factor: .850 • Contents Location: Lowest Floor Above Ground Level and Higher Floors • Date of Construction: Post-81 • Elevation Difference: -1 • Flood Proofed Yes/No: No • Replacement Cost: $300,000 • Building Coverage: $250,000 • Contents Coverage: $100,000 • ICC Premium: $13 • CRS Rating: 9 • CRS Discount: N/A Determined Rates: Building: 3.75 / 3.75 Contents: 2.81 / 2.81 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 60,000 3.75 2,250 190,000 3.75 7,125 -1,406 250,000 7,969 CONTENTS 25,000 2.81 703 75,000 2.81 2,108 -422 100,000 2,389 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 10,358 ICC PREMIUM 13 SUBTOTAL 10,371 CRS PREMIUM DISCOUNT % . SUBTOTAL 10,371 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 10,411 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $9,375 / Contents: $2,811 2. Apply Deductible Factor: Building: .850 x $9,375 = $7,969 / Contents: .850 x $2,811 = $2,389 3. Premium Reduction: Building: $9,375 -$7,969 = $1,406 / Contents: $2,811 -$2,389 = $422 4. Subtotal: $10,358 5. Add ICC Premium: $13 6. Subtract CRS Discount: N/A 7. Subtotal: $10,371 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $10,411 EXAMPLE 8 REGULAR PROGRAM, POST-FIRM CONSTRUCTION, CONTENTS-ONLY POLICY, ZONE A17 Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: A17 • Occupancy: 2-4 Family Dwelling (Renter’s Policy) • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1,000 • Deductible Factor: 1.000 • Contents Location: Above Ground Level More than One Full Floor • Date of Construction: Post-FIRM • Elevation Difference: +2 • Flood Proofed Yes/No: No • Building Coverage: N/A • Contents Coverage: $100,000 • ICC Premium: N/A • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: N/A Contents: .35/.12 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 0 CONTENTS 25,000 .35 88 75,000 .12 90 0 100,000 178 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 178 ICC PREMIUM . SUBTOTAL 178 CRS PREMIUM DISCOUNT % . SUBTOTAL 178 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 218 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: N/A / Contents: $178 2. Apply Deductible Factor: Building: N/A / Contents: 1.000 x $178 = $178 3. Premium Reduction/Increase: Building: N/A / Contents: $0 4. Subtotal: $178 5. Add ICC Premium: N/A 6. Subtract CRS Discount: N/A 7. Subtotal: $178 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $218 EXAMPLE 9 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $5,000/$5,000 DEDUCTIBLE OPTION, ZONE AO Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AO • Occupancy: Non-Residential • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $5,000/$5,000 • Deductible Factor: .890 • Contents Location: Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: -1 • Flood Proofed Yes/No: No • Building Coverage: $500,000 • Contents Coverage: $500,000 • ICC Premium: $4 • CRS Rating: 5 • CRS Discount: N/A Determined Rates: Building: 1.10/.32 Contents: 1.97/.29 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $2,965 / Contents: $3,970 2. Apply Deductible Factor: Building: .890 x $2,965 = $2,639 / Contents: .890 x $3,970 = $3,533 3. Premium Reduction: Building: $2,965 -$2,639 = $326 / Contents: $3,970 -$3,533 = $437 4. Subtotal: $6,172 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $6,176 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $6,216 EXAMPLE 10 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $1,000/$1,000 DEDUCTIBLE OPTION, ZONE AO (WITH CERTIFICATION OF COMPLIANCE) Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AO (With Certification of Compliance) • Occupancy: Single-Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Contents Location: Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: +1 • Flood Proofed Yes/No: No • Building Coverage: $250,000 • Contents Coverage: $100,000 • ICC Premium: $4 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .28/.08 Contents: .38/.13 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $320 / Contents: $193 2. Apply Deductible Factor: Building: 1.000 x $320 = $320 / Contents: 1.000 x $193 = $193 3. Premium Reduction/Increase: Building: $0 / Contents: = $0 4. Subtotal: $513 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $517 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $557 EXAMPLE 11 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $3,000/$2,000 DEDUCTIBLE OPTION, ZONE AH Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AH • Occupancy: Single-Family Dwelling • # of Floors: 1 Floor • Basement/Enclosure: None • Deductible: $3,000/$2,000 • Deductible Factor: .875 • Contents Location: Lowest Floor Above Ground Level • Date of Construction: Post-FIRM • Elevation Difference: -1 • Flood Proofed Yes/No: No • Building Coverage: $250,000 • Contents Coverage: $25,000 • ICC Premium: $4 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: 1.02/.21 Contents: 1.17/.22 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 60,000 1.02 612 190,000 .21 399 -126 250,000 885 CONTENTS 25,000 1.17 293 0 .22 0 -37 25,000 256 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 1,141 ICC PREMIUM 4 SUBTOTAL 1,145 CRS PREMIUM DISCOUNT _____% — SUBTOTAL 1,145 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE — FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 1,185 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,011 / Contents: $293 2. Apply Deductible Factor: Building: .875 x $1,011 = $885 / Contents: .875 x $293 = $256 3. Premium Reduction: Building: $1,011 -$885 = $126 / Contents = $293 -$256 = $37 4. Subtotal: $1,141 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $1,145 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $1,185 EXAMPLE 12 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $1,000/$1,000 DEDUCTIBLE OPTION, ZONE AH (WITH CERTIFICATION OF COMPLIANCE) Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: AH (With Certification of Compliance) • Occupancy: 2-4 Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Contents Location: Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: +3 • Flood Proofed Yes/No: No • Building Coverage: $200,000 • Contents Coverage: $40,000 • ICC Premium: $5 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .28/.08 Contents: .38/.13 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $280 / Contents: $115 2. Apply Deductible Factor: Building: 1.000 x $280 = $280 / Contents: 1.000 x $115 = $115 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $395 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $400 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $440 EXAMPLE 13 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $1,000/$1,000 DEDUCTIBLE OPTION, ZONE A (WITH ESTIMATED BFE) Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: A • Occupancy: 2-4 Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1000/$1000 • Deductible Factor: 1.000 • Contents Location: Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: +6 (with Estimated BFE) • Flood Proofed Yes/No: No • Building Coverage: $140,000 • Contents Coverage: $70,000 • ICC Premium: $5 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .44/.08 Contents: .44/.12 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 60,000 .44 264 80,000 .08 64 0 140,000 328 CONTENTS 25,000 .44 110 45,000 .12 54 0 70,000 164 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 492 ICC PREMIUM 5 SUBTOTAL 497 CRS PREMIUM DISCOUNT % — SUBTOTAL 497 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE — FEDERAL POLICY FEE 40 TOTAL PREPAID AMOUNT 537 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $328 / Contents: $164 2. Apply Deductible Factor: Building: 1.000 x $328 = $328 / Contents: 1.000 x $164 = $164 3. Premium Reduction/Increase: Building: $0 / Contents = $0 4. Subtotal: $492 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $497 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $537 EXAMPLE 14 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $1000/$1000 DEDUCTIBLE OPTION, ZONE A (WITHOUT ESTIMATED BFE) Data Essential To Determine Appropriate Rates and Premium: • Regular Program • Flood Zone: A • Occupancy: Single-Family Dwelling • # of Floors: 2 Floors • Basement/Enclosure: None • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Contents Location: Lowest Floor Above Ground Level and Higher Floors • Date of Construction: Post-FIRM • Elevation Difference: +5 (without Estimated BFE) • Flood Proofed Yes/No: No • Building Coverage: $135,000 • Contents Coverage: $60,000 • ICC Premium: $5 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .40/.09 Contents: .49/.12 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $308 / Contents: $165 2. Apply Deductible Factor: Building: 1.000 x $308 = $308 / Contents: 1.000 x $165 = $165 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $473 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $478 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $40 10. Total Prepaid Amount: $518 RATE 63 October 1, 2010 CONDOMINIUMS Important Notice to Agents: Boards of Directors of condominium associations typically are responsible under their by-laws for maintaining all forms of property insurance necessary to protect the common property of the association against all hazards to which that property is exposed for the insurable value/replacement cost of those common elements. This responsibility would typically include providing adequate flood insurance protection for all common property located in Special Flood Hazard Areas. Such by-law requirements could make the individual members of the boards of directors of such associations personally liable for insurance errors or omissions, including those relating to flood insurance. I. METHODS OF INSURING CONDOMINIUMS There are four methods of insuring condominiums under the National Flood Insurance Program (NFIP). Each method has its own eligibility requirements for condominium type. A. Residential Condominium: Association Coverage on Building and Contents A condominium association is the corporate entity responsible for the management and operation of a condominium. Membership is made up of the condominium unit owners. A condominium association may purchase insurance coverage on a residential building and its contents under the Residential Condominium Building Association Policy (RCBAP). The RCBAP covers only a residential condominium building in a Regular Program community. If the named insured is listed as other than a condominium association, the agent must provide legal documentation to confirm that the insured is a condominium association. (See page CONDO 6 for eligibility requirements.) B. Residential Condominium: Unit Owner’s Coverage on Building and Contents A condominium unit in a townhouse, rowhouse, high-rise or low-rise building is considered to be a single family residence. An individual dwelling unit in a condominium building may be insured in any one of three ways: • An individual unit and its contents may be separately insured under the Dwelling Form, in the name of the unit owner, at the limits of insurance for a single family dwelling. • An individual unit may be separately insured under the Dwelling Form, if purchased by the association in the name of the "owner of record unit number (#) and (name of) Association as their interests may appear," up to the limits of insurance for a single family dwelling. • An individual unit owned by the association may be separately insured under the Dwelling Form, if purchased by the condominium association. The single family limits of insurance apply. A policy on a condominium unit will be issued naming the unit owner and the association, as their interests may appear. Coverage under a unit owner's policy applies first to the individually owned building elements and improvements to the unit and then to the damage of the building's common elements that are the unit owner's responsibility. In the event of a loss, the claim payment to an individual unit owner may not exceed the maximum allowable in the Program. C. Non-residential (Commercial) Condominium: Building and Contents Non-residential (commercial) condominium buildings and their commonly owned contents may be insured in the name of the Association under the General Property Form. The "Non­residential" limits apply. Individual residential condominium units in non­residential condominium buildings are not eligible for building coverage. CONDO 1 October 1, 2010 D. Non-residential (Commercial) Condominium: Unit Owner's Coverage (Contents) The owner of a non-residential condominium unit may purchase only contents coverage for that unit. Building coverage may not be purchased in the name of the unit owner. In the event of a loss, up to 10 percent of the stated amount of contents coverage can be applied to losses to condominium interior walls, floors, and ceilings. The 10 percent is not an additional amount of insurance. CONDO 2 October 1, 2010 TABLE 1. CONDOMINIUM UNDERWRITING GUIDELINES POLICY INSURED PROPERTY ELIGIBILITY REPLACEMENT ICC COVERAGE LIMITS ASSESSMENT FEDERAL FORM COVERED REQUIREMENTS COVERAGE COVERAGE POLICY FEE Footnote: These are basic guidelines for condominium associations and unit owners. Please refer to appropriate section of the Flood Insurance Manual for specific details. 1Subject to replacement cost provisions in policy. 2ICC coverage does not apply to the Emergency Program, individually owned condominium units insured under Dwelling or General Property Forms, Contents-only Policies, and Group Flood Insurance Policies. May 1, 2010 TABLE 2. CONDOMINIUM RATING CHART LOW-RISE RESIDENTIAL CONDOMINIUMS SINGLE UNIT BUILDING OR TOWNHOUSE/ROWHOUSE TYPE. BUILDING WITH SEPARATE ENTRANCE FOR EACH UNIT CONDO 4 May 1, 2010 PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Type of Coverage Rate Table3 Policy Form4 UNIT OWNER SINGLE FAMILY SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY DWELLING ASSOCIATION (ASSOCIATION-OWNED SINGLE UNIT ONLY) SINGLE FAMILY SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY DWELLING ASSOCIATION (ENTIRE BUILDING) DETERMINED BY THE NUMBER OF UNITS , I.E., SINGLE FAMILY, 2-4 FAMILY, OTHER RESIDENTIAL LOW-RISE HOUSEHOLD RC RCBAP LOW-RISE RCBAP MULTI-UNIT BUILDING. 2 TO 4 UNITS PER BUILDING. REGARDLESS OF NUMBER OF FLOORS (NON-TOWNHOUSE) PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Type of Coverage Rate Table3 Policy Form4 UNIT OWNER 2-4 SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; 2-4 FAMILY FOR CONTENTS DWELLING ASSOCIATION (ASSOCIATION-OWNED SINGLE UNIT ONLY) 2-4 SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; 2-4 FAMILY FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) 2-4 LOW-RISE HOUSEHOLD RC RCBAP LOW-RISE RCBAP MULTI-UNIT BUILDING. 5 OR MORE UNITS PER BUILDING. LESS THAN THREE FLOORS PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Type of Coverage Rate Table3 Policy Form4 UNIT OWNER OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ASSOCIATION-OWNED SINGLE UNIT ONLY) OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) OTHER RESIDENTIAL LOW-RISE HOUSEHOLD RC RCBAP LOW-RISE RCBAP 1When there is a mixture of residential and commercial usage within a single building, please refer to the GR Section of the Flood Insurance Manual. 2In determining the contents indicator for “other than household contents,” please refer to the RATE Section of the Flood Insurance Manual. 3All building rates are based on the lowest floor of the building. 4RCBAP must be used to insure residential condominium buildings owned by the association that are in a Regular Program community and in which at least 75% of the total floor area within the building is residential. Use General Property Form if ineligible under RCBAP. 5Replacement Cost if the RC eligibility requirements are met (building only). TABLE 2. CONDOMINIUM RATING CHART (Cont’d) HIGH-RISE RESIDENTIAL CONDOMINIUMS 6 MULTI-UNIT BUILDING. 5 OR MORE UNITS PER BUILDING. THREE OR MORE FLOORS CONDO 5 May 1, 2010 PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Type of Coverage Rate Table3 Policy Form4 UNIT OWNER OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ASSOCIATION-OWNED SINGLE UNIT ONLY) OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) OTHER RESIDENTIAL HIGH-RISE HOUSEHOLD RC RCBAP HIGH-RISE RCBAP NON-RESIDENTIAL CONDOMINIUMS PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Type of Coverage Rate Table3 Policy Form4 UNIT OWNER NON-RESIDENTIAL SINGLE UNIT (BUILDING COVERAGE NOT AVAILABLE) BUSINESS ACV NON-RESIDENTIAL GENERAL PROPERTY ASSOCIATION NON-RESIDENTIAL LOW-RISE BUSINESS ACV NON-RESIDENTIAL GENERAL PROPERTY 1When there is a mixture of residential and commercial usage within a single building, please refer to the GR Section of the Flood Insurance Manual. 2In determining the contents indicator for “other than household contents,” please refer to the RATE Section of the Flood Insurance Manual. 3All building rates are based on the lowest floor of the building. 4RCBAP must be used to insure residential condominium buildings owned by the association that are in a Regular Program community and in which at least 75% of the total floor area within the building is residential. Use General Property Form if ineligible under RCBAP. 5Replacement Cost if the RC eligibility requirements are met (building only). 6Enclosure, even if it is the lowest floor for rating, cannot be counted as a floor for the purpose of classifying the building as a high rise. RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY II. POLICY FORM The policy form used for the residential condominium buildings owned by a condominium association is the Residential Condominium Building Association Policy (RCBAP). III. ELIGIBILITY REQUIREMENTS A. General Building Eligibility In order for a condominium building to be eligible under the RCBAP form, the building must be owned by a condominium association, which the NFIP defines as the entity made up of the unit owners responsible for the maintenance and operation of: 1. common elements owned in undivided shares by unit owners; and 2. other real property in which the unit owners have use rights; where membership in the entity is a required condition of unit ownership. The RCBAP is required for all buildings owned by a condominium association containing one or more residential units and in which at least 75 percent of the total floor area within the building is residential without regard to the number of units or number of floors. The RCBAP is available for high-rise and low-rise residential condominium buildings, including townhouse/rowhouse and detached single-family condominium buildings in the Regular Program only. (See pages CONDO 4 and 5.) Residential condominium buildings that are being used as a hotel or motel, or are being rented (either short-or long-term), must be insured under the RCBAP. Only buildings having a condominium form of ownership are eligible for the RCBAP. If the named insured is listed as other than a condominium association, the agent must provide legal documentation to confirm that the insured is a condominium association before the RCBAP can be written. This documentation may be a copy of the condominium association by-laws or a statement signed by an officer or representative of the condominium association confirming that the building is in a condominium form of ownership. In the event of a loss, RCBAPs written for buildings found not to be in a condominium form of ownership will be rewritten under the correct policy form for up to the maximum amount of building coverage allowed under the program for the type of building insured, not to exceed the coverage purchased under the RCBAP. A homeowners association (HOA) may differ from a condominium association and is ineligible for the RCBAP, unless the HOA meets the definition of a condominium association as defined in the policy. Cooperative ownership buildings are not eligible. Timeshare buildings in a condominium form of ownership in jurisdictions where title is vested in individual unit owners are eligible provided all other criteria are met. If, during a policy term, the risk fails to meet the eligibility requirements, it will be ineligible for coverage under the RCBAP and the policy will be canceled. The NFIP has grouped condominium buildings into two different types, low-and high-rise, because of the difference in the exposures to the risk that typically exists. Low-rise buildings generally have a greater percentage of the value of the building at risk than high-rise buildings, thus requiring higher premiums for the first dollars of coverage. The availability of the optional deductibles for the low-rise buildings, however, allows the association to buy back some of the risk, thereby reducing the overall cost of the coverage. For rating purposes: • High-rise buildings contain five or more units and at least three floors excluding enclosure, even if it is the lowest floor for rating. • Low-rise buildings have less than five units regardless of the number of floors, or five or more units with less than three floors, including the basement. • Townhouse/rowhouse buildings are always considered as low-rise buildings for rating purposes, no matter how many units or floors they have. See the Definitions section for a complete definition of high-rise and low-rise buildings. The individual unit owners continue to have an option to purchase an SFIP Dwelling Form. B. Condominium Building in the Course of Construction The NFIP rules allow the issuance of an SFIP to cover a building in the course of construction before the building is walled and roofed. These rules provide lenders an option to require flood insurance coverage at the time that the development loan is made to comply with the mandatory purchase requirement outlined in the Flood Disaster Protection Act of 1973, as amended. The policy is issued and rated based CONDO 6 October 1, 2010 on the construction designs and intended use of the building. In order for a condominium building in the course of construction to be eligible under the RCBAP form, the building must be owned by a condominium association. As noted on page GR 4, buildings in the course of construction that have yet to be walled and roofed are eligible for coverage except when construction has been halted for more than 90 days and/or if the lowest floor used for rating purposes is below the Base Flood Elevation (BFE). Materials or supplies intended for use in such construction, alteration, or repair are not insurable unless they are contained within an enclosed building on the premises or adjacent to the premises. IV. COVERAGE A. Property Covered The entire building is covered under one policy, including both the common as well as individually owned building elements within the units, improvements within the units, and contents owned in common. Contents owned by individual unit owners should be insured under an individual unit owner's Dwelling Form. B. Coverage Limits Building coverage purchased under the RCBAP will be on a Replacement Cost basis. The maximum amount of building coverage that can be purchased on a high-rise or low-rise condominium is the Replacement Cost Value of the building or the total number of units in the condominium building times $250,000, whichever is less. The maximum allowable contents coverage is the Actual Cash Value of the commonly owned contents up to a maximum of $100,000 per building. Basic Limit Amount: • The building basic limit amount of insurance for a detached building housing a single family unit owned by the condominium association is $60,000. • For residential townhouse/rowhouse and low-rise condominiums, the building basic limit amount of insurance is $60,000 multiplied by the number of units in the building. • For high-rise condominiums, the building basic amount of insurance is $175,000. • The contents basic limit amount of insurance is $25,000. • For condominium unit owners who have insured their personal property under the Dwelling Form or General Property Form, coverage extends to interior walls, floor, and ceiling (if not covered under the condominium association’s insurance) up to 10 percent of the personal property limit of liability. Use of this coverage is at the option of the insured and reduces the personal property limit of liability. C. Replacement Cost As stated above in “B. Coverage Limits,” the RCBAP’s building coverage is on a Replacement Cost valuation basis. Replacement Cost Value means the cost to replace property with the same kind of material and construction without deduction for depreciation. A condominium unit owner’s Dwelling Form policy provides Replacement Cost coverage on the building if eligibility requirements are met. D. Coinsurance The RCBAP’s coinsurance penalty is applied to building coverage only. To the extent that the insured has not purchased insurance in an amount equal to the lesser of 80 percent or more of the full replacement cost of the building at the time of loss or the maximum amount of insurance under the NFIP, the insured will not be reimbursed fully for a loss. Building coverage purchased under individual Dwelling Forms cannot be added to RCBAP coverage in order to avoid the coinsurance penalty. The amount of loss in this case will be determined by using the following formula: Insurance Carried X Amount of Loss = Limit of Recovery Insurance Required Where the penalty applies, building loss under the RCBAP will be adjusted based on the Replacement Cost Coverage with a coinsurance penalty. Building loss under the Dwelling Form will be adjusted on an Actual Cash Value (ACV) basis if the Replacement Cost provision is not met. The cost of bringing the building into compliance with local codes (law and ordinance) is not included in the calculation of replacement cost. E. Assessment Coverage The RCBAP does not provide assessment coverage. Assessment coverage is available only under the Dwelling Form subject to the conditions and exclusions found in Section III. Property Covered, Coverage C, paragraph 3 – Condominium Loss Assessments. The Dwelling Form will respond, up to the building coverage limit, to assessments against unit owners for damages to common areas of any building owned by the condominium association, even if the building is not insured, provided that: (1) each of the unit owners comprising the membership of the association is assessed by reason of the same cause; and (2) the assessment arises out of a direct physical loss by or from flood to the condominium building at the time of the loss. Assessment coverage has a maximum combined total limit of $250,000 times the number of units. This combined total limit covers loss to the unit and any assessment by the association. Assessment coverage cannot be used to meet the 80-percent coinsurance provision of the RCBAP, and does not apply to ICC coverage or to coverage for closed basin lakes. For more information on this topic, see “E. Loss Assessments” on page GR 13 and Section III. C.3. of the Dwelling Form, “Condominium Loss Assessments,” on page POL 8. V. DEDUCTIBLES AND FEES A. Deductibles The loss deductible shall apply separately to each building and personal property covered loss including any appurtenant structure loss. The Standard Deductible is $2,000 for a residential condominium building, located in a Regular Program Community in Special Flood Hazard Areas, i.e., Zones A, AO, AH, A1-A30, AE, AR, AR dual zones (AR/AE, AR/AH, AR/AO, AR/A1-A30, AR/A), V, V1-V30, or VE, where the rates available for buildings built before the effective date of the initial Flood Insurance Rate Map (FIRM), Pre-FIRM rates, are used to compute the premium. For all policies rated other than those described above, e.g., those rated as Post-FIRM and those rated in Zones A99, B, C, D, or X, the Standard Deductible is $1,000. Optional deductible amounts are available under the RCBAP. B. Federal Policy Fee The Federal Policy Fees for the RCBAP are: 1 unit -$ 40.00 per policy 2-4 units -$ 80.00 per policy 5-10 units -$200.00 per policy 11-20 units -$440.00 per policy 21 or more -$840.00 per policy VI. TENTATIVE RATES AND SCHEDULED BUILDINGS Tentative Rates cannot be applied to the RCBAP. The Scheduled Building Policy is not available for the RCBAP. VII. COMMISSIONS (DIRECT BUSINESS ONLY) The commission, 15 percent, will be reduced to 5 percent on only that portion of the premium that exceeds the figure resulting from multiplying the total number of units times $2,000. VIII. CANCELLATION OR ENDORSEMENT OF UNIT OWNERS' DWELLING POLICIES Unit owner’s Dwelling Policies may be cancelled mid-term for the reasons mentioned in the Cancellation/Nullification section of the manual. To cancel building coverage while retaining contents coverage on a unit owner's policy, submit a General Change Endorsement form. In the event of a cancellation: • The commission on a unit owner's policy will be retained, in full, by the producer, • The Federal Policy Fee and Probation Sur­charge will be refunded on a pro rata basis, and • The premium refund will be calculated on a pro rata basis. An existing Dwelling Policy or RCBAP may be endorsed to increase amounts of coverage in accordance with Endorsement rules. They may not be endorsed mid-term to reduce coverage. IX. APPLICATION FORM The producer should complete the entire Flood Insurance Application according to the directions in the Application section of this manual and attach two new photographs of the building, one of which clearly shows the location of the lowest floor used for rating the risk. A. Type of Building For an RCBAP, the “Building” section of the Flood Insurance Application must indicate the total number of units in the building and whether the building is a high rise or low rise. High-rise (vertical) condominium buildings are defined as containing at least five units, and having at least three floors. Note that an enclosure below an elevated floor building, even if it is the lowest floor for rating purposes, cannot be counted as a floor to classify the building as a high-rise condominium building. Low-rise condominium buildings are defined as having less than five units and/or less than three floors. In addition, low-rise also includes all townhouses/rowhouses regardless of the number of floors or units, and all detached single family buildings. For a Dwelling Form used to insure a condominium unit, or for a Condominium Association Policy, see the Application section of this manual. B. Replacement Cost Value For an RCBAP, use normal company practice to estimate the Replacement Cost Value (RCV) and enter the value in the “Building” section of the Application. Include the cost of the building foundation when determining the RCV. Attach the appropriate valuation to the Application. Acceptable documentation of a building's RCV is a recent property valuation report that states the value of the building, including its foundation, on an RCV basis. The cost of bringing the building into compliance with local codes (law and ordinance) is not to be included in the calculation of the building's replacement cost. To maintain reasonable accuracy of the RCV for the building, the agent must update this information at least every 3 years. (See sample notification letter regarding updating RCV on page CONDO 9A.) C. Coverage Ensure that the “Coverage and Rating” section of the Application accurately reflects the desired amount of building and contents coverage. If only building insurance is to be purchased, inform the applicant of the availability of contents insurance for contents that are commonly owned. It is recommended that the applicant initial the contents coverage section if no contents insurance is requested. (This will make the applicant aware that the policy will not provide payment for contents losses.) 1. Building Enter the amount of insurance for building, Basic and Additional Limits. Enter full Basic Limits before entering any Additional Limits. The building Basic Limit amount of insurance for high-rise condominium buildings is up to a maximum of $175,000. The building Basic Limit amount of insurance for low-rise condominium buildings is $60,000 multiplied by the number of units in the building. The total amount of coverage desired on the entire building must not exceed $250,000 (Regular Program limit) times the total number of units (residential and non-residential) in the building. 2. Contents Since the Program type must be Regular, enter the amount of insurance for contents, Basic and Additional Limits. Enter full Basic Limits before any Additional Limits. Contents coverage is only for those contents items that are commonly owned. For the Basic Limits amount of insurance, up to a maximum of $25,000 may be filled in. For the Additional Limits, up to a total of $75,000 may be filled in. The total amount of insurance available for contents coverage cannot exceed $100,000. D. Rates and Fees 1. To determine rates, see the RCBAP Rate Tables on the following pages. Enter the rate for building and for contents and compute the annual premium. If an optional deductible has been selected for building and/or contents, see page CONDO 22. 2. Enter the total premium for building and contents, adjusted for any premium change because of an optional deductible being selected. The total premium will be calculated as if the building were one unit. 3. Add the total premium for building and contents and enter the Annual Subtotal. 4. Add the ICC premium. 5. Calculate the CRS discount, if applicable. 6. Subtract the CRS discount, if applicable. 7. Add the $50.00 Probation Surcharge, if applicable. 8. Add the Federal Policy Fee to determine the Total Prepaid Amount. Sample RCV Notification Letter IMPORTANT FLOOD INSURANCE POLICY INFORMATION Agent’s Name: Agent’s Address: Re: Insured’s Name: Property Address: Policy Number: Dear Agent: The letter is to inform you that the Replacement Cost Value (RCV) on file for the building referenced above, insured under the Residential Condominium Building Association Policy (RCBAP), must now be updated. The National Flood Insurance Program (NFIP) requires that the RCV be evaluated every 3 years; it has been at least 3 years since the RCV for the building has been updated. The RCV as currently listed on the above-referenced policy is . The amount of building coverage on the policy is . If the RCV indicated above needs to be revised, you must provide new documentation showing the revised RCV. Acceptable documentation of the building’s RCV is a recent property valuation report that states the building’s value, including the foundation, on an RCV basis. If the RCV has not changed, you must provide either new RCV documentation or a statement signed by an officer or a representative of the Condominium Association confirming that the RCV is still valid. Please be aware that to the extent that the amount of building coverage on the policy is not in an amount equal to the lesser of 80 percent or more of the full replacement cost of the building at the time of a loss or the maximum amount of insurance available under the NFIP, the Condominium Association may not be fully reimbursed for the loss. If you have any questions about the information in this letter, please contact < INSERT CONTACT NAME AND TELEPHONE NUMBER>. cc: Insured, Lender CONDO 9A October 1, 2010 This page is intentionally left blank. CONDO 9B October 1, 2010 TABLE 3A. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) BUILDING BUILDING TYPE REGULAR PROGRAM PRE-FIRM1 REGULAR PROGRAM POST-FIRM A, A1-A30, AE, AO, AH, D V, VE A99, B, C, X A99, B, C, X D No Basement/Enclosure .85/.22 1.08/ .53 1.06/.05 1.06/.05 1.16/.24 With Basement .90/.30 1.15/1.13 1.29/.07 1.29/.07 SUBMIT FOR RATE With Enclosure .90/.22 1.15/ .55 1.12/.05 1.12/.05 Elevated on Crawlspace .85/.22 1.08/ .53 1.06/.05 1.06/.05 Non-Elevated with Subgrade Crawlspace .85/.22 1.08/ .53 1.06/.05 1.06/.05 CONTENTS CONTENTS LOCATION REGULAR PROGRAM PRE-FIRM1 REGULAR PROGRAM POST-FIRM A, A1-A30, AE, AO, AH, D V, VE A99, B, C, X A99, B, C, X D Basement/Subgrade Crawlspace and above .96/.90 1.23/2.23 1.68/.62 1.68/.62 SUBMIT FOR RATE Enclosure/Crawlspace and above .96/1.07 1.23/2.63 1.68/.71 1.68/.71 Lowest floor only-above ground level .96/1.07 1.23/2.63 1.32/.65 1.32/.65 1.11/.65 Lowest floor above ground level and higher floors .96/.74 1.23/2.32 1.32/.34 1.32/.34 1.11/.45 Above ground level more than 1 full floor .35/.14 .47/.34 .39/.13 .35/.12 .35/.12 BUILDING—A1-A30, AE · POST-FIRM ELEVATION 3 OR MORE FLOORS NO BASEMENT/ENCLOSURE/CRAWLSPACE3 3 OR MORE FLOORS WITH BSMNT/ENCL/CRAWLSPACE3 +4 .33/.03 .33/.03 +3 .35/.03 .34/.03 +2 .45/.03 .40/.03 +1 .81/.04 .56/.04 0 1.43/.05 1.28/.05 -12 5.26/.15 3.16/.12 -2 S U B M I T F O R R A T E CONTENTS—A1-A30, AE · POST-FIRM ELEVATION LOWEST FLOOR ONLY-ABOVE GROUND LEVEL (NO BSMNT/ENCLOSURE/ CRAWLSPACE3) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER (NO BSMNT/ENCL/ CRAWLSPACE3) BASEMENT/ ENCLOSURE/ CRAWLSPACE3 AND ABOVE ABOVE GROUND LEVEL MORE THAN ONE FULL FLOOR +4 .38/.12 .38/.12 .38/.12 .35/.12 +3 .38/.12 .38/.12 .38/.12 .35/.12 +2 .38/.12 .38/.12 .38/.12 .35/.12 +1 .52/.12 .38/.12 .38/.12 .35/.12 0 1.18/.12 .67/.12 .41/.12 .35/.12 -12 3.45/.70 2.00/.47 .66/.14 .35/.12 -2 S U B M I T F O R R A T E .35/.12 1Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). If FIRM Zone is unknown, use rates for Zones A, AE, AO, AH, D. 2Use Submit-for-Rate guidelines if either the enclosure below the lowest elevated floor of an elevated building or the crawlspace (under-floor space) that has its interior floor within 2 feet below grade on all sides, which is used for rating, is 1 or more feet below BFE. 3Includes subgrade crawlspace. CONDO 10 October 1, 2010 TABLE 3B. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) AO, AH POST-FIRM NO BASEMENT/ENCLOSURE/CRAWLSPACE/SUBGRADE CRAWLSPACE BUILDINGS1 BUILDING CONTENTS WITH CERTIFICATION OF COMPLIANCE2 .44/.04 .38/.13 WITHOUT CERTIFICATION OF COMPLIANCE OR WITHOUT ELEVATION CERTIFICATE3 .99/.09 1.17/.22 POST-FIRM UNNUMBERED A-ZONE – WITHOUT BASEMENT/ENCLOSURE/CRAWLSPACE/SUBGRADE CRAWLSPACE1,7 ELEVATION DIFFERENCE TO NEAREST FOOT BUILDING CONTENTS4 TYPE OF ELEVATION CERTIFICATE +5 OR MORE .88/.05 .49/.12 NO ESTIMATED BASE FLOOD ELEVATION5 +2 TO +4 1.54/.06 .78/.15 +1 2.51/.14 1.50/.27 0 OR BELOW *** *** +2 OR MORE .75/.04 .44/.12 WITH ESTIMATED BASE FLOOD ELEVATION6 0 TO +1 1.35/.06 .94/.15 -1 5.34/.18 2.66/.41 -2 OR BELOW *** *** NO ELEVATION CERTIFICATE 7.20/1.26 3.33/.91 NO ELEVATION CERTIFICATE 1Zones A, AO, or AH buildings with basement/enclosure/crawlspace/subgrade crawlspace--Submit for Rating. 2“With Certification of Compliance” rates are to be used when the Elevation Certificate shows that the lowest floor elevation is equal to or greater than the community’s elevation requirement. 3“Without Certification of Compliance” rates are to be used only on Post-FIRM structures without an Elevation Certificate or when the Elevation Certificate shows that the lowest floor elevation of a Post-FIRM structure is less than the community’s elevation requirement. 4For elevation rated policies, when contents are located one floor or more above lowest floor used for rating, use .35/.12. 5NO ESTIMATED BASE FLOOD ELEVATION: Elevation difference is the measured distance between the lowest floor of the building and the highest adjacent grade next to the building. 6WITH ESTIMATED BASE FLOOD ELEVATION: Elevation difference is the measured distance between the lowest floor of the building and the estimated BFE provided by the community or registered professional engineer, surveyor, or architect. 7Pre-FIRM buildings with basement/enclosure/crawlspace/subgrade crawlspace may use this table if the rates are more favorable to the insured. ***SUBMIT FOR RATING. CONDO 11 October 1, 2010 TABLE 3C. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) AR AND AR DUAL ZONES BUILDING 1,2 3 PRE-FIRMAND POST-FIRMNOT ELEVATION-RATED BUILDING TYPE RATES No Basement/Enclosure 1.06/.05 With Basement 1.29/.07 With Enclosure 1.12/.05 Elevated on Crawlspace 1.06/.05 Non-Elevated with Subgrade Crawlspace 1.06/.05 CONTENTS 1,2 3 PRE-FIRMAND POST-FIRMNOT ELEVATION-RATED CONTENTS LOCATION RATES Basement/Subgrade Crawlspace and above 1.68/.62 Enclosure/Crawlspace and above 1.68/.71 Lowest floor only-above ground level 1.32/.65 Lowest floor above ground level and higher floors 1.32/.34 Above ground level more than 1 full floor .35/.12 BUILDING PRE-FIRM AND POST-FIRM ELEVATION-RATED ELEVATION 3 OR MORE FLOORS NO BASEMENT/ENCLOSURE/CRAWLSPACE5 3 OR MORE FLOORS WITH BASEMENT/ENCLOSURE/ CRAWLSPACE5 +4 .33/.03 .33/.03 +3 .35/.03 .34/.03 +2 .45/.03 .40/.03 +1 .81/.04 .56/.04 0 1.06/.05 1.28/.05 -14 See Footnote CONTENTS PRE-FIRM AND POST-FIRM ELEVATION-RATED ELEVATION LOWEST FLOOR ONLY -ABOVE GROUND LEVEL (NO BSMNT/ENCL/CRAWLSPACE5) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER (NO BSMNT/ENCL/CRAWLSPACE5) BASEMENT/ ENCLOSURE/ CRAWLSPACE5 AND ABOVE ABOVE GROUND LEVEL -MORE THAN ONE FULL +4 .38/.12 .38/.12 .38/.12 .35/.12 +3 .38/.12 .38/.12 .38/.12 .35/.12 +2 .38/.12 .38/.12 .38/.12 .35/.12 +1 .52/.12 .38/.12 .38/.12 .35/.12 0 1.18/.12 .67/.12 .41/.12 .35/.12 -1 4 See Footnote 1Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). 2Base deductible is $2,000. 3Base deductible is $1,000. 4 Use Pre-FIRM Not Elevation-Rated AR and AR Dual Zones Rate Table above. 5Includes subgrade crawlspace. CONDO 12 October 1, 2010 TABLE 3D. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) REGULAR PROGRAM – 1975-19811 POST-FIRM CONSTRUCTION2 FIRM ZONES V1-V30, VE – BUILDING RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE BUILDING TYPE 3 OR MORE FLOORS NO BASEMENT/ENCLOSURE/ CRAWLSPACE5 3 OR MORE FLOORS WITH BASEMENT/ENCLOSURE/ CRAWLSPACE5 0 3 3.05/.15 2.91/.15 -1 4 8.90/.64 4.68/.48 -2 *** *** 1975-1981 POST-FIRM CONSTRUCTION FIRM ZONES V1-V30, VE – CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE CONTENTS LOCATION LOWEST FLOOR ONLY-ABOVE GROUND LEVEL (NO BASEMENT/ ENCLOSURE/ CRAWLSPACE 5 ) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE/ CRAWLSPACE 5 ) BASEMENT/ ENCLOSURE/ CRAWLSPACE 5 AND ABOVE ABOVE GROUND LEVEL-MORE THAN ONE FULL FLOOR 0 3 4.50/.63 2.95/.70 1.65/.77 .62/.29 -1 4 9.91/4.81 5.85/3.71 1.95/.77 .62/.29 -2 *** *** *** *** 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2 For 1981 Post-FIRM construction rating, refer to pages CONDO 19-20. 3 These rates are to be used if the lowest floor of the building is at or above the BFE. 4 Use Submit-for-Rate guidelines if the enclosure below the lowest floor of an elevated building, which is used for rating, is 1 or more feet below BFE. 5 Includes subgrade crawlspace. ***SUBMIT FOR RATING. REGULAR PROGRAM 1975-1981 POST-FIRM CONSTRUCTION UNNUMBERED V ZONE – ELEVATED BUILDINGS SUBMIT FOR RATING TABLE 4A. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) REGULAR PROGRAM – PRE-FIRM CONSTRUCTION RATES1 F I R M Z O N E S: A, A1-A30, AE, AO, AH, D V, VE A99, B, C, X BUILDING CONTENTS BUILDING CONTENTS BUILDING CONTENTS BUILDING TYPE NO BASEMENT/ENCLOSURE .70/.57 .96/1.06 .93/1.51 1.23/2.77 .74/.21 1.20/.37 WITH BASEMENT .75/.70 .96/.89 1.00/2.62 1.23/2.61 .81/.30 1.36/.46 WITH ENCLOSURE .75/.83 .96/.92 1.00/2.85 1.23/2.84 .81/.34 1.36/.54 ELEVATED ON CRAWLSPACE .70/.57 .96/1.06 .93/1.51 1.23/2.77 .74/.21 1.20/.37 NON­ELEVATED WITH SUBGRADE CRAWLSPACE .70/.57 .96/1.06 .93/1.51 1.23/2.77 .74/.21 1.20/.37 REGULAR PROGRAM – POST-FIRM CONSTRUCTION RATES F I R M Z O N E S: A99, B, C, X D BUILDING CONTENTS BUILDING CONTENTS BUILDING TYPE NO BASEMENT/ENCLOSURE .74/.21 1.20/.37 1.03/.39 1.11/.65 WITH BASEMENT .81/.30 1.36/.46 *** *** WITH ENCLOSURE .81/.34 1.36/.54 *** *** ELEVATED ON CRAWLSPACE .74/.21 1.20/.37 1.03/.39 1.11/.65 NON­ELEVATED WITH SUBGRADE CRAWLSPACE .74/.21 1.20/.37 1.03/.39 1.11/.65 F I R M Z O N E S: AO, AH (NO BASEMENT/ENCLOSURE/CRAWLSPACE BUILDINGS ONLY2) BUILDING CONTENTS WITH CERTIFICATION OF COMPLIANCE3 .21/.08 .38/.13 WITHOUT CERTIFICATION OF COMPLIANCE OR WITHOUT ELEVATION CERTIFICATE4 .95/.21 1.17/.22 1Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). If FIRM Zone is unknown, use rates for Zones A, AE, AO, AH, D. 2Zones AO, AH BUILDINGS WITH BASEMENT/ENCLOSURE/CRAWLSPACE/SUBGRADE CRAWLSPACE: Submit for Rating. 3“With Certification of Compliance” rates are to be used when the Elevation Certificate shows that the lowest floor elevation is equal to or greater than the community’s elevation requirement. 4 “Without Certification of Compliance” rates are to be used only on Post-FIRM structures without an Elevation Certificate or when the Elevation Certificate shows that the lowest floor elevation of a Post-FIRM structure is less than the community’s elevation requirement. ***SUBMIT FOR RATING TABLE 4B. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) REGULAR PROGRAM – POST-FIRM CONSTRUCTION FIRM ZONES A1-A30, AE – BUILDING RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE1 BUILDING TYPE ONE FLOOR NO BASEMENT/ENCLOSURE/ CRAWLSPACE3 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE CRAWLSPACE3 MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE/ CRAWLSPACE3 +4 .18/.08 .18/.08 .18/.08 +3 .20/.08 .18/.08 .18/.08 +2 .27/.08 .20/.08 .20/.08 +1 .49/.09 .29/.08 .24/.08 0 1.20/.10 .78/.10 .61/.10 -12 3.15/.84 2.37/.70 1.38/.57 -2 *** *** *** FIRM ZONES A1-A30, AE – CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE1 CONTENTS LOCATION LOWEST FLOOR ONLY ­ABOVE GROUND LEVEL (NO BASEMENT/ENCLOSURE/ CRAWLSPACE3) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ ENCLOSURE/CRAWLSPACE3) BASEMENT/ENCLOSURE/ CRAWLSPACE3 AND ABOVE ABOVE GROUND LEVEL­MORE THAN ONE FULL FLOOR +4 .38/.12 .38/.12 .38/.12 .35/.12 +3 .38/.12 .38/.12 .38/.12 .35/.12 +2 .38/.12 .38/.12 .38/.12 .35/.12 +1 .52/.12 .38/.12 .38/.12 .35/.12 0 1.18/.12 .67/.12 .41/.12 .35/.12 -1 2 3.45/.70 2.00/.47 .66/.14 .35/.12 -2 *** *** *** .35/.12 1If LF is -1 because of attached garage, submit application for special consideration; rate may be lower. 2Use Submit-for-Rate guidelines if either the enclosure below the lowest floor of an elevated building or the crawlspace (under-floor space) that has its interior floor within 2 feet below grade on all sides, which is used for rating, is 1 or more feet below BFE. 3Includes subgrade crawlspace. ***SUBMIT FOR RATING. TABLE 4C. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) UNNUMBERED ZONE A – WITHOUT BASEMENT/ENCLOSURE/CRAWLSPACE1,6 ELEVATION DIFFERENCE TO NEAREST FOOT BUILDING CONTENTS2 TYPE OF ELEVATION CERTIFICATE +5 OR MORE .36/.10 .49/.12 NO ESTIMATED BASE FLOOD ELEVATION3 +2 TO +4 1.01/.12 .78/.15 +1 2.03/.63 1.50/.27 0 OR BELOW *** *** +2 OR MORE .34/.08 .44/.12 WITH ESTIMATED BASE FLOOD ELEVATION4 0 TO +1 .78/.11 .94/.15 -1 2.94/.83 2.66/.41 -2 OR BELOW *** *** NO ELEVATION CERTIFICATE5 3.68/1.44 3.33/.91 NO ELEVATION CERTIFICATE 1 Zone A building with basement/enclosure/crawlspace/subgrade crawlspace – Submit for Rating. 2 For elevation rated policies, when contents are located one floor or more above lowest floor used for rating, use .35/.12. 3 NO ESTIMATED BASE FLOOD ELEVATION: Elevation difference is the measured distance between the lowest floor of the building and the highest adjacent grade next to the building. 4 WITH ESTIMATED BASE FLOOD ELEVATION: Elevation difference is the measured distance between the lowest floor of the building and the estimated BFE provided by the community or registered professional engineer, surveyor, or architect. 5 For building without basement, enclosure, crawlspace or subgrade crawlspace, Elevation Certificate is optional. 6 Pre-FIRM buildings with basement/enclosure/crawlspace/subgrade crawlspace may use this table if the rates are more favorable to the insured. For optional rating, follow the Submit for Rate procedures on pages RATE 25-25A. ***SUBMIT FOR RATING. TABLE 4D. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) AR AND AR DUAL ZONES REGULAR PROGRAM – PRE-FIRM1,2 AND POST-FIRM3 NOT ELEVATION-RATED RATES BUILDING TYPE BUILDING CONTENTS NO BASEMENT/ENCLOSURE .74/.21 1.20/.37 WITH BASEMENT .81/.30 1.36/.46 WITH ENCLOSURE .81/.34 1.36/.54 ELEVATED ON CRAWLSPACE .74/.21 1.20/.37 NON­ELEVATED WITH SUBGRADE CRAWLSPACE .74/.21 1.20/.37 REGULAR PROGRAM –– PRE-FIRM AND POST-FIRM ELEVATION-RATED RATES BUILDING RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE BUILDING TYPE ONE FLOOR NO BASEMENT/ENCLOSURE/ CRAWLSPACE5 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE/ CRAWLSPACE5 MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE/ CRAWLSPACE5 +4 .18/.08 .18/.08 .18/.08 +3 .20/.08 .18/.08 .18/.08 +2 .27/.08 .20/.08 .20/.08 +1 .49/.09 .29/.08 .24/.08 0 .74/.21 .78/.10 .61/.10 ­14 See Footnote CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE CONTENTS LOCATION LOWEST FLOOR ONLY ­ABOVE GROUND LEVEL(NO BASEMENT/ ENCLOSURE/CRAWLSPACE5) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE/ CRAWLSPACE5) BASEMENT/ENCLOSURE/ CRAWLSPACE5 AND ABOVE ABOVE GROUND LEVEL­MORE THAN ONE FULL FLOOR +4 .38/.12 .38/.12 .38/.12 .35/.12 +3 .38/.12 .38/.12 .38/.12 .35/.12 +2 .38/.12 .38/.12 .38/.12 .35/.12 +1 .52/.12 .38/.12 .38/.12 .35/.12 0 1.18/.12 .67/.12 .41/.12 .35/.12 ­14 See Footnote 1Start of construction or substantial improvement on or before 12/31/74, or before the effective date of the initial Flood Insurance Rate Map (FIRM). 2Base deductible is $2,000. 3Base deductible is $1,000. 4Use Pre-FIRM Not Elevation-Rated AR and AR Dual Zones Rate Table above. 5Includes subgrade crawlspace. CONDO 17 October 1, 2010 TABLE 4E. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) REGULAR PROGRAM – 1975-19811 POST-FIRM CONSTRUCTION2 FIRM ZONES V1-V30, VE – BUILDING RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE BUILDING TYPE ONE FLOOR NO BASEMENT/ENCLOSURE/ CRAWLSPACE5 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE/ CRAWLSPACE5 MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE/ CRAWLSPACE5 03 2.73/.51 2.19/.51 1.89/.51 ­14 5.98/3.12 5.47/3.12 3.91/2.83 ­2 *** *** *** REGULAR PROGRAM – 1975-19811 POST-FIRM CONSTRUCTION FIRM ZONES V1-V30, VE – CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE CONTENTS LOCATION LOWEST FLOOR ONLY ­ABOVE GROUND LEVEL (NO BASEMENT/ENCLOSURE/ CRAWLSPACE5) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE/ CRAWLSPACE5) BASEMENT/ENCLOSURE/ CRAWLSPACE5 AND ABOVE ABOVE GROUND LEVEL ­MORE THAN ONE FULL FLOOR 03 4.50/.63 2.95/.70 1.65/.77 .62/.29 ­14 9.91/4.81 5.85/3.71 1.95/.77 .62/.29 ­2 *** *** *** .62/.29 1Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2For 1981 Post-FIRM construction rating, refer to pages CONDO 19 and 20. 3These rates are to be used if the lowest floor of the building is at or above the BFE. 4Use Submit-for-Rate guidelines if the enclosure below the lowest floor of an elevated building, which is used for rating, is 1 or more feet below BFE. 5Includes subgrade crawlspace. ***SUBMIT FOR RATING. REGULAR PROGRAM – 1975-1981 POST-FIRM CONSTRUCTION UNNUMBERED V ZONE – ELEVATED BUILDINGS SUBMIT FOR RATING TABLE 5A. RCBAP HIGH-RISE AND LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE 1981 POST-FIRM V1-V30, VE ZONE RATES1 Elevated Buildings Free of Obstruction2 Below the Beam Supporting the Building’s Lowest Floor Elevation of the bottom of the floor beam of the lowest floor above or below Base Flood Elevation adjusted for wave height at building site3 Building Rate Contents Rate +4 or more .71 .53 +3 .86 .54 +2 1.12 .73 +1 1.63 1.25 0 2.34 1.90 -1 3.07 2.73 -2 4.15 3.90 -3 5.35 5.35 -4 or lower *** *** Rates above are only for elevated buildings. Use Specific Rating Guidelines for non-elevated buildings. 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2 Free of Obstruction—The space below the lowest elevated floor must be completely free of obstructions or any attachment to the building, or may have: (1) Insect screening, provided that no additional supports are required for the screening; or (2) Wooden or plastic lattice with at least 40 percent of its area open and made of material no thicker than ½ inch; or (3) Wooden or plastic slats or shutters with at least 40 percent of their area open and made of material no thicker than 1 inch. (4) One solid breakaway wall or a garage door, with the remaining sides of the enclosure constructed of insect screening, wooden or plastic lattice, slats, or shutters. Any of these systems must be designed and installed to collapse under stress without jeopardizing the structural support of the building, so that the impact on the building of abnormally high tides or wind-driven water is minimized. Any machinery or equipment below the lowest elevated floor must be at or above the BFE. 3 Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. ***SUBMIT FOR RATING TABLE 5B. RCBAP HIGH-RISE AND LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE 1981 POST-FIRM V1-V30, VE ZONE RATES1,2 Elevated Buildings With Obstruction3 Below the Beam Supporting the Building’s Lowest Floor Elevation of the bottom of the floor beam of the lowest floor above or below Base Flood Elevation adjusted for wave height at building site4 Building Rate Contents Rate +4 or more 1.28 .67 +3 1.43 .68 +2 1.68 .86 +1 2.12 1.38 0 2.93 2.05 -15 3.53 2.81 -25 4.67 4.01 -35 5.89 5.48 -4 or lower5 *** *** 1 Policies for 1975 through 1981 Post-FIRM and Pre-FIRM buildings in Zones VE and V1-V30 will be allowed to use the Post-’81 V Zone rate table if the rates are more favorable to the insured. See instructions on page RATE 23 for V Zone Optional Rating. 2Rates provided are only for elevated buildings, except those elevated on solid perimeter foundation walls. For buildings elevated on solid perimeter foundation walls, and for non-elevated buildings, use the Specific Rating Guidelines document. 3 With Obstruction—The space below has an area of less than 300 square feet with breakaway solid walls or contains equipment below the BFE. If the space below has an area of 300 square feet or more, or if any portion of the space below the elevated floor is enclosed with non-breakaway walls, submit for rating. If the enclosure is at or above the BFE, use the “Free of Obstruction” rate table on the preceding page. The elevation of the bottom enclosure floor is the lowest floor for rating (LFE). See page RATE 20 for details. 4Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. 5 For buildings with obstruction, use Submit-for-Rate guidelines if the enclosure below the lowest elevated floor of an elevated, which is used for rating, is 1 or more feet below BFE. ***SUBMIT FOR RATING. TABLE 5C. RCBAP HIGH-RISE AND LOW-RISE BUILDING RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE 1981 POST-FIRM V ZONE RATES TABLE 6. RCBAP HIGH-RISE AND LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) INCREASED COST OF COMPLIANCE (ICC) COVERAGE All Except Submit for Rate Policies1 Premiums for $30,000 ICC Coverage FIRM2 ZONE PREMIUM Post-FIRM A, AE, A1-A30, AO, AH $ 5 AR, AR DUAL ZONES $ 5 Post-’81 V1-V30, VE $ 18 ‘75-’81 V1-V30, VE $ 30 A99, B, C, X, D $ 5 Pre-FIRM A, AE, A1-A30, AO, AH $ 70 AR, AR DUAL ZONES $ 5 V, VE, V1-V30 $ 70 A99, B, C, X, D $ 5 1Use the ICC premium table contained in the Specific Rating Guidelines. 2Elevation-rated Pre-FIRM buildings should use Post-FIRM ICC premiums. TABLE 7. RCBAP DEDUCTIBLE FACTORS – ALL ZONES Category One – Low-Rise Condominium Building-and-Contents Policies DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR Single Family 2-4 Units 5 or More Units Building/Contents Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000/$1,000 1.000 1.100 1.000 1.050 1.000 1.050 $2,000/$2,000 .925 1.000 .960 1.000 .975 1.000 $3,000/$3,000 .850 .925 .930 .965 .950 .975 $4,000/$4,000 .775 .850 .900 .930 .925 .950 $5,000/$5,000 .750 .810 .880 .910 .915 .930 $10,000/$10,000 .635 .675 .735 .765 .840 .860 $25,000/$25,000 .535 .570 .635 .665 .740 .760 Category Two – Low-Rise Condominium Building-Only Policies DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR Single Family 2-4 Units 5 or More Units Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. Post-FIRM $1,000 Ded. Pre-FIRM $2,000 Ded. $1,000 1.000 1.100 1.000 1.075 1.000 1.050 $2,000 .925 1.000 .950 1.000 .970 1.000 $3,000 .865 .935 .910 .960 .940 .970 $4,000 .815 .880 .870 .920 .920 .950 $5,000 .765 .830 .835 .880 .900 .930 $10,000 .630 .685 .650 .690 .830 .860 $25,000 .530 .580 .550 .585 .730 .760 Category Three – High-Rise Condominium Policies, Building-and-Contents and Building-Only The deductible factors are multipliers, and total deductible amounts are subject to a maximum dollar discount per annual premium. BUILDING/CONTENTS BUILDING-ONLY X. CONDOMINIUM RATING EXAMPLES DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR MAXIMUM DISCOUNT Post-FIRM $1,000 Deductible Pre-FIRM $2,000 Deductible $1,000/$1,000 1.000 1.050 N/A $2,000/$2,000 .980 1.000 $ 56 $3,000/$3,000 .960 .980 $ 111 $4,000/$4,000 .940 .960 $ 166 $5,000/$5,000 .920 .940 $ 221 $10,000/$10,000 .840 .860 $ 476 $25,000/$25,000 .740 .760 $1,001 DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR MAXIMUM DISCOUNT Post-FIRM $1,000 Deductible Pre-FIRM $2,000 Deductible $1,000 1.000 1.050 N/A $2,000 .970 1.000 $ 55 $3,000 .940 .970 $ 110 $4,000 .920 .950 $ 165 $5,000 .900 .930 $ 220 $10,000 .830 .860 $ 475 $25,000 .730 .760 $ 1,000 TABLE OF CONTENTS EXAMPLE PAGE Example 1 Pre-FIRM, Low-rise, with Enclosure, Coinsurance Penalty, Zone A................CONDO 24 Example 2 Pre-FIRM, Low-rise, No Basement/Enclosure, Zone AE ................................. CONDO 25 Example 3 Post-FIRM, Low-rise, Coinsurance Penalty, Zone AE ..................................... CONDO 26 Example 4 Post-FIRM, Low-rise, Standard Deductible, Zone AE ...................................... CONDO 27 Example 5 Pre-FIRM, High-rise, Standard Deductible, Coinsurance Penalty, Zone A......CONDO 28 Example 6 Pre-FIRM, High-rise, Basement, Maximum Discount, Zone AE....................... CONDO 29 Example 7 Post-FIRM, High-rise, Standard Deductible, Zone AE ..................................... CONDO 30 Example 8 Pre-FIRM, High-rise, Enclosure, Maximum Discount, Coinsurance Penalty, Zone AE..............................................................................................CONDO 31 CONDOMINIUM RATING EXAMPLE 1 Pre-FIRM, Low-rise, with Enclosure, Coinsurance Penalty, Zone A Regular Program • Building Coverage: $140,000 • Contents Coverage: $100,000 • Condominium Type: Low-rise • Flood Zone: A • Occupancy: Other Residential • # of Units: 6 • Date of Construction: Pre-FIRM • Building Type: 3 Floors Including Enclosure • Deductible: $2,000/$2,000 • Deductible Factor: 1.000 • Replacement Cost: $600,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $480,000 • ICC Premium: $70 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .75/.83 Contents: .96/.92 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 140,000 .75 1,050 0 .83 0 0 140,000 1,050 CONTENTS 25,000 .96 240 75,000 .92 690 0 100,000 930 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 1,980 ICC PREMIUM 70 SUBTOTAL 2,050 CRS PREMIUM DISCOUNT % . SUBTOTAL 2,050 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE(MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 200 TOTAL PREPAID AMOUNT 2,250 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,050 / Contents: $930 2. Apply Deductible Factor: Building: 1.000 x $1,050 = $1,050 / Contents: 1.000 x $930 = $930 3. Premium Reduction: Building: $0 / Contents: 0 4. Subtotal: 1,980 5. Add ICC Premium: $70 6. Subtract CRS Discount: N/A 7. Subtotal: 2,050 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $200 10. Total Prepaid Amount: $2,250 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Claim Payment is determined as follows: (Insurance Carried) 140,000 x (Amount of Loss) 100,000 = (Limit of Recovery) 29,167 -Less Deductible (Insurance Required) 480,000 (Coinsurance Penalty applies because minimum insurance amount of $480,000 was not met.) CONDOMINIUM RATING EXAMPLE 2 PRE-FIRM, LOW-RISE, NO BASEMENT/ENCLOSURE, ZONE AE Regular Program • Building Coverage: $480,000 • Contents Coverage: $50, 000 • Condominium Type: Low-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 6 • Date of Construction: Pre-FIRM • Building Type: 1 Floor, No Basement • Deductible: $2,000/$2,000 • Deductible Factor: 1.000 • Replacement Cost: $600,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $480,000 • ICC Premium: $70 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .70/.57 Contents: .96/1.06 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $3,204 / Contents: $505 2. Apply Deductible Factor: Building: 1.00 x $3,204 = $3,204 / Contents: 1.00 x $505 = $505 3. Premium Reduction: Building: $0 / Contents: $0 4. Subtotal: $3,709 5. Add ICC Premium: $70 6. Subtract CRS Discount: N/A 7. Subtotal: $3,779 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $200 10. Total Prepaid Amount: $3,979 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since minimum insurance amount of 80% was met. CONDOMINIUM RATING EXAMPLE 3 POST-FIRM, LOW-RISE, COINSURANCE PENALTY, ZONE AE Regular Program • Building Coverage: $750,000 • Contents Coverage: $100,000 • Condominium Type: Low-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 14 • Date of Construction: Post-FIRM • Building Type: 2 Floors, No Basement/Enclosure • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Replacement Cost: $1,120,000 • Elevation Difference: +1 • 80% Coinsurance Amount: $896,000 • ICC Premium: $5 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .29/.08 Contents: .38/.12 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 750,000 .29 2,175 0 .08 0 0 750,000 2,175 CONTENTS 25,000 .38 95 75,000 .12 90 0 100,000 185 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 2,360 ICC PREMIUM 5 SUBTOTAL 2,365 CRS PREMIUM DISCOUNT % . SUBTOTAL 2,365 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 440 TOTAL PREPAID AMOUNT 2,805 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $2,175 / Contents: $185 2. Apply Deductible Factor: Building: 1.000 x $2,175 = $2,175 / Contents: 1.000 x $185 = $185 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $2,360 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $2,365 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $440 10. Total Prepaid Amount: $2,805 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Claim Payment is determined as follows: (Insurance Carried) 750,000 x (Amount of Loss) 300,000 = (Limit of Recovery) 251,116 -Less Deductible (Insurance Required) 896,000 (Coinsurance Penalty applies because minimum insurance amount of $896,000 was not met.) CONDOMINIUM RATING EXAMPLE 4 POST-FIRM, LOW-RISE, STANDARD DEDUCTIBLE, ZONE AE Regular Program • Building Coverage: $600,000 • Contents Coverage: $15,000 • Condominium Type: Low-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 6 • Date of Construction: Post-FIRM • Building Type: 3 Floors, Townhouse, No Basement/Enclosure • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Replacement Cost: $600,000 • Elevation Difference: +2 • 80% Coinsurance Amount: $480,000 • ICC Premium: $5 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .20/.08 Contents: .38/.12 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 360,000 .20 720 240,000 .08 192 0 600,000 912 CONTENTS 15,000 .38 57 0 .12 0 0 15,000 57 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 969 ICC PREMIUM 5 SUBTOTAL 974 CRS PREMIUM DISCOUNT % . SUBTOTAL 974 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 200 TOTAL PREPAID AMOUNT 1,174 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $912 / Contents: $57 2. Apply Deductible Factor: Building: 1.000 x $912 = $912 / Contents: 1.000 x $57 = $57 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $969 5. Add ICC Premium: $5 6. Subtract CRS Discount: N/A 7. Subtotal: $974 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $200 10. Total Prepaid Amount: $1,174 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since the minimum insurance amount of 80% was met. CONDOMINIUM RATING EXAMPLE 5 PRE-FIRM, HIGH-RISE, STANDARD DEDUCTIBLE, COINSURANCE PENALTY, ZONE A Regular Program • Building Coverage: $1,110,000 • Contents Coverage: $100,000 • Condominium Type: High-rise • Flood Zone: A • Occupancy: Other Residential • # of Units: 50 • Date of Construction: Pre-FIRM • Building Type: 3 or More Floors, No Basement/Enclosure • Deductible: $2,000/$2,000 • Deductible Factor: 1.000 • Replacement Cost: $1,500,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $1,200,000 • ICC Premium: $70 ($30,000 Coverage) • CRS Rating: 5 • CRS Discount: 25% Determined Rates: Building: .85/.22 Contents: .96/.74 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 175,000 .85 1,488 935,000 .22 2,057 0 1,110,000 3,545 CONTENTS 25,000 .96 240 75,000 .74 555 0 100,000 795 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 4,340 ICC PREMIUM 70 SUBTOTAL 4,410 CRS PREMIUM DISCOUNT 25% -1,103 SUBTOTAL 3,307 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 840 TOTAL PREPAID AMOUNT 4,147 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $3,545 / Contents: $795 2. Apply Deductible Factor: Building: 1.000 x $3,545 = $3,545 / Contents: 1.000 x $795 = $795 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $4,340 5. Add ICC Premium: $70 6. Subtract CRS Discount: -$1,103 (25%) 7. Subtotal: $3,307 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $840 10. Total Prepaid Amount: $4,147 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Claim Payment is determined as follows: (Insurance Carried) 1,110,000 x (Amount of Loss) 200,000 = (Limit of Recovery) 185,000 -Less Deductible (Insurance Required) 1,200,000 (Coinsurance Penalty applies because minimum insurance amount of $1,200,000 was not met.) CONDOMINIUM RATING EXAMPLE 6 PRE-FIRM, HIGH-RISE, BASEMENT, MAXIMUM DISCOUNT, ZONE AE Regular Program • Building Coverage: $3,000,000 • Contents Coverage: $100,000 • Condominium Type: High-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 50 • Date of Construction: Pre-FIRM • Building Type: 3 or More Floors, including Basement • Deductible: $5,000/$5,000 • Deductible Factor: .940 (Maximum Total Discount of $221 applies) • Replacement Cost: $3,750,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $3,000,000 • ICC Premium: $70 ($30,000 Coverage) • CRS Rating: 8 • CRS Discount: 10% Determined Rates: Building: .90/.30 Contents: .96/.90 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $10,050 / Contents: $915 2. Apply Deductible Factor: Building: .940 x $10,050 = $9,447 / Contents: .940 x $915 = $860 3. Premium Reduction: Building: $221 (maximum discount since $10,050 -$9,447 = $603 exceeds the maximum) / Contents: $0 4. Subtotal: $10,744 5. Add ICC Premium: $70 6. Subtract CRS Discount: -$1,081 (10%) 7. Subtotal: $9,733 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $840 10. Total Prepaid Amount: $10,573 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since the minimum insurance amount of 80% was met. NOTE: The NFIP accepts premium only in whole dollars. If the discount for an optional deductible does not result in a whole dollar premium, round up if 50¢ or more; round down if less. Always submit gross premium. CONDOMINIUM RATING EXAMPLE 7 POST-FIRM, HIGH-RISE, STANDARD DEDUCTIBLE, ZONE AE Regular Program • Building Coverage: $12,000,000 • Contents Coverage: $15,000 • Condominium Type: High-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 100 • Date of Construction: Post-FIRM • Building Type: 3 or More Floors, No Basement/Enclosure • Deductible: $1,000/$1,000 • Deductible Factor: 1.000 • Replacement Cost: $15,000,000 • Elevation Difference: 0 • 80% Coinsurance Amount: $12,000,000 • ICC Premium: $5 ($30,000 Coverage) • CRS Rating: 9 • CRS Discount: 5% Determined Rates: Building: 1.43/.05 Contents: .67/.12 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $8,416 / Contents: $101 2. Apply Deductible Factor: Building: 1.000 x $8,416 = $8,416 / Contents: 1.000 x $101 = $101 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $8,517 5. Add ICC Premium: $5 6. Subtract CRS Discount: -$426 (5%) 7. Subtotal: $8,096 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $840 10. Total Prepaid Amount: $8,936 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since the minimum insurance amount of 80% was met. NOTE: The NFIP accepts premium only in whole dollars. If the discount for an optional deductible does not result in a whole dollar premium, round up if 50¢ or more; round down if less. Always submit gross premium. CONDOMINIUM RATING EXAMPLE 8 PRE-FIRM, HIGH-RISE, ENCLOSURE, MAXIMUM DISCOUNT, COINSURANCE PENALTY, ZONE AE Regular Program • Building Coverage: $4,000,000 • Contents Coverage: $100,000 • Condominium Type: High-rise • Flood Zone: AE • Occupancy: Other Residential • # of Units: 200 • Date of Construction: Pre-FIRM • Building Type: 3 or More Floors, Including Enclosure • Deductible: $3,000/$3,000 • Deductible Factor: .980 (Maximum Total Discount of $111 applies) • Replacement Cost: $18,000,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $14,400,000 • ICC Premium: $70 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .90/.22 Contents: .96/1.07 COVERAGE BASIC LIMITS ADDITIONAL LIMITS (REGULAR PROGRAM ONLY) DEDUCTIBLE BASIC AND ADDITIONAL TOTAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM AMOUNT OF INSURANCE RATE ANNUAL PREMIUM PREM. REDUCTION/ INCREASE TOTAL AMOUNT OF INSURANCE BUILDING 175,000 .90 1,575 3,825,000 .22 8,415 -111 4,000,000 9,879 CONTENTS 25,000 .96 240 75,000 1.07 803 0 100,000 1,043 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) . MANUAL . SUBMIT FOR RATING . ALTERNATIVE . V-ZONE RISK RATING FORM . PROVISIONAL RATING . LEASED FEDERAL PROPERTY . MORTGAGE PORTFOLIO PROTECTION PROGRAM PAYMENT OPTION: . CREDIT CARD . OTHER: ANNUAL SUBTOTAL 10,922 ICC PREMIUM 70 SUBTOTAL 10,992 CRS PREMIUM DISCOUNT % . SUBTOTAL 10,999 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) PROBATION SURCHARGE . FEDERAL POLICY FEE 840 TOTAL PREPAID AMOUNT 11,832 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $9,990 / Contents: $1,043 2. Apply Deductible Factor: Building: .980 x $9,990 = $9,790 / Contents: .980 x $1,043 = $1,022 3. Premium Reduction: Building: $111 (maximum discount since $9,990 -$9,790 = $200 exceeds the maximum) / Contents: $0 4. Subtotal: $10,922 5. Add ICC Premium: $70 6. Subtract CRS Discount: N/A 7. Subtotal: $10,992 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $840 10. Total Prepaid Amount: $11,832 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Claim Payment is determined as follows: (Insurance Carried) 4,000,000 x (Amount of Loss) 1,000,000 = (Limit of Recovery) 277,778 -Less Deductible (Insurance Required) 14,400,000 (Coinsurance Penalty applies because minimum insurance amount of $14,400,000 was not met.) PREFERRED RISK POLICY I. GENERAL DESCRIPTION The Preferred Risk Policy (PRP) offers low-cost coverage to owners and tenants of eligible buildings located in the moderate-risk B, C, and X Zones in NFIP Regular Program communities. For residential properties, the maximum coverage combination is $250,000 building and $100,000 contents. Up to $100,000 contents-only coverage is available. For non-residential properties, the maximum coverage combination is $500,000 building and $500,000 contents. Up to $500,000 contents-only coverage is available. Only one building can be insured per policy, and only one policy can be written on each building. II. ELIGIBILITY REQUIREMENTS A. Flood Zone To be eligible for coverage under the PRP, the building must be in a B, C, or X Zone on the effective date of the policy, with the following exceptions: • Buildings that were newly designated within a Special Flood Hazard Area (SFHA) due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible for a PRP for 2 policy years if their policy effective date is between January 1, 2011, and December 31, 2012. • Buildings that are newly designated within an SFHA due to a map revision on or after January 1, 2011, are eligible for a PRP for 2 policy years from the map revision date. Buildings meeting the above requirement must also meet the PRP loss history requirements. At the end of the 2-year PRP eligibility extension period following a map revision, policies on these buildings must be written as standard-rated policies. For the purpose of determining the flood zone, the agent may use the FIRM in effect at the time of application and presentment of premium. The flood map available at the time of the renewal offer determines a building’s continued eligibility for the PRP. (See V. RENEWAL.) NFIP map grandfathering rules do not apply to the PRP. B. Occupancy Combined building/contents amounts of insurance are available for owners of all eligible occupancy types—one-to four-family properties (including individual condominium units in condominium buildings), other residential properties, and non-residential properties. Contents-only coverage is available for tenants and owners of all eligible occupancies, except when contents are located entirely in a basement. C. Loss History A building's eligibility for the PRP is based on the preceding requirements and on the building’s flood loss history. If one of the following conditions exists within any 10-year period, regardless of any change(s) in ownership of the building, then the building is not eligible for the PRP: • 2 flood insurance claim payments, each more than $1,000; or • 3 or more flood insurance claim payments, regardless of amount; or • 2 Federal flood disaster relief payments (including loans and grants), each more than $1,000; or • 3 Federal flood disaster relief payments (including loans and grants), regardless of amount; or • 1 flood insurance claim payment and 1 Federal flood disaster relief payment (including loans and grants), each more than $1,000. In reviewing a building’s flood loss history for PRP eligibility, be aware that: • A flood insurance claim payment (building and/or contents) and a Federal flood disaster relief payment (including loans and grants) for the same loss are considered a single payment. • Federal flood disaster relief payments (including loans and grants) are considered only if the building sustained flood damage. THE PRP AT A GLANCE COVERAGE TYPE MAXIMUM LIMITS BY OCCUPANCY TYPE 1-4 Family Other Residential Non-Residential Combined Building/Contents $250,000/$100,000 $250,000/$100,000 $500,000/$500,000 Contents Only $100,000 $100,000 $500,000 III. INELIGIBILITY For help in determining eligibility/ineligibility of various condominium risks, use the PRP Condominium Rating Chart on the next page. • Properties in Special Flood Hazard Areas or in Emergency Program communities are not eligible for the PRP. • Multi-unit residential condominium buildings eligible under the Residential Condominium Building Association Policy are not eligible for the PRP. • Individual residential condominium units in non-residential condominium buildings are not eligible for building coverage. • Individual non-residential condominium units are not eligible for building coverage. • Contents located entirely in a basement are not eligible for contents-only coverage. However, contents located entirely in an enclosure are eligible. • Condominium units are not eligible for Increased Cost of Compliance (ICC) coverage. • Buildings on Leased Federal Property determined by the Administrator to be located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure are not eligible for the PRP. IV. DOCUMENTATION All Preferred Risk Policy new business applications must include documentation of eligibility for the PRP. Such applications must be accompanied by one of the following: • A Letter of Map Amendment (LOMA) • A Letter of Map Revision (LOMR) • A Letter of Determination Review (LODR) • A copy of the most recent flood map marked to show the exact location of the property and flood zone of the building • A copy of the current and previous flood maps if the PRP is being applied for under the 2-year PRP eligibility extension • A letter indicating the property address and flood zone of the building, and signed and dated by a local community official • An Elevation Certificate indicating the exact location and flood zone of the building, and signed and dated by a surveyor, engineer, architect, or local community official • A flood zone determination certification that guarantees the accuracy of the information. An agent writing through a Write Your Own (WYO) company should contact that company for guidance. V. RENEWAL An eligible risk renews automatically without submission of a new application. If, during a policy term, the risk fails to meet the eligibility requirements, it cannot be renewed as a PRP. It must be nonrenewed or rewritten as a standard-rated policy. Effective May 1, 2008, if there has been a map change during the policy term that may affect the insured property, proof of the building’s continued eligibility for the PRP must be provided for the policy to be renewed. In addition, effective January 1, 2011, PRPs renewed under the 2-year PRP eligibility extension must have the current and previous flood maps to document the building’s eligibility. (See IV. DOCUMENTATION.) VI. COVERAGE LIMITS The elevated building coverage limitation provisions do not apply to the PRP. VII. REPLACEMENT COST COVERAGE Replacement cost coverage applies only if the building is the principal residence of the insured and the building coverage chosen is at least 80 percent of the replacement cost of the building at the time of the loss, or the maximum coverage available under the NFIP. VIII. DISCOUNTS/FEES/ICC PREMIUM • No Community Rating System discount is associated with the PRP. • The $50.00 Community Probation Sur­charge is added, when applicable. • The Federal Policy Fee of $20.00 is included in the premium and is not subject to commission. • The ICC premium of $5.00 is included. IX. DEDUCTIBLES The standard deductible for PRPs is $1,000 each for building and contents, applied separately. Optional deductibles are not available for PRPs. PREFERRED RISK POLICY CONDOMINIUM RATING CHART RESIDENTIAL SINGLE UNIT BUILDING OR TOWNHOUSE/ROWHOUSE TYPE. BUILDING WITH SEPARATE ENTRANCE FOR EACH UNIT Condo Unit PRP 11 1 2 PURCHASER OF POLICY Building OccupancyIndicator Eligibility Rate TablePolicy Form UNIT OWNER SINGLE FAMILY Yes Yes One-to Four-Family Residential DWELLING ASSOCIATION (ASSOCIATION-OWNED SINGLE FAMILY Yes Yes One-to Four-Family Residential DWELLING SINGLE UNIT ONLY) ASSOCIATION N/A N/A No N/A N/A (ENTIRE BUILDING) MULTI-UNIT RESIDENTIAL BUILDING. 2 TO 4 UNITS PER BUILDING Condo Unit PRP 1 1 2 PURCHASER OF POLICY Building OccupancyIndicator Eligibility Rate TablePolicy Form UNIT OWNER 2-4 Yes Yes One-to Four-Family Residential DWELLING ASSOCIATION (ASSOCIATION-OWNED 2-4 Yes Yes One-to Four-Family Residential DWELLING SINGLE UNIT ONLY) ASSOCIATION N/A N/A No N/A N/A (ENTIRE BUILDING) MULTI-UNIT RESIDENTIAL BUILDING. 5 OR MORE UNITS PER BUILDING PURCHASER OF POLICY UNIT OWNER ASSOCIATION (ASSOCIATION-OWNED SINGLE UNIT ONLY) ASSOCIATION (ENTIRE BUILDING) PRP 3 NON-RESIDENTIAL BUILDING Condo Unit PRP Building Occupancy1 Indicator1 Eligibility OTHER RESIDENTIAL Yes Yes OTHER RESIDENTIAL Yes Yes N/A N/A No Rate Table2 Policy Form Other Residential DWELLING Other Residential DWELLING N/A N/A PURCHASER OF POLICY Building Occupancy1 Condo Unit Indicator1 PRP Eligibility Rate Table2 Policy Form UNIT OWNER NON-RESIDENTIAL Yes (BUILDING COVERAGE NOT AVAILABLE, ONLY CONTENTS) Yes Non-Residential Contents Only GENERAL PROPERTY UNIT OWNER SINGLE FAMILY Yes (BUILDING COVERAGE NOT AVAILABLE, ONLY CONTENTS) Yes One-to Four-Family Residential or Other Residential if 5 or more units DWELLING ASSOCIATION NON-RESIDENTIAL N/A Yes Non-Residential Building and Contents GENERAL PROPERTY 1 When there is a mixture of residential and commercial usage within a single building, please refer to the GR Section of the Flood Insurance Manual. 2 All building rates are based on the lowest floor of the building. May 1, 2010 PRP COVERAGES AVAILABLE EFFECTIVE JANUARY 1, 2011 ONE-TO FOUR-FAMILY RESIDENTIAL 1, 2, 3 BUILDING AND CONTENTS COVERAGE COMBINATIONS With Basement or Enclosure5 Without Basement or Enclosure 6 Building Contents Premium Building Contents Premium $ 20,000 $ 8,000 $154 $ 20,000 $ 8,000 $129 $ 30,000 $ 12,000 $185 $ 30,000 $ 12,000 $160 $ 50,000 $ 20,000 $236 $ 50,000 $ 20,000 $211 $ 75,000 $ 30,000 $277 $ 75,000 $ 30,000 $247 $100,000 $ 40,000 $304 $100,000 $ 40,000 $274 $125,000 $ 50,000 $324 $125,000 $ 50,000 $294 $150,000 $ 60,000 $343 $150,000 $ 60,000 $313 $200,000 $ 80,000 $378 $200,000 $ 80,000 $343 $250,000 $100,000 $405 $250,000 $100,000 $365 1, 2, 4 ALL RESIDENTIAL CONTENTS-ONLY COVERAGE Contents Above Ground Level More Than One Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 8,000 $49 $ 8,000 $68 $ 12,000 $65 $ 12,000 $92 $ 20,000 $96 $ 20,000 $128 $ 30,000 $110 $ 30,000 $147 $ 40,000 $122 $ 40,000 $164 $ 50,000 $134 $ 50,000 $181 $ 60,000 $146 $ 60,000 $198 $ 80,000 $170 $ 80,000 $218 $100,000 $194 $100,000 $238 1, 2, 3 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONSWith Basement or Enclosure5 Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 Building Coverage $ 20,000 $168 $182 $195 $208 $220 $231 $242 $252 $262 $ 30,000 $182 $196 $209 $222 $234 $245 $256 $266 $276 $ 50,000 $216 $230 $243 $256 $268 $279 $290 $300 $310 $ 75,000 $232 $246 $259 $272 $284 $295 $306 $316 $326 $100,000 $254 $268 $281 $294 $306 $317 $328 $338 $348 $125,000 $261 $275 $288 $301 $313 $324 $335 $345 $355 $150,000 $266 $280 $293 $306 $318 $329 $340 $350 $360 $200,000 $297 $311 $324 $337 $349 $360 $371 $381 $391 $250,000 $314 $328 $341 $354 $366 $377 $388 $398 $408 1, 2, 3 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONSWithout Basement or Enclosure6 Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 Building Coverage $ 20,000 $140 $152 $163 $174 $184 $194 $203 $212 $220 $ 30,000 $158 $169 $180 $191 $201 $211 $220 $229 $237 $ 50,000 $193 $204 $215 $226 $236 $246 $255 $264 $272 $ 75,000 $213 $224 $235 $245 $255 $265 $274 $283 $291 $100,000 $231 $242 $253 $263 $273 $283 $292 $301 $309 $125,000 $240 $251 $262 $272 $282 $291 $300 $309 $317 $150,000 $247 $258 $269 $279 $289 $298 $307 $316 $324 $200,000 $275 $286 $297 $307 $317 $326 $335 $343 $351 $250,000 $290 $301 $312 $322 $332 $341 $350 $358 $366 1Add the $50.00 Probation Surcharge, if applicable. 2Premium includes Federal Policy Fee of $20.00. 3Premium includes ICC premium of $5.00. Deduct this amount if the risk is a condominium unit. 4Use this “All Residential Contents-Only Coverage” premium table for individual residential condominium unit contents-only policies. 5Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces. See footnote 6. 6Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. PRP 4 January 1, 2011 PRP COVERAGES AVAILABLE EFFECTIVE JANUARY 1, 2011 (cont’d.) 1, 2, 3 NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONSWith Basement or Enclosure4 Contents Coverage $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Building Coverage $ 50,000 $ 897 $1,156 $1,404 $1,640 $1,865 $2,079 $2,282 $2,473 $2,653 $2,822 $100,000 $1,271 $1,530 $1,777 $2,013 $2,238 $2,452 $2,655 $2,846 $3,026 $3,195 $150,000 $1,546 $1,805 $2,052 $2,288 $2,513 $2,727 $2,930 $3,121 $3,301 $3,470 $200,000 $1,695 $1,954 $2,201 $2,437 $2,662 $2,876 $3,079 $3,270 $3,450 $3,619 $250,000 $1,800 $2,059 $2,306 $2,542 $2,767 $2,981 $3,184 $3,375 $3,555 $3,724 $300,000 $1,916 $2,175 $2,422 $2,658 $2,883 $3,097 $3,300 $3,491 $3,671 $3,840 $350,000 $2,044 $2,303 $2,550 $2,786 $3,011 $3,225 $3,427 $3,618 $3,798 $3,967 $400,000 $2,128 $2,387 $2,634 $2,870 $3,095 $3,309 $3,511 $3,702 $3,882 $4,051 $450,000 $2,224 $2,483 $2,730 $2,966 $3,191 $3,405 $3,607 $3,798 $3,978 $4,147 $500,000 $2,329 $2,588 $2,835 $3,071 $3,296 $3,510 $3,712 $3,903 $4,083 $4,252 1, 2, 3 NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONSWithout Basement or Enclosure5 1, 2 NON-RESIDENTIAL CONTENTS-ONLY COVERAGE Contents Above Ground Level More Than One Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 50,000 $162 $ 50,000 $ 347 $100,000 $237 $100,000 $ 517 $150,000 $312 $150,000 $ 687 $200,000 $387 $200,000 $ 857 $250,000 $462 $250,000 $1,027 $300,000 $537 $300,000 $1,197 $350,000 $612 $350,000 $1,367 $400,000 $687 $400,000 $1,537 $450,000 $762 $450,000 $1,707 $500,000 $837 $500,000 $1,877 1Add the $50.00 Probation Surcharge, if applicable. 2Premium includes Federal Policy Fee of $20.00. 3Premium includes ICC premium of $5.00. Deduct this amount if the risk is a condominium unit. 4Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces. See footnote 5. 5Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. PRP 5 January 1, 2011 X. ENDORSEMENTS The PRP may be endorsed to: • Increase coverage mid-term, subject to the coverage limits in effect when the policy was issued or renewed. See page END 5 for an example. • Correct misratings, such as incorrect building description or community number. XI. CONVERSION OF STANDARD RATED POLICY TO PRP DUE TO MISRATING A policy written as a standard B, C, or X Zone policy and later found to be eligible for a PRP may be endorsed or rewritten as a PRP for only the current policy term. In addition, effective January 1, 2011, standard-rated policies, regardless of zone, found to be eligible for the 2­year PRP extension may be endorsed or rewritten. When the risk has been rated with other than B, C, or X Zone rates, but is later found to be in a B, C, or X Zone and eligible for a PRP, the writing company will be allowed to endorse or cancel/rewrite up to 6 years. The policy may be canceled/rewritten using Cancellation Reason Code 22 if both of the following conditions are met: • The request to endorse or cancel/rewrite the policy is received during the current policy term. • The policy has no open claim or closed paid claim on the policy term being canceled. The new PRP building and/or contents coverage will be equal either to the building limit issued under the Standard B, C, or X Zone policy or the next higher limit available under the PRP if there is no PRP option equal to the Standard B, C, or X Zone building limit. For a standard contents-only policy, the contents coverage will be equal to the limit issued under the standard policy or the next higher limit. If building coverage is desired, the policy should be endorsed for building and contents coverage with a 30-day waiting period applied. XII. CONVERSION OF STANDARD RATED POLICY TO PRP DUE TO THE 2-YEAR PRP ELIGIBILITY EXTENSION Effective January 1, 2011, a policy written as a standard-rated policy and determined to be eligible for extended PRP rating may be endorsed or rewritten as a PRP for two policy terms at its next renewal following a map change that occurred on or after October 1, 2008, and before January 1, 2011. The policy may be canceled/rewritten using Cancellation Reason Code 22 if both of the following conditions are met: • The request to endorse or cancel/rewrite the policy is received during the current policy term. • The policy has no open claim or closed paid claim on the policy term being canceled. When converting a standard-rated policy to a PRP due to the 2-year PRP eligibility extension, the 30-day waiting period will not apply if the standard-rated policy has only building coverage and is rewritten as a PRP that includes contents coverage. XIII. CONVERSION OF STANDARD RATED POLICY TO PRP DUE TO MAP REVISION, LOMA, OR LOMR A standard-rated policy may be canceled and rewritten as a PRP as a result of a map revision, LOMA, or LOMR if the effective date of the map change was on or after February 1, 2005. The policy may be canceled/rewritten using Cancellation Reason Code 24 under the following conditions: • The request to cancel/rewrite the standard policy must be received during the policy term or within 6 months of the policy expiration date. • The standard policy has no open claim or closed paid claim on the policy terms being canceled. • The property meets all other PRP eligibility requirements. The building and/or contents coverage on the new PRP must be equal either to the building limit and/or contents limit issued under the standard policy, or to the next higher limit available under the PRP if there is no PRP option equal to the standard policy building and/or contents limit. XIV. CONVERSION OF PRP TO STANDARD RATED POLICY A Preferred Risk Policy must be canceled and rewritten to a standard rated policy if the risk no longer meets the PRP eligibility requirements. The building and/or contents coverage on the new standard policy must be equal to the building limit and/or contents limit issued under the PRP. If new coverage is desired, the policy should be endorsed with a 30-day waiting period applied. COMPLETING THE FLOOD INSURANCE PREFERRED RISK POLICY APPLICATION A. Policy Status In the upper right corner of the form, check the appropriate box to indicate if the application is for a NEW policy or a RENEWAL of an existing policy. If the application is for a renewal, enter the current NFIP policy number. B. Policy Term The PRP is available only for 1-year terms. 1. Check the appropriate box to indicate who should receive the renewal bill. If BILL FIRST MORTGAGEE is checked, complete "First Mortgagee" section. If BILL SECOND MORTGAGEE, BILL LOSS PAYEE, or BILL OTHER is checked, provide mailing instructions in "Second Mortgagee or Other" section. 2. Enter the policy effective date and policy expiration date (month-day-year). The effective date of the policy is determined by adding the appropriate waiting period to the date of application in the "Signature" section. Above these dates, check the appropriate box to indicate whether the waiting period is STANDARD 30-DAY or LOAN TRANSACTION OR LENDER REQUIRED– NO WAITING. Refer to the General Rules section, pages GR 8-12, for the applicable waiting period. C. Agent Information Enter the agent's (producer's) name, agency name and number, address, city, state, ZIP Code, telephone number, fax number, and Tax I.D. Number. D. Insured’s Mailing Address 1. Enter the name, mailing address, city, state, ZIP Code, and telephone number of the insured. 2. If the insured's mailing address is a post office box or a rural route number, or if the address of the property to be insured is different from the mailing address, complete the "Property Location" section of the application. E. Disaster Assistance 1. Check YES if flood insurance is being required for disaster assistance. Enter the insured's Case File Number, Disaster Assistance Number, or Tax I.D. Number on the line for CASE FILE NUMBER. 2. In the "Second Mortgagee or Other" block, identify the government (disaster) agency, and enter the complete name and mailing address of the disaster agency. 3. If NO is checked, no other information is required. F. First Mortgagee Enter the name, mailing address, city, state, ZIP Code, telephone number, and fax number of the first mortgagee. Enter the loan number. G. Second Mortgagee or Other 1. Identify additional mortgagees by checking the appropriate box and entering the loan number, mortgagee's name, mailing ad­dress, telephone number, and fax number. 2. If more than one additional mortgagee or disaster assistance agency exists, provide the requested information on the producer's letterhead. H. Property Location 1. Check YES if the location of the property being insured is the same as the address entered in the "Insured’s Mailing Address" section. Leave the rest of this section blank unless there is more than one building at the property location. 2. If more than one building is at the location of the insured property, use this section to specifically identify the building to be insured. Briefly describe the building or submit a sketch showing the location of insured buildings to assist the NFIP in matching the policy number to the specific building insured. 3. If NO, provide the address or location of the property to be insured. 4. If the insured's mailing address is a post office box or rural route number, give the street address, legal description, or geographic location of the property. I. Community 1. Enter the name of the county or parish where the property is located. Enter the community identification number, map panel number, and revision suffix for the community where the property is located. Use the FIRM in effect and that has been published at the time of presentment of premium and completion of application. Community number and status may be obtained by calling the writing company, consulting a local community official, or referencing the NFIP Community Status Book online at www.fema.gov/fema/csb.shtm. 2. Enter the Flood Insurance Rate Map zone. 3. Identify the information source. 4. Check YES if the building is located on federal land; otherwise, check NO. NOTE: If the property is federally leased, refer to the Leased Federal Property Section for guidance. J. Building and Contents Complete all required information in this section. 1. Check building occupancy: Single Family, 2­4 Family, Other Residential, or Non-Residential (incl. Hotel/Motel). 2. Enter date of construction. 3. Check building type. If the building has a basement, enclosure, crawlspace, or subgrade crawlspace, count the basement, enclosure, crawlspace, or subgrade crawlspace as a floor. If the building type is a manufactured (mobile) home/travel trailer on foundation, enter the make, model, and serial number in the block at the bottom of this section. 4. Check YES, if the building is under a Condominium Form of Ownership; otherwise check NO. (A homeowners association [HOA] may differ from a condominium form of ownership.) 5. Check location of building’s contents. (Contents located entirely in a basement are not eligible for contents-only coverage.) 6. Check YES if the building is the insured's principal residence; otherwise, check NO. 7. Using normal company practice, estimate the replacement cost value and enter the value in the space provided. Include the cost of the building foundation when determining the replacement cost value. 8. Indicate whether the building has a Basement, Enclosure, Crawlspace, or Subgrade Crawlspace. K. Notice If the answer to either question A or question B is YES, this risk is not eligible for the Preferred Risk Policy, except for buildings eligible under the 2-year PRP eligibility extension. L. Premium 1. Enter the coverage selected, and the premium, from the appropriate table on pages PRP 4-5. 2. Add the $50.00 Probation Surcharge, if applicable. Deduct $5.00 if this is an application for a condominium unit. M. Signature The producer must sign the Preferred Risk Policy Application and is responsible for the completeness and accuracy of the information provided on it. Enter the date of application (month/day/year). The waiting period is added to this date to determine the policy effective date of the policy listed in the Policy Term section. A check or money order for the Total Prepaid Amount, payable to the NFIP, must accompany the application. Electronics transactions are permitted if the business process includes authentication of signatures and dates of receipt of premium. WYO companies are responsible for determining the business practices and transaction authentication methods they will use to ensure the security and integrity of such transactions. A credit card payment by VISA, MasterCard, Discover, or American Express will also be acceptable if a disclaimer form, signed by the insured, is submitted with the Preferred Risk Policy Application. The disclaimer will state that cancellation of a policy due to a billing dispute will be permitted only for a billing error or fraud. If the credit card information is taken over the telephone by the producer, the producer may sign the authorization form on behalf of the payor only after having read the disclaimer to the payor. GUIDANCE FOR LEASED FEDERAL PROPERTIES I. GENERAL DESCRIPTION In accordance with the provisions of the Flood Insurance Reform Act of 2004, Sec. 106, the Federal Emergency Management Agency (FEMA) will begin charging actuarial rates for a Leased Federal Property, which is any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. A list of property addresses meeting this description has been provided to FEMA by the U.S. Army Corps of Engineers. Actuarial rates will apply to all new and renewal policies with effective dates on or after October 1, 2009, that meet these criteria. II. NOTIFICATION REQUIREMENTS The National Flood Insurance Program (NFIP) IT Services and Bureau and Statistical Agent will post this list of property addresses on the NFIP Bureau web portal, www.NFIPBureau.FEMA.gov. Write Your Own (WYO) Companies and the NFIP Servicing Agent must compare this list, which will be updated monthly, with existing and prospective business. Policies that have an address match must be rated with actuarial rates based on procedures that follow. WYO Companies and the NFIP Servicing Agent must notify existing policyholders (and their agents and lenders) at least 120 days before renewal that their property has been identified as being located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. The notice must include the requirement for such policies to be rated using actuarial rates. Sample notification letters have been provided at the end of this section that can be altered to work with a company’s billing cycle as necessary. In order to establish the actuarial rate, the writing company must obtain a FEMA Elevation Certificate (EC), which provides current FIRM information and elevations. At least two photographs (front and back) of the building must also be submitted. If the EC is not received within 45 days from the date of notice, the policy may be nullified, or issued using tentative rates. Tentative rates will require a new Risk Rating Method code “F” which is now part of the Transaction Record Reporting and Processing (TRRP) Plan. The use of tentative rates must follow the established tentative rate procedure, which includes informing the parties of the missing information that prevents the policy from being rated actuarially. Additionally, the claim settlement procedure, when a tentatively rated property suffers a loss, must also be included in the information presented with the tentative rates. Policies that are within the 120-day window prior to renewal will not receive the leased federal property notice until the subsequent renewal. III. TENTATIVE RATES Tentative rates (see table on page LFP 3) are used to issue policies when producers fail to provide the required actuarial rating information. Tentative rates are generally higher than the rates published in this manual (ranging from $2 to $10 per $100 of coverage). With tentative rates, a policy will be generated with coverage limits based on the actual premium received. When tentative rates are applied, a Declarations Page and a Tentative Rate Letter will be forwarded to the policyholder, producer, and mortgagee (if any), requesting the necessary information so that the proper rate can be determined. Tentatively rated policies cannot be endorsed to increase coverage limits, or renewed for another policy term, until the required actuarial rating information and full premium payment are received. If a loss occurs on a tentatively rated property, payment will be limited by the amount of coverage that the initially submitted premium will purchase using the correct actuarial rating information. IV. APPEALS The notice to policyholders must inform them that they can challenge their properties’ inclusion on the leased federal properties list by submitting documentation refuting the information that placed them on the list. One example of acceptable documentation is a letter from a community official or land surveyor stating that the property is not located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. Another example is documentation showing that the insured owns the property and not the Federal Government. This information should be submitted to the WYO Company or the NFIP Servicing Agent, who will then process the request and forward it to FEMA for final review and determination. If FEMA approves the appeal, the property will be removed from the list and the building may continue to be rated as it was previously. If the policyholder does not provide acceptable documentation, or the appeal has been denied, the property will remain on the list. WYO Companies and the NFIP Servicing Agent have the following options. a. A new policy can be issued or an existing policy renewed for a single policy term using tentative rates. If the policyholder does not provide acceptable documentation prior to the next policy expiration date, the company must non-renew the policy. b. The policy can be nullified in accordance with the WYO Company’s business practices. Claims relating to a tentatively rated policy will not be processed until the required underwriting information needed to establish an actuarial rate for the policy has been received. Any flood loss occurring after notifying the policyholder of the property’s inclusion in the subset of properties cannot be settled until the WYO Company or NFIP Servicing Agent receives the appropriate underwriting documentation (i.e., new EC and photographs) or proof that the property should not have been placed on the list. TENTATIVE RATES TABLE RATES PER $100 OF COVERAGE (Basic/Additional) BUILDING TYPE BUILDING CONTENTS Non-Elevated, No Basement Basic Limits Additional Limits Basic Limits Additional Limits Zones A, AE, A1-A30, AO, AH 1-4 Family Other Residential Non-Residential 4.00 3.00 6.00 4.00 6.00 4.00 6.00 4.00 6.00 4.00 8.00 8.00 Zones V, V1-V30, VE 1-4 Family Other Residential Non-Residential 7.00 7.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 BUILDING TYPE BUILDING CONTENTS Non-Elevated with Basement / Elevated Building* Basic Limits Additional Limits Basic Limits Additional Limits Zones A, AE, A1-A30, AO, AH 1-4 Family Other Residential Non-Residential 2.00 2.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 3.00 3.00 Zones V, V1-V30, VE 1-4 Family Other Residential Non-Residential 3.00 3.00 5.00 5.00 5.00 5.00 3.00 3.00 3.00 3.00 5.00 5.00 *The basement/elevated building rates should be used only where the underwriter is satisfied on the basis of two or more photographs or other substantiating information that the risk is definitely constructed as an elevated building or that the basement is a true basement under the NFIP basement definition. LFP 3 October 1, 2009 Sample Policyholder Notification Letter IMPORTANT FLOOD INSURANCE POLICY INFORMATION Insured’s Name: Property Address: Policy Number: Dear Policyholder: This letter is to inform you that your property, which is covered by flood insurance, meets the criteria for a new subset of properties that must be charged actuarial rates, in accordance with the provisions of the Flood Insurance Reform Act of 2004, Sec. 106. In accordance with the law, the Federal Emergency Management Agency (FEMA) must charge actuarial rates for any property meeting the following criteria: (1) Leased from the Federal Government, and (2) Located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. In order for an actuarial rate to be developed, proper underwriting documentation, including a FEMA Elevation Certificate using current Flood Insurance Rate Map data and two photographs showing the front and back of the building, must be submitted to your flood insurer. The insurer must receive this information within 45 days of receipt of this notice to allow for rate calculation and processing of the renewal bill. If your insurer does not receive the requested underwriting information in sufficient time to meet their renewal billing cycle, they can only renew the flood policy using tentative rates. Please be advised that a policy with tentative rates cannot be endorsed to increase limits or be renewed. In the event of a loss a tentatively rated policy will not receive a claim settlement until actuarial rates are determined. These rates, along with the amount of premium originally submitted, will determine the coverage available. You may appeal this determination by furnishing your insurer with documentation verifying that your property does not meet the criteria listed above. Your insurance agent has also received this notice concerning your property. If you have questions about the information in this letter, please contact (your company name and telephone number). Sample Agent Notification Letter IMPORTANT FLOOD INSURANCE POLICY INFORMATION Insured’s Name: Property Address: Policy Number: Dear Agent: This letter is to inform you that your client’s property, which is covered by flood insurance, meets the criteria for a new subset of properties that must be charged actuarial rates, in accordance with the provisions of the Flood Insurance Reform Act of 2004, Sec. 106. In accordance with the law, the Federal Emergency Management Agency (FEMA) must charge actuarial rates for any property meeting the following criteria: (1) Leased from the Federal Government, and (2) Located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. In order for an actuarial rate to be developed, proper underwriting documentation, including a FEMA Elevation Certificate using current Flood Insurance Rate Map data and two photographs showing the front and back of the building, must be submitted to the writing company. The writing company must receive this information within 45 days of receipt of this notice to allow for rate calculation and processing of the renewal bill. A writing company that does not receive the requested underwriting information in sufficient time to meet their renewal billing cycle can only renew the flood policy using tentative rates. Please be advised that a policy with tentative rates cannot be endorsed to increase limits or be renewed. In the event of a loss a tentatively rated policy will not receive a claim settlement until actuarial rates are determined. These rates, along with the amount of premium originally submitted, will determine the coverage available. Your client may appeal this determination by furnishing the writing company with documentation verifying that the property does not meet the criteria listed above. This notice has also been sent to your client. If you have questions about the information in this letter, please contact (your company name and telephone number). Sample Lender Notification Letter IMPORTANT FLOOD INSURANCE POLICY INFORMATION Insured’s Name: Property Address: Policy Number: Dear Lender: This letter is to inform you that your client’s property, which is covered by flood insurance, meets the criteria for a new subset of properties that must be charged actuarial rates, in accordance with the provisions of the Flood Insurance Reform Act of 2004, Sec. 106. In accordance with the law, the Federal Emergency Management Agency (FEMA) must charge actuarial rates for any property meeting the following criteria: (1) Leased from the Federal Government, and (2) Located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. In order for an actuarial rate to be developed, proper underwriting documentation, including a FEMA Elevation Certificate using current Flood Insurance Rate Map data and two photographs showing the front and back of the building, must be submitted to the writing company. The writing company must receive this information within 45 days of receipt of this notice to allow for rate calculation and processing of the renewal bill. A writing company that does not receive the requested underwriting information in sufficient time to meet their renewal billing cycle can only renew the flood policy using tentative rates. Please be advised that a policy with tentative rates cannot be endorsed to increase limits or be renewed. In the event of a loss a tentatively rated policy will not receive a claim settlement until actuarial rates are determined. These rates, along with the amount of premium originally submitted, will determine the coverage available. Your client may appeal this determination by furnishing the writing company with documentation verifying that the property does not meet the criteria listed above. This notice has also been sent to your client and their insurance agent. If you have questions about the information in this letter, please contact (your company name and telephone number). INDEX A ABOVE GROUND BUILDING, PRINCIPALLY...GR 3, DEF 7 ACT.......................................................REF 1, GR 7, DEF 1 ACTUAL CASH VALUE (ACV) ....................................DEF 1 ADDITIONS AND EXTENSIONS (TO BUILDING) ............................................ GR 5, RATE 16 ADJUSTER CONTROL OFFICE ........................CL 3, DEF 1 ALTERNATIVE RATES ............... RATE 21, END 1-2, DEF 1 ANCHORED...................................................GR 3-4, DEF 1 APPLICATION...........................................GR 15, APP 1-13, CONDO 8-9, PRP 7-10, DEF 1 Binder or Certificate of Insurance ..................GR 8, DEF 1 Flood Insurance Application Form ...................APP 11-13 Incomplete/Incorrect Applications............................APP 9 Mailing Instructions .................................GR 8, 14, APP 8 APPURTENANT STRUCTURE .........................GR 3, DEF 1 ASSESSMENTCOVERAGE ............GR 13, 14, CONDO 7-8 ASSIGNMENT OF POLICY .............. GR 15, MPPP 6, DEF 1 B BASE FLOOD..............................................................DEF 1 BASE FLOOD DEPTH.................................RATE 18, DEF 1 BASE FLOOD ELEVATION (BFE)........ GR 15, RATE 17-23, MAP 2,3,DEF1 BASEMENT............... APP 1, 3, RATE 25, CERT 3-6, DEF 1 BINDER OR CERTIFICATE OF INSURANCE...GR 8, DEF 1 BLANKETINSURANCE..............................................DEF 1 BOATHOUSES..............................................................GR 4 BREAKAWAY WALLS.......................GR 5, RATE 20, DEF 1 BUILDING ................................GR 3-7, 6-7, APP 3-4, DEF 1 Additions and Extensions ........................ GR 5, RATE 16 Building Coverage Limits.......................................RATE 1 Building in the Course of Construction...................GR 4-5, APP 6, CONDO 6-7, DEF 2 Buildings in More Than One Flood Zone ................GR 15, RATE 17 Building on Fill........................................................... PR 2 Building Over Water ..............................................GR 4, 7 Building Partially Underground ..................................GR 7 Container-Type Building............................................GR 7 Contents ......................GR 6, 7, 8, APP 4, RATE 1, 26-29 Elevated Building ................................... APP 1, 4, 5, 6, 8, RATE 19-21, DEF 3 Floodproofed Building ...... RATE 31-32, CERT 3-4, DEF 4 Manufactured (Mobile) Home/Travel Trailer ..........GR 3-4, APP 1,4,5,8,RATE 15, 16,PR1, DEF 3,5,9 Section 1316 .................................................GR 7, DEF 8 Single Building ..............................................GR 5, DEF 8 Start of Construction...........................RATE 15-16, DEF 9 Substantial Improvement........APP 5, RATE 15-16, DEF 9 Types of Buildings...................APP 1, 3-8, CONDO 6, 8-9 BUILDING DIAGRAMS 1-9..................LFG 4-7, CERT 23-25 BUILDINGDRAWINGS .......................................... LFG 8-68 BUILDING OCCUPANCY...........................................GR 5-6 BUSINESS ANALYST, WYO.......................................REF 2 C CANCELLATION/NULLIFICATION...........CONDO 8, PRP 6, MPPP 6, CN 1-11, DEF 2, 6 Cancellation/Nullification RequestForm .............CN 10-11 Form Completion.......................................................CN 8 Processing Outcomes Table .....................................CN 9 Valid Reason Codes for Cancellation/Nullification ..CN 1-7 Refunds .................................................................CN 1-8 CERTIFICATIONS............................................... CERT 1-42 CISTERNS.................................................... GR 4, 6, DEF 2 CLAIMS ......................................................................CL 1-5 Appealing a Claim...................................................CL 1-3 Filing a Claim.............................................................CL 1 Increased Cost of Compliance (ICC) Claims...........CL 4-5 Insured's Responsibilities........................................CL 1-3 Producer's Responsibilities ..................................... CL 3,4 Single Adjuster Program.............................CL 3-4, DEF 8 Training .....................................................................CL 4 CLAIMS COORDINATING OFFICE (CCO) ........ CL 4, DEF 2 CLOSED BASIN LAKE...................................... CN 7, DEF 2 COASTAL BARRIER .................................................. DEF 2 COASTAL BARRIER RESOURCES SYSTEM (CBRS)....................................CBRS 1-12, DEF 2 Coastal Barrier Improvement Act of 1990 (CBIA).......................................CBRS 1, DEF 2 Coastal Barrier Resources Act of 1982 (CBRA)..........................GR 1, CBRS 1, DEF 2 List of CBRS Communities...............................CBRS 3-12 COASTAL HIGH HAZARD AREA .......... RATE 30-31, DEF 2 COINSURANCE ....................................... CONDO 7, DEF 2 COMMERCIAL CONTENTS ....................... GR 6, CONDO 2 COMMISSION, PRODUCER’S .. GR 15-16, CONDO 8, CN 8 COMMON INTERIOR WALLS ...................................... GR 5 COMMUNITY (See also PROBATION and SUSPENSION) .................................. GR 1, APP 2-3, DEF 2 Community Eligibility................................................. GR 1 Community Number.....................................APP 3, DEF 2 Community Status .................................................. APP 3 Non-Participating Community ....................... GR 1, APP 3 ParticipatingCommunity...............................GR 1, DEF 7 Regular Program Community.................................. DEF 8 COMMUNITY RATING SYSTEM (CRS) .................... APP 7, CRS 1-29, DEF 2 CONDOMINIUM ASSOCIATION............ CONDO 1-2, DEF 2 CONDOMINIUMS ................................ CONDO 1-31, DEF 2 CONSTRUCTION DATA.......................................... APP 5-6 CONTACT INFORMATION, NFIP............................ REF 3-6 CONTENTS ..................... GR 6, 7, 8, APP 4, RATE 1, 26-29 CONTINUOUS LAKE FLOODING................................. CN 7 CONTRACTAGENT....................................GR 16, DEF 2-3 COOPERATIVES.......................................................... GR 6 COUNTYWIDE MAP.......................................MAP 1, DEF 3 COURSE OF CONSTRUCTION ................... GR 4-5, APP 5, CONDO 6-7, DEF 2 COVERAGE.................GR 12-14, RATE 1-11, CONDO 7-9, PRP 1, 4-5, MPPP 3-4, END 1 AdditionalCoverage or Increase inCoverage ......... END 1 Amount of Insurance Available ............................. RATE 1 Building Coverage ...........................GR 3-6, 6-7, RATE 1, CONDO 9, PRP 1, 5-6 Contents Coverage....................GR 7, 8,APP 4, RATE1, CONDO 9, PRP 1, 4-5 Contents-Only Coverage ................. RATE 57, PRP 1, 4-5 Limits of Coverage................................... GR 12, RATE 1, CONDO 7, 9, PRP 1, 4-5, MPPP 3-4 Reduction or Reformation/Removal of Insurance.................... GR 13, END 1, MPPP 5, PR 1 CRAWLSPACE............................ RATE25, LFG 2, CERT 2, CONDO 10-18, DEF 3 CREDIT CARD PAYMENT.............APP 7, REN 2, 8, MAP 4 CREDIT CARD PAYMENT FORM .......................... REN 2, 8 D DATEOFCONSTRUCTION......APP 5,RATE15-16, DEF 3 DECLARATIONS PAGE ........................... MPPP 4-5, DEF 3 DEDUCTIBLE BUYBACK ........................... RATE 12, DEF 3 DEDUCTIBLE FACTORS ................... RATE 13, CONDO 22 DEDUCTIBLES ..............................GR 12, RATE 12, 13, 17, CONDO 8, 22, PRP 2, MPPP 5, END 2 DEFINITIONS.........................................................DEF 1-10 DESCRIBED LOCATION.............................................DEF 3 DIAGRAM NUMBER ...................................................DEF 3 DIRECT PHYSICAL LOSS BY OR FROM FLOOD......DEF 3 DIRECT PROGRAM...................................REF 2, 3, GR 15, APP 8, CONDO 7 DISASTER ASSISTANCE .................GR 3, APP 2, PRP 1, 7 DOUBLEWIDE MANUFACTURED (MOBILE) HOME ........................................................... APP 1, DEF 3 DUPLICATEPOLICIES .............................................CN 2, 5 DWELLING .................................................................DEF 3 DWELLING FORM (See also STANDARD FLOOD INSURANCEPOLICY).....GR 1, 2, CONDO8,POL 1, 2-21 E EFFECTIVE DATE ...................................... GR 9-12, REN 2 ELEVATED BUILDING (See also LOWEST FLOOR GUIDE) ... APP 1, 3, 4, 5, 6, 8, RATE 19-21, DEF 3 ELEVATION CERTIFICATE ...............APP 5-6, LFG 2A, 3-7, CERT 1-3, 11-42 ELEVATION DIFFERENCE..........................RATE 17-19, 31 ELIGIBLE BUILDINGS .............................GR 3-6, CONDO 6 ELIGIBLE COMMUNITY (See PARTICIPATING COMMUNITY) ELIGIBLE CONTENTS ..................................................GR 6 EMERGENCY PROGRAM ..................GR 1, RATE 1, DEF 3 ENCLOSURE/ENCLOSED AREA (See also LOWEST FLOOR GUIDE)...............................APP 1, 3, RATE 19-20, LFG 1-2A, 3, 5, 7, DEF 3 ENDORSEMENT......................................GR 11, CONDO 8, PRP 6, MPPP 6, END 1-13, PR 1 Endorsement Processing Prior to Policy Renewal... END 2-3 Endorsement Rules: Changing Deductibles ............END 2 Endorsement Rules: Conversion of Standard Rated Policy to PRP Due to Misrating or Map Revision ...END 2 Endorsement Rules: Correcting Property Address...END 2 Endorsement Rules: Coverage Endorsements........END 1 Endorsement Rules: Misrated Policy.......................END 2 Endorsement Rules: Rating Endorsements ......... END 1-2 Endorsements During Renewal Cycle .....................REN 2 General Change Endorsement Form............... END 13-14 Preparation of Form ............................................ END 3-4 Rating Examples ............................................... END 5-12 Refund Processing.............................................. END 3-4 ENGINEERED OPENINGS (See PROPER OPENINGS) EQUIPMENT (See MACHINERY AND EQUIPMENT) EROSION....................................................................DEF 3 ERRORS, RATING.................................................. END 1-2 EVIDENCE OF INSURANCE.........................................GR 8 EXPENSECONSTANT ...............................................DEF 3 F FEDERAL LAND ...........................................................GR 1 FEDERAL POLICY FEE .....RATE 12, 17, CONDO 8, PRP 2, MPPP 5, DEF 3 FEMA .......................................................... REF 1, SRL 1-2, DEF 1, 2,3,4,5, 6, 7, 9, 10 FHBM (See FLOOD HAZARD BOUNDARY MAP) FICO (See FLOOD INSURANCE CLAIMS OFFICE) FINANCIAL ASSISTANCE/SUBSIDY ARRANGEMENT.................................... MPPP 2, 6, DEF 3 FINISHED (HABITABLE) AREA ..................................DEF 3 FINISHEDBASEMENT...............................................APP 1 FIRM (See FLOOD INSURANCE RATE MAP) FIRM ZONES ............................................................. MAP 2 FLOOD........................................................................DEF 4 FLOOD DISASTER PROTECTION ACT OF 1973 ..................................................... MPPP 1, 3 FLOOD HAZARD BOUNDARY MAP (FHBM) .............. GR 1, MAP 1, 2, 4-6, 8, DEF 4 FLOOD INSURANCECLAIMSOFFICE(FICO) ............ CL 3, DEF 4 FLOOD INSURANCERATE MAP(FIRM)....................GR 1, CERT 2, MAP 1, 3, 4-6, 7, DEF 4 FLOOD MAP “GRANDFATHERING” ................ RATE 22-23, PRP 1, DEF 4 FLOOD MAPS ...............................................GR 1, MAP 1-8 Changing or Correcting aFlood Map......................MAP 3 Countywide Map.........................................MAP 1, DEF 3 FEMA Map Assistance Center................................MAP 3 FEMA Map Service Center ..................... REF 4, MAP 4, 5 “FIRMettes” ............................................................MAP 4 General Rule of Rating ....................................... RATE 22 Letter of Map Amendment (LOMA) ...................... CN 6-7, MAP 3, DEF 5 Letter of Map Revision (LOMR) ........................... CN 6-7, MAP 3,DEF 5 Locating a Specific Property ................................MAP 2-3 Map "Grandfather" Rules ....... RATE 22-24, PRP 1, DEF 4 Map Panel Number ................................................MAP 1 Map Revision........................ PRP 2, 6, END 2, CN 3, 5-7, MAP 3,4,DEF6 Map Zones (Flood Zones) ......................................MAP 2 Ordering Information andPrices......................MAP 4,5-6 Physical Map Revision ..........................................MAP 3 FLOOD RESPONSE OFFICE (FRO) .......................... DEF 4 FLOOD VENTS (See PROPER OPENINGS) FLOODPLAIN ............................................................. DEF 4 FLOODPLAIN MANAGEMENT ................................... DEF 4 FLOODPROOFING.APP 6, RATE 31-32, CERT 3-10, DEF 4 FLOODPROOFING CERTIFICATE FOR NON-RESIDENTIAL STRUCTURES..................CERT 9-10 FLOODPROOFING CERTIFICATE, RESIDENTIALBASEMENT.................................CERT 7-8 FORCED PLACEMENT (MANDATORY PURCHASE).......... GR 2, MPPP2,CN 3,DEF5 FREEBOARD.............................................................. DEF 4 G GARAGES ........................................................ GR 3, LFG 1 GENERAL CHANGE ENDORSEMENT (See ENDORSEMENT) GENERAL PROPERTY FORM (See also STANDARD FLOOD INSURANCE POLICY)........ GR 1, 2, POL 1, 22-40 GENERAL RULE OF RATING ................................ RATE 22 GENERALRULES...................................................GR 1-16 GRADE ELEVATION .................................................. DEF 4 “GRANDFATHERING” (See FLOOD MAP “GRANDFATHERING”) GROUP FLOOD INSURANCE ......................... GR 3, DEF 4 H HABITABLE AREA (See FINISHED AREA) HISTORIC BUILDING .............................. RATE 15, DEF 4-5 HIGH-RISE BUILDING.............................. CONDO 6, DEF 4 HOMELAND SECURITY, U.S. DEPARTMENT OF ...REF 1, DEF 3 I ICC (See INCREASED COST OF COMPLIANCE) IMPROVEMENTS AND BETTERMENTS ....... GR 14, DEF 5 INCIDENTAL OCCUPANCY ...................................... GR 5-6 INCREASED COST OF COMPLIANCE (ICC) COVERAGE.............. GR 12-13, RATE 14, 17, CONDO 21, MPPP 1, CL 4-5, DEF 5 INELIGIBLE COMMUNITY (See NON-PARTICIPATING COMMUNITY) INELIGIBLEPROPERTY ........................................... GR 7-8 INFLATION FACTOR......................................GR 12, REN 1 INSECT SCREENING (BELOW LOWEST ELEVATED FLOOR).........................................RATE 7, 20, CONDO 19 INSURANCE PRODUCTS, NFIP................................GR 2-3 L LAPSE IN COVERAGE ........................................... REN 1-2 LATTICE (BELOW LOWEST ELEVATED FLOOR) ............... RATE 7, 20, 48, CONDO 19 LETTER OF DETERMINATION REVIEW (LODR)................. CN 5, DEF 5 LETTER OF MAP AMENDMENT (LOMA)............ PRP 6, END 2, CN 1, 5-6, 7, MAP 3, DEF 5 LETTER OF MAP REVISION (LOMR)................... PRP 6, END 2, CN 6, 7, MAP 3, DEF 5 LOSS ASSESSMENT COVERAGE...GR 13-14, CONDO 7-8 LOSS HISTORY.............................................. PRP 1, SRL 1 LOSSINPROGRESS.................................................DEF 5 LOWESTADJACENTGRADE....................................DEF 5 LOWEST FLOOR ......APP 6, RATE 17-23, LFG 1-68, DEF 5 Building Diagrams 1-9.....................LFG 4-7, CERT 23-25 Building Drawings ............................................. LFG 8-68 Lowest Floor Determination..................................LFG 1-7 Lowest Floor Elevation ...........APP 6, RATE 16-21, DEF 5 Use of Elevation Certificate ...................................LFG 2A LOWEST FLOOR GUIDE....................................... LFG 1-68 LOW-RISE BUILDING ........................... CONDO 6,9, DEF 5 LEASED FEDERAL PROPERTY......................APP 3, GR 1, LFP 1-6, PRP 2 M MACHINERY AND EQUIPMENT.......................RATE 19-20, LFG 1, 2, CERT 3 MANDATORY PURCHASE (FORCED PLACEMENT)........... GR 2, MPPP2,CN 3,DEF5 MANUFACTURED (MOBILE) HOMES/ TRAVEL TRAILERS .................. GR 3-4, APP 1, 4, 8, PR 1, DEF 3, 5,9 Date of Construction................................APP 5, RATE 15 Doublewide................................................. APP 1,DEF 3 MANUFACTURED (MOBILE) HOME PARK OR SUBDIVISION .......................................................DEF 5-6 MAP “GRANDFATHERING” (See FLOOD MAP “GRANDFATHERING”) MAPS (See FLOOD MAPS) MEAN SEA LEVEL (See NATIONAL GEODETIC VERTICAL DATUM [NGVD]) MISCELLANEOUS RULES ....................................GR 15-16 Application Submission ...........................................GR 15 Assignment of Policy...............................................GR 15 Commission, Producer’s..........................................GR 15 Contract Agent Rule................................................GR 16 Delivery of Policy.....................................................GR 15 Policy Term .............................................................GR 15 MITIGATION, SEVERE REPETITIVE LOSS.............SRL 1-2 MODULAR BUILDING.................................................DEF 6 MORTGAGE PORTFOLIO PROTECTION PROGRAM (MPPP).......................GR 2, MPPP 1-6, DEF 6 MORTGAGEE .. APP 2, RATE 17, PRP 7, MPPP 1-6, REN 1 MUDFLOW..................................................................DEF 6 MULTI-FAMILY RESIDENCE (DWELLING) (See 2-4 FAMILY RESIDENCE [DWELLING]) MULTI-PROPERTY LETTER OF MAP AMENDMENT (LOMA) OR LETTER OF MAP REVISION (LOMR) .....CN 6 N NATIONAL FLOOD INSURANCE ACT OF 1968 (See ACT) NATIONAL FLOOD INSURANCE PROGRAM (NFIP) ........... REF 1, DEF 6 NATIONAL GEODETIC VERTICAL DATUM (NGVD) ............ LFG 2A, CERT 2, DEF 6 NATURAL GRADE...................................................... DEF 6 NEW CONSTRUCTION.............................................. DEF 6 NFIP BUREAU AND STATISTICAL AGENT ....... REF 2, 5-6, SRL 1,DEF6 NFIP CONTACT INFORMATION............................. REF 3-6 NFIPSERVICINGAGENT ...............REF 2, 3,SRL1,DEF6 NFIP SPECIAL DIRECT FACILITY (SDF).................. REF 2, SRL 1-2, DEF 6 NON-PARTICIPATINGCOMMUNITY...........................GR 1 NON-PAYMENT ........................................................ CN 2-3 NON-RESIDENTIAL .................... GR 6-8, CONDO 2, DEF 6 NORTH AMERICAN VERTICAL DATUM (NAVD).…LFG 2A, CERT 2, DEF 6 NOTICE OF LOSS.........................................................CL 1 NULLIFICATION (See CANCELLATION/NULLIFICATION) O OCCUPANCY CLASSIFICATION .................. GR 5-6, APP 3 OTHER INSURANCE .....................................MPPP 6, CN 2 OTHER RESIDENTIAL ..................................... GR 6, DEF 6 OTHERWISE PROTECTED AREAS......................CBRS 1-2 OUT-AS-SHOWN DETERMINATION.... CN 3, MAP 3, DEF 7 OVERWATER..........................................................GR 4, 7 P PAPERWORK BURDEN DISCLOSURE NOTICE .................................................................... REF 7 PARTICIPATING COMMUNITY........................GR 1, DEF 7 PHOTOGRAPH REQUIREMENTS (FOR ELEVATION CERTIFICATE)....................................................CERT 1-2 PHYSICAL MAP REVISION (PMR).............................MAP 3 POLICIES AVAILABLE .............................................. GR 1-2 POLICY....................................................................... DEF 7 POLICY RENEWALS........GR 12, PRP 2, MPPP 5, REN 1-8 Credit Card Payment Form ................................. REN 1, 8 Endorsements During Renewal Cycle..................... REN 2 Expiration Noticeto Mortgagee............................... REN 1 Final Notice ................................................. REN 2, 3, 6-7 InsufficientRenewal Information ............................. REN 2 Renewal Effective Date Determination.................... REN 2 Renewal Notice ....................................... REN 1, 2, 3, 4-8 Severe Repetitive Loss Policies.............REN 2,SRL 1-13 Waiting Period .................................................... REN 1, 2 POLICY TERM.................. GR 15, APP 1-2, PRP 7, MPPP 3 POLLUTANTS ............................................................ DEF 7 PONDING HAZARD.................................................... DEF 7 POST-FIRM BUILDING (CONSTRUCTION)..........................RATE 19, 20, 24, DEF 7 PRE-FIRM BUILDING (CONSTRUCTION)..........................RATE 19, 23, 25, DEF 7 PREFERRED RISK POLICY (PRP) ............................. GR 2, PRP 1-10, DEF 7 Completing PRP Application Form....................... PRP 6-8 Condominium Rating Chart..................................... PRP 3 Conversion of PRP to Standard Rated Policy ......... PRP 6 Conversion of Standard Rated Policy to PRP Due to Map Revision, LOMA, or LOMR............................ PRP 6 Conversion of Standard Rated Policy to PRP Due to Misrating...............................................................PRP 6 Coverage Limits................................................... PRP 1-2 Coverage/Premium Tables .................................. PRP 4-5 Deductibles............................................................. PRP 2 Discounts/Fees/ICCPremium.................................PRP 2 Documentation ....................................................... PRP 2 Eligibility Requirements....................................... PRP 1, 2 Endorsements ........................................................ PRP 6 General Description................................................PRP 1 Ineligibility...............................................................PRP 2 PRP Application Form ............................................ PRP 9 Renewal ................................................................. PRP 2 ReplacementCost Coverage..................................PRP 2 PREMIUM ..........................................................RATE 16-20 Credit Card Payment...........................APP 7, 9, REN 2, 8 Credit Card Payment Form..................................REN 2, 8 Premium Calculation ......................................RATE 16-17 Premium Discounts .................................APP 6, 7, CRS 1 Premium Payment.........................APP 7, 9, RATE 16-17, CONDO 9, PRP 8, MPPP 4, REN 1-2 Prepaid Amount (Total)...........................................DEF 7 Prepaid Premium (Total).........................................DEF 7 Presentment of Payment (Premium)...........GR 8-9, DEF 7 Refunds .......................................... END 1-2, 3-4, CN 1-6 PREPAID AMOUNT (TOTAL) .....................................DEF 7 PREPAID PREMIUM (TOTAL) ...................................DEF 7 PRESENTMENT OF PAYMENT (PREMIUM) GR 8-9, DEF 7 PRINCIPAL RESIDENCE............................................DEF 7 PRINCIPALLY ABOVE GROUND BUILDING..............DEF 7 PROBATION .....................................................GR 1, DEF 7 PROBATION SURCHARGE..............GR 1, RATE 12, DEF 7 PROOF OF INSURANCE..............................................GR 8 PROOF OF LOSS ......................................................CL 1, 2 PROPER OPENINGS (FLOOD VENTS)....LFG 1-2A, 3, 5, 7, DEF 7 PROPERTY LOCATION......................APP 2, PRP 7, END 3 PROPERTY REMOVED TO SAFETY EXPENSE........DEF 7 PROVISIONAL RATING.....................GR 15, PR 1-5, DEF 7 Completing the Provisional Rating Questionnaire: General Directions................................................... PR 2 Completing the Provisional Rating Questionnaire: Guidance for Determining Building Elevated on Fill . PR 2 Eligibility Requirements ............................................. PR 1 General Description................................................... PR 1 Notification Requirements ......................................... PR 1 Provisional Rating Example....................................... PR 4 Provisional Rating Questionnaire .............................. PR 3 Reformation: Endorsement Procedure ...................... PR 1 Reformation: Endorsement Alternative ...................... PR 1 Reformation: Limitations............................................ PR 1 Sample Notice to Accompany Provisionally Rated Policies .................................... PR 5 R RATE TABLES .....................RATE 1-14, 33, CONDO 10-22, PRP 4-5, MPPP 1, PR 3, CRS 1 RATING........................... GR 12, RATE 1-63, CONDO 1-31, CERT 4, END 1-2 Alternative Rates.................................... RATE 21, END 2 Amount of Insurance Available..............................RATE 1 AR, AR Dual Zones.............................................RATE 19 Buildings in More Than One Flood Zone .GR 15, RATE 17 Condominiums.............................................CONDO 1-31 Contents Location ..........................................RATE 26-29 Crawlspace .........................................................RATE 25 Deductibles.................................RATE12, 13, CONDO8 Different Base Flood Elevations Reported....GR 15, RATE 17 Effect of Map Revisions on Rates...................RATE 22-23 Elevation Difference .......................................RATE 17-19 FIRMs with Wave Heights ..............................RATE 30-31 Flood Map “Grandfathering” ...RATE 22-24, PRP 1, DEF 4 Flood Zone Discrepancies.......................GR 15, RATE 17 Floodproofed Buildings...................................RATE 31-32 General Rule of Rating........................................RATE 23 Key Points for Rating...........................................RATE 17 Multiple Elevation Certificates .............................. CERT 1 Optional Elevation Rating .................RATE 19, LFG 2, 2A Premium Calculation ......................................RATE 16-17 Provisional Rates...........................GR 15,PR 1-5,DEF7 Rate Reduction .......................................................END 1 Rate Tables...... RATE 1-14, 33, CONDO 10-22, PRP 4-5, MPPP1,PR 3, CRS1 Rating Error......................................................... END 1-2 Rating Examples ...............RATE 17-19, 23-25, 30, 49-63, CONDO 23-31, END 5-12, PR 4 Rating Steps.................................................. RATE15-16 Re-Rating ...................................................... RATE 23-24 SpecialRatingSituations ...................................GR 14-15 Submit-for-Rate........................GR 15, RATE 25-25A, DEF 9 Tentative Rates ........ GR 14, RATE 21, CONDO 8, DEF 9 V-Zone Optional Rating ...................................... RATE 23 V-Zone Risk Factor Rating Form ................... RATE 35-48 RCBAP (See RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY) RECREATIONAL VEHICLE ........................................ DEF 1 REFORMATION .................................GR 13, MPPP 5, PR 1 REFUNDS ...........................................END 1-2, 3-4, CN 1-7 REGIONAL OFFICES, NFIP .................................... REF 5-6 REGULAR PROGRAM ....................... GR 1, RATE 1, DEF 8 RENEWALS (See POLICY RENEWALS) REPETITIVE LOSS... GR 5, 11, REN 2, CN 7, SRL 1-13, DEF 8 REPLACEMENT COST .................. APP 4, RATE 21-22, 31, CONDO 7, 9, PRP 2, DEF 8 RESIDENTIAL ...................................... GR 5-6, CONDO 1-2 RESIDENTIAL BASEMENT FLOODPROOFING CERTIFICATE .....................................................CERT 7-8 RESIDENTIAL CONDOMINIUM BUILDING......... CONDO 1, DEF 8 RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY (RCBAP) (See also STANDARD FLOOD INSURANCE POLICY) ....... GR 1, 2, APP 4, CONDO 1-31, POL 1, 42-61 Application Form............................................ CONDO 8-9 Assessment Coverage................................... CONDO 7-8 Building Type................................................ CONDO 6, 8 Cancellation or Endorsement of Existing Unit Owners’ Dwelling Policies........................ CONDO 8 Coinsurance ..................................................... CONDO 7 Commission, Producer’s ................................... CONDO 8 Condominium Building in the Course of Construction ............................................ CONDO 6-7 Coverage, Building ........................................ CONDO 8-9 Coverage, Contents.......................................CONDO 8-9 Coverage Limits......................................... CONDO 7, 8-9 Deductibles..................................................CONDO 8, 22 Determining Rates and Fees ............................ CONDO 9 Eligibility Requirements..................................... CONDO 6 Federal Policy Fee............................................ CONDO 8 Property Covered .......................................... CONDO 6-7 Rate Tables ............................................... CONDO 10-22 Rating Examples ....................................... CONDO 23-31 Replacement Cost ........................................ CONDO 7, 9 Tentative Rates and Scheduled Buildings......... CONDO 8 ROWHOUSES/TOWNHOUSES............................ CONDO 6 S SCHEDULED BUILDING POLICY ................... GR 3, APP 1, CONDO 8, DEF 8 SCREENING, INSECT (BELOW LOWEST ELEVATED FLOOR) ........................................ RATE 7, 20, CONDO 19 SECTION 1316 .................................................GR 7, DEF 8 SEPARATE BUILDING (See SINGLE BUILDING) SEVERE REPETITIVE LOSS PROPERTIES............... GR 5, REN 2, CN 6, SRL 1-13, DEF 8 SFIP (See STANDARD FLOOD INSURANCE POLICY) SHEAR WALLS ................................................ GR 5, DEF 8 SHEET FLOW HAZARD ............................................. DEF 8 SILOS ....................................................................... GR 4, 6 SINGLE ADJUSTER PROGRAM....................CL 3-4, DEF 8 SINGLEBUILDING...........................................GR 5, DEF 8 SINGLE-FAMILY RESIDENCE (DWELLING)............... GR 5, DEF 8 SLATS OR SHUTTERS (BELOW LOWEST ELEVATED FLOOR) ........................................ RATE 7, 20, CONDO 19 SOLID PERIMETER FOUNDATION WALLS ............... GR 5, RATE 20, DEF 8 SPECIAL CERTIFICATIONS............................... CERT 1-47 SPECIAL DIRECT FACILITY (See NFIP SPECIAL DIRECT FACILITY) SPECIAL FLOOD HAZARD AREA (SFHA) .... MAP 2, DEF 8 SPECIALRATINGSITUATIONS.... GR 14-15, RATE21-25A Alternative Rates.................................................RATE 21 Buildings in More Than One Flood Zone .............................................GR 15, RATE 17 Crawlspace ...................................................... RATE 25A Different Base Flood Elevations Reported....GR 15, RATE 17 Flood Zone Discrepancies .............................GR 15, RATE 17 Map “Grandfather” Rules: Effect of Map Revisions on Rates.......................................................RATE 22-24 Policies Requiring Re-Rating..........................RATE 23-24 Post-’81 V Zone Optional Rating .........................RATE 24 Provisional Rates........................................GR 15, DEF 7 Special Rates……………………………………….RATE 22 Submit-for-Rate......................GR 15, RATE 24-25, DEF 9 Tentative Rates.........GR 14, RATE 21, CONDO 8, DEF 9 SPLIT LEVEL..............................................................DEF 8 STANDARD FLOOD INSURANCE POLICY (SFIP)..GR 1, 2, POL 1-61, DEF 8-9 Agreement .................................................. POL 3, 23, 43 Claim Guidelines in Case of a Flood.......... POL 21, 40, 61 Coinsurance..........................................................POL 52 Deductibles .......................................... POL 12, 32, 51-52 Definitions......................................POL 3-5,23-25, 43-45 Dwelling Form........................................POL 2-21,DEF8 Exclusions.................................. POL 11-12, 31-32, 50-51 General Conditions .................... POL 12-20, 32-38, 53-59 General Property Form......................... POL 22-40, DEF 8 Liberalization Clause.................................POL 20,39,60 Property Covered .........................POL 5-10,25-30, 45-50 Property Not Covered...................... POL 10-11, 30-31, 50 Residential Condominium Building Association Policy..............................................POL 42-61, DEF8-9 Summary of Significant Changes, December 2000............ POL 2, 22, 42 What Law Governs.................................... POL 20, 39, 60 START OF CONSTRUCTION .....................................DEF 9 STOCK........................................................................DEF 9 SUBGRADE CRAWLSPACE................... CONDO 10, 12-17, RATE 25, DEF 9 SUBMIT-FOR-RATE...................GR 15, RATE 24-25, DEF 9 SUBSTANTIAL DAMAGEGR 12-13, RATE 16, 23-24, DEF 9 SUBSTANTIAL IMPROVEMENT................................APP 5, RATE 15-16, 23, DEF 9 SUSPENSION...................................................GR 1, DEF 9 T TECHNICAL ASSISTANCE ........................................ REF 2 TELEPHONE NUMBERS......................................... REF 3-6 TENTATIVE RATES ..... GR 14, RATE 21, CONDO 8, DEF 9 TIMESHARES............................................................... GR 7 TOWNHOUSES/ROWHOUSES................ CONDO 6, PRP 9 TRANSFER OF TITLE ................................................ GR 15 TRAVEL TRAILERS (See MANUFACTURED [MOBILE] HOMES/TRAVEL TRAILERS) 2-4 FAMILY RESIDENCE (DWELLING)......... GR 5-6, DEF 9 U UNDERGROUND BUILDING...................................... DEF 9 UNFINISHED AREA ................................................... DEF 9 UNFINISHED BASEMENT.......................................APP 1, 2 UNIT ........................................................................... DEF 9 V VALUED POLICY........................................................ DEF 9 VARIANCE ................................................................. DEF 9 VEHICLESANDEQUIPMENT......................................GR 6 V-ZONE OPTIONAL RATING ................................. RATE 24 V-ZONERISKFACTOR RATINGFORM ........... RATE35-48 W WAITINGPERIOD..................GR8-12, MPPP4,REN1,2, PR 1,DEF10 WALLED AND ROOFED................................. GR 5, DEF 10 WALLS.............................. GR 5, RATE 20, LFG 1, 2, DEF 8 Breakaway Walls .......... GR 5, RATE 20, LFG 1, 2, DEF 1 Common Interior Walls ............................................. GR 5 Openings in Foundation Walls .................................LFG 1 Shear Walls .................................................. GR 5, DEF 8 Solid Perimeter Foundation Walls...............GR 5, RATE 8 LFG 7,DEF8 WAVE HEIGHT........................ APP 6, RATE 30-31, DEF 10 Calculating Wave Height Adjustment .... RATE 30, DEF 10 WHOLE DOLLARPREMIUM..................................RATE17 WIND LOSSES ..............................................................CL 4 WRITE YOUR OWN (WYO) PROGRAM.... REF 1-2, DEF 10 Z ZONE (See also Map Zones under FLOOD MAPS)...MAP 2, DEF 10 Discrepancies......................................... GR 15, RATE17 IND 5 October 1, 2010