U.S. Department of Homeland Security 500 C Street SW Washington, DC 20472 April 2008 Dear Flood Insurance Manual Subscribers: As we move forward to improve the National Flood Insurance Program (NFIP), it is my goal to ensure that you have up-to-date information so you can assist your clients and prospective clients in securing the best flood insurance protection available for their individual needs. Accordingly, I am pleased to provide you with the latest edition of the NFIP Flood Insurance Manual. This edition is a complete reissue of the manual, updated with the new rates and other program changes that become effective May 1, 2008. Subscriptions to this edition will cover semiannual updates through October 2010. Significant revisions include the following: • Provides new rates, Federal Policy Fee, and, for the Preferred Risk Policy (PRP) only, Increased Cost of Compliance premium; updates rating examples. (RATE, CONDO, PRP, MPPP, END sections) • Introduces greatly expanded coverage options for residential and non-residential buildings under the PRP. Adds a Preferred Risk Policy Condominium Rating Chart. (PRP section) • Specifies that, for renewal of a PRP when a map change during the policy term may have affected the insured property, proof of the property’s continued eligibility for the PRP must be provided. (PRP section) • Clarifies that, although a Group Flood Insurance Policy (GFIP) cannot be cancelled, a property owner insured under the GFIP may purchase a Standard Flood Insurance Policy; the property owner’s GFIP certificate then will be voided without refund of premium. (GR section) • Specifies that, when the Base Flood Elevation (BFE) on a third-party flood zone determination form differs from the BFE on the property owner’s Elevation Certificate (EC), the BFE on the EC is used to rate the policy. (GR and RATE sections) • Specifies that, when more than one EC is submitted for a given property, the EC with the latest certification date is used to rate the policy. (CERT section) • In accordance with Federal privacy initiatives, eliminates collection of the Social Security Number on the Flood Insurance Application, Preferred Risk Policy Application, General Change Endorsement, and Cancellation/Nullification Request Form. (APP, PRP, END, CN sections) www.fema.gov • Adds to the Flood Insurance Application a check-box in which to indicate when flood coverage is a lender requirement without a waiting period. (APP section) • Updates the Order Form for FEMA Map Service Center products. (MAP section) • Eliminates the Community Rating System discount on NFIP policies for Post-FIRM structures located in a Special Flood Hazard Area where the lowest floor elevation used for rating is at least 1 foot or more below the Base Flood Elevation, with the exception of Post-FIRM V-Zone buildings with unfinished breakaway wall enclosures. (APP and CRS sections) • Updates the Community Rating System Eligible Communities list. (CRS section) • Updates the Table of Contents and the Index. Thank you for your continued support of the NFIP. Sincerely, David I. Maurstad Federal Insurance Administrator National Flood Insurance Program Enclosure TABLE OF CONTENTS SECTION PAGE REFERENCE .............................................................................................................................. REF 1 I. INTRODUCTION TO THE NATIONAL FLOOD INSURANCE PROGRAM ................. REF 1 II. THE WRITE YOUR OWN PROGRAM......................................................................... REF 1 III. TECHNICAL ASSISTANCE ......................................................................................... REF 2 A. WYO Companies ................................................................................................. REF 2 B. NFIP Servicing Agent (NFIP Direct)..................................................................... REF 2 C. Special Direct Facility........................................................................................... REF 2 PAPERWORK BURDEN DISCLOSURE NOTICE................................................................ REF 7 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 6 C. Condominiums ..................................................................................................... GR 6 VI. INELIGIBLE PROPERTY ............................................................................................. GR 6 A. Buildings............................................................................................................... GR 6 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 i May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE VII. EXAMPLES OF INELIGIBLE RISKS............................................................................ GR 7 A. Building Coverage................................................................................................ GR 7 B. Contents Coverage .............................................................................................. GR 7 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. Effective Date....................................................................................................... GR 8 IX. COVERAGE ................................................................................................................. GR 10 A. Limits of Coverage ............................................................................................... GR 10 B. Deductibles........................................................................................................... GR 10 C. Coverage D - Increased Cost of Compliance (ICC) Coverage............................ GR 10 D. Reduction of Coverage Limits or Reformation..................................................... GR 11 E. Loss Assessments ............................................................................................... GR 11 F. Improvements and Betterments and Tenant’s Coverage .................................... GR 12 X. SPECIAL RATING SITUATIONS ................................................................................. GR 12 A. Tentative Rates .................................................................................................... GR 12 B. Submit-For-Rate................................................................................................... GR 12 C. Provisional Rates ................................................................................................. GR 12 D. Buildings in More Than One Flood Zone ............................................................. GR 12 E. Different Base Flood Elevations (BFEs) Reported............................................... GR 13 XI. MISCELLANEOUS RULES.......................................................................................... GR 13 A. Policy Term .......................................................................................................... GR 13 B. Application Submission........................................................................................ GR 13 C. Delivery of the Policy............................................................................................ GR 13 D. Assignment........................................................................................................... GR 13 E. Producers’ Commissions (Direct Business Only) ................................................ GR 13 F. Contract Agent Rule............................................................................................. GR 13 APPLICATION........................................................................................................................... APP1 I. USE OF THE FORM .................................................................................................... APP 1 II. TYPES OF BUILDINGS ............................................................................................... 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. First Mortgagee .................................................................................................... APP 2 G. Second Mortgagee or Other................................................................................. APP 2 H. Property Location ................................................................................................ APP 2 I. Community ........................................................................................................... APP 2 J. Building ................................................................................................................ APP 3 K. Contents............................................................................................................... APP 4 L. Construction Data ................................................................................................ APP 4 M. Coverage and Rating ........................................................................................... APP 6 N. Signature.............................................................................................................. APP 6 ii May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE V. COMPLETING PART 2 OF THE FLOOD INSURANCE APPLICATION FORM ......... APP 7 Section I - All Building Types........................................................................................ APP 7 Section II - Elevated Buildings...................................................................................... APP 7 Section III - Manufactured (Mobile) Homes/Travel Trailers.......................................... APP 8 VI. MAILING INSTRUCTIONS........................................................................................... APP 8 VII. HANDLING OF INCOMPLETE OR INCORRECT APPLICATIONS ............................ APP 8 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. 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 iii May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE C. 1975-81 Post-FIRM V Zone Construction............................................................ RATE 20 D. 1981 Post-FIRM V Zone Construction ................................................................. RATE 20 E. Elevated Buildings--1981 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 21 D. Post-’81 V Zone Optional Rating.......................................................................... RATE 23 E. Policies Requiring Re-Rating ............................................................................... RATE 23 F. Submit-for-Rate.................................................................................................... RATE 24 G. Crawl Space......................................................................................................... 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. Other Residential Condominium: Condominium Association Policy, Association Coverage on Building and Contents............................................... CONDO 1 D. Nonresidential (Commercial) Condominium: Building and Contents.................. CONDO 2 E. 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 6 A. Property Covered ................................................................................................. CONDO 6 B. Coverage Limits ................................................................................................... CONDO 7 C. Replacement Cost................................................................................................ CONDO 7 D. Coinsurance ......................................................................................................... CONDO 7 E. Assessment Coverage......................................................................................... CONDO 7 iv May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE 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 UNIT OWNERS' DWELLING POLICIES .................................................................... CONDO 8 IX. APPLICATION FORM .................................................................................................. CONDO 8 A. Type of Building ................................................................................................... CONDO 8 B. Replacement Cost Value .................................................................................... CONDO 8 C. Coverage..............................................................................................................CONDO 9 D. Rates and Fees.................................................................................................... CONDO 9 X. CONDOMINIUM RATING EXAMPLES........................................................................ CONDO 23 LOWEST FLOOR GUIDE........................................................................................................... LFG 1 I. LOWEST FLOOR DETERMINATION.......................................................................... LFG 1 A. Non-Elevated Buildings........................................................................................ LFG 1 B. Elevated Buildings in A Zones ............................................................................. LFG 1 C. Elevated Buildings in V Zones ............................................................................. LFG 2 II. USE OF ELEVATION CERTIFICATE .......................................................................... LFG 2 A. Mandatory Use of Elevation Certificate................................................................ LFG 2 B. Optional Rating Using the Elevation Certificate................................................... LFG 2 III. SPECIFIC BUILDING DRAWINGS .............................................................................. LFG 8 SPECIAL CERTIFICATIONS ..................................................................................................... CERT 1 I. NFIP ELEVATION CERTIFICATE ............................................................................... CERT 1 II. PHOTOGRAPH REQUIREMENTS.............................................................................. CERT 1 III. USING THE ELEVATION CERTIFICATE: SPECIAL CONSIDERATIONS ................ CERT 2 Section A - Property [Owner] Information .................................................................... CERT 2 Section B - Flood Insurance Rate Map (FIRM) Information......................................... CERT 2 Section C - Building Elevation Information (Survey Required) .................................... CERT 2 Section D - Surveyor, Engineer, or Architect Certification ........................................... CERT 3 Section E - Building Elevation Information (Survey Not Required) for Zone AO and Zone A (Without BFE) ................................................................................................ CERT 3 Section F - Property Owner (or Owner's Representative) Certification........................ CERT 3 Section G - Community Information (Optional) ............................................................ CERT 3 IV. FLOODPROOFING CERTIFICATE ............................................................................. CERT 3 A. Purpose and Eligibility.......................................................................................... CERT 3 B. Specifications ....................................................................................................... CERT 3 C. Rating................................................................................................................... CERT 4 D. Certification .......................................................................................................... CERT 4 v May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE 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 2 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 7 K. Notice ................................................................................................................... PRP 8 L. Premium............................................................................................................... PRP 8 M. Signature.............................................................................................................. PRP 8 MORTGAGE PORTFOLIO PROTECTION PROGRAM ............................................................ MPPP 1 I. BACKGROUND............................................................................................................ MPPP 1 II. REQUIREMENTS FOR PARTICIPATING IN THE MPPP ........................................... MPPP 2 A. General................................................................................................................. MPPP 2 B. WYO Arrangement Article III--Fees ..................................................................... MPPP 2 C. Use of WYO Company Fees for Lenders/Servicers or Others ............................ MPPP 2 D. Notification............................................................................................................ MPPP 2 E. Eligibility ............................................................................................................... MPPP 3 F. Source of Offering ................................................................................................ MPPP 3 G. Dual Interest......................................................................................................... MPPP 3 H. Term of Policy ...................................................................................................... MPPP 3 vi May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE I. Coverage Offered................................................................................................. MPPP 3 J. Policy Form .......................................................................................................... MPPP 4 K. Waiting Period...................................................................................................... MPPP 4 L. Premium Payment................................................................................................ MPPP 4 M. Underwriting--Application..................................................................................... MPPP 4 N. Rates.................................................................................................................... MPPP 4 O. Policy Declaration Page Notification Requirements............................................. MPPP 4 P. Policy Reformation--Policy Correction ................................................................. MPPP 5 Q. Coverage Basis--Actual Cash Value or Replacement Cost................................. MPPP 5 R. Deductible ............................................................................................................ MPPP 5 S. Federal Policy Fee ............................................................................................... MPPP 5 T. Renewability......................................................................................................... MPPP 5 U. Cancellations........................................................................................................ MPPP 6 V. Endorsement........................................................................................................MPPP 6 W. Assignment to a Third Party................................................................................. MPPP 6 X. Article XIII--Restriction on Other Flood Insurance ............................................... MPPP 6 GENERAL CHANGE ENDORSEMENT..................................................................................... END 1 I. ENDORSEMENT RULES............................................................................................. END 1 A. Coverage Endorsements ..................................................................................... END 1 B. Rating Endorsements........................................................................................... END 1 C. Misrated Policy..................................................................................................... END 2 D. Conversion of Standard Rated Policy to PRP Due to Misrating or Map RevisionEND 2 E. Changing Deductibles.......................................................................................... END 2 F. Correcting Property Address................................................................................ END 2 II. ENDORSEMENT PROCESSING PRIOR TO POLICY RENEWAL (NFIP DIRECT BUSINESS ONLY) ..................................................................................................... END 2 A. During Last 90 Days of Policy Term .................................................................... END 2 B. During Last 75 Days of Policy Term .................................................................... END 3 C. Refunds Generated from Endorsement Processing ............................................ END 3 III. PREPARATION OF FORM .......................................................................................... END 3 A. General Instructions ............................................................................................. END 3 B. Refund Processing Procedures ........................................................................... END 3 IV. ENDORSEMENT RATING EXAMPLES ...................................................................... END 5 POLICY RENEWALS ................................................................................................................. REN 1 I. GENERAL INFORMATION .......................................................................................... REN 1 II. RENEWAL NOTICE ..................................................................................................... REN 1 A. Renewing for the Same Coverage--Option A ...................................................... REN 1 B. Inflation Factor--Option B..................................................................................... REN 1 C. Nonrenewal and Cancellation .............................................................................. REN 1 III. PREMIUM PAYMENT DUE.......................................................................................... REN 1 IV. FINAL NOTICE............................................................................................................. REN 2 V. RENEWAL EFFECTIVE DATE DETERMINATION ..................................................... REN 2 VI. INSUFFICIENT RENEWAL INFORMATION................................................................ REN 2 VII. ENDORSEMENTS DURING RENEWAL CYCLE........................................................ REN 2 VIII. SEVERE REPETITIVE LOSS PROPERTIES.............................................................. REN 2 vii May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE CANCELLATION/NULLIFICATION ........................................................................................... CN 1 I. PROCEDURES AND VALID REASONS ..................................................................... CN 1 A. Refund Processing Procedures ........................................................................... CN 1 B. Valid Reason Codes for Cancellation/Nullification of NFIP Policies.................... CN 1 II. COMPLETING THE CANCELLATION/NULLIFICATION REQUEST FORM .............. CN 7 A. Current Policy Number......................................................................................... CN 7 B. Policy Term .......................................................................................................... CN 7 C. Agent Information................................................................................................. CN 7 D. Insured Mail Address ........................................................................................... CN 7 E. First Mortgagee .................................................................................................... CN 7 F. Other Parties Notified...........................................................................................CN 7 G. Property Location ................................................................................................. CN 7 H. Cancellation Reason Code .................................................................................. CN 8 I. Refund.................................................................................................................. CN 8 J. Signature.............................................................................................................. CN 8 CLAIMS ..................................................................................................................................... CL 1 I. INSURED'S RESPONSIBILITIES ................................................................................ CL 1 A. Filing a Claim........................................................................................................ CL 1 B. Appealing a Claim ................................................................................................ CL 1 II. PRODUCER'S RESPONSIBILITIES............................................................................ CL 3 III. SINGLE ADJUSTER PROGRAM IMPLEMENTATION ............................................... CL 3 A. Schedule and Notification .................................................................................... CL 3 B. Training ................................................................................................................ CL 4 C. Producer Responsibilities..................................................................................... CL 4 IV. INCREASED COST OF COMPLIANCE (ICC) CLAIMS .............................................. CL 4 POLICY ..................................................................................................................................... POL 1 DWELLING FORM: SUMMARY OF SIGNIFICANT CHANGES, DECEMBER 2000 ........................................... POL 2 I. AGREEMENT............................................................................................................... POL 3 II. DEFINITIONS............................................................................................................... POL 3 III. PROPERTY COVERED............................................................................................... POL 5 IV. PROPERTY NOT COVERED ...................................................................................... POL 10 V. EXCLUSIONS .............................................................................................................. POL 11 VI. DEDUCTIBLES ............................................................................................................ POL 12 VII. GENERAL CONDITIONS............................................................................................. POL 12 VIII. LIBERALIZATION CLAUSE ......................................................................................... POL 20 IX. WHAT LAW GOVERNS ............................................................................................... POL 20 CLAIM GUIDELINES IN CASE OF A FLOOD ...................................................................... POL 21 viii May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE GENERAL PROPERTY FORM: SUMMARY OF SIGNIFICANT CHANGES, DECEMBER 2000............................................ POL 22 I. AGREEMENT............................................................................................................... POL 23 II. DEFINITIONS...............................................................................................................POL 23 III. PROPERTY COVERED............................................................................................... POL 25 IV. PROPERTY NOT COVERED ...................................................................................... POL 30 V. EXCLUSIONS .............................................................................................................. POL 31 VI. DEDUCTIBLES ............................................................................................................ POL 32 VII. GENERAL CONDITIONS............................................................................................. POL 32 VIII. LIBERALIZATION CLAUSE ......................................................................................... POL 39 IX. WHAT LAW GOVERNS ............................................................................................... POL 39 CLAIM GUIDELINES IN CASE OF A FLOOD ...................................................................... POL 40 RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY: SUMMARY OF SIGNIFICANT CHANGES, DECEMBER 2000............................................ POL 42 I. AGREEMENT............................................................................................................... POL 43 II. DEFINITIONS...............................................................................................................POL 43 III. PROPERTY COVERED............................................................................................... POL 45 IV. PROPERTY NOT COVERED ...................................................................................... POL 50 V. EXCLUSIONS .............................................................................................................. POL 50 VI. DEDUCTIBLES ............................................................................................................ POL 51 VII. COINSURANCE ........................................................................................................... POL 52 VIII. GENERAL CONDITIONS............................................................................................. POL 53 IX. LIBERALIZATION CLAUSE ......................................................................................... POL 60 X. WHAT LAW GOVERNS ............................................................................................... POL 60 CLAIM GUIDELINES IN CASE OF A FLOOD ...................................................................... POL 61 ix May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE FLOOD MAPS ............................................................................................................................ MAP 1 I. OVERVIEW .................................................................................................................. MAP 1 A. Types of Flood Maps............................................................................................ MAP 1 B. Map Information ................................................................................................... MAP 1 C. Communities Without a Map................................................................................ MAP 1 II. MAP ZONES ................................................................................................................ MAP 2 A. Special Flood Hazard Areas (SFHAs) ................................................................. MAP 2 B. Moderate, Minimal Hazard Areas ........................................................................ MAP 2 III. LOCATING A SPECIFIC PROPERTY ON A MAP....................................................... MAP 2 IV. CHANGING OR CORRECTING A FLOOD MAP......................................................... MAP 3 A. Letter of Map Amendment (LOMA)...................................................................... MAP 3 B. Letter of Map Revision (LOMR) ........................................................................... MAP 3 C. Physical Map Revision ......................................................................................... MAP 3 V. ORDERING FLOOD MAPS.......................................................................................... MAP 4 A. Ordering Instructions............................................................................................ MAP 4 B. Prices ................................................................................................................... MAP 4 C. Map Revisions...................................................................................................... MAP 4 PROVISIONAL RATING............................................................................................................. PR 1 I. GENERAL DESCRIPTION........................................................................................... PR 1 II. ELIGIBILITY REQUIREMENTS ................................................................................... PR 1 III. REFORMATION ........................................................................................................... PR 1 A. Limitations ............................................................................................................ PR 1 B. Endorsement Procedure ...................................................................................... PR 1 C. Endorsement Alternative...................................................................................... PR 1 IV. NOTIFICATION REQUIREMENTS .............................................................................. PR 1 V. COMPLETING THE PROVISIONAL RATING QUESTIONNAIRE .............................. PR 2 A. General Directions ............................................................................................... PR 2 B. Guidance for Determining Building Elevated on Fill ............................................ PR 2 VI. PROVISIONAL RATING EXAMPLE ............................................................................ PR 4 COASTAL BARRIER RESOURCES SYSTEM.......................................................................... CBRS 1 LIST OF COMMUNITIES ...................................................................................................... CBRS 3 COMMUNITY RATING SYSTEM ............................................................................................... CRS 1 I. GENERAL DESCRIPTION........................................................................................... CRS 1 II. ELIGIBILITY ................................................................................................................. CRS 1 III. CLASSIFICATIONS AND DISCOUNTS....................................................................... CRS 1 x May 1, 2008 TABLE OF CONTENTS (Continued) SECTION PAGE IV. CRS ACTIVITIES THAT CAN DIRECTLY BENEFIT INSURANCE AGENTS............. CRS 1 ELIGIBLE COMMUNITIES.................................................................................................... CRS 2 GUIDANCE FOR SEVERE REPETITIVE LOSS PROPERTIES ............................................... SRL 1 I. GENERAL DESCRIPTION........................................................................................... SRL 1 II. NOTIFICATION REQUIREMENTS .............................................................................. SRL 1 III. DISPUTE RESOLUTION.............................................................................................. SRL 1 IV. MITIGATION.................................................................................................................SRL 2 DEFINITIONS ............................................................................................................................. DEF 1 INDEX ..................................................................................................................................... IND 1 xi May 1, 2008 LIST OF TABLES SECTION/TABLE PAGE REFERENCE NFIP Servicing Agent Contact Information for NFIP Direct Program Agents ........................ REF 3 NFIP General Contact Information for All NFIP Stakeholders ............................................... REF 4 NFIP Bureau and Statistical Agent Regional Offices............................................................. REF 5 GENERAL RULES Matching Standard Flood Insurance Policy Forms with Specific Risks ................................ GR 2 RATING Amount of Insurance Available .............................................................................................. RATE 1 Table 1. Emergency Program Rates.................................................................................. RATE 1 Table 2. Regular Program--Pre-FIRM Construction Rates................................................ RATE 2 Table 3. Regular Program--Post-FIRM Construction Rates .............................................. RATE 3 Table 4. Regular Program--FIRM Zone AR and AR Dual Zones Rates ............................ RATE 9 Table 5. Regular Program--Pre-FIRM and Post-FIRM Elevation-Rated Rates ................. RATE 10 Table 6. Precalculated Pre-FIRM Premium Table for Single-Family Dwellings................. RATE 11 Table 7. Federal Policy Fee and Probation Surcharge Table............................................ RATE 12 Table 8A. Standard Deductibles........................................................................................... RATE 12 Table 8B. Deductible Factors ............................................................................................... RATE 13 Table 9. Standard Flood Insurance Policy Increased Cost of Compliance (ICC) Coverage Premiums.......................................................................................... RATE 14 Table 10. V-Zone Risk Rating RelativitiesTable .................................................................. RATE 33 CONDOMINIUMS Table 1. Condominium Underwriting Guidelines................................................................ CONDO 3 Table 2. Condominium Rating Chart.................................................................................. CONDO 4 Table 3. RCBAP High-Rise Condominium Rates .............................................................. CONDO 10 Table 4. RCBAP Low-Rise Condominium Rates............................................................... CONDO 14 Table 5. RCBAP High-Rise and Low-Rise Condominium Rates-- 1981 Post-FIRM V1-V30, VE Zone Rates ......................................................... CONDO 19 Table 6. RCBAP High-Rise and Low-Rise Condominium Rates-- Increased Cost of Compliance (ICC) Coverage................................................. CONDO 21 Table 7. RCBAP Deductible Factors – All Zones............................................................... CONDO 22 SPECIAL CERTIFICATIONS Approved Communities for Residential Basement Floodproofing Rating Credit ................... CERT 5 PREFERRED RISK POLICY The PRP at a Glance ............................................................................................................PRP 1 Preferred Risk Policy Condominium Rating Chart ................................................................ PRP 3 PRP Coverages Available Effective May 1, 2008 ................................................................. PRP 4 MORTGAGE PORTFOLIO PROTECTION PROGRAM Mortgage Portfolio Protection Program Rate and Increased Cost of Compliance (ICC) Table ........................................................................ MPPP 1 POLICY RENEWALS Summary of Policy Notices ................................................................................................... REN 3 xii May 1, 2008 LIST OF TABLES (Continued) SECTION/TABLE PAGE CANCELLATION/NULLIFICATION Processing Outcomes for Cancellation/Nullification of a Flood Insurance Policy.................. CN 9 FLOOD MAPS MSC Products, Services, and Fees ...................................................................................... MAP 5 COASTAL BARRIER RESOURCES SYSTEM List of Communities................................................................................................................ CBRS 3 COMMUNITY RATING SYSTEM CRS Premium Discounts ....................................................................................................... CRS 1 Eligible Communities.............................................................................................................. CRS 2 xiii May 1, 2008 LIST OF ILLUSTRATIONS SECTION/ILLUSTRATION PAGE APPLICATION Flood Insurance Application - Part 1 .....................................................................................APP 9 Flood Insurance Application - Part 2 .....................................................................................APP 10 RATING V-Zone Risk Factor Rating Form and Instructions .................................................................RATE 35 LOWEST FLOOR GUIDE Lowest Floor Determination Guide.........................................................................................LFG 3 SPECIAL CERTIFICATIONS Residential Basement Floodproofing Certificate................................................................... CERT 7 Floodproofing Certificate for Non-Residential Structures...................................................... CERT 9 Elevation Certificate and Instructions - New Edition (2/13/2006).......................................... CERT 11 Elevation Certificate and Instructions - Old Edition (1/1/2003) ............................................. CERT 27 PREFERRED RISK POLICY Flood Insurance Preferred Risk Policy Application ...............................................................PRP 9 GENERAL CHANGE ENDORSEMENT Flood Insurance General Change Endorsement....................................................................END 13 POLICY RENEWALS Renewal Notice ..................................................................................................................... REN 4 Final Notice…… .................................................................................................................... REN 6 Credit Card Payment Form ....................................................................................................REN 8 CANCELLATION/NULLIFICATION Flood Insurance Cancellation/Nullification Request Form .....................................................CN 10 POLICY Standard Flood Insurance Policy - Dwelling Form................................................................ POL 3 Standard Flood Insurance Policy - General Property Form .................................................. POL 23 Standard Flood Insurance Policy - Residential Condominium Building Association Policy.................................................................................................................................. POL 43 FLOOD MAPS Sample Flood Insurance Rate Map (FIRM) .......................................................................... MAP 7 Sample Flood Hazard Boundary Map (FHBM) ..................................................................... MAP 8 xiv May 1, 2008 LIST OF ILLUSTRATIONS (Continued) SECTION/ILLUSTRATION PAGE PROVISIONAL RATING Provisional Rating Questionnaire.......................................................................................... PR 3 Sample Notice to Accompany Provisionally Rated Policies.................................................. PR 5 GUIDANCE FOR SEVERE REPETITIVE LOSS PROPERTIES Agent’s 90-Day Notification Letter......................................................................................... SRL 3 Lender’s 90-Day Notification Letter....................................................................................... SRL 5 Policyholder’s 90-Day Notification Letter .............................................................................. SRL 7 xv May 1, 2008 REFERENCE I. INTRODUCTION TO THE NATIONAL FLOOD INSURANCE PROGRAM The National Flood Insurance Program (NFIP) was established by the National Flood Insurance Act of 1968. The Act was in response to Congress finding that: • Flooding disasters required unforeseen disaster relief and placed an increased burden on the nation's resources. • The installation of flood preventive and protective measures and other public programs designed to reduce losses caused by flood damage had not been sufficient to adequately protect against the growing exposure to flood losses as a matter of national policy. A reasonable method of slowing the risk of flood losses would be through a program of flood insurance that could complement and encourage preventive and protective measures. • Many factors made it uneconomical for the private insurance industry carriers to make flood insurance available to those in need of such protection on reasonable terms and conditions. • A program of flood insurance with large- scale participation of the federal government and the maximum extent practicable by the private industry was feasible and could be initiated. Congress stated that the purpose in passing the Act was to: • Authorize a flood insurance program that, over time, could be made available on a nationwide basis through the cooperative effort of the federal government and the private insurance industry. • Provide flexibility in the program so that such flood insurance would be based on workable methods of pooling risks, minimizing costs, and distributing burdens equitably among the general public and those who would be protected by flood insurance. • Encourage state and local governments to use wisely the lands under their jurisdictions by considering the hazard of flood when rendering decisions on the future use of such land, thus minimizing damage caused by flooding. From 1968 until 1979, the NFIP was administered by the U.S. Department of Housing and Urban Development. When the Federal Emergency Management Agency (FEMA) was established in 1979, administration of the NFIP was transferred to that agency. In March 2003, FEMA became part of the newly created U.S. Department of Homeland Security. The NFIP is a program in which communities formally agree, as evidenced by their adoption of codes and ordinances, to regulate the use of their flood-prone lands. In return, FEMA makes flood insurance coverage available on buildings and their contents throughout the community. FEMA has traditionally identified these flood hazard areas on maps, which are provided to communities for carrying out their responsibilities. The maps are also used by insurance producers to determine rates and by lenders to determine purchase requirements. II. THE WRITE YOUR OWN PROGRAM The Write Your Own (WYO) Program, begun in 1983, is a cooperative undertaking of FEMA and the private insurance industry. The WYO Program operates within the context of the NFIP and is subject to its rules and regulations. WYO allows participating property and casualty insurance companies to write and service federal flood insurance in their own names. The companies receive an expense allowance for policies written and claims processed while the federal government retains responsibility for underwriting losses. Individual WYO Companies may, to the extent possible, and consistent with Program rules and regulations, conform their flood business to their normal business practices for other lines of insurance. Many producers have elected to move or place their flood policies with one or more of the WYO Companies they represent. In brief, the producer has the following options: • Place all business with one or more WYO Companies; • Place business with both the NFIP directly and with one or more WYO Companies; or • Continue to place all flood insurance directly with the NFIP (referred to as "NFIP direct business"). REF 1 May 1, 2008 The goals of the Program are to increase the policy base, improve services, and involve the insurance companies. III. TECHNICAL ASSISTANCE In order to provide the most efficient service to policyholders, follow these procedures when requesting technical assistance in connection with the sale and servicing of Standard Flood Insurance Policies. It is essential that all parties—WYO companies, the National Flood Insurance Program’s Bureau and Statistical Agent, the NFIP Servicing Agent, insurance agents and adjusters—comply. A. WYO Companies Agents and adjusters servicing flood insurance business through one of the Write Your Own (WYO) companies should direct questions and requests for technical assistance to the WYO Company itself. If the WYO Company needs technical assistance, then it will contact its Business Analyst at the NFIP’s Bureau and Statistical Agent. If the Business Analyst, with the assistance of technical experts at the Bureau, cannot provide the needed assistance, the Bureau will direct the inquiry to FEMA for an answer. B. NFIP Servicing Agent (NFIP Direct) Agents and adjusters servicing flood insurance business through the NFIP Servicing Agent should contact the NFIP Servicing Agent for the answer to technical questions or the resolution of technical problems connected with the NFIP. If the NFIP Servicing Agent cannot provide the needed assistance, it will contact FEMA for an answer. C. Special Direct Facility Agents and adjusters serving flood insurance policies identified as targeted repetitive loss properties should contact the Special Direct Facility established by the NFIP Servicing Agent for technical assistance. See the Severe Repetitive Loss section of this manual for more information. REF 2 May 1, 2008 NFIP SERVICING AGENT CONTACT INFORMATION FOR NFIP DIRECT PROGRAM AGENTS The contact information below is for use only by agents/producers who write with the NFIP Direct Program— that is, the NFIP Servicing Agent. Agents/producers who write with the NFIP Write Your Own (WYO) Program must submit materials and questions to their WYO Companies. CORRESPONDENCE TYPE MAILING ADDRESS TELEPHONE & FAX NUMBERS* Applications (not Submit-for Rate) NFIP Servicing Agent P.O. Box 29138 Shawnee Mission, KS 66201-9138 Phone 1-800-638-6620 Fax 1-800-742-3148 Endorsements Cancellations NFIP Servicing Agent P.O. Box 2992 Shawnee Mission, KS 66201-1392 Phone 1-800-638-6620 Fax 1-800-742-3148 Submit-for-Rate Applications (See pages RATE 24-25) Underpayment Letters Underwriting Inquiries and Issues All Other Inquiries NFIP Servicing Agent P.O. Box 2965 Shawnee Mission, KS 66201-1365 Phone 1-800-638-6620 Fax 1-800-742-3148 Severe Repetitive Loss Properties NFIP Special Direct Facility P.O. Box 29524 Shawnee Mission, KS 66201-5524 Phone 1-800-638-6620 Fax 1-800-742-3148 Renewal Notices (with premium payments) Expiration Notices (with premium payments) National Flood Insurance Program P.O. Box 70936 Charlotte, NC 28272-0936 Phone 1-800-638-6620 Fax 1-800-742-3148 Notices of Loss Written Claims Inquiries All Other Claims Correspondence NFIP Servicing Agent P.O. Box 2966 Shawnee Mission, KS 66201-1366 Phone 1-800-767-4341 Fax 1-800-767-5574 Overnight Express Deliveries Certified Mail NFIP Servicing Agent C/o Covansys 13401 W. 98th St. Lenexa, KS 66215 N/A *Telecommunication Device for the Deaf (TDD) 1-800-447-9487 REF 3 May 1, 2008 NFIP GENERAL CONTACT INFORMATION FOR ALL NFIP STAKEHOLDERS TOPIC MAIL, E-MAIL & WEBSITE ADDRESSES TELEPHONE & FAX NUMBERS* Agent Referral Program Information & Sign-up Form https://agents.floodsmart.gov Phone 1-888-786-7693 CBRS Areas – Map Panel Listing http://www.fema.gov/business/nfip/cbrs/cbrs.shtm N/A Community Status Book (order hardcopy or CD-ROM, or download PDF) FEMA Map Service Center P.O. Box 1038 Jessup, MD 20794-1038 http://www.fema.gov/fema/csb.shtm Phone 1-800-358-9616 Fax 1-800-358-9620 FEMA Information Resource Library, Multimedia http://www.fema.gov/library/index.jsp N/A Flood Insurance Manual (order hardcopy or CD-ROM, or download PDF) FEMA Map Service Center P.O. Box 1038 Jessup, MD 20794-1038 http://www.fema.gov/business/nfip/manual.shtm Phone 1-800-358-9616 Fax 1-800-358-9620 Flood Map Information from FEMA Map Specialists on: - Letters of Map Change - Other Technical Issues FEMA Map Assistance Center 3601 Eisenhower Avenue, Suite 600 Alexandria, VA 22304 femamapspecialist@mapmodteam.com Phone 1-877-336-2627 Flood Maps, Flood Insurance Studies, and Q3 Data (order hardcopy or CD-ROM) FEMA Map Service Center P.O. Box 1038 Jessup, MD 20794-1038 http://msc.fema.gov Phone 1-800-358-9616 Fax 1-800-358-9620 Flood Zone Determination Companies, List of http://www.fema.gov/business/nfip/fzone1.shtm N/A General Information for Agents & Consumers http://www.floodsmart.gov/floodsmart/pages/index.jsp N/A Supply Order Forms (bulk hardcopy orders): - Claims & Underwriting - Public Awareness Materials FEMA Distribution Center P.O. Box 2012 Jessup, MD 20794-2012 Phone 1-800-480-2520 Fax 1-301-362-5335 Training on Flood Insurance http://www.fema.gov/business/nfip/wshops.shtm; http://training.nfipstat.com/portal2/default.asp Phone (see REF 5-6) Watermark & e-Watermark Newsletters http://www.fema.gov/business/nfip/wm.shtm; http://watermark.nfipstat.com/index.htm N/A Write Your Own (WYO) Companies, List of http://www.fema.gov/nfipInsurance/companies.jsp Phone 1-800-480-2520 (item 073, “The Choice Is Yours”) *Telecommunication Device for the Deaf (TDD) 1-800-447-9487 REF 4 May 1, 2008 NATIONAL FLOOD INSURANCE PROGRAM BUREAU AND STATISTICAL AGENT REGIONAL OFFICES The National Flood Insurance Program's Bureau and Statistical Agent operates a network of regional offices within the continental United States. The primary function of the regional offices is lender and producer training through workshops and individual visits. Other services provided by the regional offices are similar to those provided by an insurance company field office. The regional offices do not handle processing, nor do they have policy files at their locations. However, the regional staff may be able to assist with problems and answer questions of a general nature. The latest contact information for both NFIP Bureau and Statistical Agent and FEMA regional offices is available at http://www.fema.gov/about/contact/regions.shtm. NFIP BUREAU AND NFIP BUREAU AND SERVICE STATISTICAL AGENT STATISTICAL AGENT AREA REGIONAL OFFICES REGIONAL STAFF Region I Suite 200 Robert Archila Connecticut, Maine, Massachusetts, 140 Wood Road Regional Manager New Hampshire, Rhode Island, Braintree, MA 02184-2513 Vermont Phone: 781-848-1908 Fax: 781-356-4142 Region II Executive Quarters Q-13 Walter McGuckin New Jersey, New York 1930 East Marlton Pike Regional Manager Cherry Hill, NJ 08003 Phone: 856-489-4005 Fax: 856-424-7112 Region III Executive Quarters Q-24 Richard Sobota, CPCU, CFM Delaware, District of Columbia, 1930 East Marlton Pike Territorial Manager Maryland, Pennsylvania, Virginia, Cherry Hill, NJ 08003 West Virginia Phone: 856-489-4003 Fax: 856-751-2817 Region IV – Atlanta Office P.O. Box 2706 Roger Widdifield Alabama, Georgia, Kentucky, Suwanee, GA 30024-0984 Territorial Manager Mississippi, North Carolina, South Phone: 770-887-6865 Carolina, Tennessee Fax: 770-887-6878 Region IV – Tampa Office P.O. Box 1046 Lynne Magel Florida Zephyrhills, FL 33539-1046 Program Specialist Phone: 813-779-9642 Fax: 813-779-3085 REF 5 May 1, 2008 NFIP BUREAU AND STATISTICAL AGENT REGIONAL OFFICES Region V Suite 123 18008 Wolf Road Orland Park, IL 60467-5407 Phone: 708-326-3072 Fax: 708-326-3074 Region VI Suite 200 1400 Broadfield Boulevard Houston, TX 77084-5162 Phone: 281-994-7833 Fax: 281-829-6879 Region VII Suite 3 401 South Main Street Ottawa, KS 66067-2300 Phone: 785-242-1097 Fax: 785-242-4338 Region VIII 12420 W. 20th Avenue Lakewood, CO 80215-1065 Phone: 303-275-3475 Fax: 303-275-3471 Region IX Suite 103 1532 Eureka Road Roseville, CA 95661-3054 Phone: 916-780-7889 Fax: 916-780-7905 Region X P.O. Box 602 Bothell, WA 98041-0602 Phone: 425-482-0316 Fax: 425-908-7639 NFIP BUREAU AND STATISTICAL AGENT REGIONAL STAFF Richard Slevin Regional Manager Dorothy Martinez, CFM Regional Manager Sonja Wood, CFM Acting Regional Manager Norman Ashford, CPCU Territorial Manager George Blaufuss Regional Manager Leslie Melville, CFM Regional Manager SERVICE AREA Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin Arkansas, Louisiana, New Mexico, Oklahoma, Puerto Rico, Texas, Virgin Islands Iowa, Kansas, Missouri, Nebraska Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming Arizona, California, Guam, Hawaii, Nevada Alaska, Idaho, Oregon, Washington REF 6 May 1, 2008 PAPERWORK BURDEN DISCLOSURE NOTICE GENERAL—This information is provided pursuant to Public Law 96-511 (Paperwork Reduction Act of 1980, as amended), dated December 11, 1980, to allow the public to participate more fully and meaningfully in the Federal paperwork review process. AUTHORITY—Public Law 96-511, amended; 44 U.S.C. 3507; and 5 CFR 1320 DISCLOSURE OF BURDEN—Public reporting burden for the collection of information entitled "National Flood Insurance Program Policy Forms," is estimated to average 10 minutes per response, excluding the V-Zone Risk Factor Rating Form. The estimated burden includes the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the forms. Reporting burden for these forms, as part of this collection, is listed below. Send comments regarding the burden estimate or any aspect of the collection, including suggestions for reducing the burden, to: U.S. Department of Homeland Security, Federal Emergency Management Agency, 500 C Street, S.W., Washington, D.C. 20472, Paperwork Reduction Project (1660-0006). NOTE: Do not send completed forms to this address. PRIVACY ACT—The information requested is necessary to process these forms for flood insurance. The authority to collect the information is Title 42, U.S. Code, Sections 4001 to 4028. Furnishing the information is voluntary. It will not be disclosed outside the Federal Emergency Management Agency except to the servicing office acting as the government's fiscal agent, to routine users, to agents, and mortgagees named on policies. FEMA FORM NUMBER TITLE BURDEN HOURS 81-16 Application for Flood Insurance (New) 12.00 Minutes 81-16 Application for Flood Insurance (Renewal) 7.50 Minutes 81-17 Cancellation/Nullification Request 7.50 Minutes 81-18 General Change Endorsement (w/Premium) 9.00 Minutes 81-18 General Change Endorsement (w/o Premium) 9.00 Minutes 81-25 V-Zone Risk Factor Rating 6.00 Hours 81-67 Preferred Risk Application 15.00 Minutes REF 7 May 1, 2008 GENERAL RULES I. COMMUNITY ELIGIBILITY 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. 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. F. Suspension 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. 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. GR 1 May 1, 2008 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. General Property Form Issued to owner of residential building with five or more units. Issued to owner or lessee of non-residential building or unit. 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. 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 non residential 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. GR 2 May 1, 2008 3. Scheduled Building Policy 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. The SFIP does not cover any detached garage used or held for use for residential (i.e., dwelling), business, or farming purposes. 2. Manufactured (Mobile) Homes/Travel 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. GR 3 May 1, 2008 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's start of construction occurred 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 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. GR 4 May 1, 2008 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 GR 5 May 1, 2008 6 months' duration and containing no more D. Commercial Contents Coverage than 4 dwelling units, are permitted incidental occupancies (see D.1 above). The total area Commercial contents in a residential property of incidental occupancy is limited to less than must be insured on the General Property Form. 25 percent of the total floor area within the V. EXAMPLES OF ELIGIBLE RISKS building. Examples of eligible risks are provided below. 3. Other Residential Buildings A. Building Coverage These include hotels or motels where the normal occupancy of a guest is 6 months or 1. Cooperative Building--Entire Building in Name of Cooperative (General Property more, or a tourist home or rooming house Form) which has more than four roomers. This also includes residential buildings, excluding Cooperative buildings where at least 75 hotels and motels with normal room rentals percent of the area of the building is used for for less than 6 months' duration and residential purposes are considered as containing more than four dwelling units. residential occupancies, and can be insured These buildings are permitted incidental for a maximum building coverage of occupancies (see D.1 above). The total area $250,000 in a Regular Program community of incidental occupancy is limited to less than under the General Property Form. Since they 25 percent of the total floor area within the are not in the condominium form of building. Examples of other residential ownership, they cannot be insured under the buildings include dormitories and assisted RCBAP. living facilities. 2. Time Sharing Building--Entire Building in 4. Non-Residential Buildings Name of Corporation (General Property Form) This category includes all other eligible occupancies (e.g., garages, poolhouses, Timeshare buildings not in the condominium recreational buildings, agricultural buildings, form of ownership where at least 75 percent licensed bed and breakfasts, nursing of the area of the building is used for homes, etc.). residential purposes are considered as residential occupancies under the NFIP, and IV. CONTENTS ELIGIBILITY can be insured for a maximum building coverage of $250,000 under the General A. Eligible Contents Property Form. Contents must be located in a fully enclosed Timeshare buildings in the condominium form building or secured to prevent flotation out of the of ownership are eligible for coverage and building. must be insured under the RCBAP. These buildings are subject to the same eligibility, B. Vehicles and Equipment rating, and coverage requirements as other condominiums, including the requirement that The NFIP covers self-propelled vehicles or 75 percent of the area of the building be used machines, provided they are not licensed for use for residential purposes. on public roads and are: B. Contents Coverage 1. Used mainly to service the described location; or Parts and equipment as open stock—not part of specific vehicle or motorized equipment—are 2. Designed and used to assist handicapped eligible for coverage. persons; C. Condominiums while the vehicles or machines are inside a building at the described location. Refer to pages CONDO 3-5. VI. INELIGIBLE PROPERTY C. Silos, Grain Storage Buildings, and Cisterns A. Buildings Contents located in silos, grain storage buildings, Coverage may not be available for buildings that and cisterns are insurable. are constructed or altered in such a way as to GR 6 May 1, 2008 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 GR 7 May 1, 2008 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 Insurance for renewal policies. 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. Effective Date 1. New Policy (other than 2, 3, or 4 below)- 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 (in connection with making, increasing, extending, or renewing a loan, whether conventional or otherwise)--Flood insurance, which 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.) This rule applies to all buildings regardless of flood zone. The waiting period rule listed under B.1 or B.2 above does not apply. 3. New Policy (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. (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. 4. New Policy (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 GR 8 May 1, 2008 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, 2008, policy applied for and presentment of premium--August 3, 2008, policy effective date--August 4, 2008.) 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. 5. New Policy (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 above does not apply. Otherwise, the 30-day waiting period applies, and the waiting period rule listed under B.1 or B.2 above must be used. 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- for-rate 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 above does not apply. 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 must be applied. 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. 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 one kind of coverage, either building or contents only, the 30-day waiting period applies. 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 30-day 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 GR 9 May 1, 2008 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, before adjusting the loss. 10. 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 (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 is generated at least 30 days before renewal with coverage more than the inflation increase option, the new limits will apply at policy 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 (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 (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. B. Deductibles Deductibles apply separately to building coverage and to contents coverage. 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 non- GR 10 May 1, 2008 residential structures and residential structures 3. Residential Condominium Building Asso with basements that satisfy FEMA's standards ciation Policy (RCBAP), section VIII, published in the Code of Federal Regulations [44 paragraph G. CFR 60.6 (b) or (c)]. E. Loss Assessments ICC coverage is mandatory for all SFIPs, except that coverage is not available for: The SFIP provides limited coverage for loss assessments against condominium unit owners for 1. Policies issued or renewed in the flood damage to common areas of any building Emergency Program. owned by the condominium association. The RCBAP does not provide assessment coverage. 2. Condominium units, including townhouse/ The Dwelling Form provides assessment coverage rowhouse condominium units. (The only under the circumstances, and to the extents, condominium association is responsible for described below. complying with mitigation requirements.) 1. No RCBAP 3. Group Flood Insurance Policies. • If the unit owner purchases building 4. Appurtenant structures, unless covered by coverage under the Dwelling Form and a separate policy. there is no RCBAP, the Dwelling Form ICC coverage contains exclusions in addition to responds to a loss assessment against those highlighted here. See the policy for a list of the unit owner for damages to common exclusions. areas, up to the building coverage limit under the Dwelling Form. To be eligible for claim payment under ICC, a • If there is damage to building elements of structure must: the unit as well, the building coverage limit a. Be a repetitive loss structure as defined, for under the Dwelling Form may not be which NFIP paid a previous qualifying claim, exceeded by the combined settlement of in addition to the current claim. The state or unit building damages, which would apply community must have a cumulative, first, and the loss assessment. substantial damage provision or repetitive loss provision in its floodplain management 2. RCBAP Insured to at Least 80 Percent of the law or ordinance being enforced against the Building Replacement Cost structure; OR • If the unit owner purchases building b. Be a structure that has sustained substantial coverage under the Dwelling Form and there is an RCBAP insured to at least 80 flood damage. The state or community must have a substantial damage provision in percent of the building replacement cost at the time of loss, the loss assessment its floodplain management law or ordinance coverage under the Dwelling Form will being enforced against the structure. pay that part of a loss that exceeds 80 The ICC premium is not eligible for the deductible percent of the association’s building discount. First calculate the deductible discount, replacement cost. then add in the ICC premium for each policy year. • The loss assessment coverage under the D. Reduction of Coverage Limits or Dwelling Form will not cover the Reformation association’s policy deductible purchased by the condominium association. In the event that the premium payment received is not sufficient to purchase the amounts of • If there is damage to building elements of insurance requested, the policy shall be deemed the unit as well, the Dwelling Form pays to to provide only such insurance as can be repair unit building elements after the purchased for the entire term of the policy for the RCBAP limits that apply to the unit have been exhausted. The coverage combiamount of premium received. nation cannot exceed the building Complete provisions for reduction of coverage coverage limit under the Dwelling Form. limits or reformation are described in: 3. RCBAP Insured to Less than 80 Percent of 1. Dwelling Form, section VII, paragraph G. the Building Replacement Cost 2. General Property Form, section VII, • If the unit owner purchases building paragraph G. coverage under the Dwelling Form and GR 11 May 1, 2008 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 “D. 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. 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 9 for the applicable waiting period. Submit-for-rate policies must be rerated 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 crawl spaces as described on page RATE 25, paragraph G. 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. GR 12 May 1, 2008 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, the BFE shown on the Elevation Certificate must be 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 a 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 13 May 1, 2008 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. TYPES OF BUILDINGS For purposes of the NFIP, distinctions have been made among the following building types: • No basement - One floor - Split level - Two or more floors • Unfinished basement - Split level - Two or more floors • Finished basement - Split level - Two or more floors • Manufactured (mobile) home, including doublewide, or travel trailer, on foundation • Elevated building - No enclosure - With enclosure (including crawl space) APP 1 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 $35.00 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. May 1, 2008 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 8, 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 complete name and mailing address of the disaster agency. Enter the insured’s case file number. If NO is checked, no further 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. 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. G. Second Mortgagee 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 “F. 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. H. 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 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. I. Community Enter the name of the county or parish where the property is located. Check YES if the property is located in an unincorporated area of a county; otherwise, check NO. APP 2 May 1, 2008 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 for the community where the property 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). Check YES if the property is located in a Special Flood Hazard Area; otherwise, check NO. Enter the FIRM zone in the space provided. If the program type is Emergency, leave this area blank. Check R if the community is in the Regular Program, or check E if the community is in the 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 CBRS or OPA. See CBRS section for additional information. J. 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 or Enclosed Area Below an Elevated Building Indicate whether the building contains a basement (i.e., lowest floor is below ground on all sides). If an enclosure is the lowest floor for rating, use the "With Basement/ Enclosure" Rate Table to determine the rate. If the enclosure is not the lowest floor for rating, use the “Without Basement/ Enclosure” Rate Table and describe the building as “Without Basement/Enclosure.” In 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. The writing company may use the “Obstruction Type” description provided in the Transaction Record Reporting and Processing (TRRP) Plan to show the enclosure on the policy declarations page. • Small Business Risk Indicate Yes or No. • 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. APP 3 May 1, 2008 • Number of Occupancies (Units) For other than single family dwellings, indicate the number of units. • 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. • Deductible and Deductible Buyback Enter the deductible amount for building and/or contents. Also indicate whether the applicant is “buying back” a $500 deductible. Refer to page RATE 12 to buy back a $500 deductible. (See deductible factors on pages RATE 13 and CONDO 22.) • 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. • 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. • State Government Ownership of Property Check YES if the building is owned by state government; otherwise, check NO. K. 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. L. 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 APP 4 May 1, 2008 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. 2. Elevation Information Elevation information must be completed in the second part of the Construction Data section. • Post-FIRM Construction Check YES if the building is Post-FIRM construction or substantial improvement; otherwise, check NO. • 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 January 1, 2007, must be submitted on the new EC form. 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. APP 5 May 1, 2008 • 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 eight building diagrams on pages CERT 18-19 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. • Elevation Certification Enter the elevation certification date for all new business applications. M. Coverage and Rating Check desired coverage against the “Amount of Insurance Available” table on page RATE 1. Then enter the limits, indicate the rates and rate type, and 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. 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, with the exception of Post-FIRM V-Zone buildings with unfinished breakaway wall enclosures. N. 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 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, American Express, Discover, or Diners Club 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. APP 6 May 1, 2008 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 the following risks: • Post-FIRM construction located in Zones A1-A30, AE, AH, AO, A, V1-V30, VE, and V. • Pre-FIRM construction using optional Post- FIRM rating located in Zones A1-A30, AE, AH, AO, A, V1-V30, VE, and V. 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 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 APP 7 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. May 1, 2008 If Question 10e is YES, provide a description. In Question 10f, check YES if the enclosed area 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, American Express, Discover, or Diners Club 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. APP 8 May 1, 2008 APP 9 May 1, 2008 APP 10 May 1, 2008 APP 11 May 1, 2008 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 PROGRAM Basic Insurance Limits Additional Insurance Limits Total Insurance Limits $ 35,000 * $ 35,000 * $100,000** $100,000** $ 50,000 $ 50,000 $150,000 $150,000 $200,000 $200,000 $100,000 $350,000 $250,000 $250,000 $250,000 $500,000 CONTENTS COVERAGE Residential Non-Residential $ 10,000 $100,000 $ 20,000 $130,000 $ 80,000 $370,000 $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 RATE 1 May 1, 2008 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 No Basement/Enclosure .76 / .54 .96 / 97 .76 / .54 .76 / 1.12 .83 / 1.07 With Basement .81 / .79 .96 / .81 .81 / .79 .81 / .93 .88 / 1.05 With Enclosure .81 / .96 .96 / .97 .81 / .96 .81 / 1.18 .88 / 1.33 Manufactured (Mobile) Home3 .76 / .54 .96 / .97 .83 / 1.07 Basement & Above .96 / .81 .96 / .81 1.62 / 1.81 Enclosure & Above .96 / .97 .96 / .97 1.62 / 2.17 Lowest Floor Only - Above .96 / .97 .96 / .97 1.62 / .95 Ground Level Lowest Floor Above Ground .96 / .67 .96 / .67 1.62 / .81 Level and Higher Floors Above Ground Level - More .35 / .12 .35 / .12 .24 / .12 than One Full Floor Manufactured (Mobile) Home3 1.62 / .95 FIRM ZONES V, VE, V1-V30 OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents No Basement/Enclosure .99 / 1.35 1.23 / 2.32 .99 / 1.35 .99 / 2.50 1.10 / 2.59 With Basement 1.06 / 2.02 1.23 / 1.95 1.06 / 2.02 1.06 / 3.73 1.16 / 3.86 With Enclosure 1.06 / 2.38 1.23 / 2.31 1.06 / 2.38 1.06 / 4.17 1.16 / 4.31 Manufactured (Mobile) Home3 .99 / 6.11 1.23 / 2.31 1.10 / 10.49 Basement & Above 1.23 / 1.95 1.23 / 1.95 2.14 / 4.56 Enclosure & Above 1.23 / 2.31 1.23 / 2.31 2.14 / 4.92 Lowest Floor Only - Above Ground Level 1.23 / 2.31 1.23 / 2.31 2.14 / 4.13 Lowest Floor Above Ground Level and Higher Floors 1.23 / 2.03 1.23 / 2.03 2.14 / 3.56 Above Ground Level - More than One Full Floor .47 / .29 .47 / .29 .45 / .39 Manufactured (Mobile) Home3 2.14 / 9.80 FIRM ZONES A99, B, C, X OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents No Basement/Enclosure .78 / .21 1.20 / .37 .78 / .21 .74 / .21 .74 / .21 With Basement .89 / .30 1.36 / .43 .89 / .30 .95 / .30 .95 / .30 With Enclosure .89 / .34 1.36 / .49 .89 / .34 .95 / .34 .95 / .34 Manufactured (Mobile) Home3 .78 / .38 1.20 / .37 .95 / .39 Basement & Above 1.53 / .56 1.53 / .56 1.58 / .61 Enclosure & Above 1.53 / .65 1.53 / .65 1.58 / .73 Lowest Floor Only - Above Ground Level 1.20 / .59 1.20 / .59 .97/ .43 Lowest Floor Above Ground Level and Higher Floors 1.20 / .37 1.20 / .37 .97 / .31 Above Ground Level - More than One Full Floor .35 / .12 .35 / .12 .22 / .12 Manufactured (Mobile) Home3 .85 / .53 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 crawl spaces 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. RATE 2 May 1, 2008 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 No Basement/Enclosure .78 / .21 1.20 / .37 .78 / .21 .74 / .21 .74 / .21 With Basement .89 / .30 1.36 / .43 .89 / .30 .95 / .30 .95 / .30 With Enclosure .89 / .34 1.36 / .49 .89 / .34 .95 / .34 .95 / .34 Manufactured (Mobile) Home1 .78 / .38 1.20 / .37 .95 / .39 Basement & Above 1.53 / .56 1.53 / .56 1.58 / .61 Enclosure & Above 1.53 / .65 1.53 / .65 1.58 / .73 Lowest Floor Only - Above Ground Level 1.20 / .59 1.20 / .59 .97 / .43 Lowest Floor Above Ground Level and Higher Floors 1.20 / .37 1.20 / .37 .97 / .31 Above Ground Level - More than One Full Floor .35 / .12 .35 / .12 .22 / .12 Manufactured (Mobile) Home1 .85 / .53 FIRM ZONE D OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents No Basement/Enclosure 1.11 / .38 1.11 / .69 1.11 / .38 1.20 / .69 1.20 / .69 With Basement *** *** *** *** *** With Enclosure *** *** *** *** *** Manufactured (Mobile) Home1 1.45 / .75 1.31 / .80 2.49 / .93 Basement & Above *** *** *** Enclosure & Above *** *** *** Lowest Floor Only - Above Ground Level 1.11 / .69 1.11 / .69 1.95 / .62 Lowest Floor Above Ground Level and Higher Floors 1.11 / .47 1.11 / .47 1.95 / .59 Above Ground Level - More than One Full Floor .35 / .12 .35 / .12 .24 / .12 Manufactured (Mobile) Home1 1.95 / .62 FIRM ZONES AO, AH ("No Basement" Buildings Only)2 Building Contents OCCUPANCY 1-4 Family Other Res & Non-Res Residential Non- Residential With Certification of Compliance3 .28 / .08 .23 / .08 .37 / .13 .23 / .13 Without Certification of Compliance or Elevation Certificate4 .93 / .21 1.01 / .36 1.17 / .24 1.97 / .31 1 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. 2 Zones AO, AH Buildings With Basement/Enclosure: 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. *** SUBMIT FOR RATING RATE 3 May 1, 2008 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/Encl More than One Floor, No Basement/Encl More than One Floor, With Basement/Encl 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 .24 / .08 .20 / .08 +3 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .25 / .08 .22 / .08 +2 .39 / .08 .26 / .08 .25 / .08 .20 / .08 .25 / .08 .20 / .08 .43 / .08 .34 / .08 +1 .74 / .08 .47 / .10 .48 / .08 .30 / .08 .32 / .08 .26 / .08 .88 / .09 .72 / .08 0 1.44 / .11 1.33 / .20 1.05 / .10 .81 / .15 .75 / .09 .61 / .16 2.25 / .11 1.83 / .09 -13 3.80 / 1.39 5.39 / 1.35 3.34 / 1.21 3.65 / .62 1.90 / .67 1.75 / .70 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES AE, A1-A30 -- CONTENTS RATES Elevation of Lowest Floor Lowest Floor Only -Above Ground Level (No Basement/Encl.) Lowest Floor Above Ground Level & Higher Floors (No Basement/Encl.) More than One Floor With Basement/Enclosure Manufactured (Mobile) Home2 Above or Below BFE1 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 / .12 +3 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 +2 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .31 / .14 +1 .52 / .12 .32 / .18 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .59 / .12 .49 / .19 0 1.24 / .12 .78 / .39 .69 / .12 .53 / .24 .41 / .12 .32 / .12 1.27 / .12 1.15 / .58 -13 3.74 / .75 2.41 / 1.10 2.11 / .58 1.61 / .70 .60 / .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 .37 / .12 .24 / .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 the enclosure below the lowest elevated floor of an elevated building or if the crawl space (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. *** SUBMIT FOR RATING RATE 4 May 1, 2008 TABLE 3C. REGULAR PROGRAM -- POST-FIRM CONSTRUCTION RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) UNNUMBERED ZONE A -- WITHOUT BASEMENT/ENCLOSURE1 Elevation Difference to nearest foot BUILDING RATES CONTENTS RATES TYPE OF ELEVATION CERTIFICATE Occupancy Occupancy 1-4 Family Other & Non- Residential Residential2 NonResidential2 +5 or more .36 / .10 .48 / .15 .62 / .12 .65 / .12 NO ESTIMATED BASE FLOOD ELEVATION3 +2 to +4 1.09 / .13 1.00 / .20 .87 / .17 .98 / .23 +1 2.09 / .64 2.25 / .75 1.54 / .57 1.46 / .72 0 or below *** *** *** *** +2 or more .41 / .08 .34 / .09 .51 / .12 .49 / .12 WITH THE ESTIMATED BASE FLOOD ELEVATION4 0 to +1 1.06 / .12 .91 / .18 .85 / .16 .84 / .21 -1 3.48 / 1.30 4.41 / 1.02 2.71 / .70 2.20 / 1.02 -2 or below *** *** *** *** No Elevation Certificate5 4.06 / 1.42 5.51 / 1.70 3.36 / 1.00 3.24 / 1.35 No Elevation Certificate 1 Zone A building with basement (including crawl space below grade on all sides) or enclosure --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 or enclosure, Elevation Certificate is optional. *** SUBMIT FOR RATING RATE 5 May 1, 2008 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 Lowest Floor Above or Below BFE One Floor, No Basement/Encl More than One Floor, No Basement/Encl More than One Floor, With Basement/Encl 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 03 2.53 / .46 3.07 / 1.19 2.05 / .46 2.22 / 1.11 1.78 / .46 1.99 / .90 3.80 / .38 5.43 / .34 -14 5.41 / 2.77 8.07 / 4.45 4.95 / 2.77 6.95 / 3.38 3.51 / 2.51 3.68 / 3.43 *** *** -2 *** *** *** *** *** *** *** *** FIRM ZONES '75-81, V1-V30, VE -- CONTENTS RATES Elevation of Lowest Floor Only -- Above Ground Level (No Basement/Encl.) Lowest Floor Above Ground Level & Higher Floors (No Basement/Encl.) More than One Floor With Basement/Enclosure Manufactured (Mobile) Home2 Lowest Floor Above or Below BFE Residential Non- Residential Residential Non- Residential Residential Non- Residential Single Family Non- Residential 03 3.93 / .55 3.47 / 2.54 2.55 / .61 2.42 / 1.52 1.44 / .55 1.44 / .55 3.78 / .61 3.94 / 3.25 -14 8.62 / 4.19 8.46 / 7.37 5.08 / 3.25 5.80 / 4.60 1.70 / .55 5.17 / .55 *** *** -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 .55 / .25 .55 / .25 .42 / .25 -14 .55 / .25 .55 / .25 .42 / .25 -2 .55 / .25 .55 / .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. *** SUBMIT FOR RATING FIRM ZONES '75-'81, UNNUMBERED V ZONE SUBMIT FOR RATING RATE 6 May 1, 2008 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 Elevated Buildings Free of Obstruction3 above or below BFE adjusted for wave height2 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 .38 .38 .62 .83 1.26 +3 .38 .38 .75 1.01 1.52 +2 .55 .59 .97 1.30 1.95 +1 .96 1.03 1.41 1.88 2.63 0 1.47 1.58 1.81 2.42 3.40 -1 2.13 2.19 2.40 3.16 4.11 -2 2.96 3.12 3.15 4.13 5.27 -3 4.06 4.31 4.06 5.43 6.88 -4 or below *** *** *** *** *** 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. 2Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. 3Free 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. 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. 4These 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 RATE 7 May 1, 2008 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 More5 Replacement Cost Ratio .50 to .745 Replacement Cost Ratio Under .505 +4 or more .50 .50 1.38 1.84 2.74 +3 .51 .51 1.54 2.03 3.09 +2 .66 .66 1.80 2.35 3.59 +1 1.11 1.18 2.09 2.80 4.05 0 1.59 1.67 2.46 3.37 4.57 -16 2.19 2.32 2.93 3.89 5.23 -26 3.05 3.25 3.64 4.79 6.22 -36 4.16 4.42 4.69 6.10 7.85 -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). 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 SUBMIT FOR RATING RATE 8 May 1, 2008 TABLE 4. REGULAR PROGRAM -- FIRM ZONE AR AND AR DUAL ZONES RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) PRE-FIRM NOT ELEVATION-RATED RATES1, 2 OCCUPANCY Single Family 2-4 Family Other Residential Non-Residential Building Contents Building Contents Building Contents Building Contents No Basement/Enclosure .78 / .21 1.20 / .37 .78 / .21 .74 / .21 .74 / .21 With Basement .89 / .30 1.36 / .43 .89 / .30 .95 / .30 .95 / .30 With Enclosure .89 / .34 1.36 / .49 .89 / .34 .95 / .34 .95 / .34BUILDING TYPE Manufactured (Mobile) Home3 .78 / .38 1.20 / .37 .95 / .39 Basement & Above 1.53 / .56 1.53 / .56 1.58 / .61 Enclosure & Above 1.53 / .65 1.53 / .65 1.58 / .73 Lowest Floor Only - Above Ground Level 1.20 / .59 1.20 / .59 .97 / .43 Lowest Floor Above Ground Level and Higher Floors 1.20 / .37 1.20 / .37 .97 / .31CONTENTS LOCATIONAbove Ground Level - More than One Full Floor .35 / .12 .35 / .12 .22 / .12 Manufactured (Mobile) Home3 .85 / .53 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 $1,000. 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 No Basement/Enclosure .78 / .21 1.20 / .37 .78 / .21 .74 / .21 .74 / .21 With Basement .89 / .30 1.36 / .43 .89 / .30 .95 / .30 .95 / .30 With Enclosure .89 / .34 1.36 / .49 .89 / .34 .95 / .34 .95 / .34BUILDING TYPE Manufactured (Mobile) Home2 .78 / .38 1.20 / .37 .95 / .39 Basement & Above 1.53 / .56 1.53 / .56 1.58 / .61 Enclosure & Above 1.53 / .65 1.53 / .65 1.58 / .73 Lowest Floor Only - Above Ground Level 1.20 / .59 1.20 / .59 .97 / .43 Lowest Floor Above Ground Level and Higher Floors 1.20 / .37 1.20 / .37 .97 / .31CONTENTS LOCATIONAbove Ground Level - More than One Full Floor .35 / .12 .35 / .12 .22 / .12 Manufactured (Mobile) Home2 .85 / .53 1 Base Deductible is $500. 2 The definition of Manufactured (Mobile) Home includes travel trailers. See page APP 3. RATE 9 May 1, 2008 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 More than One Floor, No Basement/Encl More than One Floor, With Basement/Encl 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 .24 / .08 .20 / .08 +3 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .24 / .08 .20 / .08 .25 / .08 .22 / .08 +2 .39 / .08 .26 / .08 .25 / .08 .20 / .08 .25 / .08 .20 / .08 .43 / .08 .34 / .08 +1 .74 / .08 .47 / .10 .48 / .08 .30 / .08 .32 / .08 .26 / .08 .78 / .38 .72 / .08 0 .78 / .21 .74 / .21 .78 / .21 .81 / .15 .75 / .09 .61 / .16 .78 / .38 .95 / .39 -12 See Footnote2 FIRM ZONES AR and AR Dual Zones --CONTENTS RATES Elevation of Lowest Floor Lowest Floor Only -Above Ground Level (No Basement/Encl.) Lowest Floor Above Ground Level & Higher Floors (No Basement/Encl.) More than One Floor With Basement/Enclosure Manufactured (Mobile) Home1 Above or Below BFE 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 / .12 +3 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 +2 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .38 / .12 .31 / .14 +1 .52 / .12 .32 / .18 .38 / .12 .22 / .12 .38 / .12 .22 / .12 .59 / .12 .49 / .19 0 1.24 / .12 .78 / .39 .69 / .12 .53 / .24 .41 / .12 .32 / .12 1.27 / .12 .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 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 -13 .35 / .12 .35 / .12 .22 / .12 -23 .35 / .12 .37 / .12 .24 / .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. RATE 10 May 1, 2008 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 $ 484 $ 434 $ 732 $ 630 $ 70,000 $ 563 $ 488 $ 934 $ 765 $ 80,000 $ 642 $ 542 $1,136 $ 900 $ 90,000 $ 721 $ 596 $1,338 $1,035 $100,000 $ 800 $ 650 $1,540 $1,170 $125,000 $ 998 $ 785 $2,045 $1,580 $150,000 $1,195 $ 920 $2,550 $1,845 $175,000 $1,393 $1,055 $3,055 $2,183 $200,000 $1,590 $1,190 $3,560 $2,520 $225,000 $1,788 $1,325 $4,065 $2,858 $250,0004 $1,985 $1,460 $4,570 $3,195 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 $233 $241 $ 344 $ 362 $ 30,000 $273 $289 $ 441 $ 478 $ 40,000 $354 $386 $ 636 $ 710 $ 50,000 $435 $483 $ 831 $ 942 $ 60,000 $516 $580 $1,026 $1,174 $ 70,000 $597 $677 $1,221 $1,406 $ 80,000 $678 $774 $1,416 $1,638 $ 90,000 $759 $871 $1,611 $1,870 $100,000 $840 $968 $1,806 $2,102 1 Premium before applying any CRS credits or optional deductible factors. 2 For building coverage amounts of $230,000 and less, add $75 to the building premium selected from the table above to cover ICC cost, except for D zones. For D zones add $6. For building coverage amounts above $230,000, see Footnote 4 below. 3 Add $35 to the premium selected from the table above to cover Federal Policy Fee. 4 Add $60 to cover the ICC cost for the $250,000 building limit, except for D zones. For D zones add $4. RATE 11 May 1, 2008 TABLE 7. FEDERAL POLICY FEE AND PROBATION SURCHARGE TABLE FEDERAL POLICY FEE1 PROBATION SURCHARGE $35 $50 1 For the Preferred Risk Policy, the Federal Policy Fee is $13.00. III. DEDUCTIBLES As shown in Table 8A below, the NFIP standard deductible is either $500 or $1,000. The insured may choose a deductible amount different from the standard $500 for Post-FIRM or the standard $1,000 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 $1,000 for Pre-FIRM SFHA risks may opt to purchase separate $500 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 midterm 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 $1,000 B, C, X, A99, D $500 $500 A, AO, AH, A1-A30, AE, VO, V1-V30, VE, V, AR, AR/AE, AR/AH, AR/AO, AR/A1-A30, AR/A $1,000 $500 $500 RATE 12 May 1, 2008 TABLE 8B. DEDUCTIBLE FACTORS Single Family and 2-4 Family Building and Contents Policies1,2,3 Deductible Options: Building/Contents Post-FIRM $500 Ded. Pre-FIRM $1,000 Ded. Deductible Options: Building/Contents Post-FIRM $500 Ded. Pre-FIRM $1,000 Ded. $ 500/ $500 1.000 1.100 $4,000/$1,000 .835 .850 $1,000/ $500 .975 1.050 $4,000/$2,000 .810 .825 $1,000/$1,000 .960 1.000 $4,000/$3,000 .785 .800 $2,000/ $500 .930 1.000 $4,000/$4,000 .765 .775 $2,000/$1,000 .915 .950 $5,000/ $500 .810 .875 $2,000/$2,000 .890 .925 $5,000/$1,000 .800 .825 $3,000/ $500 .890 .950 $5,000/$2,000 .785 .800 $3,000/$1,000 .875 .900 $5,000/$3,000 .770 .780 $3,000/$2,000 .850 .875 $5,000/$4,000 .755 .765 $3,000/$3,000 .825 .850 $5,000/$5,000 .740 .750 $4,000/ $500 .850 .900 Single Family and 2-4 Family Building Only or Contents Only Policies1,2,3 Building Post-FIRM$500 Ded. Pre-FIRM $1,000 Ded. $500 1.000 1.100 $1,000 .960 1.000 $2,000 .900 .935 $3,000 .850 .885 $4,000 .800 .835 $5,000 .750 .785 Contents4 Post-FIRM $500 Ded. Pre-FIRM $1,000 Ded. $500 1.000 1.150 $1,000 .950 1.000 $2,000 .850 .900 $3,000 .775 .825 $4,000 .700 .750 $5,000 .650 .675 Other Residential and Non-Residential Policies1,2,5 Bldg./ContentsDiscount From Amount Building Only Contents Only Post-FIRM $500 Ded. Pre-FIRM $1,000 Ded. Post-FIRM$500 Ded. Pre-FIRM $1,000 Ded. Post- FIRM$500 Ded. Pre-FIRM $1,000 Ded. $500/ $500 1.000 1.050 $500 1.000 1.050 1.000 1.050 $1,000/$1,000 .980 1.000 $1,000 .975 1.000 .980 1.000 $2,000/$2,000 .940 .960 $2,000 .940 .960 .950 .965 $3,000/$3,000 .910 .930 $3,000 .910 .925 .925 .940 $4,000/$4,000 .885 .910 $4,000 .880 .900 .900 .915 $5,000/$5,000 .870 .890 $5,000 .850 .875 .875 .890 $10,000/$10,0005 .775 .800 $10,000 .750 .760 .775 .800 $15,000/$15,0005 .725 .750 $15,000 .675 .685 .700 .725 $20,000/$20,0005 .675 .700 $20,000 .600 .610 .650 .660 $25,000/$25,0005 .625 .650 $25,000 .550 .560 .600 .610 $50,000/$50,0005 .500 .525 $50,000 .450 .460 .525 .535 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. RATE 13 May 1, 2008 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- A, AE, A1-A30, AO, AH $ 6 $ 4 $ 6 $ 4 FIRM AR, AR DUAL ZONES $ 6 $ 4 $ 6 $ 4 POST-’81 V1-V30, VE $20 $14 $20 $14 ‘75-’81 V1-V30, VE $35 $25 $35 $25 A99, B, C, X, D $ 6 $ 4 $ 6 $ 4 Pre-A, AE, A1-A30, AO, AH $75 $60 $75 $60 FIRM AR, AR DUAL ZONES $ 6 $ 4 $ 6 $ 4 V, VE, V1-V30 $75 $60 $75 $60 A99, B, C, X, D $ 6 $ 4 $ 6 $ 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) (3) The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium. 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. RATE 14 May 1, 2008 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.) RATE 15 May 1, 2008 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 January 1, 2007, must be submitted on the new Elevation Certificate form. The Elevation Certificate must meet all photo 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. RATE 16 May 1, 2008 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, the BFE shown on the Elevation Certificate must be used to rate the policy. G. 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 RATE 17 May 1, 2008 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. RATE 18 May 1, 2008 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 crawl spaces 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 24-25. This is the only Pre-FIRM construction that can be rated using the Submit-for-Rate procedure. IX. PRE-FIRM ELEVATED BUILDING RATED AT 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 risk 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 a 1981 Post-FIRM risk cannot. 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 new Elevation Certificate (EC) or Item C3.c on the old 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 new EC or Item C3.f on the old EC (lowest RATE 19 May 1, 2008 adjacent grade), deduct (for 1-4 family residences) 12 inches from the elevation found in Item C2.c or Item C3.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 new EC or Item C3.a on the old 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, or if Item C3.a is equal to or higher than Item C3.f, deduct (for 1-4 family residences) 12 inches from the elevation found in Item C2.a or Item C3.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—1981 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. Any 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 The area below the Elevated Floor is enclosed, either partially or fully by solid perimeter foundation walls or breakaway walls. Use the rates from Table 3F provided that the enclosure is less than 300 square feet or contains machinery or equipment below the BFE. For unnumbered Zone V, use Submit-for-Rate guidelines. NOTE: • Equipment located below the lowest elevated floor constitutes an obstruction. • For all non-elevated buildings, elevated buildings with non-breakaway walls below their lowest elevated floors, and elevated buildings with habitable or finished areas located below their lowest elevated floors, the submit-forrate 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 additions during the policy term or any subsequent policy term that would change 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. RATE 20 May 1, 2008 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. 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. 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 To recognize policyholders who have built in compliance with the FIRM and/or remained loyal customers of the NFIP by RATE 21 May 1, 2008 maintaining continuous coverage, the Federal Emergency Management Agency has “Grandfather rules.” These rules allow such policyholders to benefit in the rating for that building. For such buildings, 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 (for those built in compliance) or when coverage was first obtained (for those with continuous coverage). This results in a cost savings to insureds when the new map resulting from a map revision would result in a higher premium rate. The conditions that must be met for an insured to be eligible to receive the rating benefit from the “Grandfather rules” after a map revision (new map) becomes effective are described below. 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 reference level lower than the BFE on that FIRM. (NOTE: Alteration does not apply to Pre-FIRM construction or to risks grandfathered to a B, C, or X Zone.) 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 continuous coverage existed on the policy and the building 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; and • 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); and • 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. RATE 22 May 1, 2008 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 This “built in compliance” rule also applies to Pre-FIRM construction if the date of construction was on or before December 31, 1974, and was 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. D. 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. E. 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. RATE 23 May 1, 2008 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. F. 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 enclosure(s) or crawl spaces(s) below the elevated floor, the use of the enclosure/crawl space, a list of machinery and equipment, and the approximate value of each item located in the enclosure/crawl space. 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: RATE 24 May 1, 2008 • 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. G. Crawl Space A building with a “crawl space” (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 crawl space is below grade on all sides, and the elevation of the crawl space floor is below the Base Flood Elevation (BFE), the crawl space must be rated according to the guidelines found on pages LFG 24-25. 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 crawl space 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 crawl spaces. A building with a crawl space that is not subgrade must be described as an elevated building. Pre-FIRM buildings with subgrade crawl spaces that are below the BFE may use optional Post- FIRM elevation rating. Follow the Submit-for- Rate procedures when using this optional rating. RATE 25 May 1, 2008 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 • None • Lowest Floor or Above Ground • Three or More Floors Level and Higher Floors • Two Floors • Finished • Basement or and Above • Three or More Floors LIMITED COVERAGE IN BASEMENT • Two Floors • Unfinished • Basement or and Above • Three or More Floors LIMITED COVERAGE IN BASEMENT RATE 26 May 1, 2008 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 RATE 27 May 1, 2008 2. Elevated Buildings (contents in shaded areas) Elevated building free of obstruction Elevated building free of obstruction Elevated building with enclosure below lowest elevated floor Elevated building, multiple occupancy, no enclosure ON APPLICATION FORM Building Type (including enclosure if any) Enclosure Contents • One Floor • None • Lowest Floor Only Above Ground Level • Two Floors • None • Lowest Floor Above Ground Level and Higher Floor • Three or More Floors • Unfinished • Enclosure and Above LIMITED COVERAGE IN ENCLOSED AREA • Three or More Floors • None • Lowest Floor Only Above Ground Level RATE 28 May 1, 2008 ON APPLICATION FORM Elevated building, multiple occupancy, no enclosure Elevated building, multiple occupancy, with enclosure Building Type (including enclosure if any) Enclosure Contents • Three or More Floors • None • Above Ground Level More Than One Full Floor • Three or More Floors • Unfinished • Above Ground Level More Than One Full Floor RATE 29 May 1, 2008 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 C3.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 RATE 30 May 1, 2008 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 AE, A1-A30, AH, and AO Zones must be floodproofed to at least 1 foot higher than their BFEs. 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: RATE 31 May 1, 2008 • 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 photo requirements pertaining to the new EC, which became mandatory for use effective January 1, 2007. B. Submission The completed form should be submitted to the NFIP Bureau and Statistical Agent, Underwriting Department, P.O. Box 310, Lanham, MD 20703. Confirmation of the relativity and established rate will be returned to the submitting producer, engineer, and builder/applicant in approximately 30 business days. RATE 32 May 1, 2008 TABLE 10. V-ZONE RISK RATING RELATIVITIES TABLE Building No Obstruction Rates With Obstruction Rates Point Total1 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 1.200 1.200 1.200 1.150 1.150 1.150 225 – 275 1.100 1.100 1.100 1.050 1.050 1.100 276 – 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 1Subtract 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. RATE 33 May 1, 2008 This page intentionally left blank. RATE 34 May 1, 2008 RATE 35 May 1, 2008 RATE 36 May 1, 2008 RATE 37 May 1, 2008 RATE 38 May 1, 2008 RATE 39 May 1, 2008 RATE 40 May 1, 2008 RATE 41 May 1, 2008 RATE 42 May 1, 2008 RATE 43 May 1, 2008 RATE 44 May 1, 2008 RATE 45 May 1, 2008 RATE 46 May 1, 2008 RATE 47 May 1, 2008 RATE 48 May 1, 2008 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, $500 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, $500/$500 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, $500/$500 Deductible Option, Zone AH (With Certification of Compliance).......................RATE 61 Example 13 Regular Program, Post-FIRM, Elevation Rated, $500/$500 Deductible Option, Zone A (with Estimated BFE)..............................................RATE 62 Example 14 Regular Program, Post-FIRM, Elevation Rated, $500/$500 Deductible Option, Zone A (without Estimated BFE).........................................RATE 63 RATE 49 May 1, 2008 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: $1,000/$1,000 (Standard) • 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) PAYMENT ANNUAL SUBTOTAL 362 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM . . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 362 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 362 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 397 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: $35 10. Total Prepaid Amount: $397 RATE 50 May 1, 2008 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: .915 • 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: $6 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .78/.21 Contents: 1.20/.37 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 50,000 .78 390 100,000 .21 210 -51 150,000 549 CONTENTS 20,000 1.20 240 40,000 .37 148 -33 60,000 355 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 904 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 910 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 910 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 945 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $600 / Contents: $388 2. Apply Deductible Factor: Building: .915 x $600 = $549 / Contents: .915 x $388 = $355 3. Premium Reduction: Building: $600 - $549 = $51 / Contents: $388 - $355 = $33 4. Subtotal: $904 5. Add ICC Premium: $6 6. Subtract CRS Discount: N/A 7. Subtotal: $910 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $945 RATE 51 May 1, 2008 EXAMPLE 3 REGULAR PROGRAM, PRE-FIRM CONSTRUCTION, $500 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: $500/$500 • Deductible Factor: 1.100 (Surcharge) • 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: $75 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .81/.96 Contents: .96/.97 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 50,000 .81 405 100,000 .96 960 +137 150,000 1,502 CONTENTS 20,000 .96 192 40,000 .97 388 +58 60,000 638 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 2,140 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 2,215 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 2,215 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 2,250 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,365 / Contents: $580 2. Apply Deductible Factor: Building: 1.100 x $1,365 = $1,502 / Contents: 1.100 x $580 = $638 3. Premium Increase: Building: $1,502 - $1,365 = $137 / Contents: $638 - $580 = $58 4. Subtotal: $2,140 5. Add ICC Premium: $75 6. Subtract CRS Discount: N/A 7. Subtotal: $2,215 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $2,250 RATE 52 May 1, 2008 EXAMPLE 4 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: .875 • 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: $60 • CRS Rating: 4 • CRS Discount: 30% Determined Rates: Building: .81/.79 Contents: .96/.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 50,000 .81 405 200,000 .79 1,580 -248 250,000 1,737 CONTENTS 20,000 .96 192 80,000 .81 648 -105 100,000 735 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 2,472 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 60 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 2,532 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 30% -760 . PROVISIONAL RATING SUBTOTAL 1,772 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 1,807 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,985 / Contents: $840 2. Apply Deductible Factor: Building: .875 x $1,985 = $1,737 / Contents: .875 x $840 = $735 3. Premium Reduction: Building: $1,985 - $1,737 = $248 / Contents: $840 - $735 = $105 4. Subtotal: $2,472 5. Add ICC Premium: $60 6. Subtract CRS Discount: -$760 (30%) 7. Subtotal: $1,772 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $1,807 RATE 53 May 1, 2008 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: .870 • 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 150,000 .20 300 350,000 .08 280 -75 500,000 505 CONTENTS 130,000 .22 286 370,000 .12 444 -95 500,000 635 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 1,140 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 4 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 1,144 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 25% -286 . PROVISIONAL RATING SUBTOTAL 858 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 893 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $580 / Contents: $730 2. Apply Deductible Factor: Building: .870 x $580 = $505 / Contents: .870 x $730 = $635 3. Premium Reduction: Building: $580 - $505 = $75 / Contents: $730 - $635 = $95 4. Subtotal: $1,140 5. Add ICC Premium: $4 6. Subtract CRS Discount: -$286 (25%) 7. Subtotal: $858 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $893 RATE 54 May 1, 2008 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: $500/$500 • 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: $35 • CRS Rating: 8 • CRS Discount: 10% Determined Rates: Building: 2.05/.46 Contents: 2.55/.61 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 50,000 2.05 1,025 100,000 .46 460 0 150,000 1,485 CONTENTS 20,000 2.55 510 80,000 .61 488 0 100,000 998 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 2,483 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 35 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 2,518 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 10% -252 . PROVISIONAL RATING SUBTOTAL 2,266 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 2,301 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,485 / Contents: $998 2. Apply Deductible Factor: Building: 1.000 x $1,485 = $1,485 / Contents: 1.000 x $998 = $998 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $2,483 5. Add ICC Premium: $35 6. Subtract CRS Discount: -$252 (10%) 7. Subtotal: $2,266 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $2,301 RATE 55 May 1, 2008 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: .825 • 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: $14 • CRS Rating: 9 • CRS Discount: N/A Determined Rates: Building: 2.93/2.93 Contents: 2.19/2.19 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 50,000 2.93 1,465 200,000 2.93 5,860 -1,282 250,000 6,043 CONTENTS 20,000 2.19 438 80,000 2.19 1,752 -383 100,000 1,807 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 7,850 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 14 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 7,864 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 7,864 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 7,899 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $7,325 / Contents: $2,190 2. Apply Deductible Factor: Building: .825 x $7,325 = $6,043 / Contents: .825 x $2,190 = $1,807 3. Premium Reduction: Building: $7,325 - $6,043 = $1,282 / Contents: $2,190 - $1,807 = $58 4. Subtotal: $7,850 5. Add ICC Premium: $14 6. Subtract CRS Discount: N/A 7. Subtotal: $7,864 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $7,899 RATE 56 May 1, 2008 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: $500 • Deductible Factor: 1.000 • Contents Location: Above Ground Level and Higher Floors • 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: .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 0 CONTENTS 20,000 .38 76 80,000 .12 96 0 100,000 172 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 172 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM . . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 172 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 172 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 207 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: N/A / Contents: $172 2. Apply Deductible Factor: Building: N/A / Contents: 1.000 x $172 = $172 3. Premium Reduction/Increase: Building: N/A / Contents: $0 4. Subtotal: $172 5. Add ICC Premium: N/A 6. Subtract CRS Discount: N/A 7. Subtotal: $172 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $207 RATE 57 May 1, 2008 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: .870 • 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: 1.01/.36 Contents: 1.97/.31 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 150,000 1.01 1,515 350,000 .36 1,260 -361 500,000 2,414 CONTENTS 130,000 1.97 2,561 370,000 .31 1,147 -482 500,000 3,226 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 5,640 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 4 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 5,644 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 5,644 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE . THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 5,679 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $2,775 / Contents: $3,708 2. Apply Deductible Factor: Building: .870 x $2,775 = $2,414 / Contents: .870 x $3,708 = $3,226 3. Premium Reduction: Building: $2,775 - $2,414 = $361 / Contents: $3,708 - $3,226 = $482 4. Subtotal: $5,640 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $5,644 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $5,679 RATE 58 May 1, 2008 EXAMPLE 10 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $500/$500 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: $500/$500 • 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: .37/.13 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 50,000 .28 140 200,000 .08 160 0 250,000 300 CONTENTS 20,000 .37 74 80,000 .13 104 0 100,000 178 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 478 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 4 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 482 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % — . PROVISIONAL RATING SUBTOTAL 482 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE — THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 517 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $300 / Contents: $178 2. Apply Deductible Factor: Building: 1.000 x $300 = $300 / Contents: 1.000 x $178 = $178 3. Premium Reduction: Building: $0 / Contents: = $0 4. Subtotal: $478 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $482 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $517 RATE 59 May 1, 2008 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: .85 • 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: .93/.21 Contents: 1.17/.24 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 50,000 .93 465 200,000 .21 420 -133 250,000 752 CONTENTS 20,000 1.17 234 5,000 .24 12 -37 25,000 209 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 961 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 4 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 965 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT _____% — . PROVISIONAL RATING SUBTOTAL 965 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE — THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 1,000 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $885 / Contents: $246 2. Apply Deductible Factor: Building: .85 x $885 = $752 / Contents: .85 x $246 = $209 3. Premium Reduction: Building: $885 - $752 = $133 / Contents = $246 - $209 = $37 4. Subtotal: $961 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $965 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $1,000 RATE 60 May 1, 2008 EXAMPLE 12 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $500/$500 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: $500/$500 • 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: $4 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .28/.08 Contents: .37/.13 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 50,000 .28 140 150,000 .08 120 0 200,000 260 CONTENTS 20,000 .37 74 20,000 .13 26 0 40,000 100 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 360 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 4 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 364 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % — . PROVISIONAL RATING SUBTOTAL 364 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE — THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 399 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $260 / Contents: $100 2. Apply Deductible Factor: Building: 1.000 x $260 = $260 / Contents: 1.000 x $100 = $100 3. Premium Reduction: Building: $0 / Contents: $0 4. Subtotal: $360 5. Add ICC Premium: $4 6. Subtract CRS Discount: N/A 7. Subtotal: $364 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $399 RATE 61 May 1, 2008 EXAMPLE 13 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $500/$500 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: $500/$500 • 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: $6 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .41/.08 Contents: .51/.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 50,000 .41 205 90,000 .08 72 0 140,000 277 CONTENTS 20,000 .51 102 50,000 .12 60 0 70,000 162 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 439 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 445 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % — . PROVISIONAL RATING SUBTOTAL 445 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE — THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 480 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $277 / Contents: $162 2. Apply Deductible Factor: Building: 1.000 x $277 = $277 / Contents: 1.000 x $162 = $162 3. Premium Reduction: Building: $0 / Contents = $0 4. Subtotal: $439 5. Add ICC Premium: $6 6. Subtract CRS Discount: N/A 7. Subtotal: $445 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $480 RATE 62 May 1, 2008 EXAMPLE 14 REGULAR PROGRAM, POST-FIRM, ELEVATION RATED, $500/$500 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: $500/$500 • 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: $4 • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .36/.10 Contents: .62/.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 50,000 .36 180 85,000 .10 85 0 135,000 265 CONTENTS 20,000 .62 124 40,000 .12 48 0 60,000 172 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 437 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 443 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % — . PROVISIONAL RATING SUBTOTAL 443 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND PROBATION SURCHARGE — THAT ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER FEDERAL POLICY FEE 35 APPLICABLE FEDERAL LAW. SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 478 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $265 / Contents: $172 2. Apply Deductible Factor: Building: 1.000 x $265 = $265 / Contents: 1.000 x $172 = $172 3. Premium Reduction: Building: $0 / Contents: $0 4. Subtotal: $437 5. Add ICC Premium: $6 6. Subtract CRS Discount: N/A 7. Subtotal: $443 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $35 10. Total Prepaid Amount: $478 RATE 63 May 1, 2008 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 five 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. 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. Other Residential Condominium: Condominium Association Policy, Association Coverage on Building and Contents The Condominium Association Program (CAP), under the General Property Form, is available to insure condominium buildings not eligible for the RCBAP. A CAP is written on the General Property Form in the name of the association. For policies after October 1, 1994, the CAP is to be used for all condominiums in the Emergency Program communities, and those condominiums in Regular Program communities that do not meet the requirement that 75 percent of the floor area of the building be residential. In all other cases, the Residential Condominium Building Association Policy must be sold. The CAP will cover building common elements as well as building elements (additions and alterations) within all units of the building. CONDO 1 May 1, 2008 In the event of a loss, building coverage under either association policy applies first to building common elements damage and then to damage to individually owned building elements, and the claim payment may not exceed the maximum allowable under the NFIP. D. Nonresidential (Commercial) Condominium: Building and Contents Nonresidential (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. E. Nonresidential (Commercial) Condominium: Unit Owner's Coverage (Contents) The owner of a nonresidential 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 May 1, 2008 TABLE 1. CONDOMINIUM UNDERWRITING GUIDELINES POLICY POLICY INSURED PROPERTY ELIGIBILITY REPLACEMENT ICC COVERAGE LIMITS ASSESSMENT FEDERAL TYPE FORM COVERED REQUIREMENTS COVERAGE COVERAGE POLICY FEE CONDO 3 May 1, 2008 RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY (RCBAP) RCBAP CONDOMINIUM ASSOCIATION AND INDIVIDUAL UNIT OWNERS CONDOMINIUM BUILDING INDIVIDUALLY OWNED BUILDING UNITS WITHIN THE BUILDING IMPROVEMENTS WITHIN UNIT ADDITIONS AND EXTENSIONS ATTACHED OR CONNECTED BY A COMMON WALL FIXTURES, MACHINERY AND EQUIPMENT WITHIN BUILDING MATERIALS AND SUPPLIES USED IN REPAIRING OR ALTERING THE BUILDING CONTENTS OWNED BY THE ASSOCIATION COMMUNITY MUST BE IN REGULAR PROGRAM RESIDENTIAL CONDO BUILDINGS WITH ONE OR MORE RESIDENTIAL UNITS AT LEAST 75% OF FLOOR AREA MUST BE RESIDENTIAL BUILDINGS INCLUDE TOWNHOUSES, ROWHOUSES, LOW-RISE, HIGH-RISE, AND SINGLE FAMILY CONDOMINIUM BUILDINGS YES YES MAXIMUM LIMITS: BUILDING REPLACEMENT COST, OR THE TOTAL NUMBER OF UNITS X $250,000, WHICHEVER IS LESS CONTENTS ACTUAL CASH VALUE (ACV) OF COMMONLY OWNED CONTENTS TO A MAXIMUM OF $100,000 PER BUILDING. NO # UNITS 1 – $35 2-4 – $70/POLICY 5-10 – $175/POLICY 11-20 – $385/POLICY 21 + – $735/POLICY CONDOMINIUM ASSOCIATION POLICY (CAP) GENERAL PROPERTY FORM CONDOMINIUM ASSOCIATION AND INDIVIDUAL UNIT OWNERS SAME AS ABOVE RESIDENTIAL CONDOMINIUM BUILDINGS THAT ARE UNINSURABLE UNDER A RCBAP EMERGENCY AND REGULAR PROGRAMS ARE ELIGIBLE NO YES EMERGENCY PROG. (ACV MAXIMUM LIMITS): BUILDING $100,000 CONTENTS $10,000 REGULAR PROGRAM (ACV MAXIMUM LIMITS): BUILDING $250,000 CONTENTS $100,000 NO $35.00 RESIDENTIAL UNIT OWNERS DWELLING FORM CONDOMINIUM ASSOCIATION AND/OR INDIVIDUAL UNIT OWNERS INDIVIDUALLY OWNED BUILDING ELEMENTS IN UNIT COMMON BUILDING ELEMENTS INDIVIDUALLY OWNED CONTENTS ALL RESIDENTIAL CONDOMINIUM UNITS EMERGENCY AND REGULAR PROGRAMS ARE ELIGIBLE YES1 NO EMERGENCY PROG. (MAXIMUM LIMITS): BUILDING $35,000 CONTENTS $10,000 REGULAR PROGRAM (MAXIMUM LIMITS): BUILDING $250,000 CONTENTS $100,000 YES2 $35.00 NON RESIDENTIAL BUILDING & CONTENTS GENERAL PROPERTY FORM CONDOMINIUM ASSOCIATION AND INDIVIDUAL UNIT OWNERS NON-RESIDENTIAL COMMON BUILDING ELEMENTS AND THEIR CONTENTS CONTENTS OWNED BY ASSOCIATION NON-RESIDENTIAL CONDO UNITS BUILDING MUST BE NONRESIDENTIAL (COMMERCIAL) EMERGENCY AND REGULAR PROGRAMS ARE ELIGIBLE NO YES EMERGENCY PROG. (ACV MAXIMUM LIMITS): BUILDING $100,000 CONTENTS $100,000 REGULAR PROGRAM (ACV MAXIMUM LIMITS): BUILDING $500,000 CONTENTS $500,000 NO $35.00 NON RESIDENTIAL UNIT OWNERS GENERAL PROPERTY FORM INDIVIDUAL UNIT OWNERS NON-RESIDENTIAL CONDO UNITS (ONLY CONTENTS ARE AVAILABLE) COMMERCIAL CONTENTS ONLY EMERGENCY AND REGULAR PROGRAMS ARE ELIGIBLE NO NO EMERGENCY PROG.: $100,000 MAXIMUM REGULAR PROGRAM: $500,000 MAXIMUM NO $35.00 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. 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, 2008 PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Limits of Coverage Type of Coverage Rate Table3 Policy Form4 UNIT OWNER SINGLE FAMILY SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY DWELLING ASSOCIATION (SINGLE UNIT ONLY) SINGLE FAMILY SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 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 BUILDING.THE TOTAL NUMBER OF UNITS X $250,000 CONTENTS.$100,000 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 Limits of Coverage Type of Coverage Rate Table3 Policy Form4 UNIT OWNER 2-4 SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; 2-4 FAMILY FOR CONTENTS DWELLING ASSOCIATION (SINGLE UNIT ONLY) 2-4 SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; 2-4 FAMILY FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) 2-4 LOW-RISE HOUSEHOLD BUILDING.THE TOTAL NUMBER OF UNITS X $250,000 CONTENTS.$100,000 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 Limits of Coverage Type of Coverage Rate Table3 Policy Form4 UNIT OWNER OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (SINGLE UNIT ONLY) OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) OTHER RESIDENTIAL LOW-RISE HOUSEHOLD BUILDING.THE TOTAL NUMBER OF UNITS X $250,000 CONTENTS.$100,000 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 MULTI-UNIT BUILDING.5 OR MORE UNITS PER BUILDING.THREE OR MORE FLOORS6 CONDO 5 May 1, 2008 PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Limits of Coverage Type of Coverage Rate Table3 Policy Form4 UNIT OWNER OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (SINGLE UNIT ONLY) OTHER RESIDENTIAL SINGLE UNIT HOUSEHOLD BUILDING.$250,000 CONTENTS.$100,000 RC5 SINGLE FAMILY FOR BUILDING; OTHER RESIDENTIAL FOR CONTENTS DWELLING ASSOCIATION (ENTIRE BUILDING) OTHER RESIDENTIAL HIGH-RISE HOUSEHOLD BUILDING.THE TOTAL NUMBER OF UNITS X $250,000 CONTENTS.$100,000 RC RCBAP HIGH-RISE RCBAP NON-RESIDENTIAL CONDOMINIUMS PURCHASER OF POLICY Building Occupancy1 Building Indicator1 Contents Indicator2 Limits of Coverage Type of Coverage Rate Table3 Policy Form4 UNIT OWNER NON-RESIDENTIAL SINGLE UNIT (BUILDING COVERAGE NOT AVAILABLE) BUSINESS EMERGENCY.$100,000 REGULAR.$500,000 CONTENTS ONLY ACV NON-RESIDENTIAL GENERAL PROPERTY ASSOCIATION NON-RESIDENTIAL LOW-RISE BUSINESS BUILDING. EMERGENCY.$100,000 REGULAR.$500,000 ACV NON-RESIDENTIAL GENERAL PROPERTY CONTENTS. EMERGENCY.$100,000 REGULAR.$500,000 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 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. This will include townhouse/rowhouse and detached single family condominium buildings. The RCBAP is available for all high-rise and low-rise residential condominium buildings in the Regular Program only. Residential condominium buildings that are being used as a hotel or motel, or are being rented (either short- or long-term), must be insured on 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. Cooperative ownership buildings are not eligible. Timeshare buildings having 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 renewal as an RCBAP. 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 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, 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. 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, CONDO 6 May 1, 2008 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 $50,000. • For residential townhouse/rowhouse and low- rise condominiums, the building basic limit amount of insurance is $50,000 multiplied by the number of units in the building. • For high-rise condominiums, the building basic amount of insurance is $150,000. • The contents basic limit amount of insurance is $20,000. • 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 11 and Section III. C.3. of the Dwelling Form, “Condominium Loss Assessments,” on page POL 8. CONDO 7 May 1, 2008 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 $1,000 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 $500. Optional deductible amounts are available under the RCBAP. B. Federal Policy Fee The Federal Policy Fees for the RCBAP are: 1 unit -$ 35.00 per policy 2-4 units -$ 70.00 per policy 5-10 units -$ 175.00 per policy 11-20 units -$ 385.00 per policy 21 or more -$ 735.00 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 inspection report that states the building's value on an RCV basis. The cost of the building's foundation must be included in determining the RCV. 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 CONDO 8 May 1, 2008 reasonable accuracy of the RCV for the building, the agent must update this information at least every 3 years. 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 $150,000. The building Basic Limit amount of insurance for low-rise condominium buildings is $50,000 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 nonresidential) 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 $20,000 may be filled in. For the Additional Limits, up to a total of $80,000 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. CONDO 9 May 1, 2008 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/.19 1.08/.46 1.06/.05 1.06/.05 1.16/.24 With Basement .90/.27 1.15/.99 1.29/.07 1.29/.07 SUBMIT FOR RATEWith Enclosure .90/.19 1.15/.48 1.12/.05 1.12/.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 and above .96/.81 1.23/2.04 1.53/.56 1.53/.56 SUBMIT FOR RATEEnclosure and above .96/.97 1.23/2.43 1.53/.65 1.53/.65 Lowest floor only- above ground level .96/.97 1.23/2.43 1.20/.59 1.20/.59 1.11/.70 Lowest floor above ground level and higher floors .96/.67 1.23/2.13 1.20./.34 1.20/.34 1.11/.48 Above ground level more than 1 full floor .35/.12 .47/.29 .35/.12 .35/.12 .35/.12 BUILDING—A1-A30, AE · POST-FIRM ELEVATION 3 OR MORE FLOORS NO BASEMENT/ENCLOSURE 3 OR MORE FLOORS WITH BASEMENT/ENCLOSURE +4 .33/.03 .33/.03 +3 .35/.03 .34/.03 +2 .40/.03 .36/.03 +1 .72/.04 .53/.04 0 1.28/.05 1.15/.05 -12 5.26/.15 2.98/.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./ENCL.) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER (NO BSMNT./ENCL.) BASEMENT/ ENCLOSURE 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 1.24/.12 .69/.12 .41/.12 .35/.12 -12 3.74/.75 2.11/.58 .60/.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 crawl space (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. CONDO 10 May 1, 2008 TABLE 3B. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) AO, AH POST-FIRM NO BASEMENT/ENCLOSURE BUILDINGS1 BUILDING CONTENTS WITH CERTIFICATION OF COMPLIANCE2 .44/.04 .38/.13 WITHOUT CERTIFICATION OF COMPLIANCE OR WITHOUT ELEVATION CERTIFICATE3 .99/.08 1.18/.24 POST-FIRM UNNUMBERED A-ZONE - WITHOUT BASEMENT/ENCLOSURE1 ELEVATION DIFFERENCE TO NEAREST FOOT BUILDING CONTENTS4 TYPE OF ELEVATION CERTIFICATE +5 OR MORE .81/.05 .62/.12 NO ESTIMATED BASE FLOOD ELEVATION5 +2 TO +4 1.41/.06 .87/.17 +1 2.31/.14 1.54/.57 0 OR BELOW *** *** +2 OR MORE .70/.04 .51/.12 WITH ESTIMATED BASE FLOOD ELEVATION6 0 TO +1 1.24/.06 .85/.16 -1 5.19/.17 2.46/.74 -2 OR BELOW *** *** NO ELEVATION CERTIFICATE 6.60/1.27 3.36/1.00 NO ELEVATION CERTIFICATE 1Zones A, AO, or AH buildings with basement/enclosure--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. ***SUBMIT FOR RATING. CONDO 11 May 1, 2008 TABLE 3C. RCBAP HIGH-RISE CONDOMINIUM RATES ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) AR AND AR DUAL ZONES BUILDING PRE-FIRM1,2 AND POST-FIRM3 NOT ELEVATION-RATED BUILDING TYPE RATES No Basement/Enclosure 1.06/.05 With Basement 1.29/.07 With Enclosure 1.12/.05 CONTENTS PRE-FIRM1,2 AND POST-FIRM3 NOT ELEVATION-RATED CONTENTS LOCATION RATES Basement and above 1.53/.56 Enclosure and above 1.53/.65 Lowest floor only- above ground level 1.20/.59 Lowest floor above ground level and higher floors 1.20/.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 3 OR MORE FLOORS WITH BASEMENT/ENCLOSURE +4 .33/.03 .33/.03 +3 .35/.03 .34/.03 +2 .40/.03 .36/.03 +1 .72/.04 .53/.04 0 1.06/.05 1.15/.05 -14 See Footnote CONTENTS PRE-FIRM AND POST-FIRM ELEVATION-RATED ELEVATION LOWEST FLOOR ONLY- ABOVE GROUND LEVEL (NO BSMNT./ENCL.) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER (NO BSMNT./ENCL.) BASEMENT/ ENCLOSURE 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 1.24/.12 .69/.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 $1,000. 3Base deductible is $500. 4Use Pre-FIRM AR and AR Dual Zones Rate Table above. CONDO 12 May 1, 2008 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 3 OR MORE FLOORS WITH BASEMENT/ENCLOSURE 03 2.70/.14 2.57/.14 -14 7.87/.56 4.14/.42 -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) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE) BASEMENT/ ENCLOSURE AND ABOVE ABOVE GROUND LEVEL-MORE THAN ONE FULL FLOOR 03 3.96/.56 2.62/.62 1.47/.68 .55/.25 -14 8.81/4.27 5.20/3.30 1.73/.68 .55/.25 -2 *** *** *** *** 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 19-20. 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. ***SUBMIT FOR RATING. REGULAR PROGRAM 1975-1981 POST-FIRM CONSTRUCTION1 UNNUMBERED V ZONE--ELEVATED BUILDINGS SUBMIT FOR RATING CONDO 13 May 1, 2008 TABLE 4A. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) REGULAR PROGRAM -- PRE-FIRM CONSTRUCTION RATES 1 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/.52 .96/.97 .93/1.27 1.23/2.34 .74/.21 1.20/.37 WITH BASEMENT .75/.64 .96/.81 1.00/2.21 1.23/2.20 .81/.30 1.36/.46 WITH ENCLOSURE .75/.75 .96/.84 1.00/2.40 1.23/2.39 .81/.34 1.36/.54 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/.70 WITH BASEMENT .81/.30 1.36/.46 *** *** WITH ENCLOSURE .81/.34 1.36/.54 F I R M Z O N E S: AO, AH (NO BASEMENT/ENCLOSURE BUILDINGS ONLY)2 BUILDING CONTENTS WITH CERTIFICATION OF COMPLIANCE3 .21/.08 .38/.13 WITHOUT CERTIFICATION OF COMPLIANCE OR WITHOUT ELEVATION CERTIFICATE4 .86/.21 1.18/.24 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: 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. CONDO 14 May 1, 2008 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 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE +4 .18/.08 .18/.08 .18/.08 +3 .18/.08 .18/.08 .18/.08 +2 .27/.08 .18/.08 .18/.08 +1 .49/.08 .28/.08 .23/.08 0 1.08/.09 .71/.09 .55/.09 -12 2.88/.84 2.15/.77 1.25/.52 -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) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE) BASEMENT/ENCLOSURE 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 1.24/.12 .69/.12 .41/.12 .35/.12 -12 3.74/.75 2.11/.58 .60/.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 the enclosure below the lowest floor of an elevated building or if the crawl space (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. ***SUBMIT FOR RATING. CONDO 15 May 1, 2008 TABLE 4C. RCBAP LOW-RISE CONDOMINIUM RATES (Including Townhouse/Rowhouse) ANNUAL RATES PER $100 OF COVERAGE (Basic/Additional) UNNUMBERED ZONE A - WITHOUT BASEMENT/ENCLOSURE1 ELEVATION DIFFERENCE TO NEAREST FOOT BUILDING CONTENTS2 TYPE OF ELEVATION CERTIFICATE +5 OR MORE .33/.11 .62/.12 NO ESTIMATED BASE FLOOD ELEVATION3 +2 TO +4 .90/.13 .87/.17 +1 1.86/.67 1.54/.57 0 OR BELOW *** *** +2 OR MORE .31/.08 .51/.12 WITH ESTIMATED BASE FLOOD ELEVATION4 0 TO +1 .71/.11 .85/.16 -1 2.66/.84 2.46/.74 -2 OR BELOW *** *** NO ELEVATION CERTIFICATE5 3.37/1.45 3.36/1.00 NO ELEVATION CERTIFICATE 1Zone A building with basement (including crawl space below grade on all sides) or enclosure--Submit for Rating. 2For elevation rated policies, when contents are located one floor or more above lowest floor used for rating, use .35/.12.3NO 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. 4WITH 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. 5For building without basement or enclosure, Elevation Certificate is optional. ***SUBMIT FOR RATING. CONDO 16 May 1, 2008 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 .74/.21 1.20/.37 WITH BASEMENT .81/.30 1.36/.46 WITH ENCLOSURE .81/.34 1.36/.54 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 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE +4 .18/.08 .18/.08 .18/.08 +3 .18/.08 .18/.08 .18/.08 +2 .27/.08 .18/.08 .18/.08 +1 .49/.08 .28/.08 .23/.08 0 .74/.21 .71/.09 .55/.09 -14 See Footnote CONTENTS RATES ELEVATION OF LOWEST FLOOR ABOVE OR BELOW BFE CONTENTS LOCATION LOWEST FLOOR ONLY - ABOVE GROUND LEVEL (NO BASEMENT/ENCLOSURE) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE) BASEMENT/ENCLOSURE 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 1.24/.12 .69/.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 $1,000. 3Base deductible is $500. 4Use Pre-FIRM AR and AR Dual Zones Rate Table above. CONDO 17 May 1, 2008 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 MORE THAN ONE FLOOR NO BASEMENT/ENCLOSURE MORE THAN ONE FLOOR WITH BASEMENT/ENCLOSURE 03 2.43/.45 1.97/.45 1.68/.45 -14 5.31/2.77 4.86/2.77 3.47/2.51 -2 *** *** *** REGULAR PROGRAM -- 1975-19811 -- POST-FIRM CONSTRUCTION2 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) LOWEST FLOOR ABOVE GROUND LEVEL AND HIGHER FLOORS (NO BASEMENT/ENCLOSURE) BASEMENT/ENCLOSURE AND ABOVE ABOVE GROUND LEVEL - MORE THAN ONE FULL FLOOR 03 4.00/.56 2.62/.62 1.47/.68 .55/.25 -14 8.81/4.27 5.20/3.30 1.73/.68 .55/.25 -2 *** *** *** .55/.25 REGULAR PROGRAM -- 1975-1981 -- POST-FIRM CONSTRUCTION2 UNNUMBERED V ZONE -- ELEVATED BUILDINGS SUBMIT FOR RATING 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. ***SUBMIT FOR RATING. CONDO 18 May 1, 2008 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 .61 .50 +3 .74 .51 +2 .97 .69 +1 1.41 1.11 0 1.80 1.66 - 1 2.39 2.30 - 2 3.14 3.14 - 3 4.04 4.25 - 4 or lower *** *** Rates above are only for elevated buildings. Use Specific Rating Guidelines for non-elevated buildings. 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. 2Free 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. 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. 3Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. ***SUBMIT FOR RATING. Include a copy of the variance, a recent photograph and blueprints (including a site grading plan if ocean front) with the Application, and a post-construction (or pre-construction if builder’s risk) Elevation Certificate. Do not submit any premium with the application. No applicant for insurance on Post-FIRM construction or substantial improvement for which asterisks are shown (there is no risk premium rate) in the Flood Insurance Manual can obtain flood coverage until FEMA has approved the Application and established the risk premium for the building. CONDO 19 May 1, 2008 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 1.10 .63 +3 1.22 .64 +2 1.45 .81 +1 1.84 1.23 0 2.24 1.78 -15 2.77 2.42 -25 3.52 3.25 -35 4.43 4.36 - 4 or lower5 *** *** 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. 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. 3With 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). 4Wave height adjustment is not required in those cases where the Flood Insurance Rate Map indicates that the map includes wave height. 5For 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. Include a copy of the variance, a recent photograph and blueprints (including a site grading plan if ocean front) with the Application, and a post-construction (or pre-construction if builder’s risk) Elevation Certificate. Do not submit any premium with the application. No applicant for insurance on Post-FIRM construction or substantial improvement for which asterisks are shown (there is no risk premium rate) in the Flood Insurance Manual can obtain flood coverage until FEMA has approved the Application and established the risk premium for the building. 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 SUBMIT FOR RATING CONDO 20 May 1, 2008 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 $ 6 AR, AR DUAL ZONES $ 6 Post-’81 V1-V30, VE $ 20 ‘75-’81 V1-V30, VE $ 35 A99, B, C, X, D $ 6 Pre-FIRM A, AE, A1-A30, AO, AH $ 75 AR, AR DUAL ZONES $ 6 V, VE, V1-V30 $ 75 A99, B, C, X, D $ 6 1Use the ICC premium table contained in the Specific Rating Guidelines. 2Elevation-rated Pre-FIRM buildings should use Post-FIRM ICC premiums. CONDO 21 May 1, 2008 TABLE 7. RCBAP DEDUCTIBLE FACTORS – ALL ZONES Category One – Low-Rise Condominium Building-and-Contents Policies DEDUCTIBLE DEDUCTIBLE FACTOR OPTIONS Single Family 2-4 Units 5 or More Units Building/Contents $500 Ded. $1,000 Ded. $500 Ded. $1,000 Ded. $500 Ded. $1,000 Ded. $500/ $500 1.000 1.125 1.000 1.025 1.000 1.015 $1,000/$1,000 .950 1.000 .965 1.000 .980 1.000 $2,000/$1,000 .900 .950 .930 .965 .960 .980 $3,000/$1,000 .850 .900 .900 .935 .940 .960 $4,000/$2,000 .800 .825 .850 .885 .910 .930 $5,000/$2,000 .760 .775 .810 .845 .890 .920 $10,000/$10,000 .625 .635 .650 .660 .825 .840 $25,000/$25,000 .525 .535 .550 .560 .725 .740 Category Two – Low-Rise Condominium Building-Only Policies DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR Single Family 2-4 Units 5 or More Units $500 Ded. $1,000 Ded. $500 Ded. $1,000 Ded. $500 Ded. $1,000 Ded. $500 1.000 1.125 1.000 1.025 1.000 1.015 $1,000 .950 1.000 .965 1.000 .980 1.000 $2,000 .885 .925 .925 .950 .950 .970 $3,000 .825 .865 .875 .910 .920 .940 $4,000 .775 .825 .825 .870 .900 .920 $5,000 .725 .765 .800 .835 .880 .900 $10,000 .620 .630 .640 .650 .815 .830 $25,000 .520 .530 .540 .550 .715 .730 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 DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR MAXIMUM DISCOUNT $500 Deductible $1,000 Deductible $500/ $500 1.000 1.050 N/A $1,000/$1,000 .980 1.000 $ 56 $2,000/$2,000 .960 .980 $ 111 $3,000/$3,000 .940 .960 $ 166 $4,000/$4,000 .910 .930 $ 221 $5,000/$5,000 .890 .920 $ 276 $10,000/$10,000 .825 .840 $ 501 $25,000/$25,000 .725 .740 $1,001 DEDUCTIBLE OPTIONS DEDUCTIBLE FACTOR MAXIMUM DISCOUNT $500 Deductible $1,000 Deductible $500 1.000 1.100 N/A $1,000 .980 1.000 $ 55 $2,000 .950 .970 $ 110 $3,000 .920 .940 $ 165 $4,000 .900 .920 $ 220 $5,000 .880 .900 $ 275 $10,000 .815 .830 $ 500 $25,000 .715 .730 $1,000 CONDO 22 May 1, 2008 X. CONDOMINIUM RATING EXAMPLES 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 CONDO 23 May 1, 2008 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/$1,000 • Deductible Factor: .980 • Replacement Cost: $600,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $480,000 • ICC Premium: $75 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .75/.64 Contents: .96/.84 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 .64 0 -21 140,000 1,029 CONTENTS 20,000 .96 192 80,000 .84 672 -17 100,000 847 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 1,876 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 1,951 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 1,951 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 175 SIGNATURE OF INSURANCE AGENT/BROKER DATE(MM/DD/YY) TOTAL PREPAID AMOUNT 2,126 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $1,050 / Contents: $864 2. Apply Deductible Factor: Building: .980 x $1,050 = $1,029 / Contents: .980 x $864 = $847 3. Premium Reduction: Building: $1,050 - $1,029 = $21 / Contents: $864 - $847 = $17 4. Subtotal: $1,876 5. Add ICC Premium: $75 6. Subtract CRS Discount: N/A 7. Subtotal: $1,951 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $175 10. Total Prepaid Amount: $2,126 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.) CONDO 24 May 1, 2008 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: $500/$500 • Deductible Factor: 1.015 • Replacement Cost: $600,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $480,000 • ICC Premium: $75 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .70/.52 Contents: .96/.97 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 300,000 .70 2,100 180,000 .52 936 +46 480,000 3,082 CONTENTS 20,000 .96 192 30,000 .97 291 +7 50,000 490 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 3,572 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 3,647 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 3,647 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 175 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 3,822 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $3,036 / Contents: $483 2. Apply Deductible Factor: Building: 1.015 x $3,036 = $3,082 / Contents: 1.015 x $483 = $490 3. Premium Increase: Building: $3,036 - $3,082 = $46 / Contents: $483 - $490 = $7 4. Subtotal: $3,572 5. Add ICC Premium: $75 6. Subtract CRS Discount: N/A 7. Subtotal: $3,647 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $175 10. Total Prepaid Amount: $3,822 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since minimum insurance amount of 80% was met. CONDO 25 May 1, 2008 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: $500/$500 • Deductible Factor: 1.000 • Replacement Cost: $1,120,000 • Elevation Difference: +1 • 80% Coinsurance Amount: $896,000 • ICC Premium: $6 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .28/.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 700,000 .28 1,960 50,000 .08 40 0 750,000 2,000 CONTENTS 20,000 .38 76 80,000 .12 96 0 100,000 172 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 2,172 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 2,178 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 2,178 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 385 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 2,563 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $2,000 / Contents: $172 2. Apply Deductible Factor: Building: 1.000 x $2,000 = $2,000 / Contents: 1.000 x $172 = $172 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $2,172 5. Add ICC Premium: $6 6. Subtract CRS Discount: N/A 7. Subtotal: $2,178 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $385 10. Total Prepaid Amount: $2,563 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.) CONDO 26 May 1, 2008 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: $500/$500 • Deductible Factor: 1.000 • Replacement Cost: $600,000 • Elevation Difference: +2 • 80% Coinsurance Amount: $480,000 • ICC Premium: $6 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .18/.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 300,000 .18 540 300,000 .08 240 0 600,000 780 CONTENTS 15,000 .38 57 0 .12 0 15,000 57 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 837 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 843 .. MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 843 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 175 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 1,018 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $780 / Contents: $57 2. Apply Deductible Factor: Building: 1.000 x $780 = $780 / Contents: 1.000 x $57 = $57 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $837 5. Add ICC Premium: $6 6. Subtract CRS Discount: N/A 7. Subtotal: $843 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $175 10. Total Prepaid Amount: $1,018 CLAIMS ADJUSTMENT WITH COINSURANCE PROVISION Coinsurance Penalty does not apply since the minimum insurance amount of 80% was met. CONDO 27 May 1, 2008 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: $1,000/$1,000 • Deductible Factor: 1.000 • Replacement Cost: $1,500,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $1,200,000 • ICC Premium: $75 ($30,000 Coverage) • CRS Rating: 5 • CRS Discount: 25% Determined Rates: Building: .85/.19 Contents: .96/.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 150,000 .85 1,275 960,000 .19 1,824 0 1,110,000 3,099 CONTENTS 20,000 .96 192 80,000 .67 536 0 100,000 728 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 3,827 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 3,902 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 25% -976 . PROVISIONAL RATING SUBTOTAL 2,926 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 735 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 3,661 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $3,099 / Contents: $728 2. Apply Deductible Factor: Building: 1.000 x $3,099 = $3,099 / Contents: 1.000 x $728 = $728 3. Premium Reduction/Increase: Building: $0 / Contents: $0 4. Subtotal: $3,827 5. Add ICC Premium: $75 6. Subtract CRS Discount: - $976 (25%) 7. Subtotal: $2,926 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $735 10. Total Prepaid Amount: $3,661 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.) CONDO 28 May 1, 2008 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: .920 (Maximum Total Discount of $276 applies) • Replacement Cost: $3,750,000 • Elevation Difference: N/A • 80% Coinsurance Amount: $3,000,000 • ICC Premium: $75 ($30,000 Coverage) • CRS Rating: 8 • CRS Discount: 10% Determined Rates: Building: .90/.27 Contents: .96/.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 150,000 .90 1,350 2,850,000 .27 7,695 -276 3,000,000 8,769 CONTENTS 20,000 .96 192 80,000 .81 648 0 100,000 840 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 9,609 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 9,684 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 10% -968 . PROVISIONAL RATING SUBTOTAL 8,716 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 735 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 9,451 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $9,045 / Contents: $840 2. Apply Deductible Factor: Building: .920 x $9,045 = $8,321 / Contents: .920 x $840 = $773 3. Premium Reduction: Building: $276 (maximum discount since $9,045 - $8,321 = $724 exceeds the maximum) / Contents: $0 4. Subtotal: $9,609 5. Add ICC Premium: $75 6. Subtract CRS Discount: -$968 (10%) 7. Subtotal: $8,716 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $735 10. Total Prepaid Amount: $9,451 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. CONDO 29 May 1, 2008 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: $500/$500 • Deductible Factor: 1.000 • Replacement Cost: $15,000,000 • Elevation Difference: 0 • 80% Coinsurance Amount: $12,000,000 • ICC Premium: $6 ($30,000 Coverage) • CRS Rating: 9 • CRS Discount: 5% Determined Rates: Building: 1.28/.05 Contents: .69/.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 150,000 1.28 1,920 11,850,000 .05 5,925 0 12,000,000 7,845 CONTENTS 15,000 .69 104 0 .12 0 0 15,000 104 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 7,949 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 6 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 7,955 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT 5% -398 . PROVISIONAL RATING SUBTOTAL 7,557 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 735 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 8,292 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $7,845 / Contents: $104 2. Apply Deductible Factor: Building: 1.000 x $7,845 = $7,845 / Contents: 1.000 x $104 = $104 3. Premium Increase: Building: $0 / Contents: $0 4. Subtotal: $7,949 5. Add ICC Premium: $6 6. Subtract CRS Discount: - $398 (5%) 7. Subtotal: $7,557 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $735 10. Total Prepaid Amount: $8,292 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. CONDO 30 May 1, 2008 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: $2,000/$2,000 • 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: $75 ($30,000 Coverage) • CRS Rating: N/A • CRS Discount: N/A Determined Rates: Building: .90/.19 Contents: .96/.97 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 150,000 .90 1,350 3,850,000 .19 7,315 -111 4,000,000 8,554 CONTENTS 20,000 .96 192 80,000 .97 776 0 100,000 968 RATE TYPE: (ONE BUILDING PER POLICY.BLANKET COVERAGE NOT PERMITTED) PAYMENT ANNUAL SUBTOTAL 9,522 . MANUAL . SUBMIT FOR RATING OPTION: ICC PREMIUM 75 . ALTERNATIVE . V-ZONE RISK RATING FORM . CREDIT CARD SUBTOTAL 9,597 . MORTGAGE PORTFOLIO PROTECTION PROGRAM . OTHER: CRS PREMIUM DISCOUNT % . . PROVISIONAL RATING SUBTOTAL 9,597 THE ABOVE STATEMENTS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. I UNDERSTAND THAT PROBATION SURCHARGE . ANY FALSE STATEMENTS MAY BE PUNISHABLE BY FINE OR IMPRISONMENT UNDER APPLICABLE FEDERAL LAW. FEDERAL POLICY FEE 735 SIGNATURE OF INSURANCE AGENT/BROKER DATE (MM/DD/YY) TOTAL PREPAID AMOUNT 10,332 Premium Calculation: 1. Multiply Rate x $100 of Coverage: Building: $8,665 / Contents: $968 2. Apply Deductible Factor: Building: .980 x $8,665 = $8,492 / Contents: .980 x $968 = $949 3. Premium Reduction: Building: $111 (maximum discount since $8,665 - $8,492 = $173 exceeds the maximum) / Contents: $0 4. Subtotal: $9,522 5. Add ICC Premium: $75 6. Subtract CRS Discount: N/A 7. Subtotal: $9,597 8. Probation Surcharge: N/A 9. Add Federal Policy Fee: $735 10. Total Prepaid Amount: $10,332 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.) CONDO 31 May 1, 2008 LOWEST FLOOR GUIDE This section is to be used as a guide for identifying the lowest floor for rating buildings being considered for coverage under the National Flood Insurance Program. I. LOWEST FLOOR DETERMINATION The following guidance, along with the comments accompanying each building drawing provided in this section (pages LFG 8-59), will help insurance agents determine the lowest floor so that the appropriate rate can be applied. A. Non-Elevated Buildings In a non-elevated building, the lowest floor used for rating is the building’s lowest floor including a basement, if any. If a building located in an A zone (any flood zone beginning with the letter A) has an attached garage, and the floor level of the garage is below the level of the building, and there is machinery/equipment on the floor of the garage that is below the Base Flood Elevation (BFE), the lowest floor is the garage floor unless the garage has proper openings (flood vents). See “Proper Openings” in the Definitions section. B. Elevated Buildings in A Zones In an elevated building located in an A zone (any flood zone beginning with the letter A), the lowest floor used for rating is the lowest elevated floor, with the exceptions described below. If a building located in an A zone has an enclosure below the elevated floor, including an attached garage, the enclosure or garage floor becomes the lowest floor for rating if any of the following conditions exists: • The enclosed space is finished (having more than 20 linear feet of finished wall [paneling, etc.]); or • The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage; or • The unfinished enclosed space has no proper openings (flood vents). 1. Enclosures with Openings An elevated building with an enclosure below the elevated floor with proper openings (flood vents) in the enclosure can be rated using the elevated floor as the lowest floor. (For elevated buildings with proper openings in the enclosure, the application should indicate “No” for enclosure.) This rule applies to buildings in Zones A, A1-A30, AE, AO, AH, AR, and AR Dual. All enclosures (including an elevator shaft or a crawl space) below the lowest elevated floor must be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. A minimum of two openings, with positioning on at least two walls, having a total net area of not less than 1 square inch for every square foot of enclosed area must be provided. The bottom of all openings must be no higher than 1 foot above the grade underneath the openings. 2. Alternative to the Openings Requirement Above In situations where it is not feasible to meet the openings requirement above, it is acceptable to use the following certification/letter in order for the enclosure floor elevation to be excluded for rating: • A registered professional engineer or architect certification that the flood openings are designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. This certification is required to assure community officials that the openings are designed in accordance with accepted standards of practice. For acceptable certifications, refer FEMA Technical Bulletin 1-93, “Openings in Foundation Walls for Buildings Located in Special Flood Hazard Areas” www.fema.gov/pdf/fima/job2.pdf; or • A letter or other written evidence from the community building official that the flood openings have been accepted by the community as an alternative to the openings requirement in the International Building Code or the local ordinance based on the issuance of an Evaluation Report on openings by the International Code Council Evaluation Service (ICC-ES); or • An Evaluation Report issued by the ICCES indicating that the automatic flood vents meet code requirements. This report provides the specification on the number of flood vents required for a specified square footage of enclosed area below the BFE. LFG 1 May 1, 2008 3. Crawl Spaces If a building elevated on a crawl space is located in an A zone and has an attached garage, use the following guidelines to determine the lowest floor for rating: • Use the top of the crawl space (underfloor space) floor or the garage floor, whichever is lower, if neither the crawl space nor the garage has proper openings; or • Use the top of the crawl space floor, if the only area that has proper openings is the garage; or • Use the top of the garage floor, if the only area that has proper openings is the crawl space; or • Use the top of the finished floor (habitable floor), if both the crawl space and the garage have proper openings. Pre-FIRM buildings with subgrade crawl spaces that are below the BFE may use optional Post-FIRM elevation rating. Follow the Submit-for-Rate procedures. C. Elevated Buildings in V Zones In Zones V, VE, and V1-V30, the floor of an enclosed area below the lowest elevated floor is the building's lowest floor if one or more of the following conditions are met: • The enclosed space is finished (having more than 20 linear feet of finished wall [paneling, etc.]); or • The unfinished enclosed space is used for other than building access (stairwells, elevators, etc.), parking, or storage; or • The enclosed space is of any size, and there is machinery or equipment below the BFE located inside or outside the enclosed space. (Machinery or equipment is defined as building items permanently affixed to the building and that provide utility services for the building—i.e., furnaces, hot water heaters, heat pumps, air conditioners, and elevators and their associated equipment. Washers, dryers, and food freezers are contents items and are not considered machinery or equipment.); or • The enclosed space is constructed with non- breakaway walls (A non-breakaway wall is defined as a wall that is attached to the structural support of the building and is not designed or constructed to collapse under specific lateral loading forces. This type of construction endangers the foundation system of the building.); or • The enclosed space is 300 square feet or more and has breakaway walls; or • The enclosed space has load-bearing (supporting) walls. If the enclosed space (enclosure) is at or above the BFE, use the “Free of Obstruction” rate table on page RATE 7 or page CONDO 19, as appropriate. Also use these rates if an enclosure has solid load-bearing walls that provide less than 25 percent of the building’s structural support. The elevation of the bottom enclosure floor is the lowest floor for rating (LFE). Also see “D. Post-’81 V Zone Optional Rating” on page RATE 23. II. USE OF ELEVATION CERTIFICATE The Elevation Certificate (EC) is used to properly rate buildings located in Special Flood Hazard Areas (SFHAs). Use the criteria below in determining whether use of the EC is mandatory or optional. (See the Special Certifications section, pages CERT 1-2, for more information on using the EC.) A. Mandatory Use of Elevation Certificate An EC is required for a Post-FIRM building located in Zones AE, A1-A30, VE, V1-V30, or a Pre-FIRM building opting for Post-FIRM rates (see “B.” below). An EC is also required for a Post-FIRM building located in unnumbered A Zones (With or Without Estimated BFE), Zone AH, and Zone AO, if the building has a basement or enclosure without proper openings. If the building is Post-FIRM construction located in unnumbered A Zones, check with the community official to determine if there is an estimated Base Flood Elevation. If available, an EC that certifies the lowest floor elevation must be submitted. B. Optional Rating Using the Elevation Certificate Buildings located in AR and AR Dual zones, or constructed prior to publication of the initial Flood Insurance Rate Map (Pre-FIRM), can, at the option of the insured, be elevation-rated using Post-FIRM rates. The insured may select the more advantageous rate. In addition, the EC is optional in unnumbered A Zones (With or Without Estimated BFE), Zone AH, and Zone AO if the building has no basement or enclosure. LFG 2 May 1, 2008 LFG 3 May 1, 2008 LFG 4 May 1, 2008 LFG 5 May 1, 2008 LFG 6 May 1, 2008 LFG 7 May 1, 2008 III. SPECIFIC BUILDING DRAWINGS Table of Contents SECTION PAGE Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones B, C, X, A99, and D................................................................................LFG 9 - LFG 11 Non-Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones B, C, X, A99, and D................................................................................LFG 12 - LFG 13 Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones A, AO, and AH .......................................................................................LFG 14 - LFG 18 Non-Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones A, AO, and AH .......................................................................................LFG 19 - LFG 21 Non-Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones AE and A1-A30 ...................................................................................................LFG 22 - LFG 27 Elevated Buildings for Pre- and Post-FIRM Risks in Flood Zones AE and A1-A30 .............................................................................................................LFG 28 - LFG 38 Non-Elevated Buildings for Pre- and Post-FIRM Risks with Construction Dates of 1975 to September 30, 1981, in Flood Zones VE and V1-V30 ...................................................................................................LFG 39 - LFG 42 Elevated Buildings for Pre- and Post-FIRM Risks with Construction Dates of 1975 to September 30, 1981, in Flood Zones VE and V1-V30 ...................................................................................................LFG 43 - LFG 51 Elevated Buildings for Post-FIRM Risks in Flood Zones VE and V1-V30, Construction Date October 1, 1981, and After...............................................LFG 52 - LFG 59 LFG 8 May 1, 2008 LFG 9 May 1, 2008 ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES B, C, X, A99, AND D 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Designed with proper openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating No Elevation Certificate Required Application Should Show Building Type. One floor Is Building Elevated?. Yes Is area below the elevated floor enclosed?. No Pre-FIRM Rating Use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. LFG 10 May 1, 2008 ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES B, C, X, A99, AND D 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page. Building Description Two floors and unfinished enclosed area Elevating Foundation of Building Solid perimeter load-bearing walls. No openings Type of Enclosure Unfinished crawl space and garage Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating No Elevation Certificate Required Application Should Show Building Type. Three or more floors Is Building Elevated?. Yes Is area below the elevated floor enclosed?. Yes Pre-FIRM Rating Use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. LFG 11 May 1, 2008 ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES B, C, X, A99, AND D 1 4 LF. Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Nonload-bearing walls No proper openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating No Elevation Certificate Required Application Should Show Building Type. Two floors Is Building Elevated?. Yes Is area below the elevated floor enclosed?. Yes Pre-FIRM Rating Use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. LFG 12 May 1, 2008 NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES B, C, X, A99, AND D 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page Building Description One floor on slab Machinery or Equipment Servicing Building N/A Lowest Floor for Rating No Elevation Certificate Required Application Should Show Building Type. One floor Basement. None Is Building Elevated? . No Pre-FIRM Rating Use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. LFG 13 May 1, 2008 NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES B, C, X, A99, AND D 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page. Building Description One floor with finished or unfinished basement Machinery or Equipment Servicing Building With or without machinery or equipment in basement Lowest Floor for Rating No Elevation Certificate Required Application Should Show Building Type.Two floors Basement.Finished or unfinished Is Building Elevated?.No Pre-FIRM Rating Use Pre-FIRM rate table with basement category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor without enclosed area (See Elevation Certificate, Diagram 5) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure No enclosure Machinery or Equipment Servicing Building None Lowest Floor for Rating Top of lowest elevated floor Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use Pre-FIRM rate table no basement/enclosure category. AH Zone: If LF1 elevation is equal to or greater than BFE2, use with certification rate. If LF1 elevation is less than BFE2, use Pre-FIRM rate table . A Zone with estimated BFE2: If LF1 elevation is equal to or greater than the estimated BFE2, use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 2 ft. or more, use Post-FIRM no estimated base flood elevation rate table. If the difference is 1 ft. or less, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use without certification rate. AH Zone: If LF1 elevation is greater than or equal to BFE2, use with certification rate. If not, use without certification rate. A Zone with estimated BFE2: Use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is 2 or more feet below the estimated BFE2, submit the application to the NFIP for a rate. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 1 ft. or more, use Post-FIRM rate table no estimated base flood elevation category. If difference is 0 or less, submit the application to the NFIP for a rate. LFG 14 May 1, 2008 LFG 15 May 1, 2008 LF (C2.b) OPENINGS (A8.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Designed with proper openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of next higher floor Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use Pre-FIRM rate table no basement/enclosure category. AH Zone: If LF1 elevation is equal to or greater than BFE2, use with certification rate. If LF1 elevation is less than BFE2, use Pre-FIRM rate table A Zone with estimated BFE2: If LF1 elevation is equal to or greater than the estimated BFE2, use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 2 ft. or more, use Post-FIRM no estimated base flood elevation rate table. If the difference is 1 ft. or less, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use without certification rate. AH Zone: If LF1 elevation is greater than or equal to BFE2, use with certification rate. If not, use without certification rate. A Zone with estimated BFE2: Use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is 2 or more feet below the estimated BFE2, submit the application to the NFIP for a rate. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 1 ft. or more, use Post-FIRM rate table no estimated base flood elevation category. If the difference is 0 or less, submit the application to the NFIP for a rate. ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 2 3 LF.Lowest Floor BFE.Base Flood Elevation See page LFG 1 for explanation of proper openings 4 HAG.Highest Adjacent Grade 5 See page LFG 2 for optional elevation rating 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. LF (C2.a) Building Description Two floors and unfinished enclosed area Elevating Foundation of Building Solid load-bearing walls. No openings Type of Enclosure Unfinished crawl space and garage Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (lower of crawl space or garage) Application Should Show Building Type. Three or more floors Is Building Elevated?. Yes Is area below the elevated floor enclosed?. Yes Pre-FIRM Rating AO Zone: Use Pre-FIRM rate table with enclosure category. AH Zone: Use Pre-FIRM rate table with enclosure category. A Zone: Use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Submit the application to the NFIP for a rate. LFG 16 May 1, 2008 LFG 17 May 1, 2008 LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Nonload-bearing walls No openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (including basement or enclosure) Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating AO Zone: Use Pre-FIRM rate table with enclosure category. AH Zone: Use Pre FIRM rate table with enclosure category. A Zone: Use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Submit the application to the NFIP for a rate. LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Mobile home without enclosed area Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Vinyl skirting Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Top of lowest elevated floor Application Should Show Building Type. Mobile home Is Building Elevated?. Yes Is area below the elevated floor enclosed?. No Pre-FIRM Rating5 AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use Pre-FIRM rate table no basement/enclosure category. AH Zone: If LF1 elevation is equal to or greater than BFE2, use with certification rate. If LF1 elevation is less than BFE2, use Pre-FIRM rate table . A Zone with estimated BFE2: If LF1 elevation is equal to or greater than the estimated BFE2, use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 2 ft. or more, use Post-FIRM no estimated base flood elevation rate table. If the difference is 1 ft. or less, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use without certification rate. AH Zone: If LF1 elevation is greater than or equal to BFE2, use with certification rate. If not, use without certification rate. A Zone with estimated BFE2: Use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is 2 or more feet below the estimated BFE2, submit the application to the NFIP for a rate. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 1 ft. or more, use Post-FIRM rate table no estimated base flood elevation category. If difference is 0 or less, submit the application to the NFIP for a rate. LFG 18 May 1, 2008 LFG 19 May 1, 2008 LF (C2.a) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished basement (See Elevation Certificate, Diagram 2) Machinery or Equipment Servicing Building With or without machinery or equipment in the basement Lowest Floor for Rating Top of bottom floor (including basement or enclosure) Application Should Show Building Type— Two floors Basement— Finished or unfinished Is Building Elevated?— No Pre-FIRM Rating AO Zone: Use Pre-FIRM rate table with basement category. AH Zone: Use Pre-FIRM rate table with basement category. A Zone: Use Pre-FIRM rate table with basement category. Post-FIRM Rating Submit the application to the NFIP for a rate. NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. LF (C2.a) Building Description One floor on slab (See Elevation Certificate, Diagram 1) Machinery or Equipment Servicing Building N/A Lowest Floor for Rating Top of bottom floor Application Should Show Building Type— One floor Basement— None Is Building Elevated?— No Pre-FIRM Rating5 AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use Pre- FIRM rate table; no basement/enclosure category. AH Zone: If LF1 elevation is equal to or greater than BFE2, use with certification rate. If LF1 elevation is less than BFE2, use Pre-FIRM rate table. A Zone with estimated BFE2: If LF1 elevation is equal to or greater than the estimated BFE2, use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 2 ft. or more, use Post-FIRM no estimated base flood elevation rate table. If the difference is 1 ft. or less, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use without certification rate. AH Zone: If LF1 elevation is greater than or equal to BFE2, use with certification rate. If not, use without certification rate. A Zone with estimated BFE2: Use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is 2 or more feet below the estimated BFE2, submit the application to the NFIP for a rate. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 1 ft. or more, use Post-FIRM rate table no estimated base flood elevation category. If difference is 0 or less, submit the application to the NFIP for a rate. LFG 20 May 1, 2008 LFG 21 May 1, 2008 LF (C2.a) LF (C2.d) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES A, AO, AND AH 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with garage on slab (See Elevation Certificate, Diagram 1) Machinery or Equipment Servicing Building Machinery or equipment in garage. Lowest Floor for Rating Top of finished floor if the garage is used for parking vehicle and storage and the machinery/equipment is at or above the BFE, or if the machinery/equipment is below the BFE and the garage is properly vented. Application Should Show Building Type—Two floors Basement—None Is Building Elevated?—No Pre-FIRM Rating5 AO Zone: If difference between LF1 AND HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use Pre- FIRM rate table; no basement/enclosure category. AH Zone: If LF1 elevation is equal to or greater than BFE2, use with certification rate. If LF1 elevation is less than BFE2, use Pre-FIRM rate table. A Zone with estimated BFE2: If LF1 elevation is equal to or greater than the estimated BFE2, use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 2 ft. or more, use Post-FIRM no estimated base flood elevation rate table. If the difference is 1 ft. or less, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating AO Zone: If difference between LF1 and HAG4 is equal to or greater than Base Flood Depth, use with certification rate. If not, use without certification rate. AH Zone: If LF1 elevation is greater than or equal to BFE2, use with certification rate. If not, use without certification rate. A Zone with estimated BFE2: Use Post-FIRM rate table with the estimated base flood elevation category. If LF1 elevation is 2 or more feet below the estimated BFE2, submit the application to the NFIP for a rate. A Zone without estimated BFE2: If difference between the LF1 and HAG4 is 1 ft. or more, use Post-FIRM rate table no estimated base flood elevation category. If difference is 0 or less, submit the application to the NFIP for a rate. NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF. Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. LF (C2.a) Building Description One floor on slab (See Elevation Certificate, Diagram 1) Machinery or Equipment Servicing Building N/A Lowest Floor for Rating Top of bottom floor Application Should Show Building Type—One floor Basement—None Is Building Elevated?—No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 22 May 1, 2008 LFG 23 May 1, 2008 NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors on slab with attached garage (See Elevation Certificate, Diagram 1) Machinery or Equipment Servicing Building Machinery or equipment in garage Lowest Floor for Rating Top of finished floor if the garage is used for parking vehicle and storage and the machinery/equipment is at or above the BFE, or if the M/E is below the BFE and the garage is properly vented. Application Should Show Building Type— Two floors Basement— None Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 24 May 1, 2008 LF (C2.a) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors and unfinished basement/subgrade crawl space. Basement/subgrade crawl space floor is no more than 2 feet below grade, and the distance between the basement/subgrade crawl space floor and the top of the next higher floor is no more than 5 feet. Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Basement/subgrade crawl space Application Should Show Building Type. Three or more floors Is Building Elevated?. No Basement— Unfinished Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with basement category. Pre-FIRM buildings with subgrade crawl space(s) may use optional Post-FIRM elevation rating provided that the lowest floor is below the Base Flood Elevation (BFE). The building must be reported statistically as a Submit-for-Rate using Risk Rating Method “2.” Follow the procedures from the Specific Rating Guidelines for policy processing. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. See "G. Crawl Space" on page RATE 24. LFG 25 May 1, 2008 LF (C2.a) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors and unfinished basement/subgrade crawl space. Basement/subgrade crawl space floor is subgrade more than 2 feet, or subgrade no more than 2 feet, but the distance between the basement/subgrade crawl space floor and the top of the next higher floor is more than 5 feet. Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Basement/subgrade crawl space Application Should Show Building Type. Three or more floors Is Building Elevated?. No Basement— Unfinished Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with basement category. Pre-FIRM buildings with subgrade crawl space(s) may use optional Post-FIRM elevation rating provided that the lowest floor is below the Base Flood Elevation (BFE). The building must be reported statistically as a Submit- for-Rate using Risk Rating Method “2.” Follow the procedures from the Specific Rating Guidelines for policy processing. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 26 May 1, 2008 LF (C2.a) LF (C2.d) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor with attached garage Garage is at lower elevation than principal building area (See Elevation Certificate, Diagram 1) Machinery or Equipment Servicing Building Machinery or equipment in garage Lowest Floor for Rating Top of slab of principal building area only if the garage is used for parking vehicle and storage and the machinery/equipment is at or above the BFE, or if the M/E is below the BFE and the garage is properly vented. Application Should Show Building Type— One floor Basement— None Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 27 May 1, 2008 LF (C2.a) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Split level with unfinished or finished basement (See Elevation Certificate, Diagram 4) Machinery or Equipment Servicing Building With or without machinery or equipment in basement Lowest Floor for Rating Top of bottom floor (including basement) Application Should Show Building Type— Split level Basement— Finished or unfinished Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with basement category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 28 May 1, 2008 LF (C2.a) (WITH WALKOUT AT GROUND LEVEL) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with walkout at ground level Lower floor is not below grade on all sides Principal use of the building is on the elevated floor (See Elevation Certificate, Diagram 7) Elevating Foundation of Building Solid perimeter walls Type of Enclosure Load-bearing walls No openings Finished or unfinished lower level Machinery or Equipment Servicing Building With or without machinery or equipment at ground level Lowest Floor for Rating Top of bottom floor (enclosure) Application Should Show Building Type — Two floors Is Building Elevated? — Yes Is area below the elevated floor enclosed? — Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 29 May 1, 2008 LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF. Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor without enclosed area (See Elevation Certificate, Diagram 5) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure No enclosure Machinery or Equipment Servicing Building With or without machinery or equipment below the lowest elevated floor Lowest Floor for Rating Top of lowest elevated floor Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. LF (C2.b) OPENINGS (A8.c) Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Designed with proper openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of the next higher floor (elevated floor) Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 30 May 1, 2008 LFG 31 May 1, 2008 Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate NOTE: Above references may not apply to this page. Building Description Two floors and unfinished enclosed area Elevating Foundation of Building Solid load-bearing walls. No openings Type of Enclosure Unfinished crawl space. Attached garage at lower level than crawl space; garage above lowest adjacent grade Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (garage) Application Should Show Building Type. Three or more floors Is Building Elevated?. Yes Is area below the elevated floor enclosed?. Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 32 May 1, 2008 LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF. Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Nonload-bearing walls No openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (including basement or enclosure) Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?—Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 33 May 1, 2008 LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 7) Elevating Foundation of Building Solid perimeter load-bearing walls Type of Enclosure Unfinished enclosure No proper openings3 Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (including basement or enclosure) Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 34 May 1, 2008 LF (C2.a) LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid or partial perimeter walls Type of Enclosure Enclosed garage at same level as crawl space Unfinished crawl space without proper openings3 Floor of crawl space is at or above lowest adjacent grade Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Floor of crawl space and garage Application Should Show Building Type— Three or more floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate OPENINGS (A8.c), (A9.c)LF (C2.b) Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid or partial perimeter walls Type of Enclosure Unfinished crawl space and garage designed with proper openings3 Floor of crawl space is at or above lowest adjacent grade Garage at same level as crawl space Machinery or Equipment Servicing Building Without machinery or equipment in crawl space Lowest Floor for Rating Top of next higher floor Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 35 May 1, 2008 LFG 36 May 1, 2008 OPENINGS (A8.c) LF (C2.b) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid or partial perimeter walls Type of Enclosure Unfinished crawl space designed with proper openings3 Floor of crawl space is at or above lowest adjacent grade Machinery or Equipment Servicing Building With or without machinery or equipment in crawl space Lowest Floor for Rating Top of next higher floor Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM rate table no basement/enclosure category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate LF (C2.a) Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid or partial perimeter walls Type of Enclosure Unfinished crawl space without proper openings3 Floor of crawl space is at or above lowest adjacent grade Machinery or Equipment Servicing Building With or without machinery or equipment Lowest Floor for Rating Top of bottom floor (crawl space) Application Should Show Building Type— Three or more floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 37 May 1, 2008 LF (C2.a) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS IN FLOOD ZONES AE AND A1-A30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Mobile home without enclosed area Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Vinyl skirting Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Top of lowest elevated floor Application Should Show Building Type. Mobile home Is Building Elevated?. Yes Is area below the elevated floor enclosed?. No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Manufactured (Mobile) Home rates must be used. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM Manufactured (Mobile) Home rates. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 38 May 1, 2008 LFG 39 May 1, 2008 LF (C2.c) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V306 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor No basement (See Elevation Certificate, Diagram 1) Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above grade, deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— One floor Basement— None Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use no basement/enclosure rate category. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating 1975 to September 30, 1981 Construction Date Use Post-FIRM ‘75-’81 VE, V1-V30 Zone no basement/enclosure rates. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 40 May 1, 2008 LF (C2.a) LF (C2.d) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V306 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor with attached garage Garage is at lower elevation than principal building area (See Elevation Certificate, Diagram 1) Lowest Floor for Rating In V zones, the lowest floor for rating should reflect the bottom of the slab. If the surveyor used item C2. a or d (attached garage/top of slab) in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2. a or d, whichever is lower. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2. a or d, whichever is lower. Application Should Show Building Type— One floor Basement— None Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use no basement/enclosure rate category. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating 1975 to September 30, 1981 Construction Date Use Post-FIRM ‘75-81 VE, V1-V30 Zone no basement/enclosure rates. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 41 May 1, 2008 LF (C2.c) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V306 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Three floors Finished basement (See Elevation Certificate, Diagram 2) Lowest Floor for Rating Bottom of slab (basement) In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is indicated in the Elevation Certificate, deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Three or more floors Basement— Finished Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table with basement category. Post-FIRM Rating 1975 to September 30, 1981 Construction Date Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rates. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 42 May 1, 2008 LF (C2.c) NON-ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V306 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Split level Unfinished basement (See Elevation Certificate, Diagram 4) Lowest Floor for Rating Bottom of slab (basement) In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is indicated in the Elevation Certificate, deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Split level Basement— Unfinished Is Building Elevated?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table with basement category. Post-FIRM Rating 1975 to September 30, 1981 Construction Date Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rates. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 43 May 1, 2008 LF (C2.c) (WITH WALKOUT AT GROUND LEVEL) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with walkout at ground level Lower floor is not below grade on all sides Principal use of the building is on the elevated floor (See Elevation Certificate, Diagram 7) Elevating Foundation of Building Solid perimeter walls Type of Enclosure Finished or unfinished lower level Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type — Two floors Is Building Elevated? — Yes Is area below the elevated floor enclosed? — Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM rate table with basement/enclosure category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 44 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor without enclosed area (See Elevation Certificate, Diagram 5) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure The space below the lowest elevated floor either has no enclosure or has: (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. 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. Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use no basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone no basement/enclosure rates. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 2 5 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Mobile home without enclosed area Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Vinyl skirting Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type. Mobile home Is Building Elevated?. Yes Is area below the elevated floor enclosed?. No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Manufactured (Mobile) Home rates must be used. If LF1 elevation is less than the BFE2, use Pre-FIRM rate table no basement/enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 zone Manufactured (Mobile) Home rates. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 45 May 1, 2008 LFG 46 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area less than 300 sq. ft.) with breakaway walls Machinery or Equipment Servicing Building No machinery or equipment below elevated floor Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use no basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category and describe the building as an elevated building with enclosure. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone no basement/enclosure rate category. If LF1 elevation is 2 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 47 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area less than 300 sq. ft.) with breakaway walls Machinery or Equipment Servicing Building With machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rate category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 48 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area 300 sq. ft. or more) with nonbreakaway walls or with breakaway walls Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rate category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 49 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Shear walls parallel to the expected flow of floodwaters Type of Enclosure Both ends enclosed with nonbreakaway walls or breakaway walls (total enclosed area 300 sq. ft. or more) Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rate category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 50 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 7) Elevating Foundation of Building Solid perimeter load-bearing walls Type of Enclosure Finished or unfinished enclosure Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rate category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 51 May 1, 2008 LF (C2.a) OPENINGS (A8.c) ELEVATED BUILDINGS PRE- AND POST-FIRM RISKS WITH CONSTRUCTION DATES OF 1975 TO SEPTEMBER 30, 1981, IN FLOOD ZONES VE AND V1-V30 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid perimeter load-bearing walls Type of Enclosure Unfinished crawl space Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Top of the bottom floor (crawl space) Application Should Show Building Type— Three or more floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes Pre-FIRM Rating5 If LF1 elevation is equal to or greater than the BFE2, use Post-FIRM rate if favorable. Use with basement/enclosure rate category. If LF1 elevation is less than BFE2, use Pre-FIRM rate table with enclosure category. Post-FIRM Rating Use Post-FIRM ‘75-’81 VE, V1-V30 Zone with basement/enclosure rate category. If LF1 elevation is 1 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 52 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor without enclosed area (See Elevation Certificate, Diagram 5) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure The space below the lowest elevated floor either has no enclosure or has: (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. 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. Machinery or Equipment Servicing Building No machinery or equipment below elevated floor Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No V-Zone Rating; Construction Date October 1, 1981 and After Use 1981 Post-FIRM V1-V30, VE Zone Free of Obstruction rates. If LF1 elevation is 4 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 53 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor without enclosed area (See Elevation Certificate, Diagram 5) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure No enclosure or open-wood latticework or insect screening Machinery or Equipment Servicing Building With machinery or equipment at or above BFE Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type— One floor Is Building Elevated?— Yes Is area below the elevated floor enclosed?— No V-Zone Rating; Construction Date October 1, 1981 and After Use 1981 Post-FIRM V1-V30, VE Zone Free of Obstruction rates. If LF1 elevation is 4 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 54 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 6 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area less than 300 sq. ft.) with breakaway walls Machinery or Equipment Servicing Building Without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of lowest horizontal structural member Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Use 1981 Post-FIRM V1-V30, VE Zone With Obstruction rates. If LF1 elevation is 4 or more feet below the BFE2, submit the application to the NFIP for a rate. LFG 55 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area less than 300 sq. ft.) with breakaway walls Machinery or Equipment Servicing Building With machinery or equipment below BFE Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade, deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Submit the application to the NFIP for a rate. LFG 56 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Piers, posts, piles, or columns Type of Enclosure Enclosure (total area 300 sq. ft. or more) with nonbreakaway walls or breakaway walls Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Submit the application to the NFIP for a rate. LFG 57 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 6) Elevating Foundation of Building Shear walls parallel to the expected flow of floodwaters Type of Enclosure Both ends enclosed with breakaway walls (total enclosed area 300 sq. ft. or more) Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Submit the application to the NFIP for a rate. LFG 58 May 1, 2008 LF (C2.c) ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 4 LF.Lowest Floor HAG.Highest Adjacent Grade 25 BFE.Base Flood Elevation See page LFG 2 for optional elevation rating 36 See page LFG 1 for explanation of proper openings Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. Building Description One floor and finished or unfinished enclosed area (See Elevation Certificate, Diagram 7) Elevating Foundation of Building Solid perimeter load-bearing walls Type of Enclosure Finished or unfinished enclosure Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Bottom of slab In V zones, the lowest floor for rating should reflect the bottom of the lowest horizontal structural member. If the surveyor used item C2.a in lieu of C2.c of the Elevation Certificate, and the top of the bottom floor is at or above the lowest adjacent grade (C2.f), deduct (for 1-4 family residences) 12 inches from the elevation figure found in item C2.a. For buildings other than 1-4 family, deduct 18 inches from the elevation figure found in item C2.a. Application Should Show Building Type— Two floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Submit the application to the NFIP for a rate. ELEVATED BUILDINGS POST-FIRM RISKS IN FLOOD ZONES VE AND V1-V30— CONSTRUCTION DATE OCTOBER 1, 1981, AND AFTER 1 LF.Lowest Floor 4 HAG.Highest Adjacent Grade 2 BFE.Base Flood Elevation 5 See page LFG 2 for optional elevation rating 3 See page LFG 1 for explanation of proper openings 6 Non-elevated buildings with construction dates of October 1, 1981, and after are Submit-for-Rate Letters and numbers in parentheses, as “(A8.c)” or “(C2.a),” correspond to Section A or Section C of the Elevation Certificate NOTE: Above references may not apply to this page. OPENINGS (A8.c) LF (C2.a) Building Description Two floors with crawl space (See Elevation Certificate, Diagram 8) Elevating Foundation of Building Solid perimeter load-bearing walls Type of Enclosure Unfinished crawl space Machinery or Equipment Servicing Building With or without machinery or equipment below elevated floor Lowest Floor for Rating Top of the bottom floor (crawl space) Application Should Show Building Type— Three or more floors Is Building Elevated?— Yes Is area below the elevated floor enclosed?— Yes V-Zone Rating; Construction Date October 1, 1981 and After Submit the application to the NFIP for a rate. LFG 59 May 1, 2008 SPECIAL CERTIFICATIONS This section presents detailed instructions for the completion of the National Flood Insurance Program (NFIP) Elevation Certificate and the NFIP Floodproofing Certificates. NOTE: When determining the lowest floor for rating, refer to the Lowest Floor Guide section of this manual. I. NFIP ELEVATION CERTIFICATE The NFIP Elevation Certificate (EC) form and instructions were revised effective February 13, 2006. The surveyor, engineer, architect, property owner, or owner’s representative is required to provide the square footage of any crawl space or enclosure(s) below the lowest elevated floor (including an attached garage) and generally at least two photographs of the building when completing the EC to obtain flood insurance through the NFIP. This additional information will significantly enhance the agent’s and company underwriter’s ability to properly rate elevation-rated risks. The new EC form and instructions (shown on pages CERT 11-26) were phased in on a voluntary basis through December 31, 2006. Elevations certified on or after January 1, 2007, must be submitted on the new form. An exception is made when the community official completes the old EC with elevation data received by the community before January 1, 2007. It must be noted in the Comments area of Section G of the old EC that the community had the data on file before January 1, 2007. Current photograph requirements, and exceptions to them, are described in Section II. below. When two or more ECs are submitted on one property, use the EC with the latest certified date when rating the policy. Non-NFIP elevation certification forms certified on or after October 1, 2000, do not satisfy NFIP requirements and cannot be used for rating policies under any circumstances. The EC is required on Post-FIRM construction, but is optional on Pre-FIRM construction. The EC is required by the NFIP to certify the lowest floor of a building so the policy can be properly rated, as follows (also see pages LFG 1-2): • All Post-FIRM structures The EC is to be completed by a land surveyor, engineer, or architect who is authorized by state or local law to certify elevation information when it is required for Zones A1-A30, AE, AH, A (with Base Flood Elevations [BFEs]), V1-V30, VE, and V (with BFEs). Community officials who are authorized by local law or ordinance to provide floodplain management information may also complete this form. For Zones AO and A (without BFEs), a building official, a property owner, or an owner’s representative may also provide the information on this certification. Building elevation information may be available through the community official if the community is a CRS participating community. The lowest adjacent grade and diagram number are required for all new business applications effective on or after October 1, 1997, if the elevation certification date is on or after October 1, 1997. • Pre-FIRM structures rated under Post-FIRM rates Pre-FIRM construction can be elevation rated using the Post-FIRM EC rates, which are more favorable rates if the lowest floor of the building is at or above the BFE for the community. In most cases, the lowest floor level of a Pre-FIRM building is below the BFE, and it would not benefit the insured to pay the cost for an EC in an attempt to secure a lower rate. The decision to obtain an EC and to request Post-FIRM rating of a Pre-FIRM building is an option of the insured. • AR and AR Dual Zones The EC is optional on all Post- and Pre-FIRM construction located in AR and AR dual zones. The decision to obtain an EC and to request Post-FIRM rating is at the discretion of the insured. The EC includes the AR and AR dual zone elevation requirements. Detailed instructions for completion are provided with the EC. The producer is to attach the original of the completed EC to the Application. A photocopy is to be forwarded to the policyholder and a copy is retained by the producer. II. PHOTOGRAPH REQUIREMENTS Generally, all new business applications for elevation-rated risks with a policy effective date of January 1, 2007, or later must be submitted with a least two photographs that show the front and back of the building and were taken and dated within 90 days of the mailing date (not the certification date, if that date was earlier). If the CERT 1 May 1, 2008 building is a split-level or has multi-level areas at ground level, at least two additional photographs showing views of both sides of the building must be submitted. • Exception 1: When an agent moves his or her book of business from one WYO company to another, or when one WYO company acquires another’s book of business, photographs are not required. FEMA will continue to consider such policies as renewals, even though they are reported as new business under the Transaction Record Reporting and Processing Plan. (However, when an insured changes agent and WYO company, that policy is considered new business, and photographs are required.) • Exception 2: When a Flood Insurance Application and an EC are submitted for a building in the course of construction, photographs are not required and proposed elevations will be used for rating. When the building is completed, a revised EC with required photographs and as-built elevations must be submitted for use in re-rating the policy. These new requirements also apply to all renewal and endorsement transactions adding elevation rating effective on or after January 1, 2007. For the convenience of users, two Building Photographs pages are included with the EC and instructions. However, photographs may be attached to any sheet(s) of blank paper or business letterhead. All photographs must measure at least 3”×3”, provide a clear image of the building’s distinguishing features, and include date taken. Analog or digital photographs are acceptable. Color photographs are preferred. An Elevation Certificate submitted without the required photographs is not considered valid for rating, unless the building is in the course of construction. Each WYO company may use its current business practices in handling ECs without photographs, whether that is tentative rating, provisional rating, or rejection of the application. III. USING THE ELEVATION CERTIFICATE: SPECIAL CONSIDERATIONS Section A – Property [Owner] Information • Section A of the EC includes the building use. This information is helpful in validating the data collected by the insurance agent, and the Flood Insurance Application information. • On the new EC, latitude, longitude, and related information are optional only if the document is being certified by other than a licensed surveyor, engineer, or architect. • If the new EC is being used to obtain flood insurance, and the certification date is on or after January 1, 2007, the EC must be accompanied by at least two current photographs of the building. (See II. PHOTOGRAPH REQUIREMENTS above.) • For any crawl space, enclosure(s), or attached garage, the new EC collects square footage, number of flood openings within 1.0 foot above adjacent grade, and total area of flood openings in square inches. (A parking area located beneath an elevated floor is not considered an attached garage.) The information found in Section A of the EC is critical, as it relates to the insured property. Should information be missing from Section A (except latitude, longitude, and related information), the certificate must be returned to the surveyor, engineer, architect, or community official who executed the form. These individuals should be encouraged to fully complete Section A to avoid any delay in the issuance of the flood insurance policy. Section B – Flood Insurance Rate Map (FIRM) Information The Flood Insurance Rate Map (FIRM) information includes the following: • FIRM panel effective date and revised date; • Source of the BFE or base flood depth; NOTE: The same elevation datum should be used in determining all certification elevations as was used in determining the BFE (i.e., NGVD 1929 or NAVD 1988). • Coastal Barrier Resources System (CBRS) area or Otherwise Protected Area (OPA). NOTE: Refer to the Coastal Barrier Resources System section of this manual for flood insurance coverage eligibility. Section C – Building Elevation Information (Survey Required) Responsibilities for building elevation information are as follows. CERT 2 May 1, 2008 • The surveyor, engineer, or architect is For Zone A (without a FEMA-issued or required to provide a number of elevations community-issued BFE) and Zone AO, a based on the building type selected. property owner or owner’s authorized representative may complete Sections A, B, and • From the elevations gathered, the insurance E. agent is required to determine the lowest Section F – Property Owner (or Owner’s floor for rating flood insurance. Representative) Certification Address and other contact information about the As it relates to Section C, information found not to be applicable to the property being certified property owner are requested in Section F. The should be marked N/A (not applicable) by the party completing Sections A, B, C (on the old surveyor, engineer, or architect. If any part of EC, Items C3.h and C3.i only), and E must execute Section F as well. Section C is left blank, critically review it and contact the surveyor, engineer, or architect who Section G – Community Information (Optional) completed the form and your company underwriter with any questions. The local official who is authorized by law or ordinance to administer the community’s floodplain management ordinance may transfer Elevation(s) of machinery and equipment elevation information found on existingservicing the building (e.g., water heater, documentation (i.e., an older elevation furnace, a/c compressor, heat pump, water certification form, or surveyor letterhead) topump) must be provided, regardless of its Section C of the EC. The local official must then location, whether inside or outside of the certify this information by fully completing building, elevated on a platform or non-elevated. Section G. A statement advising FEMA of this transfer of information must be made in the The surveyor, engineer, or architect may not be comment section of the newer EC. Section G able to gain access to some crawl spaces to may also be used to certify Item E4. shoot the elevation of the crawl space floor. In this instance, Item C2.a on the new EC (C3.a on IV. FLOODPROOFING CERTIFICATE the old EC) may be left blank and the estimated measurements entered in the Comments area of A. Purpose and Eligibility Section D. • In certain circumstances, floodproofing may be permitted as an alternative to elevating to Elevations in Section C are based on feet, or above the Base Flood Elevation (BFE); except in Puerto Rico, where the metric system however, a floodproofing design certification is used. The agent must convert any metric is required. Certified floodproofing may elevation readings into feet before calculating result in lower rates. the flood insurance premium. • Non-residential buildings in any community, in all locations except in V-Zones, may be Section D – Surveyor, Engineer, or Architect floodproofed in lieu of elevating. Certification • Residential buildings may be floodproofed Section D is the surveyor’s, engineer’s, or only if they have basements, are located in architect’s certification that the information Zones A1-A30, AE, AR, AR Dual, AO, and provided in Sections A, B, and C is AH, and only if they are located in representative of the certifier’s best efforts to communities specifically approved and interpret the data available. The surveyor’s, authorized by FEMA. A current list of engineer’s, or architect’s signature and approved communities appears on page identification number are required fields. Some CERT 5. States also may require a seal. • The allowable methods of floodproofing for Section E – Building Elevation Information non-residential buildings differ from those (Survey Not Required) for Zone AO and Zone allowed for residential buildings. The A (Without BFE) specific requirements should be available from the local government. Building Diagram Number (old EC) and the elevation difference between the lowest floor B. Specifications and the lowest adjacent grade (new EC) and highest adjacent grade are required. The specifications for floodproofing ensure that the building is watertight without human CERT 3 May 1, 2008 intervention, its floodproofed walls will not collapse, and the floor at the base of the floodproofed walls will resist flotation during flooding conditions. C. Rating In order to be eligible for lower rates, the insured must have a registered professional engineer or architect certify that the floodproofing conforms with 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, flood depth, or comparable community-approved floodplain management standards, it can then be treated for rating purposes as having a "0" elevation difference from the BFE. This certification must be submitted with the Flood Insurance Application. 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. See the Rating Section for special rating rules for Zones AO and AH. D. Certification • Residential Buildings (With Basements) The Residential Basement Floodproofing Certificate is available for residential buildings with basements located in Zones A1-A30, AE, AR, AR Dual, AO, AH, and A with estimated BFE and located in a FEMA- approved community that is listed on the next page. To receive credit for flood- proofing, the completed certificate must be submitted. • Non-residential Buildings A completed Floodproofing Certificate for Non-residential Structures is required for all such buildings in Regular Program communities, located in Zones A1-A30, AE, AR, AR Dual, AO, AH, and A with estimated BFE, in order to receive credit for floodproofing in lieu of elevation. CERT 4 May 1, 2008 APPROVED COMMUNITIES FOR RESIDENTIAL BASEMENT FLOODPROOFING RATING CREDIT COMMUNITY NUMBER STATE/COMMUNITY NAME EFFECTIVE DATE1 COMMUNITY NUMBER STATE/COMMUNITY NAME EFFECTIVE DATE1 025009 160028 190488 190031 190309 200484 200323 200019 200131 200215 200334 200319 200316 200134 270267 275235 270080 275236 275244 270414 270273 270274 310069 310103 310100 310001 310239 310046 310039 310104 Alaska Fairbanks N. Star Borough Idaho Ammon, City of Iowa Clive, City of Independence, City of La Porte City, City of Kansas Colwich, City of Derby, City of Great Bend, City of Halstead, City of Lindsborg, City of Rossville, City of Salina, City of Saline County Sedgwick, City of Minnesota Alvarado, City of Clay County Dilworth, City of East Grand Forks, City of Moorhead, City of Roseau, City of Stephen, City of Warren, City of Nebraska Fremont, City of Grand Island, City of Hall County Hastings, City of North Bend, City of Schuyler, City of Sidney, City of Wood River, City of 2/28/73 6/8/90 4/24/81 9/7/89 6/12/89 1/17/86 2/15/832 8/10/83 7/8/83 11/7/94 2/18/92 3/6/86 1/14/86 5/19/862 2/28/85 3/28/75 8/29/83 5/15/862 2/12/76 7/14/92 5/10/83 9/24/82 1/25/79 7/29/80 2/10/80 7/8/83 10/15/98 9/17/91 12/4/84 1/12/82 360226 360232 380256 380020 385364 380137 380338 380259 380022 380023 380681 380263 380257 380324 380258 380024 460044 550612 550600 550020 550021 550022 550023 550309 New York Amherst, Town of Clarence, Town of North Dakota Barnes, Township of Casselton, City of Fargo, City of Grafton, City of Harwood, City of Harwood, Township of Horace, City of Mapleton, City of Oxbow, City of Pleasant, Township of Reed, Township of Reiles Acres, City of Stanley, Township of West Fargo, City of South Dakota Madison, City of Wisconsin Allouez, Village of Ashwaubenon, Village of Brown County Depere, City of Green Bay, City of Howard, Village of Shiocton, Village of 11/20/78 8/01/00 1/22/82 6/18/81 3/26/752 5/21/81 12/19/85 1/22/82 1/22/82 1/22/822 6/1/922 5/5/83 1/22/82 8/23/82 2/8/82 6/5/78 8/30/83 1/11/932 10/27/78 2/21/792 10/27/78 10/27/78 10/27/78 8/1/98 1 Effective date corresponds to the date of the letter from FEMA that granted the community’s exception request. 2 The date the community adopted floodproofing ordinances. CERT 5 May 1, 2008 This page intentionally left blank. CERT 6 May 1, 2008 CERT 7 May 1, 2008 PAPERWORK BURDEN DISCLOSURE NOTICE FEMA Form 81-78 CERT 8 May 1, 2008 CERT 9 May 1, 2008 CERT 10 May 1, 2008 NEW EDITION Voluntary-Use Date: February 13, 2006 Mandatory-Use Date: January 1, 2007 CERT 11 May 1, 2008 CERT 12 May 1, 2008 CERT 13 May 1, 2008 CERT 14 May 1, 2008 CERT 15 May 1, 2008 This page intentionally left blank. CERT 16 May 1, 2008 CERT 17 May 1, 2008 This page intentionally left blank. CERT 18 May 1, 2008 CERT 19 May 1, 2008 CERT 20 May 1, 2008 CERT 21 May 1, 2008 CERT 22 May 1, 2008 CERT 23 May 1, 2008 CERT 24 May 1, 2008 CERT 25 May 1, 2008 CERT 26 May 1, 2008 OLD EDITION CERT 27 May 1, 2008 CERT 28 May 1, 2008 CERT 29 May 1, 2008 CERT 30 May 1, 2008 CERT 31 May 1, 2008 CERT 32 May 1, 2008 CERT 33 May 1, 2008 CERT 34 May 1, 2008 CERT 35 May 1, 2008 CERT 36 May 1, 2008 CERT 37 May 1, 2008 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 building/contents coverage or contents-only coverage under the PRP, the building must be in a B, C, or X Zone on the effective date of the policy. However, 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, 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 PRP 1 May 1, 2008 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. • Residential condominium associations 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. 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 and flood zone of the building • A letter indicating the exact location 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 conventional Standard Flood Insurance Policy (SFIP). Effective May 1, 2008, if there has been a map change during the policy term that may affect the insured property, proof of the property’s continued eligibility for the PRP must be provided for the policy to be renewed. 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 $13.00 is included in the premium and is not subject to commission. • The ICC premium of $6.00 is included. IX. DEDUCTIBLES The standard deductible for PRPs is $500 each for building and contents, applied separately. Optional deductibles are not available for PRPs. 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. PRP 2 May 1, 2008 PREFERRED RISK POLICY CONDOMINIUM RATING CHART RESIDENTIAL SINGLE UNIT BUILDING OR TOWNHOUSE/ROWHOUSE TYPE.BUILDING WITH SEPARATE ENTRANCE FOR EACH UNIT PRP 3 May 1, 2008 PURCHASER OF POLICY Building Occupancy1 Condo Unit Indicator1 PRP Eligibility Rate Table2 Policy Form UNIT OWNER SINGLE FAMILY Yes Yes One- to Four-Family Residential DWELLING ASSOCIATION (SINGLE UNIT ONLY) SINGLE FAMILY Yes Yes One- to Four-Family Residential DWELLING ASSOCIATION (ENTIRE BUILDING) N/A N/A No N/A N/A MULTI-UNIT RESIDENTIAL BUILDING.2 TO 4 UNITS PER BUILDING PURCHASER OF POLICY Building Occupancy1 Condo Unit Indicator1 PRP Eligibility Rate Table2 Policy Form UNIT OWNER 2-4 Yes Yes One- to Four-Family Residential DWELLING ASSOCIATION (SINGLE UNIT ONLY) 2-4 Yes Yes One- to Four-Family-Residential DWELLING ASSOCIATION (ENTIRE BUILDING) N/A N/A No N/A N/A MULTI-UNIT RESIDENTIAL BUILDING.5 OR MORE UNITS PER BUILDING PURCHASER OF POLICY Building Occupancy1 Condo Unit Indicator1 PRP Eligibility Rate Table2 Policy Form UNIT OWNER OTHER RESIDENTIAL Yes Yes Other Residential DWELLING ASSOCIATION (SINGLE UNIT ONLY) OTHER RESIDENTIAL Yes Yes Other Residential DWELLING ASSOCIATION (ENTIRE BUILDING) N/A N/A No N/A N/A NON-RESIDENTIAL BUILDING 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 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. 2All building rates are based on the lowest floor of the building. PRP COVERAGES AVAILABLE EFFECTIVE MAY 1, 2008 ONE- TO FOUR-FAMILY RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS1, 2, 3 With Basement or Enclosure Without Basement or Enclosure Building Contents Premium Building Contents Premium $ 20,000 $ 8,000 $144 $ 20,000 $ 8,000 $119 $ 30,000 $ 12,000 $173 $ 30,000 $ 12,000 $148 $ 50,000 $ 20,000 $221 $ 50,000 $ 20,000 $196 $ 75,000 $ 30,000 $260 $ 75,000 $ 30,000 $230 $100,000 $ 40,000 $287 $100,000 $ 40,000 $257 $125,000 $ 50,000 $307 $125,000 $ 50,000 $277 $150,000 $ 60,000 $326 $150,000 $ 60,000 $296 $200,000 $ 80,000 $361 $200,000 $ 80,000 $326 $250,000 $100,000 $388 $250,000 $100,000 $348 ALL RESIDENTIAL CONTENTS-ONLY COVERAGE1, 2, 4 Contents Above Ground Level More Than One Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 8,000 $ 39 $ 8,000 $ 58 $ 12,000 $ 53 $ 12,000 $ 80 $ 20,000 $ 81 $ 20,000 $113 $ 30,000 $ 93 $ 30,000 $130 $ 40,000 $105 $ 40,000 $147 $ 50,000 $117 $ 50,000 $164 $ 60,000 $129 $ 60,000 $181 $ 80,000 $153 $ 80,000 $201 $100,000 $177 $100,000 $221 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS1, 2, 3 With Basement or Enclosure Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 Building Coverage $ 20,000 $151 $165 $178 $191 $203 $214 $225 $235 $245 $ 30,000 $165 $179 $192 $205 $217 $228 $239 $249 $259 $ 50,000 $199 $213 $226 $239 $251 $262 $273 $283 $293 $ 75,000 $215 $229 $242 $255 $267 $278 $289 $299 $309 $100,000 $237 $251 $264 $277 $289 $300 $311 $321 $331 $125,000 $244 $258 $271 $284 $296 $307 $318 $328 $338 $150,000 $249 $263 $276 $289 $301 $312 $323 $333 $343 $200,000 $280 $294 $307 $320 $332 $343 $354 $364 $374 $250,000 $297 $311 $324 $337 $349 $360 $371 $381 $391 OTHER RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS1, 2, 3 Without Basement or Enclosure Contents Coverage $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 Building Coverage $ 20,000 $123 $135 $146 $157 $167 $177 $186 $195 $203 $ 30,000 $141 $152 $163 $174 $184 $194 $203 $212 $220 $ 50,000 $176 $187 $198 $209 $219 $229 $238 $247 $255 $ 75,000 $196 $207 $218 $228 $238 $248 $257 $266 $274 $100,000 $214 $225 $236 $246 $256 $266 $275 $284 $292 $125,000 $223 $234 $245 $255 $265 $274 $283 $292 $300 $150,000 $230 $241 $252 $262 $272 $281 $290 $299 $307 $200,000 $258 $269 $280 $290 $300 $309 $318 $326 $334 $250,000 $273 $284 $295 $305 $315 $324 $333 $341 $349 1Add the $50.00 Probation Surcharge, if applicable. 2Premium includes Federal Policy Fee of $13.00. 3Premium includes ICC premium of $6.00. 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. PRP 4 May 1, 2008 PRP COVERAGES AVAILABLE EFFECTIVE MAY 1, 2008 (cont’d.) NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS1, 2, 3 With Basement or Enclosure 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 $ 880 $1,139 $1,387 $1,623 $1,848 $2,062 $2,265 $2,456 $2,636 $2,805 $100,000 $1,254 $1,513 $1,760 $1,996 $2,221 $2,435 $2,638 $2,829 $3,009 $3,178 $150,000 $1,529 $1,788 $2,035 $2,271 $2,496 $2,710 $2,913 $3,104 $3,284 $3,453 $200,000 $1,678 $1,937 $2,184 $2,420 $2,645 $2,859 $3,062 $3,253 $3,433 $3,602 $250,000 $1,783 $2,042 $2,289 $2,525 $2,750 $2,964 $3,167 $3,358 $3,538 $3,707 $300,000 $1,899 $2,158 $2,405 $2,641 $2,866 $3,080 $3,283 $3,474 $3,654 $3,823 $350,000 $2,027 $2,286 $2,533 $2,769 $2,994 $3,208 $3,410 $3,601 $3,781 $3,950 $400,000 $2,111 $2,370 $2,617 $2,853 $3,078 $3,292 $3,494 $3,685 $3,865 $4,034 $450,000 $2,207 $2,466 $2,713 $2,949 $3,174 $3,388 $3,590 $3,781 $3,961 $4,130 $500,000 $2,312 $2,571 $2,818 $3,054 $3,279 $3,493 $3,695 $3,886 $4,066 $4,235 NON-RESIDENTIAL BUILDING AND CONTENTS COVERAGE COMBINATIONS1, 2, 3 Without Basement or Enclosure 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 $ 550 $ 688 $ 820 $ 946 $1,066 $1,180 $1,288 $1,390 $1,486 $1,576 $100,000 $ 742 $ 880 $1,012 $1,138 $1,258 $1,372 $1,480 $1,582 $1,678 $1,768 $150,000 $ 885 $1,023 $1,155 $1,281 $1,401 $1,515 $1,623 $1,725 $1,821 $1,911 $200,000 $1,034 $1,172 $1,304 $1,430 $1,550 $1,664 $1,772 $1,874 $1,970 $2,060 $250,000 $1,134 $1,272 $1,404 $1,530 $1,650 $1,764 $1,872 $1,974 $2,070 $2,160 $300,000 $1,240 $1,378 $1,510 $1,636 $1,756 $1,870 $1,978 $2,080 $2,176 $2,266 $350,000 $1,297 $1,435 $1,567 $1,693 $1,813 $1,927 $2,035 $2,137 $2,233 $2,323 $400,000 $1,360 $1,498 $1,630 $1,756 $1,876 $1,990 $2,098 $2,200 $2,296 $2,386 $450,000 $1,429 $1,567 $1,699 $1,825 $1,945 $2,059 $2,167 $2,269 $2,365 $2,455 $500,000 $1,504 $1,642 $1,774 $1,900 $2,020 $2,134 $2,242 $2,344 $2,440 $2,530 NON-RESIDENTIAL CONTENTS-ONLY COVERAGE1, 2 Contents Above Ground Level More Than One Floor All Other Locations (Basement-Only Not Eligible) Contents Premium Contents Premium $ 50,000 $145 $ 50,000 $ 330 $100,000 $220 $100,000 $ 500 $150,000 $295 $150,000 $ 670 $200,000 $370 $200,000 $ 840 $250,000 $445 $250,000 $1,010 $300,000 $520 $300,000 $1,180 $350,000 $595 $350,000 $1,350 $400,000 $670 $400,000 $1,520 $450,000 $745 $450,000 $1,690 $500,000 $820 $500,000 $1,860 1Add the $50.00 Probation Surcharge, if applicable. 2Premium includes Federal Policy Fee of $13.00. 3Premium includes ICC premium of $6.00. Deduct this amount if the risk is a condominium unit. PRP 5 May 1, 2008 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. 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 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. XIII. 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. XIV. 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–NO WAITING. Refer to the General Rules section, page GR 8, for the applicable waiting period. PRP 6 May 1, 2008 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. 2. Check YES if the property is located in an unincorporated area of a county; otherwise, check NO. 3. 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. 4. Enter the Flood Insurance Rate Map zone. J. Building and Contents Complete all required information in this section. 1. Check building occupancy: Single Family, 2-4 Family, Other Residential, or Non- Residential (incl. Hotel/Motel). 2. Enter date of construction. 3. Check building type. If the building has a basement or enclosure, count the basement or enclosure as a floor. If the building type is a manufactured (mobile) home/ PRP 7 May 1, 2008 travel trailer on foundation, enter the make, model, and serial number in the block at the bottom of this section. 4. Check the “Y” box (YES) or the “N” box (NO) for “CONDO UNIT” and “TOWNHOUSE/ROWHOUSE CONDO UNIT.” 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. K. Notice If the answer to either question A or question B is YES, this risk is not eligible for the Preferred Risk Policy. L. Premium 1. Enter the coverage selected, and the premium, from the appropriate table on the back of the application form. 2. Add the $50.00 Probation Surcharge, if applicable. Deduct $6.00 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, Diner’s Club, 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. PRP 8 May 1, 2008 PRP 9 May 1, 2008 PRP 10 May 1, 2008 MORTGAGE PORTFOLIO PROTECTION PROGRAM I. BACKGROUND The Mortgage Portfolio Protection Program (MPPP) was introduced on January 1, 1991, as an additional tool to assist the mortgage lending and servicing industries in bringing their mortgage portfolios into compliance with the flood insurance requirements of the Flood Disaster Protection Act of 1973. The MPPP is not intended to act as a substitute for the need for mortgagees to review all mortgage loan applications at the time of loan origination and comply with flood insurance requirements as appropriate. Proper implementation of the various requirements of the MPPP usually results in mortgagors, after their notification of the need for flood insurance, either showing evidence of such a policy, or contacting their local insurance agent or appropriate Write Your Own (WYO) company to purchase the necessary coverage. It is intended that flood insurance policies be written under the MPPP only as a last resort, and only on mortgages whose mortgagors have failed to respond to the various notifications required by the MPPP. MORTGAGE PORTFOLIO PROTECTION PROGRAM RATE AND INCREASED COST OF COMPLIANCE (ICC) TABLE ZONE MPPP Rates per $100 of Building Coverage MPPP Rates per $100 of Contents Coverage ICC Premium for $30,000 Coverage Emergency Program Community 3.18 3.21 N/A A Zones - All building & occupancy types, except A99, AR, AR Dual Zones 3.18 / 1.60 3.21 / 1.53 75.00 V Zones - All building & occupancy types 4.74 / 4.74 4.45 / 4.45 75.00 A99 Zone, AR, AR Dual Zones .81 / .48 1.09 / .43 6.00 NOTES: (1) ICC coverage does not apply to contents-only policies or to individually owned condominium units insured under the Dwelling Form or General Property Form. (2) The ICC premium is not eligible for the deductible discount. First calculate the deductible discount, then add in the ICC premium. (3) Add Federal Policy Fee and Probation Surcharge, if applicable, when computing the premium. (4) MPPP policies are not eligible for Community Rating System premium discounts. MPPP 1 May 1, 2008 II. REQUIREMENTS FOR PARTICIPATING IN THE MPPP The following paragraphs represent the criteria and requirements that must be followed by all parties engaged in the sale of flood insurance under the National Flood Insurance Program's Mortgage Portfolio Protection Program. A. General 1. All mortgagors notified, in conjunction with this Program, of their need to purchase flood insurance must be encouraged to obtain a Standard Flood Insurance Policy (SFIP) from their local agent. 2. When a mortgagee or a mortgage servicing company discovers, at any time following loan origination, that one or more of the loans in its portfolio is determined to be located in a Special Flood Hazard Area (SFHA), and that there is no evidence of flood insurance on such property(ies), then the MPPP may be used by such lender/servicer to obtain (force place) the required flood insurance coverage. The MPPP process can be accomplished with limited underwriting information and with special flat flood insurance rates. 3. In the event of a loss, the policy will have to be reformed if the wrong rate has been applied for the zone in which the property is located. Also, the amount of coverage may have to be changed if the building occupancy does not support that amount. 4. It will be the WYO company's responsibility to notify the mortgagor of all coverage limitations at the inception of coverage and to impose those limitations that are applicable at the time of loss adjustment. B. WYO Arrangement Article III—Fees With the implementation of the MPPP, there is no change in the method of WYO company allowance from that which is provided in the Financial Assistance/Subsidy Arrangement for all flood insurance written. C. Use of WYO Company Fees for Lenders/Servicers or Others 1. No portion of the allowance that a WYO company retains under the WYO Financial Assistance/ Subsidy Arrangement for the MPPP may be used to pay, reimburse or otherwise remunerate a lending institution, mortgage servicing company, or other similar type of company that the WYO company may work with to assist in its flood insurance compliance efforts. 2. The only exception to this is a situation where the lender/ servicer may be actually due a commission on any flood insurance policies written on any portion of the institution's portfolio because it was written through a licensed property insurance agent on their staff or through a licensed insurance agency owned by the institution or servicing company. D. Notification 1. WYO Company/Mortgagee— Any WYO company participating in the MPPP must notify the lender or servicer, for which it is providing the MPPP capability, of the requirements of the MPPP. The WYO company must obtain signed evidence from each such lender or servicer indicating their receipt MPPP 2 May 1, 2008 of this information, and keep a copy in its files. 2. Mortgagee to Mortgagor—In order to participate in the MPPP, the lender (or its authorized representative, which will typically be the WYO company providing the coverage through the MPPP) must notify the borrower of the following, at a minimum: a. The requirements of the Flood Disaster Protection Act of 1973, b. The flood zone location of the borrower's property, c. The requirement for flood insurance, d. The fact that the lender has no evidence of the borrower's having flood insurance, e. The amount of coverage being required and its cost under the MPPP, and f. The options of the borrower for obtaining conventionally underwritten flood insurance coverage and the potential cost benefits of doing so. A more detailed discussion of the notification requirements is made a part of this program document in Section O. E. Eligibility 1. Type of Use—The MPPP will be allowed only in conjunction with mortgage portfolio reviews and the servicing of those portfolios by lenders and mortgage servicing companies. The MPPP is not allowed to be used in conjunction with any form of loan origination. 2. Type of Property—The standard NFIP rules apply, and all types of property eligible for coverage under the NFIP will be eligible for coverage under the MPPP. F. Source of Offering The force placement capability will be offered by the WYO companies only and not by the NFIP Servicing Agent. G. Dual Interest The policy will be written covering the interest of both the mortgagee and the mortgagor. The name of the mortgagor must be included on the Application Form. It is not, however, necessary to include the mortgagee as a named insured because the Mortgage Clause (section VII.Q. of the Dwelling Form and the General Property Form) affords building coverage to any mortgagee named as mortgagee on the Flood Insurance Application. If contents coverage for the mortgagee is desired, the mortgagee should be included as a named insured. H. Term of Policy NFIP policies written under the MPPP will be for a term of 1 year only (subject to the renewal notification process). I. Coverage Offered Both building and contents coverage will be available under the MPPP. The coverage limits available under the Regular Program will be $250,000 for building coverage and $100,000 for contents. If the WYO company wishes to provide higher limits that are available to other occupancy types such as other residential or non-residential, it may do so only if it can indicate that occupancy type as appropriate. If the mortgaged property is in an Emergency Program community, then the coverage limits available will be $35,000 for building coverage and $10,000 for contents. Again, if the higher limits are desired for other types of property, then the building occupancy type must be MPPP 3 May 1, 2008 provided at the inception of the policy or when that information may become available, but it must be prior to any loss. J. Policy Form The current SFIP Dwelling Form and General Property Form will be used, depending upon the type of structure insured. In the absence of building occupancy information, the Dwelling Form should be used. K. Waiting Period The NFIP rules for the waiting period and effective dates apply to the MPPP. L. Premium Payment The current rules applicable to the NFIP will apply. The lender or servicer (or payor) has the option to follow its usual business practices regarding premium payment, so long as the NFIP rules are followed. M. Underwriting—Application 1. The MPPP will require less underwriting data than is normally required under the standard NFIP rules and regulations. The MPPP data requirements for rating, processing and reporting are, at a minimum: a. Name and mailing address of insured (mortgagor; also see Dual Interest), b. Address of insured (mortgaged) property, c. Community information (complete NFIP map panel number and date; program type, Emergency or Regular) countywide maps, d. Occupancy type (so statutory coverage limits are not exceeded. This data may be difficult to obtain. Also see Coverage Offered.), e. NFIP flood zone where property is located (lender must determine, in order to determine if flood insurance requirements are necessary and to use the MPPP), f. Amount of coverage, g. Name and address of mortgagee, h. Mortgage loan number, i. Policy number. 2. No elevation certificates will be required as there will be no elevation rating. N. Rates (See page MPPP 1.) O. Policy Declaration Page Notification Requirements In addition to the routine information, such as amounts of coverage, deductibles and premiums, that a WYO company may place on the policy declarations page issued to each insured under the NFIP, the following messages are required: 1. This policy is being provided for you as it is required by Federal law as has been mentioned in the previous notices sent to you on this issue. Since your mortgage company has not received proof of flood insurance coverage on your property in response to those notices, we provide this policy at their request. 2. The rates charged for this policy may be considerably higher than those that may be available to you if you contact your local insurance agent (or the WYO company). MPPP 4 May 1, 2008 3. The amounts of insurance coverage provided in this policy may not be sufficient to protect your full equity in the property in the event of a loss. 4. You may contact your local insurance agent (or WYO company) to replace this policy with a conventionally underwritten Standard Flood Insurance Policy, at any time, and typically at a significant savings in premium. The WYO company may add other messages to the declarations page and make minor editorial modifications to the language of these messages if it believes any are necessary to conform to the style or practices of that WYO company, but any such additional messages or modifications must not change the meaning or intent of the above messages. Since the amount of underwriting data obtained at the time of policy inception will typically be limited, the extent of any coverage limitations (such as, when replacement coverage is not available or coverage is limited because the building has a basement or is considered an elevated building with an enclosure) will be difficult to determine. It is, therefore, the responsibility of the WYO company to notify the mortgagor/insured of all coverage limitations at the inception of coverage and impose any that are applicable at the time of the loss adjustment. P. Policy Reformation—Policy Correction Section VII.G. of the Dwelling Form and of the General Property Form will apply as appropriate. Examples of circumstances under which reformation or correction might be needed would be: Policy Reformation—The wrong flat rate was applied for the zone in which the property was actually located. Policy Correction—The amount of coverage exceeds the amount available under the NFIP for the type of building occupancy that represents the building insured. In such cases, the amount of coverage would have to be adjusted to the amount available and any appropriate premium adjustments made. Q. Coverage Basis—Actual Cash Value or Replacement Cost There are no changes from the standard practices of the NFIP for these provisions. The coverage basis will depend on the type of occupancy of the building covered and the amount of coverage carried. R. Deductible A $500 deductible is applicable for policies written under the MPPP. S. Federal Policy Fee There is no change from the standard practice. The Federal Policy Fee in effect at the time the MPPP policy is written must be used. T. Renewability The MPPP policy is a 1-year policy. Any renewal of that policy can occur only following the full notification process that must take place between the lender (or its authorized representative) and the insured/ mortgagor, when the insured/ mortgagor has failed to provide evidence of obtaining a substitute flood insurance policy. MPPP 5 May 1, 2008 U. Cancellations The NFIP Flood Insurance Manual rules for cancellation/nullification are to be followed, when applicable. V. Endorsement An MPPP policy may not be endorsed to convert it directly to a conventionally underwritten SFIP. Rather, a new policy application, with a new policy number, must be completed according to the underwriting requirements of the SFIP, as contained in the NFIP Flood Insurance Manual. The MPPP policy may be endorsed to assign it under rules of the NFIP. It may also be endorsed for other reasons such as increasing coverage. W. Assignment to a Third Party Current NFIP rules remain unchanged; therefore, an MPPP policy may be assigned to another mortgagor or mortgagee. Any such assignment must be through an endorsement. X. Article XIII—Restriction on Other Flood Insurance Article XIII of the Arrangement is also applicable to the MPPP and, as such, does not allow a company to sell other flood insurance that may be in competition with NFIP coverage. This restriction, however, applies solely to policies providing flood insurance. It also does not apply to insurance policies provided by a WYO company in which flood is only one of several perils provided, or when the flood insurance coverage amounts are in excess of the statutory limits provided under the NFIP or when the coverage itself is of such a nature that it is unavailable under the NFIP, such as blanket portfolio coverage. MPPP 6 May 1, 2008 GENERAL CHANGE ENDORSEMENT The NFIP General Change Endorsement form cannot be used to renew, extend, or change a policy term. However, the General Change Endorsement form, or a similar form for WYO companies, can be used to make certain types of coverage and rating changes or corrections to existing policy data. I. ENDORSEMENT RULES A. Coverage Endorsements 1. Additional Coverage or Increase in Amount of Insurance Added coverage, or an increase in the amount of insurance, is permitted at any time during a policy term. The additional premium is calculated pro rata for the balance of the policy term, at either the rate in effect on the endorsement effective date or the rate in effect on the policy effective date, in accordance with each WYO company’s standard business practice. (See Examples 1 through 4 at the end of this section.) Refer to the General Rules section, page GR 8, for the applicable waiting period. 2. Reduction of Insurance A reduction in the amount of building insurance cannot be made unless part of the building has been removed, which reduces the building’s value to less than the amount of the building insurance, or a current appraisal or cost estimate is provided which shows that the building’s current coverage amount is higher than the estimated replacement cost of the building. (See Example 6 at the end of this section.) A reduction in the amount of contents insurance cannot be made unless some of the contents have been sold or removed, which reduces the contents’ value to less than the amount of the contents insurance. 3. Removal of a Coverage There is no return premium for the removal of building or contents coverage unless the property is no longer at the described location or the property of the policyholder. (See Example 5 at the end of this section.) B. Rating Endorsements 1. Rate Reduction It is not permissible to revise a policy's rating during a policy term, due to a rate decrease, unless the effective date of the rate change is prior to the policy's effective date. 2. Rating Error The NFIP rules require that the policy must be in effect in order to process refunds. Corrections will be allowed for only the current year for failure of the WYO company or NFIP Direct to: • Use the map grandfather rule. • Use the V-Zone Risk Factor Rating Form. The endorsement effective date is either the date the V-Zone Risk Factor Rating Form was certified or the effective date of the current policy year, whichever is later. • Make a timely revision of alternative rates (rates used for Pre-FIRM rated risks where the zone is unknown). • Use Post-FIRM rating for a Pre-FIRM structure. The refund will be processed if the insured provides an Elevation Certificate. The endorsement effective date is the effective date of the current policy year. • Use an Elevation Certificate on Post- FIRM buildings rated using “Without Certification of Compliance or Elevation Certificate” for Zones AO and AH, or “No Elevation Certificate or No Estimated BFE” for Unnumbered A Zone. The endorsement effective date is the effective date of the current policy term. 3. Revision of an Alternative Rating Alternative rating is used to compute the premium on a Renewal Notice following conversion of a community from the Emergency Program to the Regular Program. Alternative rates are also used by producers for the rating of Pre-FIRM construction. Alternative rating allows the producer and the policyholder 1 year to revise the rating, so a premium refund END 1 May 1, 2008 can be obtained from the renewal or inception date if it is determined that the insured property is located in a lower rated zone. During subsequent policy terms, such revisions may also be made effective with the start of the policy term. 4. Map Revision A map change (reprinting, Letter of Map Amendment [LOMA], Letter of Map Revision [LOMR], or Letter of Determination Review [LODR]) may change the flood zone in which a property is located to a lower rated zone, or it may change the Base Flood Elevation. In such cases, the policy rating may be revised for the current and prior policy years if the change occurred prior to the current policy year. When a community has been converted from the Emergency Program to the Regular Program, the policy rating may be revised to reflect the correct flood zone. However, no premium refund is allowed on premium previously paid. C. Misrated Policy Premium refunds will be allowed with proper documentation (see III.B.2.a.) going back a maximum of 6 calendar years when there was a misrating such as an incorrect building description, lowest floor elevation, community number, flood zone, or Base Flood Elevation, so long as the insured can provide proof of the misrating. The flood zone and Base Flood Elevation can only be corrected using the current FIRM. Any lapse in coverage does not extend the number of years the premium refund is allowed. D. Conversion of Standard Rated Policy to PRP Due to Misrating or Map Revision 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. 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. The new PRP building 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. E. Changing Deductibles Increasing deductibles is permitted during the current policy term. (See Example 7 at the end of this section.) 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 apply unless the request to reduce the deductible is in connection with making, extending, or renewing a loan. The ICC premium is not eligible for the deductible discount or surcharge. First calculate the deductible discount or surcharge, then add in the ICC premium. F. Correcting Property Address A policy cannot be endorsed to change the location. This includes relocation from one unit to another unit in the same building. However, an erroneous address (e.g., through typographical error) can be corrected through endorsement. The agent must provide proof or a reasonable explanation for the error. II. ENDORSEMENT PROCESSING PRIOR TO POLICY RENEWAL (NFIP DIRECT BUSINESS ONLY) A. During Last 90 Days of Policy Term 1. If the premium payment for renewal of the policy has not already been processed by the NFIP, a General Change Endorsement processed will produce a revised Renewal Notice for the upcoming term. 2. If the original Renewal Notice has not been paid, the payor may use the revised Renewal Notice or subsequent Final Notice. END 2 May 1, 2008 B. During Last 75 Days of Policy Term 1. If the original Renewal Notice has not been paid, the producer must submit the General Change Endorsement for the current policy term only and submit a renewal Application for the upcoming term. A separate premium payment must be submitted for each transaction. (The insured and/or mortgagee, if payor, should be advised not to pay the Renewal Notice or Final Notice when a renewal Application and premium have been submitted.) 2. If the original Renewal Notice has been paid, the producer must submit the General Change Endorsement together with any required additional premium for the renewal policy term and, if applicable, a separate General Change Endorsement and additional premium for the remainder of the current policy term. The effective date of the endorsement to increase coverage (up to the inflation factor) will be the “renewal date” only if the endorsement and additional premium are received within the 30-day grace period. C. Refunds Generated from Endorsement Processing The return premium is based on rates in effect on the effective date of the change or the policy effective date, in accordance with the WYO company’s standard business practice. It is calculated by revising the rate, effective from the inception date of the current policy term, provided the inception date is on or after the community conversion date. The Federal Policy Fee and Probation Surcharge (if applicable) are n