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 photo 
requirements 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 October 1, 2006 


• 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. 

Buildings in the course of construction 
are to be rated the same as completed 
construction. A renewal application and 
a new EC are required 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 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 page RATE 29 
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 30-31 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. 

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. 

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 Flood Insurance 
Application. The disclaimer will state that 
cancellation of a policy due to a billing dispute 
will be permitted only for a billing error or fraud. 
If the credit card information is taken over the 
telephone by the producer, the producer may 
sign the authorization form on behalf of the 
payor only after having read the disclaimer to 
the payor. 

V. COMPLETING PART 2 OF THE FLOOD 
INSURANCE APPLICATION FORM 
After completing Part 1 of the Flood Insurance 
Application, the producer must complete all 
relevant items in Part 2 of the Application for 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 

APP 6 October 1, 2006 


APP 9 October 1, 2006 


APP 10 October 1, 2006 


APP 11 October 1, 2006 


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, 2005 


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 October 1, 2006 


RATE 33 October 1, 2006 


RATE 34 October 1, 2006 


RATE 35 October 1, 2006 


RATE 36 October 1, 2006 


RATE 37 October 1, 2006 


RATE 38 October 1, 2006 


RATE 39 October 1, 2006 


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RATE 42 October 1, 2006 


RATE 43 October 1, 2006 


RATE 44 October 1, 2006 


RATE 45 October 1, 2006 


RATE 46 October 1, 2006 


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 base
ment or enclosure as a floor. If the building 
type is a manufactured (mobile) home/ 
travel trailer on foundation, enter the make, 
model, and serial number in the block at 
the bottom of this section. 

4. Check 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 $1.00 if this is an 
application for a townhouse/rowhouse 
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. 

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 5 October 1, 2005 


PRP 6 October 1, 2006 


PRP 7 October 1, 2006 


END 13 October 1, 2006 


END 14 October 1, 2006 


CN 9 October 1, 2006 


CN 10 October 1, 2006