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) * 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 U.S. Department of Homeland Security 500 C Street SW Washington, DC 20472 www.fema.gov