Flood Insurance

Flood Insurance Resources

• The National Flood Insurance Program website, administered by FEMA, provides general information about NFIP, contains online copies of flood plain maps, and includes links to insurance agents and more information regarding flood insurance.
• Austin Perez from the National Association of Realtors® presented Flood Insurance Rate Concerns Presentation at the 2014 Winter Business Meetings.
• The “Flood Insurance: Our Latest Challenge” presentation was presented by Melanie McLane on a webinar.
• NAR collects and archives flood insurance resources regarding the National Flood Insurance Program.

FEMA’S Rate Relief Programs

In anticipation of increasing flood insurance rates, FEMA identifies several options that may directly or indirectly result in flood insurance discounts to policyholders.

• The NFIP Community Rating System (CRS) offers insurance premium discounts (up to 45%) for individuals in communities implementing floodplain management practices that exceed the minimum requirements of the NFIP. By implementing CRS floodplain management best practices, flood losses are reduced, public safety is enhanced, and the cost of flood insurance is decreased.
• FEMA’s Hazard Mitigation Assistance (HMA) Grant Program provides funding for eligible mitigation activities, including elevating properties, that reduce disaster losses and protect life and property from future disaster damages.
• An Elevation Certificate is an important tool that documents your building’s elevation. This fact sheet provides valuable information for homeowners including guidance for obtaining an Elevation Certificate which is necessary for determining full-risk rates in high-risk zones, and which could show that you may be paying too much for flood insurance.
• If a person believes their property was incorrectly included in an NFIP-identified Special Flood Hazard Area (SFHA), they may submit an application to FEMA Flood Map Appeal for a formal determination of the property’s location and/or elevation relative to the SFHA.
• Editorial: Federal Flood Insurance and the 99% Not in Mansions – In this editorial published in the Wall Street Journal, Melanie McLane discusses how the Biggert-Waters Act is impacting Americans (subscription required).

PAR Standard Forms

• Seller’s Property Disclosure Form (Form SPD); Paragraph 18: Sellers are asked to disclose whether they’re aware that the property is in a FEMA flood zone
• Standard Agreement for the Sale of Real Estate (Form ASR); Paragraph 12: “Property and Flood Insurance” inspection reminds buyers to check with an insurance agent to determine the need and likely cost of flood insurance.