COM 0176.025 2006-2008 - Laserfiche WebLink

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Sri: FEM~4 Question: What does it mean if my community does not participate in the National Flood Insurance Program (NFIP)? Answer: ('nmmunines that agree to ma_ age flood hazard areas by adoo[ine minimum standards can participate in the NFIP The standards are contained in Section 60.3 of the NFIP regulations. Communities that do not part~ctpate aze sublect to the sanctions outlined in Section 202(a) of the Flood Disaster Protection Act of 1973. Section 202(a) makes flood insurance, Fed ral grants and loans Federal disaster assistance and Federal mortgage insurance unavailable for the ac uisition or construction of structures located in the flood lam shown on the NFIP ma s. Question: My family has lived in our house for many years, and we had a big flood that was called [he "100-vear flood." We weren't damaged. ~v do I need flood insurance? Answer: The term "100-year flood" is often incorrectly used and can be misleading. I[ does not mean that only one flood of that size will occur ever 100 ears. The term is a statement of probability that scientists and engineers use to describe how one flood compares to o[ ers t at are likely to occur. Today, we use the phrase "1% annual chance flood." What it means is that there is a 1 % chance of a flood of [hat size happening in any year. Over a 100-year period, it has a 63,5% chance of occunring. Even more surprising is that over a 30-year period (typical mortgage period) the 1 % annual chance flood has a 26% chance of occurring. This means a home in the ma ed flood hazard area is five times more likely to be dam ed b flood than to have a major tre. To answer your question a out w y you nee oo insurance, you wou need to look very care I y at what caused the flood and how high the water near your home rose. Because rainfall amounts are different when a storm moves across an area, a "100-year flood" may occur in some places but no[ others. There are many factors [ha[ can add to flooding, including debris in the waterway, small road culverts and bridges, frozen or saturated ground, and others. If your area had a major storm and your home was not flooded, you may want to check with your community's engineering or planning office. If other areas didri t flood, it may mean that the FIRMS should be revised. You may also want to check to see if your home is eligible for a Letter of Map Amendment (COMA) which FEMA uses when homeowners submit Elevation Certificates showing [hat their homes are out of the mapped floodplain. W ith a COMA, your lender may choose to not require flood insurance. Question: a^°~ romm~nity participation in the National Flood Insurance Program mean and how does that affect a homeowner? Answer: Communities, i.e., local governments, decide to participate in the National Flood Insurance Program (NFIP). Specifically, communities that agree to manage flood hazard areas by adopting minimum regulatory standards may participate in the NFIP. These standards are listed in Section 60.3 of the NFIP regulations. If a communiri does not participate in the program property owners in that jurisdiction are not able to purchase .~gu(} backed flood insurance Also federal grants loans disaster assts[ance and Federal mortgage insurance are unavailable for the acquisition or construction of structures located to [he floodplain as shown on the NFIP maps. Similarly, if a community does not participate in the program, property owners are not subject to federal requirements of mandatory flood insurance. However, a lender is still required to inspect any flood maps to determine flood hazard risk and provide notice of such risk. A lender may require a borrower to obtain flood insurance even in the absence of a federally mandatory requirement.