FEMA IS-158: Hazard Mitigation Flood Insurance in Disaster Operations Course Summary

This course is designed for new HM Insurance Specialists. A secondary audience includes HM Insurance Technical Specialists and HM Insurance Crew Leaders; they may find it to be a valuable review.

• Describe the functions and products of HM Insurance.
• Refer to key authorities, programs, and resources related to HM Insurance in disaster operations.
• Identify people and organizations key to HM Insurance and opportunities for collaboration.

If you have any questions on this material after completing this course, contact a HM Insurance Technical Specialist or a HM Insurance Crew Leader. He or she will be able to answer questions or direct you to appropriate resources.

The rest of lesson 1 focuses on the organization, functions, and information generated by HM Flood Insurance.

Lesson 2, Key Authorities and Programs, addresses the authorities, regulations, and other guidance that relate to the functions of HM Insurance in a disaster operation.

Lesson 3, Key Resources addresses the resources for performing HM Insurance responsibilities including the Hazard Mitigation Field Operations Guide: Floodplain Management and Insurance, and the HM Disaster Workforce Website.

Lesson 4, Collaboration, focuses on identifying the stakeholders and organizations key to HM Insurance and methods for successful collaboration with those stakeholders.

Lesson 5, Vignette Activities, provides an opportunity to review workshop concepts in the context of a hypothetical disaster.

Lesson 6, Course Conclusion, reviews the key learning objectives of the course and provides the opportunity to take the final exam for this course.

• Identify where HM Insurance fits in the Hazard Mitigation organization.
• Identify the functions of HM Insurance.
• Identify the data HM Insurance provides for NFIP reports and other stakeholders reports.

• HM Floodplain Management – provides technical assistance to promote and facilitate community floodplain management in support of NFIP program objectives and requirements
• HM Floodplain Management Damage Determination – provides technical assistance to support communities in the collection of damage data, including use of the Substantial Damage Estimator tool or other tools as appropriate, and interpretation of data, all consistent with the requirements of the local Floodplain Management Ordinance
• HM Insurance – serves as a resource for NFIP flood insurance information for internal Joint Field Office (JFO) staff, state and local officials and citizens
• HM Insurance Hotline – operates a hotline, when activated, to provide connected customer service with FEMA and to allow the program to more immediately address flood insurance issues that may come up during a disaster for policyholders

This graphic shows the hierarchy of positions within Floodplain Management and Insurance, and is not a staffing or organizational chart.

• Share and communicate NFIP information
• Generate flood insurance data for forms, inquiries, and reports

HM Insurance works with a variety of internal and external partners and stakeholders to carry out these functions. The scope and details of each function varies depending on the size and type of disaster event.

These functions are covered on the following screens.

NFIP information delivered by HM Insurance during the disaster should be consistent with the Federal Coordinating Officer’s priorities, the Hazard Mitigation Strategy for the disaster, and the NFIP regulations.

HM Insurance interacts with many internal and external stakeholder groups to shares and communicate NFIP information:

• Community Education and Outreach (CEO)
• JFO External Affairs
• Individual Assistance (IA)
• Public Assistance (PA)
• Disaster Survivor Assistance (DSA)
• State/Tribal/Local Officials
• Flood Insurance Claims Offices/Flood Response Offices
• Communities
• Insurance Agents
• State Insurance Commissioner
• Regional NFIP Staff/Regional Flood Insurance Liaison (RFIL)

Click on the links above for more information HM Insurance interactions with these entities.

• Responding to requests for basic insurance information from HM CEO Specialists at Disaster Recovery Centers (DRC) and other outreach venues
• Assisting individuals visiting a DRC with general and specific flood insurance information; specific information can be provided to a policyholder, e.g. coverage questions and claims process
• Providing general program information as requested
  • Providing insurance information for publications
  • Helping select and provide NFIP publications for distribution

• Creating and distributing proactive NFIP messaging
• Promoting the sale and retention of NFIP policies
• Providing accurate, timely information in response to media requests

Congressional Affairs. by:

• Providing accurate, timely information to respond to Congressional inquiries and providing NFIP information for Congressional offices

• Providing NFIP policy coverage information
• Assisting in interpreting private insurance policy information if requested

• Establishing and maintaining a dialog with insurance claims offices to address coverage issues for specific policyholders as necessary
• Establishing and maintaining a dialog with FEMA HQ and the Flood Response Office (FRO), if established, to obtain current damage reports and address specific coverage issues, including requests for re-inspections, that may arise

• Answer basic questions on flood insurance
• Distribute insurance information
• Promote the NFIP

• Visiting to educate and promote flood insurance
• Providing guidance on basic insurance questions/issues

• Coordinating on insurance issues specific to the state
• Establishing and staffing a hotline, if requested and authorized, for policy and claims related questions

• Recognizing that the Regional Office, particularly the Regional Flood Insurance Liaison as a Subject Matter Expert (SME), maintains up-to-date knowledge of the NFIP Flood Insurance Program including situational awareness of ongoing NFIP Flood Insurance issues and activities within the Region that are specific to current disaster response and recovery efforts.
• Collaborating with the RFIL and other partners to share information about current NFIP Flood Insurance requirements and regional interpretation of those requirements.
• Providing the RFIL with progress reports and situational updates regarding ongoing response and recovery flood insurance related activities and accomplishments.

Reveal the suggested answers.

• Lenders
• Real Estate Agents
• Builders/ Developers
• Voluntary Agencies

HM Insurance shares and communicates with insurance companies and lenders to clarify and resolve insurance questions.

Such interactions always maintain the privacy of policyholders; HM insurance staff do not interpret coverage in claims matters.

• Data for the “NFIP Request for Assistance Form”
• Responses to Congressional Inquiries
• Data on activities to be included in NFIP and other reports

HM Insurance staff may be asked to utilize the aggregate data gathered on the collected forms to provide details on the disaster and affected communities or to suggest possible mitigation strategy to JFO partners, the Region or to HQ.

Congressional inquiries can be made by phone, email or letter. All require a timely and accurate response.

View a sample Congressional inquiry sent by email and response.

View a sample of a written Congressional inquiry and draft response.

HM Insurance has an operating procedure, “How to Address Floodplain Management- and Insurance-Related Congressional Inquiries/Interests” in Section 4.0 of the HM Field Operations Guide.

From:

Sent:

To:

cc:

Subject: Flood Insurance Question

____________,

Our constituent, [NAME] [ADDRESS], filed a flood insurance claim with __________ Insurance Agency on [DATE] and has never heard from an adjuster. [NAME] has tried several times to contact the agency but has received no response. Is there anything that FEMA can do to help?

Email Response

From:

Sent:

To:

cc:

Subject: RE: Flood Insurance Question

[NAME]

Our Insurance Specialist was able to contact the __________ Insurance Agency on behalf of your constituent, [NAME], and confirmed that an adjuster will contact [NAME] within the next 24 hours to schedule a home visit within the next few days. Please let me know if you need any further assistance.

December 7, 2011

[NAME]

Federal Coordinating Officer

Federal Emergency Management Agency

Joint Field Office

[STREET ADDRESS]

[CITY STATE ZIP]

Dear [NAME]

This letter is to provide information on behalf of my constituents, [NAME/NAMES], concerning their inability to purchase a flood insurance policy through the Federal Emergency Management Agency (FEMA) National Flood Insurance Program (NFIP) for their home on [ADDDRESS]. [NAME] needs a letter from FEMA to make flood insurance available through the NFIP. [NAMES] believe their property was erroneously included in a Coastal Barrier Resource System (CBRS) designated area. Please see the attached letter from [COUNTY], permitting and issuing a Certificate of Occupancy for their property. I appreciate your attention to this matter and I look forward to a quick resolution.

Sincerely,

[NAME]

U.S. Senator

Congressional Inquiry Response Letter

December 11, 2011

The Honorable [NAME

United States Senator

[STREET ADDRESS]

[CITY/STATE/ZIP]

Dear Senator Nelson:

This is in response to your letter of December 7, 2011, on behalf of your constituents, [NAMES], providing information concerning the residence constructed in a Coastal Barrier Resource System (CBRS) designated area. [NAMES] requested your assistance in obtaining a letter from the Federal Emergency Management Agency (FEMA) that would make flood insurance available through the National Flood Insurance Program (NFIP) for the above-referenced structure located at [ADDRESS]in the CBRS designated area. The Coastal Barrier Resources Act of 1982 and the Coastal Barrier Improvement Act of 1990 deny the availability of flood insurance coverage through the NFIP, as well as other forms of federal assistance, for structures that were permitted and constructed in CBRS designated areas on or after the date of designation. Based on the information provided by the United States Department of the Interior, Fish and Wildlife Service, the structure at [ADDRESS] is located in CBRS Unit P21, designated [DATE]. Structures that were permitted and constructed prior to the date of CBRS designation are eligible for NFIP flood insurance until such time as they are Substantially Improved or Substantially Damaged. The information provided by [NAMES] confirms that the structure was permitted by [COUNTY] on [DATE], and that the Certificate of Occupancy was issued on [DATE]; both dates after the CBRS designation. By law, the residence located at [ADDRESS] is ineligible for flood insurance coverage under the NFIP. If this office can be of further assistance, please do not hesitate to contact me. Sincerely, [NAME] Regional Administrator CONCURRENCE: SW________BGL________CS__________MPM_______

HM Insurance produces several NFIP reports and data for reports that are used throughout the JFO. These reports are available through FEMA’s Community Information System (CIS). Reports and data include:

• Community Status Information
• Community Specific Data
• Aggregate Policyholder Data  

Click on the links above for details on this important information.

NFIP status means a community either:

• Participates in the NFIP
• Does not participate in the NFIP
• Is suspended or sanctioned

The NFIP status has implications for disaster assistance to the community and to its citizens.

• Total number of policies in force
• Total dollar amount of coverage in force
• Total premium paid
• Total numbers of claims
• Numbers of repetitive loss / severe repetitive loss structures
• Breakdowns of policies per flood-risk zone
• Other similar summary information

If counties are added to the disaster declaration area, state, county and additional community-specific summary data may need to be generated.

Community Specific Data is available on the CIS, which is accessible through the HM Disaster Workforce Website.

• When summarized, the individual policyholder data is not identifiable and not protected by the Privacy Act.

Policyholder data is available through the NFIP’s Bureau and Statistical Agent, which operates BureauNet.

• BureauNet requires a log-in and password.

• Where HM Insurance fits in the Hazard Mitigation organization
• The functions of HM Insurance
• The data HM Insurance provides for NFIP and other reports

Lesson 2 will cover the authorities, regulations, and other guidance that relate to the functions of the National Flood Insurance Program (NFIP) needed to work in HM Insurance.

At the conclusion of this unit, you will be able to:

• Describe the significance of the key authorities critical to HM Insurance.

• Provide insurance to individuals living or owning businesses in flood-prone areas
• Control the development of these areas so that future flood losses are avoided or minimized

The key authorities that govern flood insurance are listed below. Click on each Act for a brief summary of how these laws impact flood insurance.

• National Flood Insurance Act, 1968
• Flood Disaster Protection Act, 1973
• Coastal Barrier Resources Act (CBRA), 1982 and 1990
• National Flood Insurance Reform Act, 1994
• National Flood Insurance Reform Act, 2004
• Biggert-Waters Flood Insurance Reform Act, 2012
• Homeowners Flood Insurance Affordability Act 2014

Flood Hazard Boundary Maps (FHBM) developed in conjunction with this law were based on approximate flood areas.

Since the creation of the NFIP, the National Flood Insurance Act has been amended by severa additional Acts; each is intended to clarify or enhance the NFIP.

(1) substantially increase the limits of coverage authorized under the national flood insurance program;

(2) provide for the expeditious identification of, and the dissemination of information concerning, flood-prone areas;

(3) require states or local communities, as a condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plain ordinances with effective enforcement provisions consistent with Federal standards to reduce or avoid future flood losses; and

(4) require the purchase of flood insurance by property owners who are being assisted by Federal programs or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or facilities located or to be located in identified areas having special flood hazards.

• Under the Act, no new development using Federal funding is permitted unless it is unavoidable, and functionally dependent as defined in 44 CFR Part 59.1.
• US Fish and Wildlife is in charge of CBRA.

The Act further:

• Requires people who receive Federal disaster assistance to purchase flood insurance
• Prohibits people from receiving certain types of Federal disaster assistance if they were required to buy flood insurance on a prior disaster and did not buy the insurance or maintain a policy, or if the community in which they reside does not participate in the NFIP

Increased cost of compliance (ICC) was added as coverage under Standard Flood Insurance Policy (SFIP).

This Act took steps to reduce the number of repetitive NFIP claims and reduce flood losses and costs associated with insurance claims.

This Act:

• Authorized the Repetitive Flood Claims (RFC) pilot program.
  • Up to $10 million is available annually for FEMA to provide RFC funds to assist states and communities to reduce flood damages to insured properties that have had one or more claims to the NFIP.
• Authorized the Severe Repetitive Loss (SRL) program
  • The SRL program provides funding to reduce or eliminate the long-term risk of flood damage to SRL structures insured under the NFIP.

An SRL property is defined as a residential property that is covered under an NFIP flood insurance policy, and:

• Has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000; or
• For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building

• Eliminated most subsidized premium rates for flood insurance
• Required development of a process for determining when a flood event has commenced for the purpose of flood insurance coverage
• Defined substantial improvement as any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 30 percent of the market value of the structure before the “start of construction” of the improvement
• Removed limitations on state contributions to updated flood mapping (previously, there was a limit of a 50 percent state contribution to the costs of new flood maps)
• Required development of flood data on a watershed basis
• Authorized funding for the NFIP for 5 years, bringing some stability to the program that had been relying on short-term funding extensions for a number of years

The Act:

• Lowered rate increases on some policies
• Prevented some future rate increases
• Clarified and permitted policies to be grandfathered
• Implemented a surcharge on all policyholders
• Repealed certain rate increases that had already gone into effect and provided for refunds to those policyholders
• Authorized additional resources for the National Academy of Sciences (NAS) to complete an affordability study.

The Act requires FEMA to designate a Flood Insurance Advocate to advocate for the fair treatment of NFIP policy holders.

44 CFR, Emergency Management and Assistance, establishes state, Federal, and local government policy and procedures with the National Flood Insurance Program.

Policies and procedures for Federal flood insurance are found in:

• 44 CFR Part 59:General Provisions – Subpart B
• 44 CFR Parts 61 to 65
• 44 CFR Part 73

Before reviewing the relevant 44 CFR provisions, check your knowledge of terms used in these regulations.

Base Flood

Floodplain Management

Base Flood Elevation (BFE)

Basement

Repetitive Loss Structure

Flood Insurance Rate Map (FIRM)

Special Flood Hazard Area (SFHA)

Increased Cost of Compliance (ICC)

Substantial Improvement

Substantial Damage

There are several flood insurance provisions of 44 CFR that HM Insurance staff reference when performing their duties in a post-disaster environment. These sections cover the regulatory basis of the NFIP.

The next section of this lesson will highlight these sections. While reviewing the highlights, you may want to highlight or flag these sections in a copy of 44 CFR.

The CFR is available online through the HM Disaster Workforce Website or by clicking this link.

•  Identifies floodplain management requirements that communities must satisfy before flood insurance becomes available in their community
• Outlines situations of noncompliance that may cause a community to be either placed on probation or suspended from NFIP participation

• Dwelling: Issued to homeowners, residential renters and condominium unit-owners, owners of residential buildings containing one to four units
• General Property: Issued to owners of residential buildings with five or more units or owners or lessees of non-residential buildings or units, or residential condominium buildings that are uninsurable under the Residential Condominium Building Association Policy (RCBAP)
• Residential Condominium Building Association Policy (RCBAP): Issued to condominium associations to insure eligible residential condominium buildings

Part 61 also addresses:

• Maximum amounts of coverage available
• Risk premium rate determinations
• Effective dates and time of coverage
• Group Flood Insurance Policy (post disaster environment)

• Issuance of policies
• Claims adjustment and appeal process
• Policy requirements of Write Your Own (WYO) insurance companies

44 CFR Part 63: Implementation of Section 1306(c) of the National Flood Insurance Act of 1968

Part 63 details:

• Requirements for relocating or demolishing structures protected by NFIP insurance

44 CFR Part 64: Communities Eligible for Sale of Insurance

Part 64 covers:

• Community requirements for flood insurance studies and the mapping of flood risks as an eligibility requirement of the sale of flood insurance

• Mapping requirements of special flood hazard areas

Flood maps are of particular importance to HM Insurance staff. Flood maps help HM Insurance Staff determine:

• How a building can be constructed (i.e. to what height the lowest floor must be elevated)
• Which flood zone to use for rating
• What policy coverage or restrictions may apply

Flood maps can also help HM Insurance staff assist homeowners in identifying the flood zone of their property.

• Situations that may cause individual policy holders to be denied or lose flood insurance coverage
• Information that gives the community the leverage to deny coverage to a non-compliant individual without the community losing status in the NFIP

The majority of policy coverage is written through the Standard Flood Insurance Policy (SFIP) Dwelling Form.

The Dwelling Form is found in the NFIP Flood Insurance Manual in the Policy Section.

Minimum deductibles for a policy, as well as other available deductible amounts, are provided in the Flood Insurance Manual.

• The deductible depends on the flood zone in which the building is located, as well as whether the building is pre- or post-FIRM.
• Policy premiums are directly affected by the amount of the deductible. The higher the policy deductible, the lower the insurance premium.

This Table 8A, from the Rating section of the Flood Insurance Manual, shows minimum deductibles.

• Coverage A – Building Property
• Coverage B – Personal Property
• Coverage C – Other Coverages
• Coverage D – Increased Cost of Compliance (ICC)

These properties and coverages are discussed in the following screens.

• Structures with two or more outside rigid walls and a fully secured roof affixed to a permanent site
• Manufactured homes/mobile homes built on a permanent chassis, transported to a site in one or more sections, and affixed to a permanent foundation

A manufactured home with the following characteristics is considered an insurable building:

• A manufactured home without wheels that is built on a chassis and affixed to a permanent foundation
• A manufactured home that is regulated under the community’s floodplain management and building ordinances or laws

The approved “connectors” are:

• Rigid exterior wall
• Solid load bearing interior wall
• Stairway
• Elevated walkway
• Roof

An advantage to insuring two buildings as one, when approved connectors are present, results because of saving separate policy fees when the combined replacement cost of the building is less than the maximum amount of insurance available under the program.

• One to four family dwellings can be insured up to $250,000.
• Writing a single policy will save the insured the cost of two Federal Policy Fees.

The Federal Policy Fee is a charge made on every NFIP flood insurance policy to help offset the cost of running NFIP.

The only appurtenant structure covered by the Standard Flood Insurance Policy is a detached garage located at the described location.

• Up to 10% of the building limit of liability can be applied.

The General Property form and Residential Condominium Building Association Policies do not provide coverage for a detached garage.

• The structure is not yet walled and roofed
• The work is in progress or has been halted no more than 90 days

If the lowest floor used for rating is below the established Base Flood Elevation (BFE), NFIP coverage does not apply until the building is walled and roofed.

Building materials or supplies used in construction are covered as long as they are contained within a fully enclosed building on the premises or adjacent to the premises.

Deductibles for buildings in the course of construction that do not have at least two rigid exterior walls and a fully secured roof at the time of loss are doubled.

• Awnings and canopies
• Blinds
• Built in dishwashers
• Built in microwave ovens
• Carpeting permanently installed over unfinished flooring
• Ranges, cooking stoves and ovens
• Refrigerators
• Wall mirrors, permanently installed

A basement is defined by the NFIP as any room or portion of a room that has its floor below grade (ground) on all sides.

Covered building elements in basements are listed in the policy and include the following:

• Sump pumps
• Well water tanks and pumps, cisterns, and the water in them
• Oil tanks and the oil in them, natural gas tanks and the gas in them
• Pumps and/or tanks used in conjunction with solar energy
• Furnaces, hot water heaters, air conditioners, and heat pumps
• Electrical junction and circuit breaker boxes and required utility connections
• Foundation elements
• Stairways, staircases, elevators, and dumbwaiters
• Unpainted drywall and ceilings, including fiberglass insulation
• Basement clean-up

• Remember, SFHAs are those high-risk areas designated as flood zones beginning with the letter “A” or “V.”

The SFIP is very clear about what is covered in such an enclosure.

They are the same, with the addition of nonflammable insulation, as those covered in a basement.

Contents coverage is available under the same policy as the building property.

Covered contents are:

• Inside an enclosed building at the described location
• Owned by the insured or other family member in the household
• At the insured’s option, property owned by guests or servants

• Artwork, photographs, collectibles or memorabilia, including but not limited to porcelain or other figures, and sports cards
• Rare books or autographed items
• Jewelry, watches, precious and semiprecious stones, or articles of gold, silver or platinum
• Furs or any article containing fur that represents its principal value
• Personal property used in any business

• For example, if you lost an antique table, you will only receive replacement value for a table, regardless of the value of the antique.

The policy also will cover improvements made or acquired solely at the expense of the tenant in the dwelling or apartment.

• This extension of coverage is limited to not more than 10 percent of the contents policy amount.
• Use of this option reduces the amount of contents coverage.

• Removal of debris caused by flooding
• Loss-avoidance measures
• Property removed to safety

Click on the links above to learn more about coverage for these items.

Important Note: Lumber and plastic sheeting is covered by flood insurance policies only in conjunction with sandbags, levees, and pumps.

Policyholders who used lumber or plastic sheeting to cover windows in preparation for the storm cannot claim reimbursement for these costs.

If the insured or a member of their household performs the removal work, the value of the work will be based on the Federal minimum wage.

• Sandbags including sand to fill them
• Fill for temporary levees
• Pumps
• Plastic sheeting and lumber used in connection with these items

The insured and members of the household who perform the work can claim the value of work at the Federal minimum wage.

If the insured property is moved to a location other than the described location in order to protect it from the peril of flood, coverage will be extended for 45 consecutive days from the date the property was moved. The personal property that is moved must be placed in a fully enclosed building or otherwise reasonably protected from the elements, above ground level or outside of the special flood hazard area.

ICC, an important incentive for NFIP policy holders who must mitigate to meet the local floodplain ordinance, includes:

• $30,000 maximum coverage
• No deductible
• A requirement that the total coverage paid cannot exceed the maximum limit set by Congress for the building type (residential or non-residential)

There are four mitigation options to comply with the community’s floodplain management ordinance and help reduce future flood damage. They can be remembered by the acronym FRED:

• Floodproofing (non-residential only)
• Relocation
• Elevation
• Demolition

These may be used individually or combined.

The requirements that must be met to trigger ICC are, the:

• Building must be located in SFHA or other regulated area (such as ABFE) included in the community’s current floodplain management ordinance.
• Building was damaged by flood (damage from other perils such as wind, fire, etc. is not covered by ICC coverage).
• Local community must formally declare that the building was substantially damaged. If the damage is caused by multiple perils (wind and flood) and the community supplies information on the market value of the building, the adjuster can determine if the damage is equal to or more than 50% by flood.
• Building is noncompliant with community’s current floodplain management ordinance.

• The NFIP substantial damage definition includes building damage from any origin, such as fire, wind, earthquake, flood, etc.
• An ICC claim is paid only when the flood component of the damage equals or exceeds 50 percent of the pre-flood market value of the building as determined by the participating community, and the other ICC requirements are met.

• The insured party contacts his or her insurance representative – either Direct NFIP or Write Your Own (WYO) company – to begin the claims process.
• An authorized adjuster inspects the site.
• An authorized adjuster notifies the insurance company.
• The insurance company pays the claim and, if a WYO company, submits the claim to NFIP for reimbursement.

The claims process does not typically involve HM Insurance staff unless there is conflict or confusion for the insured.

• In such cases, the HM Insurance staff may contact the policyholder, the insurance adjuster, or the insurance company, during the claims process.
• HM Insurance staff should never interpret how a claim is to be adjusted. If HM Insurance staff becomes involved, they merely become conduits of information to facilitate the claim process.

Supplemental Payments

Actual Cash Value (ACV)

Supplemental Checks

NFIP Re-inspections

Appraisals

NFIP Flood Insurance Advocate

The original claims adjustment sometimes may fall short of the actual cost of repair. The insured has the right to request that the claim be reviewed or reopened, if previously closed. Supplemental claim payments may be made after this review.

• This wording is placed by the banking institution and does not waive the rights of the insured to request further payment.

When there is a mortgage on the property, the insured may receive settlement checks payable to both the lender and the insured.

• In this situation, both parties must endorse the claim check.

The insured may make a request through their insurance carrier for a re-inspection by an NFIP General Adjuster or assigned adjuster.

• An NFIP General Adjuster works for the NFIP and can review a file to make sure it is accurate.

However, the insured is encouraged  work with the adjuster and insurance company in an effort to settle any disagreement.

• If all else fails, the insured can request an appraisal.

Disagreements about the amount of claim payment are handled by the NFIP and can involve the insured, contractor, insurance adjuster, and insurance company.

• In the event of an appraisal, the NFIP and the insured will each choose a competent and impartial appraiser.
• The two appraisers will choose an umpire.

Agreement by any two parties will set the ACV and loss or, if it applies, the replacement cost and loss.

The NFIP and its Write Your Own companies try to make the NFIP flood claim process run as smoothly as possible.

The use of an umpire is seldom, if ever, needed.

Section 24 of the Homeowner Flood Insurance Affordability Act of 2014 directed FEMA’s Administrator to establish a Flood Insurance Advocate to advocate for the fair treatment of policyholders under the National Flood Insurance Program (NFIP) and for property owners in the mapping of flood hazards, the identification of risks from flood, and the implementation of measures to minimize the risk of flood.

To provide advocacy assistance to policyholders and property owners, the FEMA Administrator designated a Flood Insurance Advocate, who in turn, established the Office of the Flood Insurance Advocate. The Office of the Flood Insurance Advocate is available to the public and staffed by NFIP program professionals who are experts in all aspects of the NFIP, including claims processes, the map review and amendment process, floodplain management, and flood mitigation techniques and resources.

For more information, download a copy of the Flood Insurance Advocate Fact Sheet. http://www.fema.gov/national-flood-insurance-program-flood-insurance-advocate

• Flood insurance authorities
• 44 CFR components relevant to the NFIP
• Standard Flood Insurance Policy with emphasis on Dwelling Form
• SFIP Coverage and Exclusions
• NFIP Claims Process

In lesson 3 you will learn about the key resources available to HM Insurance staff.

At the conclusion of this unit, you will be able to:

• Recognize key resources related to Insurance in disaster operations.

This lesson focuses on the resources for HM Insurance staff:

• The electronic version of the Hazard Mitigation Field Operations Guide
• Other key HM Insurance resources

Access the HM Disaster Workforce Website through the FEMA Intranet.

Floodsmart.gov and FEMA.gov are also excellent resources.

The HMFOG describes how to accomplish the major responsibilities associated with HM Floodplain Management and Insurance.

• It is intended to be used electronically online.

View “A Brief Tour of the Online Hazard Mitigation Field Operations Guide (HMFOG)”

2. Go to the Table of Contents, beginning on page iii. Point and click on the first section, Introduction to the Hazard Mitigation Field Operations Guide.

3. Read this Introduction section, which explains the foundation of the HMFOG and provides an overview of its contents.

4. Return to the Table of Contents. Locate and click on HM Floodplain Management and Insurance. The first three parts of this section are:

• Overview, which briefly describes mission of HM Floodplain Management and Insurance
•  Functional Responsibilities, which lists the post-disaster functions performed by HM Floodplain Management and Insurance
• Organization, which describes the sub-functions of HM Floodplain Management and Insurance

5. Return to the Table of Contents. Locate the HM Floodplain Management and Insurance Task Lists. The task lists describe the responsibilities assigned to positions within the HM functional group.

6. Locate and click on the Task List for your assigned position. The major tasks (shaded rows) and subtasks are on the left side. Any relevant operating procedures are listed on the right side.

7. Return to the Table of Contents. Locate HM Floodplain Management and Insurance Operating Procedures and review the list. The operating procedures describe how to accomplish tasks for which the HM functional group is responsible.

8. Locate and click on an Operating Procedure relevant to your assigned position. Every operating procedure includes standard components used to accomplish key activities:

• Purpose
• Procedure
• Resources/Tools

9. Return to the Table of Contents. Locate HM Floodplain Management and Insurance Job Aids and review the list. The job aids help Hazard Mitigation staff implement defined tasks efficiently and effectively. The data collection job aids are not official FEMA forms; they were developed and used by HM Insurance field staff as helpful job tools.

Note: Some job aids are “fillable,” allowing staff to fill out the form and print it. These job aids/ forms can be modified and saved for use without having to recreate the document.

Instructions for Accessing and Downloading Individual HMFOG Job Aids: Floodplain Management and Insurance

1. Go to the Hazard Mitigation Disaster Workforce Website via the FEMA Intranet: https://intranet.fema.net/org/fima/Pages/rds-hmdww.aspx

2. In the middle section of the webpage, HM Docs, Links, & Tools, under the HM Functional Areas section, locate and click on Floodplain Management & Insurance.

3. Locate and click on the folder, FPMI – HM Field Operations Guide. The folder contains individual job aid files that can be downloaded and saved to your computer.

Becoming familiar with and knowing how to find these resources is essential to working in HM Insurance.

All of these resources are accessible through the HMDWW or FEMA.gov. 

• NFIP Insurance Manual
• NFIP Flood Insurance Claims Handbook
• NFIP Bureau and Statistical Agent
• NFIP Community Status Book
• Mitigation Best Practices
• FloodSmart.gov
• FEMA Map Service Center (MSC)

Click on the links above to learn more about each of these key resources.

• NFIP BureauNet requires login/id and password.

IMPORTANT: Data collected from the NFIP Bureau and Statistical Agent that includes information related to individual policy holders is strictly confidential and may not be shared.

• This information can only be shared in a summary format where individual information is not presented.

• Date of initial Flood Hazard Boundary Map
• Date of initial Flood Insurance Rate Map
• Date of current effective map
• Date entered the NFIP
• Whether the community is tribal or non-tribal

To identify the NFIP status of different communities, reference the NFIP Community Status Book.

• Community status can change, so be sure to check the most current information.

These Best Practices are meant to provide ideas and concepts about reducing losses and to encourage others to evaluate their own risk and consider mitigation as a long-term solution to reducing that risk.

• At FloodSmart.gov, consumers can see an estimate of just how much damage flooding can cause, assess their individual flood risk, and learn more about the claims process. Consumers can also use the “Find an Agent” tool on FloodSmart.gov or call a 1-800 phone number to locate an agent in their area and obtain a flood insurance policy.
• Agents.FloodSmart.gov is designed exclusively for insurance agents. The site offers helpful tips, training information, sales tools and resources created specifically for agents so that they can better serve their clients.

• This should be coordinated with the Floodplain Management staff at the JFO.
• The MSC can also be contacted at: 1-877-FEMA-MAP

• Hazard Mitigation Disaster Workforce Website
• Hazard Mitigation Field Operations Guide
• Other HM Insurance resources

Lesson 4 will cover HM Insurance collaboration in disaster operations.

At the conclusion of this unit, participants will be able to:

• Identify the people and organizations with whom HM Insurance collaborates.
• Discuss opportunities and techniques for collaboration with these people and groups to achieve Hazard Mitigation objectives for the disaster.

• The public
• HM co-workers
• Other JFO organizations
• State government
• Local government
• Tribal government
• Regional Flood Insurance Liaisons

When collaborating with these groups, HM Insurance:

• Serves as the JFO point of coordination and resource on all hazards insurance
• Promotes community participation in the NFIP
• Helps to ensure compliance with NFIP regulations during disaster response and recovery
• Provides insurance information to local, state, tribal, and JFO partners

• The foundation for successful collaboration is building good working relationships.
• The key to building and maintaining relationships is communication.

• Openly ask for help and give assistance when needed
• Are reliable about keeping agreements they make
• Feel free to express ideas and opinions

This graphic shows the results possible when there is a high degree of trust in a group.

Key among these are positive working relationships and communication and information flow. The following screen describes these results in more detail.

People are sincere in their concern for one another and are motivated to do what is necessary to work together and get the job done.

When working relationships are strong:

• Communication and information flow will be strong.
• People will have access to the critical information they need to do their jobs.
• People are more likely to honestly assess and provide constructive feedback.

Finally, when communication and information flow are strong, the mission and goals of the organization are more easily accomplished.

In this activity, you will be presented with 6 collaboration situations. Read each one and then answer the question below. Click the “submit” button to reveal the suggested answer.

At the conclusion of this lesson, you will be able to:

• Apply concepts and resources covered in the course.

• Application of concepts discussed in this course

Lesson 6 will present you with a summary of the course and an opportunity to demonstrate mastery of the basic knowledge need to work in HM Insurance.

The objectives of this course were to enable you to:

• Describe the functions and products of HM Insurance.
• Refer to key authorities, programs, and resources related to HM Insurance in disaster operations.
• Identify people and organizations key to HM Insurance and opportunities for collaboration.
• Identify some of the “red flags” that indicate a need for special handling or additional collaboration.

• Lesson 1, Introdution to Functions of HM Insurance, focused on the organization, functions, and information generated by HM Flood Insurance
• Lesson 2, Key Authorities and Programs, addressed the authorities and regulations of the NFIP that relate to HM Insurance.
• Lesson 3, Key Resources, addressed the resources, including the HM Field Operations Guide and the HM Disaster Workforce Website, that support HM Insurance.
• Lesson 4, Collaboration, focused on identifying the stakeholders and organizations key to HM Insurance and methods for successful collaboration with those stakeholders.
• Lesson 5, Vignette Activities, provided an opportunity to review workshop concepts in the context of hypothetical disaster events.