How to Use This PresentationSharing the benefits of flood insurance to both current and potential clients will help you grow your book of business. Use this presentation to educate homeowners and renters on flood risk and the importance of having flood insurance.  This presentation is virtually ready to use immediately. Customize or delete information on slides 2, 17, 19, and 23, based on your specific needs. Consider using slide 24 if your audience needs to know about legislation changes. The latest legislation information is at FEMA.gov/flood-insurance-reform. Once you update those slides and delete this instructional slide, you are ready to present. Questions or Comments?Please contact support@nfipfloodsmart.com

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Flood Insurance and Your Home

[AGENCY NAME][AGENT NAME]

[DATE]

[Agency Logo]

National Flood Insurance Program

Flood Misconceptions and Facts

Flood Insurance Basics

Reducing the Risk

Resources for You

Presentation Overview

The National Flood Insurance Program

Everyone is at risk for flooding

Anywhere it can rain, it can flood

Just a few inches can cause tens of thousands of dollars in damage

Why Flood Insurance?

Provides flood insurance to homeowners, renters, and business owners

Community must participate in the program

Written by insurance agencies through their carrier or direct with the NFIP (rates and coverage are the same for all agents)

Created by Congress in 1968

Administered by the Federal Emergency Management Agency (FEMA)

National Flood Insurance Program (NFIP)

What Is a Flood?

A Flood Defined

Inundation of two or more acres of normally dry land or of two or more properties (one of which is your property) from: Overflow of inland or tidal waters;

Unusual, rapid accumulation or runoff of surface waters from any source;

Mudflow; or

Collapse or sinking of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated levels that result in a flood

Flood Misconceptions and Facts

Misconception: “I don’t live in a flood zone.”

Fact: Everyone lives in a flood zone. Floods are the #1

natural disaster in the United States

If it can rain, it can flood

Risk does not stop at a line on a flood map

Misconception #1

Misconception: “I’m already covered—my homeowners policy covers flooding.”

Fact: Most insurance policies do not cover flooding; only flood insurance covers flood damage.

Misconception #2

Misconception: “If a flood happens, disaster assistance will cover me.”

Fact: Disaster assistance facts: Only available if the

President declares a Federal disaster.

You must qualify.

Typically given in the form of a loan that must be repaid, with interest.

Misconception #3

Flood Insurance Basics

Single-peril policy

Pays Replacement Cost on single-family, primary residences, if insured to at least 80 percent of its Replacement Cost Pays Actual Cash Value (depreciated cost) on second homes

and underinsured homes

Contents coverage is not automatically included in your policy (with the exception of a Preferred Risk Policy) Only pays Actual Cash Value

Three Basic Facts of a StandardFlood Policy

Key Rating Elements: Flood Zone

High-Risk Zones Special Flood Hazard Areas

(SFHAs); labeled “A” or “V”

Moderate- to Low-Risk Zones Non-Special Flood Hazard

Areas (NSFHA); labeled B, C or X

Base Flood Elevation (BFE) The estimated depth of flood water

during a 1 percent annual chance flood

Lowest Floor Elevation (LFE) Post-FIRM For Zones beginning with an A: e.g.,

elevation of the top of the lowest floor

For Zones beginning with a V: e.g., if elevated, the bottom of the lowest horizontal structural member

Rates based on LFE – BFE

Key Rating Elements: Elevation for High-Risk Zones

L F E

B F E

Example Zones Beginning with an A

Coverage Limits for Dwellings* $250,000 on building

$100,000 on contents

Deductibles

Community Rating System (CRS)

Key Rating Elements: Coverage and Deductibles

*Coverage limits are different for other occupancy types.

Provides up to $30,000 for buildings in high-risk areas

Building must be declared substantially damaged or a repetitive loss

Used to floodproof, elevate, relocate, or demolish

Total amount of your home claim and ICC claim cannot exceed $250,000

Increased Cost of Compliance Coverage

Typically, there is a 30-day waiting period for a flood insurance policy to go into effect

Exceptions: Flood Insurance is required by a federally regulated and

insured lender—0 days

[Wildfire 30-day waiting period exception—0 days]

Initial purchase of Flood Insurance as the result of a map revision—1 day

Waiting Periods

Policy for homes in moderate- to low-risk areas: Lower cost policy

Policy includes both building and contents

Contents-only coverage is available for renters

Preferred Risk Policy (PRP)

Check with your community floodplain management office for more information on mitigation activities, such as Floodproofing Installing flood vents

Elevating: Home

Equipment and appliances (e.g., heating, cooling washer, dryer)

Reduce the Risk, Reduce the Cost

FloodSmart.gov

FEMA.gov

Ready.gov

DisasterSafety.org

FLASH.org

Resources

[AGENT NAME][COMPANY NAME][COMPANY ADDRESS][AGENT PHONE NUMBER][AGENT EMAIL]

Questions

Subsidized rates for older (pre-FIRM) buildings in high-risk areas

Subsidized rates can be transferred from one owner to another at the time of sale

Subsidized rates will be phased out over time

For more information, visit FEMA.gov/flood-insurance-reform.

Recent Legislation