Industry News

This is a further update and summary on PIA's previously issued special bulletins on the National Flood Insurance Program (NFIP) and these changes.  It is more critical than ever that PIA members work very closely with their WYO partners through this next set of changes.

Despite the efforts of both the Flood Insurance Producers' National Committee and WYOs and the Insurance Institute for Business & Home Safety (IBHS) Flood Committee, as of this moment the REVISED Manual incorporating the April 1, 2016 changes has NOT yet been published (as final revisions are being polished).

Thus far, the inventory of NFIP bulletin references involved in these changes can be found here and here.

2016

w-16010 – Changes to the FEMA Mapping Center Services - As FIPNC requested.

w-16003 - Addendum #3 to the April 1, 2016 Changes – a rate table

w-16002 – Revised & Approved EC & Floodproofing Cert.

2015

w-15063 – Addendum #2 to April 1, 2016 Changes – Correction to premium language

w-15055 – Addendum #1 to April 1, 2016 Changes – Revised rates - high-rise condos

w-15046 – The original and core content of April 1, 2016 changes

Be sure to review the procedures for the Newly Mapped Program and its transition. We also encourage members to read the section for property owners, and the one for lenders on this subject as well so that you have a fully rounded appreciation.

PLEASE NOTE: The FEMA/NFIP Specific Rating Guidelines "paper" published by FEMA in December for the April 1, 2016 changes is no longer completely accurate.   So, please rely on your WYO for guidance and education/information.

WHY Flood Coverage & WYOs ARE Important: Since 4^th quarter 2010, and more especially since 4^th quarter 2015, many areas of mid-America and elsewhere that have not experienced flooding in a long time have been flooded, and most are experiencing repeating events.

PIA agencies know the value of risk management for their agency and their customers.  Hence, it is critical that all private sector insureds remember that the typical private sector property insurance policy does not cover the perils of, nor damage from, floods and flooding events to include mud-flows.  Further, property insureds should also be aware that the federal government program, NFIP, provides coverage for property and contents from damage by flood and flooding events to include mud-flows.  While NFIP is not as complete a claims answer for your customers as anyone would like, the private sector property insurance policies are no answer to the damage after a flood.

PIA members operate best in offering flood coverage when they are working with a trusted WYO on the NFIP program.  Change is a constant in this program, especially among the lesser players in the WYO-community.  However, PIA-Hartford WYO program continues to grow (as do several other leading WYOs), providing PIA agencies with stability and expertise.

We also suggest to PIA agencies writing business direct with NFIP that you strongly consider writing with/through a WYO for better and more independent agency oriented support.

Also, agencies should have a good handle on what E&S carriers offer following-NFIP-flood, additional coverage limits policies.  Wedding underlying (NFIP $250K for residential and $500K for commercial) and the excess-following flood coverage to achieve the coverage limits needed for many properties (residential and commercial) can be critical to many of your insurance customers.

PIA agencies should also be aware that there are a number of insurers now offering direct, primary flood insurance coverage that may be available to their agency as well.  When considering these options, please keep in mind the NFIP mandatory continuous coverage requirement.  While there is a bill in Congress aimed to modify this, it is not yet adopted, and does not include a retroactive date.  So, for now, know if an insured considering private sector primary flood coverage placement currently enjoys the benefit of an NFIP grandfathered-building date and/or zone rate status that may be adversely impacted if they terminate NFIP coverage in favor of a current primary private flood insurance placement.

Like any insurance marketplace, coverage and placement process, it is important for PIA members to know that these options exist, what their availability is in (or not) in your market space, and the differences, benefits and/or shortcoming are among them.

Additional Resources – Critical to Community Mitigation!

FY 2016 PDM and FMA Application Period Now Open

Grants Notice-Funding Opportunity Number: DHS16MT04700099

Grants Notice-Funding Opportunity Number: DHS16MT02900099

Any questions, please advise senior vice president of industry affairs, Pat Borowski.

Keeping up with changes in flood:

Through our partnership with The Hartford Flood Program our Flood Insurance Marketing Support Center (login required) provides materials to help you service your clients in a time of need.

Materials available for PIA members include:

• Timely, accurate and updated information on flood program changes
• Updated FloodSmart mapping and program changes
• Client-oriented, loss control flyers
• Information on the PIA/Hartford Flood Program

PIA member-only flood programs:

Hartford Flood Program: If you find your agency in need of a new flood insurance program, please consider PIA's program with The Hartford, now in its twelfth year. The program is available to PIA members and their policyholders in all 50 states. For more information about the PIA/Hartford flood insurance program, please visit PIA National's website at www.pianet.com/hartfordfloodinsurance or contact Joseph M. Surowiecki, Jr. of The Hartford at 860-547-5006 or joseph.surowiecki@thehartford.com.

Floodbroker: Empower your clients to take the first step in making the flood insurance sale for you. Using FEMA's digital flood insurance rate maps (DFIRMs) Floodbroker's database has one function; providing National Flood Insurance Program (NFIP) information to PIA members' clients and prospects to quickly and easily get a flood insurance quote. To learn more contact Evan Spindelman at 855.442.4130 or evan.spindelman@floodbroker.com or visit www.pianet.com/floodbroker.

As always, if you have any questions about anything NFIP or flood insurance-related, please don't hesitate to contact staff, Pat Borowski (mailto:patbo@pianet.org– 703-518-1360). Along with our expert flood insurance agent advisory group, headed by immediate past president, Richie Clements (LA), we'll be sure to get you the answer and/or point you in the right direction.