2016 FEMA Flood Changes

Learn about New Rates and Other Changes Affecting Your Clients Starting in April Beginning April 1, 2016, the National Flood Insurance Program (NFIP) will begin implementing additional flood insurance program changes resulting from reform legislation. These changes may significantly affect what your clients pay for their flood insurance. While some property owners may see minimal policy cost increases, others will experience larger premium increases—for example, clients with buildings in high-risk areas built before that community’s first Flood Insurance Rate Map (pre-FIRM). Be sure to tell your clients about these increases and other changes before they go into effect. A summary of all of the changes is below, but you can find more details in the recent April 1, 2016, Program Changes NFIP Bulletin. Premium Increases Overall, average premiums will increase by 9 percent. On April 1, 25 percent annual increase for pre-FIRM business properties begins. Rate Increases for Buildings Newly Mapped into High-Risk Zones Buildings newly mapped into a high-risk Special Flood Hazard Area (SFHA) will receive premium rate increases using a FEMA multiplier that will change every January 1 (beginning January 2017) based on the year the new map became effective. You will need to be aware of which multiplier to use when writing your client’s policy to ensure that you apply the correct increase. Certain Lapsed Policies Now Rewritten at Full-Risk Rates (with two exceptions) Lapsed policies on pre-FIRM subsidized-rated buildings or policies rated using the Newly Mapped procedure will be rewritten using full-risk rates if coverage has lapsed more than 90 days or lapsed twice, regardless of the number of days, unless: The lender no longer required the insured to obtain and maintain flood insurance at the time of lapse or cancellation; OR The insured was in a community that was suspended from the NFIP, and the coverage was purchased within 180 days of the community‘s reinstatement. This change also applies to policies written after April 1, 2016, on policies that lapsed prior to this date. FEMA will also count as a lapse coverage that was switched from a NFIP policy to a non-NFIP policy. Change in Reformation of Coverage Procedure Starting April 1, 2016, how a policy is re-rated changes if a rating error is discovered: If a rating error discovered at claim time is found to be due to an incorrect Base Flood Elevation (BFE) or flood zone and an additional premium is needed, the policy only has to be re-rated going forward (called prospective reformation). If any other rating error is discovered at claim time, only the current term needs to be re-rated. If any other rating error is discovered—other than at claim time—only the current term needs to be re-rated, unless the discovery occurs within 60 days of renewal; in that case, the correction will be made effective at the next policy renewal. Communicating Flood Risk Determinations In response to recent reform legislation requiring FEMA to clearly communicate flood risk determinations to policyholders, WYOs and the NFIP Direct Servicing Agent will re-underwrite all policies receiving pre-FIRM subsidized premium rates, standard X-zone-rated, Preferred Risk Policies, and policies rated using the Newly Mapped procedure, so that FEMA can begin providing additional information to renewing policyholders regarding their flood risk, starting with October 2016 renewals. Agents should be aware they may be asked to help. FEMA will also provide this information to new policies starting April 1, 2016. Be sure to visit Agents.FloodSmart.gov. to access tools and resources that help you protect your customers and build your business.

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Did You Know? 10 Fun Facts about Daylight Saving Time

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Protecting Your Business: Slip, Trip, and Fall Hazards

Did you know?

• Over one million people in the United States experience a significant slip, trip, or fall each year.
• An average of 17,000 Americans dies from those slips and fall accidents.
• Slips and falls are the single most common reason for visits to the emergency room.
• The average cost of a slip and fall injury, including medical bills, physical therapy, and missed wages, is substantial.  Further, these type losses drive the increased cost of business insurance.
• Slips and falls are the number two cause of accident death and disability, following behind automobile accidents.

Within a business or a residential community, there is a legal duty to provide a safe environment for persons who enter the place of business or property –customers, delivery persons, vendors, residents, etc. This means that if a trip hazard exists which is either known or should have been known with a reasonable inspection of the premises, there is a duty to warn and educate others about the hazard or remove/mitigate the hazard.

Why should a business or community correct fall hazards?

• Reputation, in general; Good Public Policy
• Appearance & Security of the Business or the Community
• Reducing or maintaining your insurance costs at a reasonable level
  • Many claims, even though small, will make your insurance more expensive
  • A large claim can make your insurance rates go up substantially
  • Too many claims, either small or large, may make it difficult and expensive to find coverage

“Hazard?  What hazard?”

People tend to trip on all sorts of things–displaced concrete walking surfaces, parking lot pot holes, wet floors, debris on the floor, uneven walking surfaces, and their own two feet. Here are the Basic Walking Surface Standards according to ASTM F1637-10 and the Florida Building Code:

• The maximum displacement between walking surface joints is ¼”
• If the displacement is between 1/4” and 1/2”, then the edge should be beveled
• The walking surface should be slip resistant
• Carpet should not be wrinkled, loose, or with holes, seams, &/or with frayed edges
• Parking lots should be smooth and even with no pot holes
• Wet floors should be marked with signage  and the water or other substance cleaned up, immediately
• Parking stops should be in good condition & property secured
• Common areas and walkways should have adequate lighting

Property should be inspected on a regular basis for any type of hazard.  An inspection check sheet is available for use in identifying hazards at businesses and within communities.

originally Posted by Jim Gibson Tower Hill Insurance

Preventing Home Flooding

Preventing Home Flooding During El Niño

With this year's expected strong El Niño, it is important to consider ways we can help prevent damage to our homes and communities. El Niño this year is expected to be one of the strongest on record and will continue to rage throughout the winter. Before the storm hits, follow these five steps to help protect your home from flooding.

1. Clean Out Gutters

   Leaves, twigs, and other debris that has been dropped by birds or the wind can quickly build up in your gutters. Go around your house and make sure the gutters are clear of any leaves or debris to keep leaking and clogging to a minimum.

2. Reattach Loose Gutters

   After years of powerful wind and weather, your gutters may not be as securely fastened to your roof as they once were. Make sure they are tightly secured to decrease the possibility of detachment.

3. Extend Gutters and Downspouts

   Keeping water away from your foundation is critical during a downpour — extended gutters and downspouts will keep that rain water far away. A downspout should extend at least three feet from the foundation of your home — gutters work best when 7-8 inches wide. These changes will decrease the likelihood of your home's foundation from being saturated, which could lead to a flooded basement.

4. Cover Window Wells

   Covering your window wells will prevent water and debris from filling the area if a gutter clog occurred during the storm. Check these window wells often during the storm in case of leakage.

5. Keep Storm Drains Clear

   After gutter cleaning, you might have a lot of debris to dispose of — consider putting that debris in eco-friendly yard bags to keep streets clear. Dumping the waste on the side of the street will clog storm drains alongside the road and put a strain on your local resources and services. Do your streets a favor and keep those leaves contained.

It's important to know that most home policies don't cover flooding — just a few inches of water damage can cost thousands! If you decide that flood insurance is som