Antonio Mendoza August 28, 2020

Flood Insurance FAQs

Let’s talk Flood Insurance


History of the Flood Program

•Flood Program Formed 1968
•Amended 1973
•Most of the Houston Area Joined Before 1974
•WYO Program 1983
•Significant Reform:
•Biggert-Waters 2012
•HFIAA 2014
Definition of Flood
•General and temporary condition of partial of complete inundation of two or more acres, normally dry land areas OR two or more properties
•Overflow of inland or tidal waters
•Accumulation or runoff of surface waters from ANYSOURCE
•Eligible Structures
•Two Outside Rigid Walls, Fully Secured Roof, Affixed to a Permanent Site
•Homes, Commercial, Agricultural, Condos, Contents, Course of Construction
•Participating Communities
•Regular Program
•Emergency Program
Flood Zones
•Special Flood Hazard Areas (Start With A or V)
•SFHA = High Risk
•100 Year Flood Plain (1% Each Year)
•Elevation Certificates Required – Post FIRM (Except AO & A99)
•Non-Special Flood Hazard Areas (B, C,  X)
•NSFHA = Low to Moderate Risk
•500+ Year Flood Plain (< 1% Each Year)
•Elevation Certificates Not Required
•BFE – Base Flood Elevation
Flood Program Facts
•NFIP Rates Identical For NFIP Direct & All WYO Companies
•Building Owner’s Policy May Be Transferred to New Owner
•No Contents
•No Course of Construction
•Grandfathering (Zone & BFE)
•Built in Compliance (Post-FIRM Only)
•Continuous Coverage
Did You Know…?
•25-30% Of Flood Claims Happen in Low-Moderate Risk Areas (B, C, X)
•Disaster Assistance
•Requires Presidential Declaration  (Less Than 50% Of Flooding Incidents)
•Most Assistance  – SBA Loans
•Maximum Grant $34K
•Flooding #1 Natural Disaster
•Every Structure In A Flood Zone And CAN FLOOD
Advising Client About Flood Insurance
•NEVER SAY “You Don’t Need Flood Insurance”
•NSFHA (Zones B, C & X) – “Not Zone Where Lenders Normally Require Flood”
•Advise Client: Talk to Insurance Agent