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Everything youneed to knowabout flood mapsPrepare NOW for your newflood plain designation | Youcould save thousands ofdollars01

02

What is theNational FloodInsuranceProgram?

In 1968, the National Flood Insurance Act created the FederalInsurance Administration and made flood insurance availablefor the first time to homeowners and businesses. In 1973,Congress made the purchase of flood insurance mandatoryfor the protection of property located in Special Flood HazardAreas. The original legislation made providing federal floodinsurance a priority for “residential properties which aredesigned for the occupancy of from one to four families,church properties and business properties which are owned orleased and operated by small business concerns.”It gave the Director of the Federal Emergency Management(FEMA) the authority to determine if federal flood insurancecould or would be extended to other types of properties. The National Flood Insurance Program (NFIP) is managed bythe Federal Emergency Management Agency (FEMA). The 1968 legislation set three areas of responsibility for theFederal Insurance Administration: o Provide flood insuranceo Improve flood plain managemento Develop maps of flood hazard areas Authorization of and funding for the NFIP must be done byCongress. Congress can choose to authorize the NFIP for anyperiod of time. Authorization has been extended at least 14times since September 2017. Congress has chosen to extend authorization of NFIP inlimited increments as work progresses on a re-write of theNational Flood Insurance Act or replacement legislation. There is no indication when that work might be completed. Despite the lack of new legislation, FEMA continues, throughthe NFIP, to provide flood insurance, work on flood plainmanagement and develop new flood maps.

Disclaimer: Information provided as educational only and is not intended to cover all situations. Please consult your insurance specialist.

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Why flood mapsmatter to youSeveral years ago, FEMA began a review ofexisting flood plain maps throughout thecountry, including Monroe County. Itsgoal was to update the maps that are usedto determine flood insurance rates and todevelop appropriate flood plainmanagement. Because the Keys and mostof the state of Florida lie withinsignificant flood prone areas, any effort byFEMA to alter the maps can have asignificant effect on homeowners,businesses and other entities relying onFEMA and the NFIP for flood insurance.

For every $500 increase inyour premium, your propertyvalue decreases $10,000

-- The Rand Corporation

What is thestatus of the newflood maps?

In August 2019, FEMA released the Draft Working Maps, whichindicate significant flood zone changes in the Florida Keysand, if left unchanged, likely will result in higher insurancerates throughout the county and the incorporated cities. Local governments and Fair Insurance Rates in Monroe (FIRM)have reviewed the Draft Working Maps and have filedcomments with FEMA. Those comments include errors andinconsistencies found in the data. The Draft Working Maps indicate generally higher base floodelevations (BFE) and significant numbers of properties movingfrom low- or no-risk zones into higher risk flood zones. Thosechanges would, if left unchallenged, likely result insignificantly higher flood insurance rates. FIRM is working through its consultant, Ransom Consulting.The county has its own consultant, The Woods Hole Group.These consultants are experienced with the flood map appealsprocess and are reviewing the processes and data used byFEMA to create the Draft Working Maps. Data and information are being shared among the governingbodies to ensure that a comprehensive and thorough review issubmitted to FEMA.

04 Disclaimer: Information provided as educational only and is not intended to cover all situations. Please consult your insurance specialist.

05

Flood

Map

Time

line

August 2019Draft Working Maps released:After the August 2019meetings, FEMA sent thecounty and Key Westhard drives with the databehind the draft maps.

December 2019Preliminary Maps released: ThePreliminary Maps were scheduled forrelease on Dec. 27. Public workshopswill follow.

January 2020FEMA holds a series of public meetings in early-mid-January 2020 to discuss thePreliminary Maps.

January - June 2020FEMA expects to publish a noticein the Federal Register to beginthe official 90-day map appealperiod. The Federal Registernotice could appear as early asJanuary, but most likely not untilMay or June. The notice must alsobe accompanied by two localnewspaper announcements.

Fall 2020Most likely in September 2020 theappeal period will close. Appealswith all accompanying technicaland scientific data must besubmitted through localgovernments.

Most likely in early 2021, after allappeals are resolved, FEMA willissue a letter of finaldetermination commencing a six-month period for communities toadopt the new flood maps.

Early 2021

New maps effective: Mid-late 2021


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Why you may want toprepare todayFIRM and local governments throughout the Keys areconfident their reviews, comments and concernsabout the Draft Working Maps will be reflected – atleast in part – in the Preliminary Maps and,eventually, in the Final Maps.

However, it is clear from the Draft Working Mapsmost properties in the Keys will move into new floodzones and most will see increases in their floodinsurance requirements and premiums. For example: Under existing maps, Key Westincludes a significant X-Zone, which does not requireflood insurance for homes with mortgages. Anestimated 2,000 properties that are today in KeyWest’s X-Zone likely will be moved to a Special FloodHazard Area, resulting in the requirement of floodinsurance for homes with mortgages. Because flood insurance can range from below $500annually for a home in an X-Zone to tens ofthousands of dollars in higher-risk zones, it makessense to prepare now to mitigate upcoming floodmap effects.

Disclaimer: Information provided as educational only and is not intended to cover all situations.

Please consult your insurance specialist.

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Get y

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1.Your current and future flood zones

Before you can determine yournext steps, you'll need two piecesof information:

Monroe County has made the maps available for viewing online athttp://www.monroecounty-fl.gov/floodmaps, so property owners cansee potential changes to the flood zones in which they live. The City of Key West has also provided draft flood maps and other dataonline at “Draft” Flood Maps.https://cityofkeywest.maps.arcgis.com/apps/webappviewer/index.html?id=50f9b29e6a5841bb97dea7cd69e68c05

The Base Flood Elevation (BFE) where your property is locateddetermines the zone to which you are assigned. Having an elevationcertificate for your home is crucial to ensuring your flood insurance rateand the premiums you pay are correct. The elevation certificate will tell you the elevation of your first floor. Ifyour home is in a V Zone, the elevation certificate will tell you theelevation of the bottom of the first horizontal member (floor joist). Youcan then compare the elevation certificate with the BFE designated byyour flood zone.

2.Your Base Flood Elevation


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Why do I need anelevationcertificate?

If you have a current elevation certificate, you willnot need to obtain a new one when the new maps arein place. The existing elevation certificate will beacceptable UNLESS there was a physical change tothe building or the land adjacent to the building. Ifthere were a change, a Correction Memo can correctthe change in flood zone or BFE without affectingthe original certification. This updated data is validfor National Flood Insurance Program (NFIP)policies, Community Rating System (CRS) discounts,and insurance purposes and must be utilized by theinsurance companies to write the policies. If your home is pre-FIRM (Flood Insurance RateMaps) and permitted prior to Dec. 31, 1974, yourflood insurance premiums are most likely based onsubsidized rates. That means you are not currentlypaying rates that are based where your lowest flooris in comparison to base flood elevation for yourarea. The federal flood insurance program is phasingout subsidized rates and increasing these premiumsannually to reach actuary rates. By getting anelevation certificate you will know what your actuaryrate will be and when these premium increases willstop.

Contact your insurance agent: The rules and regulationsthat apply to federal flood insurance are complicated andyour flood insurance specialist is best positioned to ensureyou are appropriately covered.


How to get anelevationcertificate

Your property may already have anelevation certificate. The City of Key Westhas existing elevation certificates on linewww.CityOfKeyWest-FL.Gov/Flood. TheMonroe County floodplain managementdepartment also has some elevationcertificates on file. You might also findyour certificate in your mortgage closingdocuments. If you do not have or cannot locate anElevation Certificate, you may contractlocally to have one done. The cost is about$500. If you join FIRM and contribute $100 ormore, you will receive a $100 credit towarda residential elevation certificate fromReece & Associates Land Surveying. Adonation of $500 or more earns a discounttoward a commercial elevation certificate. Please contact FIRM for additionalinformation at [email protected].

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My house didn'tmove. Why didmy elevationchange?

Your flood map designation includes ratings from at least thefollowing data: Base Flood Elevation; LiMWA or Limit ofModerate Wave Action; and SWEL, or Stillwater FloodElevation. All of these go into determining your flood zonedesignation. One of the confusing pieces of the new flood maps is thatyour zone designation may remain the same, BUT your BaseFlood Elevation increased – and that could mean higherinsurance rates. Your house didn’t move. All of these changes will likely affectwhether you will be required to purchase flood insurance andthe premium rates you will pay. The changes in what is called “datum” are occurring toensure more accurate elevation measurements. The currentsystem is NGVD 29, which stands for National GeodeticVertical Datum of 1929. It is a system that has been used by surveyors and engineersfor most of the 20th Century. It has been the basis for relatingground and flood elevations. But it has been replaced by the more-accurate NorthAmerican Vertical Datum of 1988 (NAVD 88). Your home'sflood plain designation is now based on NAVD88. Theaverage base flood elevation increase around the county dueto the change in datum is 1.5 feet. Existing home elevation certificates are still valid, but mayuse NGVD 29 measurements. To compare an existingelevation certificate to the new flood maps requires aconversion of the old elevation data to NAVD 88. You can learn more about these data changes:https://www.fema.gov/media-library-data/20130726-1755-25045-0634/ngvd_navd.pdf


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w? I have a mortgage, but don’t have flood insurance becausemy house is in an X-zone. Should I purchase insurance?Most experts recommend purchasing federal flood insurance before thenew maps are in place sometime in 2021. The chances are your home willbe re-mapped out of the X-zone and, with a mortgage, your lender likelywill require insurance with your new designation. It will be less expensiveto purchase the insurance now, when you are in the X-zone than after thenew maps. "Grandfathering" may apply to existing flood insurance. (Seeour section on grandfathering.

That is a financial decision best made independently between you andyour insurance agent. However, it will be less expensive to purchaseinsurance now, when you are likely to be in a lower risk area, than whenthe new maps relocate you to a higher-risk zone.

I do not have a mortgage and I do not have floodinsurance. Should I purchase insurance?

Your current insurance plan will remain in effect if all the following aretrue: your insurance is in place before the new maps are implemented;AND, if you maintain consistent coverage; AND, if you do not makeimprovements or repairs valued at 50 percent or more of the marketimprovement value. The market improvement value includes only thevalue of the structure. It does not include the value of the land.

I have a mortgage. I have flood insurance based on mycurrent flood zone. The new maps move me to a higher-risk zone. Will I have to pay the rates of the higher-riskzone?


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How will I knowif my house is"grandfathered"?

At its simplest, grandfathering says you can keep the insuranceyou currently have under certain conditions. Grandfathering is aNational Flood Insurance Program (NFIP) rule that was createdto recognize property owners who carried a policy before themaps became effective or built to the correct standards relativeto the flood map in effect at the time of construction. FIRM is shorthand for Flood Insurance Rate Map. What does pre-FIRM and post-FIRM mean? Pre-FIRM (built before 1-1-1975) A pre-FIRM building is onethat was constructed prior to the date of the community’s firstFIRM. In most cases, owners of pre-FIRM buildings have justone opportunity to use the grandfathering rule: purchase apolicy before the updated FIRM becomes effective. The exception is a pre-FIRM building that is newly mapped intoa high-risk area. If it qualifies for a PRP (preferred risk policy),the property owner has up to two years from the new map’seffective date to purchase a PRP to then grandfather in thelower risk zone for future rating. In either instance, to maintainthe grandfathered zone, the policy must stay continuously ineffect. Continuity of coverage can be maintained even if thebuilding is sold, as the policy can be assigned to the new owner. A Post-FIRM building was built after the adoption of thecommunity’s first flood insurance rate map, and after thefloodplain was defined, and after the community adopted itsfloodplain ordinances. Those buildings have to play by adifferent set of rules. Especially when they are built in specialflood hazard areas. Limitations and restrictions apply to Post–FIRM Elevated buildings in Special Flood Hazard Areas. Post-FIRM buildings have two chances to lock in the BFE and/orflood zone: before the maps become effective or after theeffective date, but with the proper documentation. Continuouscoverage is not required. If, however, a building is substantiallydamaged or improved or if it was not built in compliance,grandfathering of previous zones or BFEs can no longer beapplied.


How does"grandfathering"work?

Already have flood insurance policies in effect when thenew flood maps become effective and then maintaincontinuous coverage; or Have built in compliance with the FIRM in effect at the timeof construction.

Many property owners are finding that the draft flood mapsreleased by FEMA in August 2019 have moved them into ahigher risk flood zone. In Key West alone, over 2,000properties may be moved from the X-zone where floodinsurance is not required by lenders into a Special FloodHazard Area (SFHA) where insurance will be required.Forcertain property owners, FEMA offers the Grandfatheringoption. When flood map changes occur, the National FloodInsurance Program (NFIP) provides a lower-cost floodinsurance rating option known as “grandfathering.” It isavailable for property owners who:

While grandfathering typically will provide cost savings to aproperty owner when the new Federal Insurance Rate Maps(FIRM) take effect, there may be cases when using the ratingbased on elevation will result in lower premiums. Both optionsshould always be evaluated. Do not confuse Pre-FIRM and Post-FIRM with Fair InsuranceRates in Monroe (FIRM). This video is a helpful explainer of thedifference: https://www.fema.gov/media-library/assets/videos/107320


What is the 50percent rule andhow does itaffect myinsurance?

Under the terms of the so-called “50 percent rule,” structuressustaining 50 percent or more of their pre-disaster, fair marketvalue are treated as new structures and must be repaired orrebuilt in accordance with current state and local ordinancesthat regulate new construction in the floodplain. Localgovernment officials determine pre-disaster fair marketvalues. Only the structure is considered when determining the fairmarket value. The land is not included. The 50 percent rule also applies to major renovations ofexisting structures -- even if there is no damage, If a building or structure is found to be “substantiallydamaged” under the 50 percent rule, it must be brought intocompliance with floodplain management regulations. Thatgenerally means the owner must decide whether to elevate astructure above expected flood levels, to add structuralreinforcements to strengthen the building or to relocate ordemolish the structure. And, sometimes you are required tocomplete all those steps. Property owners who have a flood insurance policy throughthe NFIP and a substantially damaged building (from flooding)in a SFHA may be able to use additional funds – known asIncreased Cost of Compliance (ICC) – from their floodinsurance policy (up to $30,000) to help defray the costs ofelevating, relocating, demolishing a structure, or floodproofing a non-residential structure.


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Know your audienc

Research the venuePresentations are communication tools that can be

used as demonstrations, reports, and more.

Work on the time limitPresentations are communication tools that can be


Additional Resources o National Flood Insurance Act of 1968 and the Flood Disaster ProtectionAct of 1973: https://www.fema.gov/media-library-data/20130726-1545-20490-9247/frm_acts.pdfo FEMA Flood Map Service Center FAQs:https://msc.fema.gov/portal/resources/faqo What is the FEMA National Flood InsuranceProgram: https://www.fema.gov/national-flood-insurance-programo Consumer-friendly National Flood InsuranceProgram: https://www.floodsmart.gov/o Understanding Base Flood Elevation: https://www.fema.gov/base-flood-elevation#o Understanding grandfathering: https://www.fema.gov/media-library-data/1488482596393-dcc52e6c120c9327dcd75f1c08e802e4/GrandfatheringForAgents_03_2016.pdfo How to lower my flood insurance costs:https://www.floodsmart.gov/costs/how-can-i-pay-less-for-my-flood-insuranceo Understanding why my elevation is higher even ifmy house didn’t move: https://www.fema.gov/media-library-data/20130726-1755-25045-0634/ngvd_navd.pdfo All about flood maps. This will be an excellentlink when Monroe County’s Preliminary Maps are released:https://www.floodsmart.gov/why/all-about-flood-maps Key West Mapso City of Key West Draft Flood Maps Old and how toread them: https://www.cityofkeywest-fl.gov/topic/subtopic.php?topicid=224&structureid=1o Best City of Key West map tool for changes inflood zone. Explore by address:https://cityofkeywest.maps.arcgis.com/apps/webappviewer/index.html?id=50f9b29e6a5841bb97dea7cd69e68c05 Monroe County Mapso Best Monroe County map tool for changes in floodzone. Explore by address: http://monroecounty-fl.maps.arcgis.com/apps/webappviewer/index.html?id=791f993777cf483b90efbcfe2d59b615 Complete coverage in one place: https://www.firmkeys.org

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Know your audienc

Research the venuePresentations are communication tools that can be


Work on the time limitPresentations are communication tools that can be


WHO IS FIRM

FIRM fights for fair, equitable and affordableproperty insurance coverage for homeowners,residents and business owners, which protects property values and contributes to housingaffordability. FIRM empowers Monroe County residents to makeinformed decisions about property insurancecoverage, the claims process, mitigation and storm preparedness. Contact Us 713 Caroline St., Ste. C, Key West, FL 33040 [email protected] https://www.firmskeys.org

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