Hurricane Matthew and Louisiana Flooding: FEMA Revises the NFIP Flood Insurance Manual
On November 3, 2016, FEMA announced revisions to the NFIP Flood Insurance Manual that became effective on October 1, 2016. Posted for your reference here: https://www.fema.gov/media-library/assets/documents/127010. The Significant revisions include the following:
- Guidance for policies issued or renewed in error on or after a community suspension (GR Section).
- Expansion of zones eligible for the Preferred Risk Policy (PRP) and the Newly Mapped procedure to include A99 and AR Zones that meet the PRP loss history requirements (GR, RATE, PRP, and Newly Mapped Sections).
- Policy effective date clarifications (GR Section).
- Clarified guidance for duplicate coverage (GR, PRP, and Newly Mapped Sections).
- Revised Emergency Program building coverage limits for non-residential buildings in Alaska, Guam, Hawaii, and U.S. Virgin Islands (RATE Section).
- Further guidance for policies eligible for Pre-FIRM subsidized rates, continuous coverage grandfathering, or the Newly Mapped procedure that lapse and are reinstated (RATE, CONDO, and Newly Mapped Sections).
- Revised instruction regarding the use of the current NAVD datum (LFG Section).
- Reformatted Elevation Certificate and Instructions (CERT Section).
- Additional guidance for the conversion of a standard-rated policy to a PRP or Newly-Mapped-rated policy due to misrating (PRP, Newly Mapped, and END Sections).
- Revised endorsement refund rules and administrative cancel/rewrite procedures to allow for rate adjustment up to a maximum of 5 policy years (END and CN Sections).
- Revised documentation requirements and sample verification letter for cancellation reasons involving a lender release (CN Section).
- Expanded use of Cancellation Reason 9 to allow cancellation due to the lender’s determination that coverage is no longer required for certain detached structures (CN Section).
- Revised use of Cancellation Reason 25 to address HFIAA Section 28 reunderwriting (CN Section).
- Updates to the Community Rating System Eligible Communities list (CRS Section).
- Updates to the Definitions, Table of Contents, and Index.
About the Author: Christopher W. Gerold is an attorney in Chiesa Shahinian & Giantomasi’s (“CSG”) Disaster Recovery Claims Group. Chris represents homeowners, condominium associations and businesses with their insurance claims with a special focus on flood insurance. For more information on flood insurance and ways CSG can help you with your flood insurance claim, please contact Chris at (973) 530-2061.