Floodplain Management / CHAMPS Training
Guidance / Handouts for the KAMM AM Session
Floodplain Management in Kentucky Quick Guide
This Quick Guide will help you understand more about why and how communities in the Commonwealth of Kentucky manage floodplains and regulate floodplain development to
protect people and property. Floodprone communities adopt ordinances that detail the rules and requirements for floodplain development. Download the KY Quick Guide here.
Flood Insurance Reform Act of 2012
In 2012, the U.S. Congress passed the Flood Insurance Reform Act of 2012 which calls on the FEMA, and other agencies, to make a number of changes to the way the NFIP is run. As the law is implemented, some of these changes have already occurred, and others will be implemented in the coming months. Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for some – but not all — policyholders over time. Read the BW12_Sec_205-207_Fact_Sheet.
Biggert Waters, From ASFPM Insurance Committee
Pre-FIRM Rate Subsidies Begin to Disappear in 2013
The Biggert-Waters Flood Insurance Reform Act of 2012 (FEMA’s acronym is BW-12), was signed into law on July 6, 2012. With that will come many changes to the rate structure of the flood insurance program. The first impact will be on pre-FIRM buildings. Here’s an overview of what will happen in 2013. You are encouraged to read the Bulletins for more details.
Starting January 1, 2013, subsidized premium rates for pre-FIRM non-primary residences in the high-risk Special Flood Hazard Areas will begin to increase by 25 percent a year until they essentially reflect full-risk rates. For clarity-sake, some definitions:
- A primary residence is a building that will be lived in by the insured or the insured’s spouse for at least 80 percent of the 365 days following the policy effective date. If the building will be lived in for less than 80 percent of the policy year, it is considered to be a non-primary residence. Also remember that only primary residences receive replacement cost coverage on the building!
- A pre-FIRM building is one that was built before the community’s first flood map became effective and has not been substantially damaged or improved.
More details can be found in NFIP Bulletin W-12043.
Starting August 1, 2013, subsidies will be similarly be phased out at 25 percent a year for commercial properties, severe repetitive loss properties consisting of 1-4 residences, and properties that have incurred flood-related damages where claims payments exceed the fair market value.
Note that new policies written on pre-FIRM buildings due to a sale or deliberate lapse will be issued at full-risk rates. More details can be found in NFIP Bulletin W-12109.
Beginning in 2014, FEMA indicates that premium rates for other properties, including non-subsidized properties, will increase as new or revised flood maps become effective and full risk rates are phased in for these properties. This refers to BW-12 Section 100207 and grandfathering. It is not clear how this will be implemented and if, for example, existing grandfathered policies will be grandfathered in (great grandfathering?!). While FEMA figures this out, they have removed the 2-year policy limit for the Preferred Risk Policy Extension until the new rates are implemented. More details about the extending the PRP Extension can be found in NFIP Bulletin W-12054.
WARNING: When these pre-FIRM subsidized premiums begin to disappear, affected property owners may become upset and they (and the media) may blame the increase on recent or upcoming map changes. Be prepared to explain that it is due to a law passed by Congress, not due to map changes or FEMA just deciding to target these buildings.
Have questions, contact us at email@example.com.
Want to join KAMM or Renew membership for 2013? Link here for more information.
Membership is $25 for an individual and $10 for students and is based on the calendar year.
Contact information for KAMM’s four regions is listed below.
KAMM Four Regional Representatives
KAMM is divided into four regions. Find your region by linking to the KAMM Regions Map (PDF).
John Ward – Region I Representative
Pamela Moore – Region II Representative
Gretchen Usleaman – Region III Representative
Shawn Moore – Region IV Representative
For more information, read our Regional Representative Fact Sheet (PDF).
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