The NFIP defines “flood” as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters from any source; or mudflow. For a loss to be covered under the SFIP, the flood must be the proximate cause of the damage. This means the flood must be the primary reason for the loss. The SFIP further clarifies that losses caused by earth movement, sewer backup, or other events are only covered if a flood, as defined, was the direct cause. Understanding this definition is crucial because it dictates whether a claim will be paid. The NFIP Flood Insurance Manual provides detailed guidance on interpreting this definition in various scenarios.

Increased Cost of Compliance (ICC) coverage provides financial assistance to policyholders to help them comply with state or community floodplain management laws or ordinances after a flood event. Specifically, it covers the cost to elevate, demolish, or relocate a structure that has been declared substantially damaged or repetitively damaged by the local floodplain administrator. Substantial damage means the cost to repair the damage would equal or exceed 50% of the structure’s pre-damage market value. Repetitive loss generally means that the structure has experienced two or more flood losses of at least $1,000 each within a 10-year period. The maximum ICC coverage is $30,000. The NFIP Flood Insurance Manual provides detailed guidance on eligibility requirements, claim procedures, and eligible expenses for ICC coverage. Policyholders must apply for ICC benefits through their insurance company and provide documentation from the local floodplain administrator confirming the substantial damage or repetitive loss declaration.

The NFIP operates under two phases: the Emergency Program and the Regular Program. The Emergency Program is the initial phase when a community first joins the NFIP. During this phase, flood insurance coverage limits are lower than in the Regular Program. For example, single-family homes are typically limited to $35,000 in building coverage and $10,000 in contents coverage. Once a community completes a detailed flood risk study and adopts floodplain management regulations, it transitions to the Regular Program. In the Regular Program, coverage limits are significantly higher, such as $250,000 for building coverage and $100,000 for contents coverage for single-family homes. Communities in the Emergency Program have less stringent floodplain management requirements compared to those in the Regular Program. Property owners in the Emergency Program may pay higher premiums due to the limited data available for risk assessment.

The Community Rating System (CRS) is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements. Under the CRS, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from community actions. CRS classifications range from Class 1 (highest level of flood protection) to Class 10 (no CRS credit). A Class 1 community receives a 45% discount on flood insurance premiums, while a Class 9 community receives a 5% discount. Communities can improve their CRS rating by implementing activities such as preserving open space, elevating structures, adopting stricter building codes, and providing public outreach and education about flood risks. The NFIP CRS Coordinator’s Manual provides detailed guidance on eligible activities and the points awarded for each activity. By participating in the CRS, communities can reduce flood insurance costs for their residents and businesses while enhancing overall flood resilience.

To obtain a flood insurance policy, an applicant typically needs to provide information about the property, including its location, elevation, and construction type. The applicant also needs to determine the desired coverage amounts for the building and contents. An insurance agent can assist in this process by providing guidance on coverage options, premium rates, and policy terms. Once the application is submitted and the premium is paid, there is typically a 30-day waiting period before the coverage becomes effective. However, there are exceptions to this waiting period. For example, if the policy is purchased in connection with the initial purchase of a property, or if the policy is required as a condition of a loan, the coverage may become effective immediately. Additionally, if a community enters the NFIP, there is a one-day waiting period for policies purchased within the first 30 days. The NFIP Flood Insurance Manual provides detailed information on the application process and waiting period rules.

Substantial improvement refers to any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50% of the market value of the structure before the start of construction of the improvement. This definition is crucial in floodplain management because it triggers requirements for elevating or floodproofing structures in Special Flood Hazard Areas (SFHAs). If a structure in an SFHA undergoes a substantial improvement, it must be brought into compliance with current floodplain management regulations, which typically require elevating the lowest floor to or above the Base Flood Elevation (BFE). Failure to comply with these regulations can have significant consequences for property owners, including denial of flood insurance coverage, fines, and legal action by the local community. Furthermore, non-compliant structures may be ineligible for federal disaster assistance in the event of a flood. The NFIP regulations and local floodplain ordinances provide detailed guidance on substantial improvement requirements.

To file a flood insurance claim under the SFIP, policyholders typically need to complete a Proof of Loss form, which provides detailed information about the damage and the amount of loss. They must also provide supporting documentation, such as photographs, repair estimates, and receipts. The policyholder is responsible for documenting the loss, mitigating further damage, and submitting the claim in a timely manner, usually within 60 days of the flood event. If a policyholder disagrees with the claim settlement offered by the insurance company, they have several options for recourse. They can first attempt to resolve the dispute through the insurance company’s internal appeals process. If that is unsuccessful, they can request a review of the claim by FEMA. As a last resort, the policyholder can file a lawsuit against the insurance company in federal court. The SFIP outlines the procedures for filing a claim and appealing a claim settlement.

The NFIP defines “flood” as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: Overflow of inland or tidal waters; Unusual and rapid accumulation or runoff of surface waters from any source; Mudflow. For a loss to be considered flood-related, the inundation must meet this definition. The NFIP Flood Insurance Manual provides detailed guidance on interpreting this definition, including specific examples of covered and non-covered losses. For instance, sewer backups are typically only covered if directly caused by flooding. The manual also clarifies the distinction between flood and water damage resulting from other causes, such as plumbing leaks, which are not covered by flood insurance. Refer to the NFIP Flood Insurance Manual for the most up-to-date and comprehensive information.

Increased Cost of Compliance (ICC) coverage is an NFIP provision that helps policyholders pay for the cost to comply with community floodplain management regulations after a flood event. This coverage is available when a structure is declared substantially damaged or repetitively damaged, triggering local ordinances that require elevation, floodproofing, or relocation. The maximum ICC coverage is $30,000. In New Hampshire, local floodplain management ordinances must meet or exceed NFIP standards. ICC coverage helps homeowners meet these standards, reducing future flood risk. The interaction between ICC and local ordinances is crucial; the ordinance dictates the required mitigation measures, and ICC helps fund them. It’s important to note that ICC coverage is not automatic; policyholders must apply for it and demonstrate that their community has declared the structure substantially or repetitively damaged.

The NFIP offers different SFIP forms tailored to specific property types. The Dwelling Form is for single-family homes and 2-4 family residences. The General Property Form covers non-residential buildings and residential buildings with more than four units. The Residential Condominium Building Association Policy (RCBAP) is for condominium associations insuring the entire building. Coverage limits vary; the Dwelling Form has lower limits than the General Property Form. Exclusions also differ. For example, the Dwelling Form may have specific exclusions related to basements that don’t apply to the RCBAP. Understanding these differences is crucial for ensuring adequate coverage. The SFIP forms are standardized, but the specific terms and conditions should be carefully reviewed to understand the coverage provided.

“Substantial Improvement” means any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement. “Substantial Damage” means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before-damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. These rules are triggered when a building in a Special Flood Hazard Area (SFHA) undergoes improvements or sustains damage meeting these thresholds. The consequences include the requirement to bring the entire structure into compliance with current floodplain management regulations, which may involve elevation, floodproofing, or relocation. In New Hampshire, communities enforce these rules through their floodplain management ordinances, ensuring that substantially improved or damaged buildings meet NFIP standards. This helps reduce future flood losses and protects the community.

A Letter of Map Amendment (LOMA) or Letter of Map Revision Based on Fill (LOMR-F) is a formal determination by FEMA that a property has been inadvertently mapped in the floodplain. To obtain a LOMA, a property owner must demonstrate that the natural ground elevation of their property is higher than the Base Flood Elevation (BFE). A LOMR-F is required when fill has been placed on the property to raise it above the BFE. The application process involves submitting detailed elevation data, survey information, and other documentation to FEMA. If approved, the LOMA or LOMR-F removes the mandatory flood insurance requirement, potentially saving the property owner significant money on insurance premiums. In New Hampshire, property owners should consult with a licensed surveyor or engineer to gather the necessary data and prepare the application.

Base Flood Elevation (BFE) is the elevation to which floodwater is anticipated to rise during a base flood, which has a 1% chance of occurring in any given year (also known as the 100-year flood). BFE is a critical factor in determining flood insurance rates; properties below the BFE are at higher risk and typically have higher premiums. BFEs are established and updated by FEMA through Flood Insurance Studies (FIS) and are shown on Flood Insurance Rate Maps (FIRMs). In New Hampshire, property owners can access BFE information through their local floodplain administrator, online FEMA resources, or by consulting with a licensed surveyor or engineer. Understanding the BFE is essential for making informed decisions about flood risk and insurance coverage. Floodplain management regulations also rely on BFE to determine building requirements and mitigation measures.

FEMA uses various flood zone designations on FIRMs to indicate the level of flood risk. Zone A and Zone AE are Special Flood Hazard Areas (SFHAs), meaning they have a 1% annual chance of flooding. Zone AE typically has a determined Base Flood Elevation (BFE), while Zone A may not. Zone X is a moderate- to low-risk area. Zone V is a coastal high-hazard area subject to wave action. In New Hampshire, properties in SFHAs (Zones A and AE) are typically required to have flood insurance if they have a mortgage from a federally regulated lender. Building regulations in SFHAs are more stringent, requiring elevation or floodproofing to protect structures from flood damage. Properties in Zone X may not be required to have flood insurance, but it is still recommended. Understanding these zone designations is crucial for assessing flood risk and complying with local regulations.