What was the purpose of the Biggert-Waters flood insurance Reform Act?
What was the purpose of the Biggert-Waters flood insurance Reform Act?
On July 6, 2012, Congress passed the Biggert-Waters Flood Insurance Reform Act of 2012. The primary purpose of the Act was to extend the authority of the National Flood Insurance Program (NFIP) for five years, until September 30, 2017.
What are the private flood insurance provisions of the Biggert-Waters Act?
The final rule requires regulated institutions to accept flood insurance policies that meet the Biggert-Waters Act statutory definition of “private flood insurance” through four primary components: (1) mandatory acceptance of private flood insurance; (2) mandatory acceptance compliance aid; (3) discretionary acceptance …
What is the PRP extension?
Since January 1, 2011, the Federal Emergency Management Agency’s (FEMA’s) National Flood Insurance Program (NFIP) has offered a flood insurance rating option, the Preferred Risk Policy (PRP) Eligibility Extension, for property owners whose buildings are newly mapped into a high-risk flood area.
Under which of the following circumstances would flood insurance be required?
Flood insurance is required for property improvements located in an SFHA Zone A (an area subject to inundation by a 1%-annual-chance flood event) or a Zone V (an area along the coast subject to inundation by a 1%-annual-chance flood event with additional hazards associated with storm-induced waves).
How did the Hfiaa affect grandfathering under Biggert-waters?
HFIAA slowed the elimination of subsidies provided for in Biggert-Waters and amended most of the provisions mandating that certain policies transition immediately to full-risk rates.
What must a lender do if a borrower fails to maintain adequate flood insurance?
If the borrower/unit owner or the condominium association fails to purchase flood insurance sufficient to meet the regulation’s mandatory requirements within 45 days of the lender’s notification to the individual unit owner/borrower of inadequate insurance coverage, the lender must force place the necessary flood …
What happens if a community does not participate in the NFIP?
Communities are required to adopt and enforce a floodplain management ordinance that meets minimum NFIP requirements. Communities that do not enforce these ordinances can be placed on probation or suspended from the program.
What is the the compliance aid clause?
The final rule contains a “compliance aid” provision meant to assist lenders in evaluating and accepting policies. Lenders may rely on written assurances from the insurer that a given policy meets the requirements of the Biggert-Waters Act.
What is the preferred risk policy?
The Preferred Risk Policy (PRP) is a Standard Flood Insurance Policy (SFIP), written using the Dwelling Form or General Property Form, that offers low-cost coverage to owners and tenants of eligible buildings located in the moderate-risk B, C, and X Zones in the National Flood Insurance Program (NFIP) Regular Program …
What is a ICC claim?
Increased Cost of Compliance (ICC) coverage is one of several resources for flood insurance policyholders who need additional help rebuilding after a flood. It provides up to $30,000 to help cover the cost of mitigation measures that will reduce flood risk.
