1. Society of Risk Management Consultants
By: Greg Mondello | Corporate Client Manager | Flood Zone Correction Inc., CRIO Inc., Flood Risk Solutions LLC, Premier Elevation Certificate Network Inc.
O ext. 121 | F | C E:

2. Presentation Agenda Flood Basics
Background information about our companies:
CRIO, Inc.
Flood Zone Correction, Inc.
Flood Risk Solutions, LLC
Premiere Elevation Certificate Network, Inc.
Inland Reclassifications VS. Coastal Reclassifications
Biggert Waters Flood Insurance Reform Act and Its Ramifications
NFIP Statistics

3. Flood Basics:
National Flood Insurance Program (NFIP): Was created by the United States government through the National Flood Insurance Act of 1968 to enable property owners in participating communities to purchase insurance against losses from flooding from the government. This insurance was designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.
Flood Insurance Rate Map (FIRM) : There are roughly 138,000 published FIRM that define the flood risk across all 50 states.
Special Flood Hazard Area ( SFHA ): FEMA considers High Risk Flood zones, where the land is below the 100 year storm flood water height. Lenders impose the mandatory flood insurance requirement.
Base Flood Elevation ( BFE ): FEMA established 100 yr flood water height.

4. Flood Zone Classifications:
High Risk Zones ( 100 yr ): A,AE,AH,AO,AR,A01-A30, A99, V,VE,V01-V3
Moderate Risk ( 500 yr ): X-Shaded, B
Low Risk: X-Unshaded, C
Unmapped areas: D

5. FIRM Overlay: Red is AE flood zone (SFHA)
Pink is X-Shaded flood zone (non-SFHA)

6. Background Information:
We are a collection of companies that offer the most comprehensive portfolio of flood risk related services in the insurance and risk management industry.
Our clients own and operate over 4 million apartments over 30,000 shopping malls, office buildings, retail plazas and industrial parks, as well of thousands of single-family homes, townhouses and condominiums. 
For more than a decade we have served commercial property owners and condominium owners.
Our companies have received accolades from FEMA, Wright Flood ( FKA Fidelity National Flood ) and other prestigious organizations for our superior knowledge and capabilities relating to the flood risk peril.

7. Services: Flood Zone Correction Service Flood Map Revision Service
Flood Premium Reduction Service
Lender Release Service
Portfolio Review Service
Elevation Certificate Coordination
Flood Brokerage
Development Consulting

8. Flood Zone Correction Service:
For inland buildings (non V zone)
Goal is to reclassify the building into a more favorable flood zone classification
Use FEMA’s MT-1 Letter Of Map Change (LOMC) Program, which assumes the zones and BFE on the FIRM are correct
Compare the building to zone and BFE on FIRM plus data included in underlying Flood Insurance Study (FIS)
Goal is to prove the building has been built in a flood safe manner according to FEMA’s rules and regulations
FEMA issues either a Letter Of Map Amendment (LOMA) or Letter Of Map Revision – Based on Fill Dirt (LOMR-F)
1/20th rule OAS
Refund eligibility

9. Flood Map Revision Service:
Applies to coastal buildings (in V zones)
Goal is to redraw the flood map so that the building becomes located in more favorable zone
Use FEMA’s MT-2 Map Revision Process to prove the zones and BFE on the FIRM are wrong and to redraw the map
Perform complicated coastal flood studies to determine where zones should start and stop and what the BFE should be for each zone
FEMA issues a Letter Of Map Revision (LOMR) that includes a revised FIRM
Refund eligibility

10. Flood Premium Reduction Service:
Applies to inland and coastal buildings
Evaluate the current rating of the NFIP flood policy to determine if less expensive rates are available
Evaluate the current NFIP policy implementation to determine the optimal risk transfer strategy for construction type.
If yes, work with agent and carrier to re-rate the NFIP policy to take advantage of lower rates
Refund eligibility

11. Lender Release Service:
Applies to inland and coastal buildings
Goal is to eliminate unwarranted flood insurance requirement imposed by lenders
May or may not include obtaining a LOMA or LOMR
Prove that building is not in a Special Flood Hazard Area (SFHA) so the lender eliminates the flood insurance requirement
Refund eligibility

12. Portfolio Review Service:
Applies to inland and coastal buildings
Develop an accurate foundation of flood data upon which complete risk informed decisions can be made
Deliver current zone, future zone if available, and levee identification
Future FEMA flood map change tracking – only company in nation with this capability
Goal is to prevent uninsured or underinsured flood losses and to deliver data to aid in future decision making and budgeting

13. Elevation Certificate Coordination:
Recently at an NFIP conference FEMA stated nearly half ( 50%) of all elevation certificates are wrong due to some type of error or omission made by the surveyor
PECN is a national network or surveying and engineering firms
In house mapping specialist
In house surveyors
In house engineers
Provide second level of compliance analysis for all non site visit data on all elevation certificates

14. Example Elevation Certificate:

15. Flood Brokerage:
CRIO Flood Advantage®
CRIO serves as a true “one-stop-shop” for all flood-peril needs
CRIO offers a proprietary research-driven underwriting process
Future flood map tracking
Finger on the pulse of NFIP regulations changes/implementation
Flood zone determinations
Flood insurance rating options
Annual (Flood Risk Analysis) vs. standard renewal process

16. Development Consulting:
Goal is to help developers build in a flood safe manner according to FEMA’s rules and regulations to prevent flood damage and minimize flood insurance costs.
Analysis of building plans.
CLOMR processing.
Help clients understand the implications of their building designs in terms of qualifying for flood zone correction as well as impacting their cost of and access to flood insurance.

17. Letter Of Map Amendment ( LOMA/ LOMR-F) MT-1 Program:
FEMA established program allowing building owners to dispute Flood Zone Designation
Geographic challenge – (OAS) LOMA
Construction type challenge – ( Removal ) LOMA
Fill dirt – (Removal ) LOMR-F

18. Conditional Letter of Map Revision ( CLOMR ):
Pre-construction opinion from FEMA on construction plans
Can be converted to a LOMR-F upon completion of construction if built to same specifications
Helpful to obtain loans from HUD

19. LOMA Example:

20. Letter Of Map Revision ( LOMR ) MT-2 Program:
Based on scientific method and facts supported by technical analysis
Physically changes the Flood Insurance Rate Map ( FIRM )
Flood zone delineation lines move
Base Flood Elevations ( BFE ) change
Refund eligibility

21. LOMR Example:

22. Coastal Image:

23. Biggert-Waters Flood Insurance Reform Act of 2012:
Signed by President Obama on July 6, 2012
Notable Major Changes Required by the Act
Five Year Reauthorization of NFIP through September 30, 2017
Increases the Annual Cap on Premium Increases from 10% to 20%
Phase Out Subsidized (pre-FIRM) Rates
Phase Out Grandfathered Rates
Increase Building Coverage Limit to $500,000 from $250,000 for Multifamily Buildings (5+ Units)
Increase Deductibles for Some Policy Types
Establish Reserve Fund for Catastrophic Loss Years
Increase Penalties on Lenders for Non-Compliance
Protect Condo Unit Owners’ Right to File Separate Claims
Authorize Reimbursement for Flood Zone Correction Costs
Authorize Pursuit of Private Market Reinsurance for the Program

24. Biggert-Waters Act:
What parts of the Act is FEMA actually implementing?
New NFIP flood insurance business vs. Renewals
Important Dates: October 1st 2013 and July 6th 2012

25. Biggert-Waters Act Implementation:
Annual cap on rate increases is being raised from 10% to 20% beginning Oct 1, 2013
Initiation of federal reserve fund: additional, non-commissionable 5% fee being added to each NFIP policy.
All pre-FIRM policies, regardless of the occupancy class, with the initial NFIP policy effective date on or after July 6, 2012:
For pre-FIRM policies where the initial NFIP policy effective date was before July 6, 2012:
Non-Residential Buildings/ Single-Family, Non-Primary Residence:
Single-Family, Primary Residence / 2-4 Family / Other Residential / RCBAP buildings:

26. NFIP Statistics: source: www. FEMA
NFIP Statistics: source:
As of 1/31/2013:
Total Number of Policies In-Force: 5,565,807
Total Premium: $3,592,476,941
Total Claim Payments Since January 1, 1978: $45,533,821,110

27. NFIP Statistics source: www. FEMA
NFIP Statistics source:

28. NFIP Statistics source: www. FEMA
NFIP Statistics source:

29. NFIP Statistics source: www. FEMA
NFIP Statistics source:
NFIP Program – Growth in Number of Policies
1978 Policies in Force = 1,446,354
1980 Policies in Force = 2,103,851
1990 Policies in Force = 2,477,861
2000 Policies in Force = 4,369,087
2010 Policies in Force = 5,645,436
2012 Policies in Force = 5,629,396
Policy count has decreased in last few years, which is a new trend for the NFIP.

30. NFIP Statistics suorce: www. FEMA
NFIP Statistics suorce:
Top 5 States by Premium ( as of 1/31/13 )
Florida - $1,028,047,823
Texas - $362,000,608
Louisiana - $348,566,795
California - $208,767,724
New Jersey - $223,387,257
These top 5 states represent: 61% of all written premiums in-force, 64% of the polices
in-force, 68% of all insurance coverage limits in-force.
Top 5 States by Total Claims Payments ( 1/1/78 – 1/31/13 )
Louisiana - $16,605,074,851
Texas - $5,529,254,671
Florida - $3,697,916,908
New Jersey - $3,200,676,159
New York - $3,051,145,531

31. Thank You. Questions? Greg Mondello gmondello@floodzonecorrection.com
Account Executive
Cell: (561)
Office: ( ), ext. 121