1. How to Use This Presentation Flood insurance is a critical part of any mitigation plan. A better insured community is a resilient one. Use this presentation to educate insurance agents on flood risk and the importance of selling flood insurance. This presentation is virtually ready to use immediately: Customize or delete information on slides 2 and 30 based on your specific needs. Once you update the necessary slides and delete this instructional slide, you are ready to present. Questions or Comments? Please contact info@femafloodsmart.com.

2. Financially Protect Your Clients and Your Business with Flood Insurance [ORGANIZATION NAME] [YOUR NAME] [DATE] [Organization Logo]

3.  National Flood Insurance Program  Flood Insurance Basics  Flood Misconceptions and Facts  Combatting Misconceptions  Resources for You Presentation Overview

4. National Flood Insurance Program

5.  Created by Congress in 1968 and administered by the Federal Emergency Management Agency (FEMA).  Provides flood insurance to homeowners, renters, and business owners.  Communities participate in the program and enforce sound floodplain management ordinances.  Written by insurance agencies through their carrier or direct with the NFIP (rates and coverage are the same for all agents). National Flood Insurance Program (NFIP)

6.  Everyone is at risk for flooding.  Anywhere it can rain, it can flood.  Just a few inches of water can cause tens of thousands of dollars in damage. Why Flood Insurance?

7. What Is a Flood?

8. A Flood Defined Inundation of 2 or more acres of normally dry land or of two or more properties (one of which is your property) from:  Overflow of inland or tidal waters;  Unusual, rapid accumulation or runoff of surface waters from any source;  Mudflow; or  Collapse or sinking of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated levels that result in a flood.

9. Flood Insurance Basics

10.  Single-peril policy.  Pays Replacement Cost Value on single-family, primary residences if insured to at least 80 percent of the building’s replacement cost.  As much as $250,000 in coverage.  Pays Actual Cash Value (depreciated cost) on second homes and underinsured homes.  Contents coverage is not automatically included in the policy (with the exception of a Preferred Risk Policy).  As much as $100,000 in coverage.  Pays Actual Cash Value. Three Basic Facts of a Standard Flood Policy

11.  Flood Zone  High risk: Flood insurance is required if mortgage is from a federally regulated or insured lender (Zones A or V).  Moderate to low risk: Flood insurance is not required. But while the chance of flooding is reduced, it is not eliminated (Zones B, C, or X).  Elevation for High-Risk Areas  Coverage and Deductibles  Date of Construction Key Rating Elements

12.  Typically, there is a 30-day waiting period for a flood insurance policy to go into effect.  Exceptions  Flood Insurance is required by a federally regulated and insured lender—0 days.  Wildfire 30-day waiting period exception—0 days.  Initial purchase of flood insurance as the result of a map revision—1 day. Waiting Periods

13.  Policy for homes and businesses in moderate- to low-risk areas:  Lower-cost policy.  Policy includes both building and contents.  Contents-only coverage is available for renters. Preferred Risk Policy (PRP)

14.  Allows subsidized rates to transfer from one owner to another at the time of sale.  Rates for pre-FIRM primary residences will increase by no more than 18 percent per year until reaching full-risk rates.  Rates for all other buildings will continue to increase by no more than 25 percent per year until reaching full-risk rates.  Applies to fewer than 20 percent of flood insurance policies. Recent Legislation

15.  New surcharges require verification of primary residency:  Policies for primary residences—including owner-occupied, single-family detached buildings, individual condominium units, and rental units—will include a $25 surcharge.  Policies for all other buildings, including secondary homes, will include a $250 surcharge.  For more information, visit FEMA.gov/flood-insurance-reform. Recent Legislation

16. Check with the community floodplain management office for more information on mitigation activities, such as:  Installing proper flood vents  Elevating:  Home  Equipment and appliances (heating, cooling, washer, dryer) Reduce the Risk, Reduce the Cost

17. Flood Misconceptions and Facts

18.  Misconception: “I don’t live in a flood zone.”  Facts  Floods are the number 1 natural disaster in the United States.  If it can rain, it can flood.  Risk does not stop at a line on a flood map. Misconception: Risk

19. Perceived Risk vs. Actual Risk

20.  Misconception: “I’m already covered—my homeowners policy covers flooding.”  Fact: Most insurance policies do not cover flooding; only flood insurance covers flood damage. Misconception: Homeowners Coverage

21.  Misconception: “If a flood happens, disaster assistance will cover me.”  Facts  Only available if the President declares a Federal disaster.  You must qualify.  Typically given in the form of a loan that must be repaid with interest. Misconception: Disaster Assistance

22. Combating Misconceptions

23.  Help clients understand their risks.  Make the risk relevant.  Visualize the risk.  Talk about changing risk. Risk: Educate and Personalize Flood Risk Scenarios Tool

24.  Show them the consequences of flooding.  Remind them that Federal disaster assistance is not always available.  Share personal experiences from flood survivors. Cost of Flooding

25.  Explain the value of flood insurance. Cost of Flood Insurance 2014 Average Premium 2014 Average Claim High-Risk Flood Area $779$23,033 Moderate- to Low-Risk Flood Area $420$27,888

26. Resources for You

27. FloodSmart Tools and Resources Agents.FloodSmart.gov  Sign up for the FloodSmart Agent Referral Program.  Attend webinars.  Access talking points and barrier busters.  Download free interactive online tools.  Use free outreach materials and advertising templates.

28. Resources FEMA.gov msc.FEMA.gov

29.  Anywhere it can rain, it can flood.  Risk changes over time.  Most homeowners insurance does not cover flood damage.  Federal disaster assistance isn’t always available.  Compare the average cost of a policy to the average claim.  Typically, there is a 30-day waiting period for policies to go into effect. Key Points for Clients

30. [YOUR NAME] [ORGANIZATION NAME] [ORGANZIATION ADDRESS] [YOUR PHONE NUMBER] [YOUR EMAIL] Questions