Description
Floodplain Management and Risk Rating 2.0 – Understanding and Explaining the Changes
Bruce Bender, CFM, Bender Consulting Services, Inc., babender@cox.net
Co-presenters: Joe "Flood" Rossi, ANFI, CFM , joe@joefloodrossi.com
Abstract: FEMA created Risk Rating 2.0 (RR2.0) to provide a rating system that more equitably reflects a property’s flood risk, simplifies the quoting process, and makes it easier to explain or understand the premium being charged. No longer is NFIP flood insurance rating determined solely by “in versus out” flood zones or base flood elevation. Modern “graduated” rating elements are now used for pricing such distance to water, types of flood exposure, replacement cost and other advanced elements. With the biggest change in NFIP rating methodology in 40+ years, one thing has become clear: messaging these changes is key. The messaging that is given to property owners and communities from FEMA, floodplain managers, and others needs to be crafted carefully. This presentation will not only highlight changes in the rating elements that a floodplain manager needs to know and understand, but also provide messaging around how to deliver those changes; e.g. explaining why one property’s premium might go down in price, and the neighbor’s goes up. If you are a floodplain manager, local official or someone who supports a community, you will not want to miss this workshop.
Reducing Flood Insurance Premiums with Flood-Resistant Design under RR2.0
John Ingargiola, EI, CFM, CBO, FEMA Headquarters, john.ingargiola@fema.dhs.gov
Co-presenters: Laura Ghorbi laura.ghorbi@aecom.com
Abstract: With the implementation of Risk Rating 2.0, the NFIP is factoring in more variables than ever before for a more comprehensive picture of risk. While many of the new variables in the pricing methodology are based on geography, part of the methodology still depends on building characteristics. This presentation will answer questions regarding how owners can make risk-reducing building design decisions that also reduce NFIP flood insurance premiums. Questions such as “Does elevation above the BFE still matter?” (Spoiler alert, yes it does!). “How, and how much, can mitigation impact my premium?” “My building is outside the SFHA, can I do anything reduce my premium?” And many more. This presentation will also add context on these flood-resistant design elements as they relate to building codes and the partial implementation of the Federal Flood Risk Management Standard.
Risk Rating 2.0: Perspectives on Flood Insurance, Floodplain Management, Mitigation and FEMA's 3-Legged Stool
Bill Nechamen, CFM, Nechamen Consulting, billnechamen@gmail.com
Co-presenters: None
Abstract: Risk Rating 2.0 is the first time in 40 years that FEMA has made significant changes in the NFIP flood insurance rating process. Instead of a series of rate tables that are available to the public, all flood insurance ratings are done by an algorithm that includes many more variables. The new system no longer uses a binary "in or out" approach to flood risk zones. In fact the flood risk zones on FEMA's Flood Insurance Rate Maps are no longer used to rate policies. Instead such variables as the type of flooding, distance from the flooding source, elevation of the ground above the elevation of the source of flooding and the elevation of the lowest floor above the ground all go into the algorithm. Because elevation above or below the Base Flood Elevation is no longer used to rate policies, such mitigation measures as freeboard, vent openings and protection of mechanical equipment represent only a part of the rating process and are no longer the primary rate driver. This presentation will explore the variables used in the rating process and will consider questions of fairness and accuracy in the the input data and the resulting flood insurance rates.
Contributors
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Bruce Bender, CFM
Bruce Bender has been providing community engagement/outreach services and flood insurance expertise since 2002. Bruce has supported FEMA’s NFIP national marketing programs (e.g., FloodSmart) and national mapping programs (e.g., Map Mod, Risk MAP). At the local level, he assists counties and communities with their community engagement and outreach efforts. Bruce has participated in numerous flood insurance-related research studies and been an expert witness in court cases related to flood and private flood insurance. He is currently a Co-Chair of ASFPM’s Flood Insurance Committee. Previously, Bruce worked in the insurance industry for close to 15 years, including managing one of FEMA’s largest WYO flood insurance programs and an insurance agency. He has a B.S. in Geology from The College of William and Mary…and a flood insurance policy!
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John Ingargiola, EI, CBO, CFM, FEMA HQ
John Ingargiola is a lead physical scientist in the Building Science Branch of the Risk Management Directorate at FEMA’s Federal Insurance & Mitigation Administration in Washington, DC and recently served as Acting Chief, Policy Branch, Grant Programs Directorate. John’s work involves a broad range of mitigation activities including pre- and post-disaster building sciences, building science education, working with model building code and standards-producing organizations, development of technical guidance documents related to hazard mitigation, and coordination with various mitigation partners in the public and private sector. He managed FEMA’s post-disaster Mitigation Assessment Team Building Performance studies conducted for Hurricanes Charley, Ivan, Katrina and Sandy. He helped develop the FEMA Disaster Risk Reduction Minimum Codes and Standards Policy and has been heavily involved with incorporating modern building code adoption into the National Mitigation Investment Strategy, FEMA's Strategic Plan, and FEMA’s grant programs. Before coming to FEMA in 1999, John served as a Building Code Official in Florida. Mr. Ingargiola holds a Bachelor of Engineering Degree in Civil Engineering from the Cooper Union for Advancement of Science and Art.
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Bill Nechamen, CFM
Bill Nechamen is Principal and owner of Nechamen Consulting, LLC of Schenectady, NY, a company dedicated to providing training and information related to flood risk and the National Flood Insurance Program. Bill was the State Floodplain Management Coordinator for the New York State Department of Environmental Conservation (NYSDEC) from 1996 until 2017. He is the past chair of the Association of State Floodplain Managers (ASFPM) and serves as co-chair of the ASFPM Floodplain Regulations committee. He was a founding member and the first Chair of the New York State Floodplain and Stormwater Managers Association (NYSFSMA) and currently serves that organization as treasurer and co-chair of the public policy committee.