How can I give feedback? [top]
We encourage you to give us comments and suggestions by filling out the feedback form on http://nfipnextgen.com. We value your opinion and want to hear from you in these initial stages.

How do I get in contact with NFIP IT Services Team? [top]
You may contact the NextGen team via email nextgen@ostglobal.com, if you have any questions regarding the NextGen project.

You may contact the FEMA Sr. IT Project Manager Jack Way at jack.way@dhs.gov. You may also contact Optimal Solutions & Technologies (OST inc.), who is the NextGen contractor. OST's office is at 2001 M Street NW, Suite 3000, Washington, DC 20036. Phone number is 202.466.8099 and the fax is 202.466.8088. www.ostglobal.com.

Is training available? [top]
There are NFIP IT Services graphic-heavy, user-friendly QuickStarts to get users started with our applications. If users can use the Internet, they can use any of our applications. The NextGen team has an awareness program to help communicate our activities, prototypes and pilot programs. The “Help” link will take you to our comprehensive QuickStarts (user manuals) that should answer all of your questions and guide new users in the new NFIP IT Services applications.

What is SQANet? [top]
Simple & Quick Access (SQANet) ''dashboard'' is a secure web-portal application that enables access to data from the NFIP Bureau flood insurance database and NFIP data warehouse. This business intelligence-reporting tool has a user-friendly web page for viewing a variety of useful reports and performing lookups. Each dashboard is customized based on each individual's role.

Who are the intended users for SQANet? [top]
FEMA employees (Headquarters and Regions), NFIP Bureau personnel, NFIP State Coordinators, State Hazard Mitigation Officers (SHMO), and Write Your Own (WYO) Company flood insurance personnel.

Who will be allowed to use SQANet? [top]
SQANet is available to the following NFIP stakeholders – FEMA Headquarters and Regional personnel, NFIP State Coordinators, State Hazard Mitigation Officials, WYO Companies, CRS Contractors, and the NFIP Bureau and Statistical Agent staff.

What can SQANet do for my organization? [top]
For WYO companies: SQANet can help you track your interactions with the NFIP Bureau and FEMA, such as status of data transactions, status of claims, and so on. It can help you gain greater understanding of industry-wide trends, enabling you to fine-tune your market strategies. It can also help your underwriters assess risks - they'll know right away whether a property is insurable, CBRA status, and what its claims history looks like. The sky is the limit - SQANet will grow to meet business needs across your organization.

For FEMA personnel: SQANet will improve the quality of policy analysis in the program. You’ll have the ability to slice and dice data, with the click of a mouse. The data will be live, and in a variety of formats for you to further analyze it. You’ll be able to monitor claims and policies, across all WYO companies, flood zones, and states. You’ll get graphical representations of data, in the form of pie charts and line graphs. SQANet will also allow better oversight – outliers can be spotted and Repetitive Loss (RL) properties can be examined in depth.

How do I get started with SQANet? [top]
SQANet offers secure access to NFIP reports that you can download to review for analyses. To begin, go to http://www.nfipbureau.fema.gov, and click on the “SQANet ” link on the top left-hand side of the screen. This will take you to the login page, then to a “Privacy Statement Notice” page and then to SQANet.

You will be prompted to change your password after the first login, and directions are provided in the manual on choosing a secure but memorable password. Please refer to the SQANet QuickStart for additional information.

Where is SQANet located? [top]
The link to SQANet is on the NFIP IT Services web portal, www.nfipbureau.fema.gov.

What is NFIP IT Services’ Location/Address Validation application validated against? [top]
Location Validation allows NFIP stakeholders to validate an address. All addresses are validated against the US Postal Standard database.

What is the FREE application? [top]
Flood Rating Engine Environment (FREE) application is a centralized flood insurance rating web-portal, where FEMA stakeholders can logon securely to rate and quote flood insurance policies in minutes. FREE has a personalized page based on each individual's rights, which shows every saved quote completed by that user. FREE also allows users to submit underwriting requests, such as SFR packets for new business. You must be authorized to use FREE.

What is a repetitive loss property? [top]
A Repetitive Loss (RL) property is any insurable building for which two or more claims of more than $1,000 were paid by the National Flood Insurance Program (NFIP) within any rolling ten-year period, since 1978. At least two of the claims must be more than 10-days apart but, within ten-years of each other. A RL property may or may not be currently insured by the NFIP. Currently there are over 122,000 RL properties nationwide.

Why is the NFIP concerned with repetitive loss (RL) structures? [top]
Structures that flood frequently strain the National Flood Insurance Fund. In fact, the RL properties are the biggest draw on the Fund. FEMA has paid almost $3.5 billion dollars in claims for RL properties. RL properties not only increase the NFIP's annual losses and the need for borrowing; but they drain resources needed to prepare for catastrophic events. Community leaders and residents are also concerned with the RL problem because residents' lives are disrupted and may be threatened by the continual flooding.

What has been done to help the repetitive loss (RL) problem? [top]
Over the years, there have been a number of efforts aimed at addressing repetitive losses. Federal, State and local flood control and storm-water management projects have been aimed at reducing the risks. In 1994, the National Flood Insurance Reform Act authorized the Flood Mitigation Assistance (FMA) Program and a new insurance coverage called Increased Cost of Compliance, or "ICC." This coverage has been added to policies purchased or renewed since June 1, 1997. The National Flood Insurance Reform Act of 2004 also recognized repetitive loss as a significant problem and provided the definition for severe repetitive loss. In addition, the 2004 Act authorized a pilot program to mitigate severe repetitive loss properties. The administration of the pilot program is in the final planning stages. In the past five years, we have bought out or elevated almost 23,000 properties nationwide, at least several thousand of which were repetitive loss properties.

What is the Special Direct Facility (SDF)? [top]
The SDF was established in August of 2000 in an effort to closely supervise the issuance of policies and the claims process for NFIP policies in force on target group repetitive loss properties. The facility is serviced by the NFIP direct servicing agent. The close supervision of these target group policies and claims contributes to attaining the primary objectives of the repetitive loss strategy.

What is FEMA’s Repetitive Loss (RL) property strategy? [top]
The primary objective of the RL property strategy is to eliminate or reduce the damage to property and the disruption to life caused by repeated flooding of the same properties.

There has been a lot of talk about severe repetitive loss properties. What is a severe repetitive loss property? [top]
A Severe Repetitive Loss Property (SRLP) was defined in the Flood Insurance Reform Act of 2004 as a single family property (consisting of 1-to-4 residences) that is covered under flood insurance by the NFIP and has incurred flood-related damage for which 4 or more separate claims payments have been paid under flood insurance coverage with the amount of each claim payment exceeding $5,000 and with cumulative amount of such claims payments exceeding $20,000; or for which at least 2-separate claims payments have been made with the cumulative amount of such claims exceeding the reported value of the property. There are currently approximately 6,000 properties nationwide meeting the SRLP definition.

Why are there so many definitions for repetitive loss? [top]
There is only one definition for a repetitive loss property. See “What is a repetitive loss property” above. The other categories of repetitive loss are subsets of the master list. These subsets, such as the target group or severe repetitive loss group, are used to focus mitigation resources on those properties with a higher frequency or severity of loss.

How can I be on the repetitive loss list when my property is not in a flood zone? [top]
Historically, approximately 25-percent of claims paid under the NFIP are paid to properties insured outside of the Special Flood Hazard Area (SFHA). Since 1978, the NFIP has paid over $2.8 billion in claims outside of the SFHA. This is due to a variety of reasons. Usually the area in question was not studied at the time the Flood Insurance Rate Map (FIRM) was prepared. Major new floodplain mapping projects are either underway or new projects expected to start each year of the flood map modernization initiative. We use many factors to establish flood study priorities. Repetitive loss experience is one such factor, especially where claims have been paid outside of the mapped regulatory floodplain (B, C, and X Zone properties.

Another issue is localized flooding due primarily to no or insufficient local drainage systems. Most of the time these areas are outside of the community’s regulatory floodplain and thus are not subject to the zoning regulations and building standards that are in place in higher-risk areas.

If your property was in a SFHA and now is outside of the mapped floodplain, it’s possible your property has been mitigated from repetitive flooding and the record should be updated to reflect this mitigation. See the “Who is the point of contact to send information to get the repetitive loss list updated and what is the process” question.

Will my flood insurance premiums increase because I am on the repetitive loss list? [top]
Flood insurance premiums will not increase merely because a property is on the repetitive loss list. However, under the severe repetitive loss pilot program authorized by Flood Insurance Reform Act of 2004, if an offer to mitigate is made and the owner refuses the offer, the premium will increase in the manner authorized in the Act. The Act stipulates a consequence to owners who refuse an offer of mitigation on a severe repetitive loss property. If an offer is refused, each holder of a recorded interest on the property will be notified of such refusal and thereafter the chargeable flood insurance premium rate with respect to the property shall be the amount equal to 150-percent of the chargeable rate for the property at the time that the offer was made, as adjusted by any other premium adjustments otherwise applicable to the property. Increases may continue with each claim but will not exceed the actuarial rate for the property. The property owner will have a right to appeal and if successful in the appeal will not be subject to increased premiums. The appeal process and grounds for appeal will be explained to the property owner at the time the offer to mitigate is made.

Why is the repetitive loss list sometimes not current? [top]
The repetitive loss list is a database and keeping it current while maintaining a high degree of accuracy is a task that is ongoing. Changes to the database are reported to the Bureau and Statistical Agent (Bureau) for FEMA from a variety of sources including insurance companies as they write policies and adjust claims, CRS communities as they review their annual repetitive loss list, and, Federal, State and, private sector employees under contract to FEMA as they conduct field reconnaissance of repetitive loss structures. The data received must be reviewed, evaluated, and sometimes followed up on before updates are entered into the database. At any given time the data available on the BSA system is 30-to-90 days out of date because of the processes used to report, verify, and update the data.

Who is the point of contact to send information to get the repetitive loss list updated and what is the process? [top]
Each FEMA Region has designated a Regional Repetitive Loss Coordinator who is familiar with the steps that must be taken to ensure RL data update requests are processed in a timely manner. Log on to http://www.fema.gov/regions/ for information on how to contact your applicable FEMA Regional office. Ask the operator to place you in contact with the Regional Repetitive Loss coordinator located in the Mitigation section.

What is the Community Rating System (CRS)? [top]
The NFIP’s Community Rating System (CRS) is a voluntary program developed by FEMA that provides incentives in the form of discounts on NFIP flood insurance premiums to all policyholders in those communities that undertake floodplain management activities that exceed minimum NFIP floodplain management requirements and develop an extra measure of flood protection. Its objectives are to reduce future flood losses, facilitate accurate insurance rating; and promote the awareness of flood insurance. More information on the CRS can be obtained by visiting - Emergency Management Institute.

Who is responsible for updating repetitive loss data? And what is the process? [top]
Community Rating System (CRS) communities are responsible for updating their RL property data. A community with repetitive losses must submit the appropriate worksheet page or Activity Worksheet for Section 501 (AW-501) or certify that each address has been checked and that no updates are necessary. If a community applying to the CRS fails to submit this material, it will result in the application being returned. If the community does not conduct the review of the list at cycle verification, it will lose its CRS credit for addressing its repetitive loss properties and may not be able to continue its participation in the CRS. The community needs to make sure it has the latest list before it submits its application or modification to the CRS. It is the community’s responsibility to review the list for accuracy and updating. The community must note the following situations in which the form should be updated:

Although it is hoped that the community will be able to locate all properties on the list and determine why they were flooded, it may be impossible to confirm every one. Updated information is noted on the form, AW-501, for each property that the community was able to locate. You may fill the AW-501 online through the AW-501 application at NextGen AW-501 & RL Maintenance.

In addition to updates submitted by CRS communities, repetitive loss data is updated by FEMA Regional staff, State staff, and numerous contractors to FEMA. The process requires the repetitive loss data to be updated, properly documented, and submitted to the FEMA RL Team at FEMA Headquarters for distribution to the quality assurance contractor for repetitive loss. For additional information on how to submit updates to the repetitive loss data list, please call 202-646-3678.

Are FEMA and the quality assurance contractor working to update the RL list as information comes in? If so, is the quality of address data improving? [top]
Updating Repetitive Loss database has been ongoing since 1991 with additional resources being dedicated to the effort in 1999 and again in 2003. Considerable effort is being made to emphasize the quality of the addresses in the database and these efforts have resulted in discernable improvements to the quality of the addresses in the system. Additional efforts to modernize the NFIP data systems through the NFIP NextGen project will serve to maintain these improvements and minimize future errors.

How is a property removed from the Repetitive Loss list? [top]
When documentation is received that verifies acceptable mitigation of an RL structure the record for the structure contained in the national database is annotated to reflect the nature of the mitigation and the funding sources for the mitigation. The record is not “removed” from the list. Once the mitigation switch has been turned on the record becomes a mitigated RL property and although it remains as part of the historical record, it is no longer considered a repetitive loss property.

Any additional claims filed on the structure will cause the mitigation switch to be turned off and the property will revert to RL status and subject to further review pertaining to the cause of the most recently filed claim.

What happens if a property owner agrees to undertake appropriate mitigation measures? [top]
When the mitigation measures have been implemented, the property will be removed from the target group at the next renewal, and the policy then will be transferred from the SDF to the WYO Company that previously serviced the policy.

What kinds of mitigation measures are appropriate for repetitive loss structures? [top]
Depending on individual circumstances, appropriate mitigation measures commonly include elevating buildings above the level of the base flood, demolishing buildings, and removing buildings from the Special Flood Hazard Area (SFHA). Sometimes, mitigation takes the form of a local drainage-improvement project that meets NFIP standards and removes a property or properties from RL status.

What are the common sources of funds used to mitigate repetitive loss structures? [top]
Mitigation is the cornerstone of emergency management. It's the ongoing effort to lessen the impact disasters have on people and property. FEMA currently has three mitigation grant programs: the Hazards Mitigation Grant Program (HGMP), the Pre-Disaster Mitigation program (PDM), and the Flood Mitigation Assistance (FMA) program. Detailed information on these three programs and other related programs is available on the Internet at www.FEMA.gov. Increased Cost of Compliance (ICC) funds for substantially damaged structures covered by flood insurance can also be used to mitigate RL structures. If your home or business is damaged by a flood, you may be required to meet certain building requirements in your community to reduce future flood damage before you repair or rebuild. To help you cover the costs of meeting those requirements, the National Flood Insurance Program (NFIP) includes Increased Cost of Compliance (ICC) coverage for all new and renewed Standard Flood Insurance Policies. Flood insurance policyholders in high-risk areas, also known as special flood hazard areas, can get up to $30,000 to help pay the costs to bring their home or business into compliance with their community's floodplain ordinance. More information on ICC is available at www.FEMA.gov.

What is Increased Cost of Compliance (ICC) coverage? [top]
If your home or business is damaged by a flood, you may be required to meet certain building requirements in your community to reduce future flood damage before you repair or rebuild. ICC provides for the payment of claims up to $30,000 toward the costs to comply with State or community floodplain management laws or ordinances after a flood event in which the structure has been declared substantially damaged in accordance with the locally enforceable regulation.

ICC can complement other resources by providing a portion of the non-Federal cost share for mitigation grants. Policyholders are allowed to assign the ICC claims payment over to the community so that ICC claims can be efficiently combined with mitigation grant funds for acquisition, relocation, or similar beneficial projects.

This coverage is aimed at substantial damage and improving enforcement of the substantial damage requirement. It underscores the regulatory requirement that substantially damaged properties be eliminated or modified to reduce their risk. ICC claims are adjusted separately from flood damage claims. You can only file an ICC claim if your community determines that your home or business has been substantially damaged by a flood. This determination is made when you apply for a building permit to begin repairing your home or business. If your community does determine that your home or business is substantially damaged, a local official will explain the floodplain management ordinance provisions that you will have to meet. You may also want to consult with the local official before you make the final decision about which of the options to pursue. Once your community has made this determination, contact the insurance company or agent who wrote your flood policy to file an ICC claim. Your insurer will assign a claims representative who will help you process your ICC claim. You should start getting estimates from contractors to take the necessary steps to elevate, relocate, floodproof, or demolish.

What is the status of tracking mitigation offers on RL properties? If for instance, an owner turns down a buyout/elevation through FEMA, are these offers being tracked and what are the consequences of refusal? [top]
FEMA has not tracked the refusal of mitigation offers. However, The Flood Insurance Reform Act of 2004 does introduce a consequence to owners who refuse an offer of mitigation under the severe repetitive loss pilot program, on a severe repetitive loss property.

Why does FEMA not require documentation concerning the Substantial Damage determination before paying the claim? [top]
The NFIP does require documentation prior to paying a substantial damage claim under the ICC coverage of the Standard Flood Insurance Policy. Initially the claims adjuster completes a Preliminary Damage Assessment (PDA), and submits it to the NFIP. In turn, it is sent to the FEMA Regional office. The Regional office forwards it to the involved community. At the same time that the adjuster is submitting the PDA, the community can make its own determination of substantial damage. It is the community’s determination that makes an insured eligible for ICC coverage.

How do the CRS Repetitive Loss Planning Requirements relate to the PDM Planning (Section 322) Requirements? [top]
The mandatory requirement for planning in the Community Rating System (CRS) Program is based on the number or repetitive loss properties in a community. If a community has ten or more repetitive loss properties, a floodplain management plan must be developed to address at a minimum those identified repetitive loss areas. Many communities who develop floodplain management plans in the CRS choose to expand their planning focus to look at all flood problems in their community beyond just the repetitively flooded areas.

The relationship between CRS planning and PDM planning is linked through a similar standard planning process. The CRS requires a ten-step process while PDM is based on a four-phase process. The planning process for both CRS and PDM are closely linked with many of the criteria being the same. The major difference is that CRS is based on the flood hazard, while PDM requires all natural hazards to be addressed in the plan. However, the CRS encourages community, county and regional comprehensive all hazard planning through the provision of additional credit points, in order to be compliant with PDM.

The relationship between CRS repetitive loss planning and PDM planning is very strong. In fact, the PDM (Section 322) regulations were developed using the CRS planning process as a framework. The idea that one plan can be developed in a community to meet more than one federal program’s planning requirement was the central thought between linking the CRS to PDM.

A CRS community which prepares a repetitive loss plan would not qualify for PDM as it only covers the repetitive flood hazard in that community. Likewise, a PDM plan that does not cover flood or repetitive loss areas would not qualify for repetitive loss plan credit in the CRS. However, a CRS community that prepares a plan for the entire community (not just the repetitive loss areas) that follows all 10 CRS Steps and covers all natural hazards would qualify for PDM Credit.

What is the correct way to handle repetitive loss data on mitigation plans in accordance with the Privacy Act? [top]
Some communities have been concerned with including information on repetitive loss structures in the mitigation plan because of Privacy Act issues. As long as the plan only includes the address of each structure, a note that the particular address is a repetitive loss structure, and an accompanying map showing the location of the hazard and the structure, this should not be an issue.

EXAMPLE: While preparing the Flood Mitigation Plan for the City of Anytown, the City Planner contacted the State NFIP Coordinating Office to see if there were any repetitive loss structures in the community. Shortly thereafter, he received a list of 15 structures. The list included the address of the structure, the date of losses, and the amount of each loss. After reviewing the list, he determined that while six of the structures had an Anytown mailing address, they were located outside of the municipal limits. He noted addresses of the six structures outside of Anytown in the narrative and included the rest of the data, excluding the losses, with the chart to be included in the plan. The chart indicated all structures within the community that were at risk.

If I submit an AW-501 through the NextGen SQANet system, do I need to submit a signed transmittal sheet? [top]
No signed transmittal sheet is required. The primary intent of the transmittal sheet is to insure that an authorized individual has submitted the documents for review and update. Under the process developed for SQANet each AW-501 submitted will be accompanied by a senders name (secure NextGen Login Name) and email address as the authorizing signature. Since currently, only Federal and State authorities have the ability to use the SQANet system for AW-501 transmittal, this email signature will suffice as authorization for the forms to be quality assured and processed.

What are some supporting documentation examples for the NFIP Repetitive Loss Update Worksheet (AW-501)? [top]
Some common documentation examples are:
- Letter from a community with specific property information explaining mitigation history, action, and providing supporting documentation such as engineering data on level of protection provided, i.e., 25-100 year recurrence intervals
- FEMA Elevation or Floodproofing Certificates
- Building Permits and/or Certificate of Occupancy (CO) issued by a community
- Demolition Permit
- Letter of Map Corrections (LOMC) or Map Revision request approvals
- Receipts from Contractors (describing actual work contracted/performed)
- Copies of ICC, FMA, HMGP documentation, e.g., Approval letter(s) with address list, deed attachments referencing property, letter of acceptance of buyout offers, or documentation of sale.

If the "Flood Protection Provided - The building was elevated to or above the Base Flood Elevation (BFE)" mitigation action is selected, what is the typical supporting documentation? [top]
Typical documentation for verifying this mitigation action may include a Certificate of Occupancy (CO); a letter from a Community; a FEMA Elevation Certificate; Receipts from Contractors; Copies of ICC, FMA or HMGP documentation.

If the "No Building on Property - Acquisition/Relocation" mitigation action is selected, what is the typical supporting documentation? [top]
Typical documentation for verifying this mitigation action may include a Demolition Permit; Letter from Community; Photographs of vacant lot; Copies of Deed, Sales or Tax parcel records; Local Permits; Receipts from Contractors on moving or demolition; Copies of ICC, FMA or HMGP documentation.

If the "Flood Protection Provided - Structural Projects" mitigation action is selected, what is the typical supporting documentation? [top]
Typical documentation required for verifying this mitigation action may include a Letter from Community; Copies of the previous and revised FIRMs (or LOMC) with property location shown indicating that the property was in the SFHA and is now removed; if a LOMC has not been issued, an engineering analysis provided by the community that demonstrates the level of protection provided; Receipts from Contractors; Copies of FMA; or HMGP documentation if done as part of an FMA or HMGP project.

If the "Flood Protection Provided - Dry Floodproofing of non-residential structures to BFE" mitigation action is selected, what is the typical supporting documentation? [top]
Typical supporting documentation that is required for verifying this mitigation action may include a Letter from Community; FEMA Floodproofing Certificate or like certification by design professional; Receipts from Contractors; Local Permits; Copies of ICC, FMA, or HMGP documentation.

What questions should be answered if a "No Building on Property" is selected? [top]
1. Have you positively identified the damaged building based on the address, name and claim data provided?
2. When was the building removed?
3. What were the circumstances surrounding the removal? i.e., Was it demolished, relocated or destroyed by the forces of nature?
4. What documentation do you have to support the removal?
5. What was the source of funding if appropriate and known?

If the "No Building on Property" mitigation action is selected, what is the typical supporting documentation? [top]
Verifying documentation should include any or all of the following items:
1. A demolition permit, notice of physical completion from the contractor or a bill submitted and paid for the work. Copies of all of these types of documents for a demolition are attached to this letter.
2. Pictures of the vacant lot.
3. A statement on community letterhead, signed by a community official, that explains the known circumstances surrounding the removal of the structure and why they are unable to provide a copy of the permits or why the permits were not required or issued.
4. A copy of the Fire Marshals Report.
5. Copies of the deed or a bill of sale showing transfer of ownership to the community and their accompanying statement that the building has been removed from the site.
6. Tax parcel records that show the lot to be unimproved.

What does "Flood Protection Provided" mean? [top]
Flood protection means protecting the property from the types of events that have caused the previous claims. This may or may not include protection to the anticipated 100-year levels.

What questions must be answered when flood protection is provided? [top]
Several general questions must be asked regardless of the nature of the protection provided, including:
1. Have you positively identified the damaged building based on the address, name and claim data provided?
2. Have you identified the general cause of flooding for each individual claim?
3. What is the nature of the flood protection provided?
4. When was the protection provided?
5. What was the source of funding for the protection?
6. What evidence do you have that the project was successful?

Data Source: "Interim Mitigation Appeals Process for Repetitive Losses" Memorandum by Margaret E. Lawless, Acting Executive Associate Director for Mitigation