Answers to Questions About the NFIP

Repetitive Loss Properties Strategy

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  1. What is the Repetitive Loss Properties Strategy?
  2. How is the loss history determined?
  3. How and when are affected property owners notified that their property is in the target group?
  4. How should a policyholder respond after receiving such a renewal notice?
  5. What procedures are available for property owners who believe that their property should not be included in the target group?
  6. What happens to a property in the target group?
  7. What happens if a property owner agrees to undertake appropriate mitigation measures?
  8. What kinds of mitigation measures are appropriate?
  1. What is the Repetitive Loss Properties Strategy?
    The primary objective of the Repetitive Loss Properties Strategy is to eliminate or reduce the damage to property and the disruption of life caused by repeated flooding of the same properties. A specific target group of repetitive loss properties is identified and serviced separately from other NFIP policies by the Special Direct Facility (SDF). The target group includes every NFIP-insured property that, since 1978 and regardless of any change(s) of ownership during that period, has experienced:
    • Four or more paid flood losses of more than $1,000 each; or
    • Two paid flood losses within a 10-year period that, in the aggregate, equal or exceed the current value of the insured property; or
    • Three or more paid losses that, in the aggregate, equal or exceed the current value of the insured property.

  2. How is the loss history determined?
    The loss history includes all flood claims paid on an insured property, regardless of any change(s) of ownership, since the building's construction or back to 1978 if the building was constructed before 1978. Target group policies are afforded coverage, whether new or renewal, only through the SDF.

  3. How and when are affected property owners notified that their property is in the target group?
    At least 90 days before the policy renewal date, affected property owners and their flood insurance agents are sent notice by the Write Your Own (WYO) company stating that the policy is ineligible for renewal through the WYO Program and offering renewal in the SDF. A follow-up notice is sent by the SDF 45 days before the renewal date.

  4. How should a policyholder respond after receiving such a renewal notice?
    The policyholder should renew the NFIP policy with the SDF, not with the present WYO company.

  5. What procedures are available for property owners who believe that their property should not be included in the target group?
    Policyholders who believe that their property has not sustained the loss history indicated by the NFIP may appeal in writing to the SDF. All documentation to substantiate the appeal must be included. Until the appeal is settled, the policy will remain in the SDF. If the appeal is successful, the policy will be transferred back to the WYO company that previously serviced it. The policyholder will be notified of the results of the appeal.

  6. What happens to a property in the target group?
    The appropriate FEMA Regional Office provides information about the property to state and local floodplain management officials. States or communities may sponsor projects to mitigate flood losses to these properties or may be able to provide technical assistance on mitigation options.

  7. What happens if a property owner agrees to undertake appropriate mitigation measures?
    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.

  8. What kinds of mitigation measures are appropriate?
    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. Sometimes, mitigation takes the form of a local drainage-improvement project that meets NFIP standards.

F-084 (5/06)

Last Modified: Thursday, 08-Jun-2006 11:15:39 EDT