| Repetitive
Loss Properties Strategy
96. 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:
a) Four or more paid flood losses; or
b) Two paid flood losses within a 10-year period that equal or exceed
the current value of the insured property; or
c) Three or more paid losses that equal or exceed the current value
of the insured property.
97. 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.
98. 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.
99. 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.
100. 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.
101. What happens to a property in the target group?
The appropriate FEMA Regional Office (see list in the back of this booklet)
provides information about the property to state and local floodplain
management officials. The FEMA Regional Office may also offer the property
owner a building inspection and financial incentives for undertaking
measures to mitigate future flood losses.
102. 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.
103. 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 SFHA. Sometimes,
mitigation takes the form of a local drainage-improvement project that
meets NFIP standards. |
