Watermark

2007, Number 1

National Flood Insurance Program

Contents
Its Electric: the New e-Watermark!	1
First-Rate Community	1
Message from the Editor	2
Northeastern U.S. Is Vulnerable	6
Reaching for 100-Percent Coverage	9
New EC Photo Requirements	10
NFIP Rule Changes	11
Revised Lender Guidelines Due in 2007	12
Tracking Severe Repetitive Losses	13
Increasing Policyholder Discounts	14
A Model for Retention	16 
Improving the Appeals Process	17
Supporting Local Loss Reduction Planning	18
Agent Training May Earn CRS Credit	19
New Insurance Outreach Toolkit	20
Frequently Used FEMA Mitigation Webpages	21
We, Too, Are the NFIP: JWT	22
Re:Sources	24
Just Around the Bend	26
Telephone Numbers	27

Message from the Editor

Dear Watermark Reader,

It is truly my pleasure to announce our new online newsletter, the e-Watermark, at 
watermark.nfipstat.com. For decades, the printed Watermark has brought the NFIPs 
stakeholders technical assistance and news, and we will continue to distribute a paper 
edition of this publication several times each year. But now we will be able to get NFIP 
updates and backgrounders out to you faster.
On the homepage of the e-Watermark website you will be introduced to three new NFIP 
articles each month, with links to the full stories. In addition, the bar at the left side of the 
homepage offers links to several recent articles aimed across the NFIP spectrumfor all 
of our stakeholdersfrom insurance agents to Write Your Own company officials, from 
real estate brokers to engineers, and from the smallest towns leader to State floodplain 
managers. 
Links at the top of the homepage will take visitors to other pages containing archived 
articles from the past year that have been categorized by the audiences for which they 
were published: insurance, mitigation, and all audiences.  
The new e-Watermark site also contains several reviews as well as lists of publications 
and websites, a page for upcoming NFIP-related events, and a contacts page about whom 
to call for NFIP information. 
We are committed to getting useful information to our readers that will help make their 
jobs easier and their communities thrive. 
Please let me know what you think of this new site. We believe in the NFIP, and were 
here to make it work a little better for you. 

Sincerely,


Susan Bernstein 
Watermark Editor 
Mitigation Division 

Watermark is published three times a year by the National Flood Insurance Program 
(NFIP). The NFIP is administered by the Federal Emergency Management Agency 
(FEMA), a division of the U.S. Department of Homeland Security. 

Editor
Susan Bernstein

Writer and Publication Coordinator
Lynd Morris

Graphic Designer
Glenn H. Martin

We welcome your comments and suggestions, as well as submissions for articles and 
departments. In addition, we encourage you to reproduce articles and departments 
contained in the Watermark and include them in your own newsletters or other 
communications. Send your questions, comments, suggestions, and submissions to:

Susan Bernstein
FEMA
500 C Street SW
Washington, DC 20472
susan.bernstein1@dhs.gov


Members of Congress, please write to:

FEMA
Office of Legislative Affairs
Attn: Dan Shulman, Director
Room 820
500 C Street SW
Washington, DC 20472


If you would like to sign up for Watermarks electronic notification service, email your 
request to:
     subscribe-nfip-list@lyris.fema.gov
Please fax changes of address, name, title, etc., to 301-918-1471 or mail them to:

Watermark Subscriptions
NFIP Bureau & Statistical Agent
P.O. Box 710
Lanham, MD 20703-0710

The current issue and selected back issues of Watermark are available at:
www.fema.gov/business/nfip/wm.shtm


Its Electric: the New e-Watermark! 

Have you been wondering whats new with the National Flood Insurance Program 
(NFIP)?  Did you want to take one more look at the article about Increased Cost of 
Compliance (ICC) that we ran a while back?  And, what about new flood insurance 
publications you havent read or websites you havent visited?  
Its easier, now that you can access our new e-Watermark website. All you need is its 
addresshttp://watermark.nfipstat.comand off you go to the NFIPs newest web 
destination that brings our stakeholders Program updates, technical assistance articles 
about insurance and mitigation issues, and workshop information, months in advance. 
The site includes links to Federal Emergency Management Agency (FEMA) webpages 
and other websites that are of particular interest to NFIP stakeholders. 
So, visit the website, explore its pages, and let us know what you think.

First-Rate Community
Lynd Morris, NFIP Bureau and Statistical Agent

Public officials in Roseville, California, have dedicated a lot of time, money, and effort to 
finding ways to protect their community from flood hazards. And it has paid off. On 
October 1, 2006, Roseville became the first community to achieve a Class 1 designation 
in the NFIPs Community Rating System (CRS). This means that not only are NFIP 
policyholders in this communitys floodplain eligible for a 45-percent reduction in their 
flood insurance premiums, but everyone in Roseville is benefiting because it is better 
prepared to prevent, reduce, and recover from flood losses than any other CRS 
community in the United States.
From Maidu to Modern
Just 15 miles north of Sacramento, Roseville is located within portions of two major 
drainage basins that eventually empty into the Sacramento and American Rivers. The 
indigenous peoples of this region were the Maidu Nation. In the early 1800s, fur trappers 
explored the area and, when gold was discovered in Placer County in 1848, more than 
10,000 miners poured into the area. But further gold failed to materialize, and pioneer 
ranchers replaced departing miners, becoming the first permanent residents of the area 
now known as Roseville.
In 1863, the construction of the Transcontinental Railroad reached Roseville. A year 
later, the original map for the city was filed, "Plan of the Town of Roseville at the 
Junction of the Central Pacific and California Railroads." Today, with a population of 
more than 100,000, Roseville has evolved from a suburb of Sacramento to an urban 
center with thriving residential and commercial areas.
Flooding in the Roseville region has been the result of storm runoff that exceeds the 
capacity of area creeks and storm drains. Except for a dry period from 1973 through 
1981, flood damage to property has been recorded in Roseville every 3 to 5 years since 
1950. Two of the largest flood events on record took place in 1986 and 1995. According 
to Rosevilles Public Works Department, 209 homes and business were damaged as the 
result of winter flooding in 1986. In 1995, 358 structures were damaged by winter 
flooding, prompting a Presidential Disaster Declaration. 
Roseville Responds
According to Rhon Herndon, Manager of the City of Rosevilles Engineering Division, 
several planning and development strategies have been particularly useful in averting 
serious flooding like that experienced in 1986 and 1995. Roseville participated in 
creating the Placer County Flood Control District after the 1986 flood. The District 
generated the Dry Creek Watershed Flood Control Plan, which includes regional 
stormwater detention basins and other improvements within the Dry Creek basin. These 
improvements are partially funded by developer-paid fees. 
"In newly developing areas of Roseville, we require what is called an overland release," 
explains Herndon. "This means that the entire area will drain without causing flood 
damage to any homes. We even go so far as to assume that, if the storm drain system 
under the streets in that residential area were completely plugged, 100 percent of the 
surface flow would escape that subdivision without causing damage to the homes. And, 
in development that occurs outside of the floodplain but adjacent to it, we make sure that 
the pads those buildings are constructed on are at least 2 feet above the 100-year future 
water surface elevation."
Roseville also initiated a 5-year, $20-
million flood control improvement project that included buying out repetitive loss 
properties, elevating buildings at risk of flooding, excavating channels, constructing 
berms and flood walls, and replacing culverts. In addition, Roseville has installed an early 
warning system with 18 rain gauges, 19 stream level gauges, and a computer monitoring 
system. During high stream flows, the City broadcasts stream levels on community cable 
TV. The City monitors Doppler radar and satellite imaging of incoming storms to assist 
in advance notification efforts in the event evacuation of flood-prone areas is deemed 
necessary. The Fire Department uses a telephone auto-dialer system that notifies 
occupants of the status of creek levels. In 2001, real-time stream gauge data was added to 
the Citys website.
Creditable Activities
Of the 1,049 communities across the U.S. that were participating in the CRS as of 
October 1, 2006, (see "Increasing Policyholder Discounts" on page 14), Roseville was the 
first to attain a Class 1 rating. What set this community ahead of the rest?
According to David Maurstad, Federal Insurance Administrator and Director of FEMAs 
Mitigation Division, Roseville has achieved what the CRS was designed to do. "Roseville 
has not only accumulated creditable points in nearly every CRS activity, but has met all 
of the tough Class 4 and Class 1 requirements, such as developing and implementing an 
all-hazards plan and building code; mitigating 33 of their 35 repetitive loss properties; 
and supporting flood insurance policy growth with more than 50-percent market 
penetration," says Maurstad.
Roseville relies on wide-ranging activities to protect its citizens from flooding. These 
include open space preservation, cluster development, freeboard in the citys X Zones, 
stormwater management, flood warning, strong building codes, and an all-hazard 
predisaster mitigation plan. In fact, the community receives CRS points in 17 of the 18 
floodplain management activities that can earn credit (see the sidebar on the next page for 
descriptions of some of Rosevilles credited activities).
The new 45-percent insurance premium reduction now earned by Roseville will represent 
an annual savings of hundreds of flood insurance premium dollars for each NFIP 
policyholder in the communitys floodplain. The mitigation actions that earned this 
premium reduction will produce an incalculable savings in lives, property, and disruption 
after a flood. And, according to Garth Gaylord, a senior engineer in Rosevilles Public 
Works Department, the benefits of participating in the CRS are worth the expense. "The 
cost of meeting the requirements of the CRS program is not much more than the cost of 
implementing good floodplain management," says Gaylord. "Any community that 
understands the flooding problem probably already has programs implemented that 
would get it a CRS Class 8, which earns a 10-percent premium discount." 
Implementing CRS activities that earn the most pointssuch as conducting detailed 
flood studies, floodproofing homes, or buying out floodprone propertiesrepresents a 
significant investment by the community, which must rely on the support of its taxpayers. 
Public education has been an effective way to build public support for mitigation in 
Roseville. "The city mails out an annual pamphlet to each structure in the floodplain," 
explains Gaylord. "The pamphlet not only talks about what to do before the flood, during 
the flood, and after the floodit also says Since you are in the floodplain, we 
recommend that you get flood insurance."
Everyone Wins
Mitigation measures potentially can benefit everyone, whether or not they are NFIP 
policyholders. For example, Roseville receives 180 CRS points for its early warning 
system and its designation as a Storm Ready Community by the National Weather 
Service. Some of Rosevilles residents have received a second chance from the early 
warning system.
"Back in 1995, when we had our second significant flooding here in the community, we 
did somewhere in the neighborhood of 300-plus water rescues where we actually sent 
fire, police, and public works personnel out into those flood areas to evacuate people," 
reports Ed Rutherford, Captain of Rosevilles Fire Department. "In 1996, after we 
implemented this early warning program, we were impacted by another 100-year flood 
and we did zero water rescues."
The CRS is a program that has been shown to make floodplains, and the people who live 
and work in them, safer. For more information about Rosevilles floodplain management 
strategies, visit their website 
(www.roseville.ca.us/pw/engineering/floodplain_management/default.asp). For details 
about how to join the Community Rating System or how to improve your communitys 
rating if it is already in the CRS, visit the CRS Resource Center 
(training.fema.gov/EMIWeb/CRS/).

Lynd Morris began working with the NFIPs Bureau and Statistical Agent in 1983. She 
has been Watermarks primary writer and production coordinator since 1998.

Freeboard 
According to the NFIPs Flood Insurance Manual, freeboard is a factor of safety usually 
expressed in feet above a flood level for purposes of floodplain management. "Freeboard" 
tends to compensate for the many unknown factors that could contribute to flood heights 
greater than the height calculated for a selected size flood and floodway conditions, such 
as wave action, bridge openings, and the hydrological effect of urbanization of the 
watershed. Freeboard is not required by NFIP standards, but communities are encouraged 
to adopt at least a 1-foot freeboard to account for the 1-foot rise built into the concept of 
designating a floodway and the encroachment requirements where floodways have not 
been designated. Freeboard results in significantly lower flood insurance rates due to 
lower flood risk.

A Selection of Rosevilles CRS Creditable Activities

Activity 320-Map Information Service: Credit is provided for providing inquirers with 
flood zone information from the communitys latest Flood Insurance Rate Map (FIRM), 
publicizing the service annually, and maintaining records.
Activity 330-Outreach Projects: A community brochure is mailed to all properties in the 
community on an annual basis. An outreach brochure is mailed annually to all properties 
in the communitys Special Flood Hazard Area (SFHA). The community also provides 
flood information through displays at City Hall. 
Activity 410-Additional Flood Data: Credit is provided for conducting and adopting 
flood studies for areas not included on the FIRMs and that exceed minimum mapping 
standards. Credit also is provided for a Cooperating Technical Partnership agreement 
with FEMA.
Activity 450-Stormwater Management: The community enforces regulations for 
stormwater management, freeboard in non-SFHA zones, soil and erosion control, and 
water quality. Credit also is provided for stormwater management master planning.
Activity 520-Acquisition and Relocation: Credit is provided for acquiring and relocating 
buildings from the communitys flood hazard area.
Activity 530-Flood Protection: Credit is provided for buildings that have been 
floodproofed, elevated, or otherwise modified to protect them from flood damage.
Activity 630-Dam Safety: Roseville receives CRS credit for the State of Californias dam 
safety program. Credit also is provided for a dam failure emergency response plan.

Northeastern U.S. Is Vulnerable
David Maurstad, FEMA

The Northeast has historically experienced flood damage from severe storms, noreasters, 
and hurricanes. Three strong hurricanes reached the Northeast in the mid-1900s: in 1938, 
1944, and 1954. The most destructive of thesethe 1938 stormdestroyed 
approximately 63,000 homes on Long Island and throughout New England.
In the last 35 years, devastating floods have continued to plague the Northeastern United 
States.
Tropical Storm Agnes
In 1972, Tropical Storm Agnes produced widespread rains in the Northeast, with some 
communities receiving 14 to 19 inches. These rains caused severe flooding from Virginia 
all the way north to New York.
Agnes rewrote the book on inland flooding and the impact a tropical storm can have 
hundreds of miles from the coast. The entire state of Pennsylvania was declared a disaster 
area. Flooding from Agnes resulted in $2.3 billion in damages in Pennsylvania; $7.4 
million in damages in New York; $110 million in damages in Maryland, Delaware, and 
the District of Columbia; $222 million in damages in Virginia; and $15 million in 
damages in New Jersey. 
Hurricane Ivan
In 2004, Hurricane Ivan produced widespread rains of up to 7 inches, causing extensive 
flood damage in New Hampshire, New Jersey, New York, and Pennsylvania. Claim 
payments of $180.2 million were made to policyholders in Pennsylvania alone. In fact, 
although the most NFIP claims were paid for Florida damage in 2004, the state with the 
second highest number of flood claims that year was not Texas or Louisiana, but 
Pennsylvania, with 8,898 paid losses.
Tropical Storm Tammy
In 2005, Tropical Storm Tammy developed off the east coast of central Florida in early 
October and made landfall in northeastern Florida, causing minor localized flooding. 
However, according to the National Oceanic and Atmospheric Administration (NOAA), 
when Tammys remnants merged with a cold front and moved north, it contributed to 
widespread flooding in the Northeast that killed 10 people and caused significant 
damage. Tropical Storm Tammy resulted in $25 million in paid claims in New York and 
almost $14 million in neighboring New Jersey.
June 2006 Storms
It doesnt take a hurricane to cause damaging floods. FEMA regional officials continue to 
work with state and local officials to respond to the June floods that hit the entire 
Northeast. Following the floods, more than $32.4 million had been paid on 722 claims in 
Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, 
Pennsylvania, Rhode Island, and Virginia.
Property Owners are Under-Protected
There is no question: areas in the Northeast are at real risk. Yet, residents remain ill-
prepared for the risk of flooding. Even in the highest-risk areasthe Special Flood 
Hazard Areas (SFHAs)where coverage should be 100 percent, less than 30 percent of 
properties are covered by flood insurance. 
According to a RAND Corporation study released in early 2006, only 28 percent of 
homes in high-risk flood areas in the Northeast are covered by federal flood insurance, 
compared to 61 percent in the South. Outside high-risk areas, just 0.6 percent of homes in 
the Northeast are covered by flood insurance.
The 28-percent market penetration rate inside the SFHAs is particularly troubling, 
because these are the areas where flood insurance is mandatory for homes with 
mortgages held by federally regulated lenders. The RAND study found that only about 
half of those mortgage holders are in compliance. That is compared with 81-percent 
compliance in the South, but the fact is that anything short of full compliance with this 
legal requirement is not acceptable. 
Of course, while many property owners are protecting themselves by choice and because 
it is the right thing to do, a great number who are legally bound to do so are not. We need 
to address that situation. 
Three Communities Exemplify Progress
Clearly, flood insurance coverage in the Northeast is not what it should be or needs to be. 
However, progress is being made at the community leveland that kind of grassroots 
engagement is just what it will take to be able to one day count our nation as fully 
protected. A closer look at three communities impacted by recent Northeast flooding 
shows both real improvement and the need for continuing, targeted policy growth.

Even though New Hope, Pennsylvania, is located along the Delaware Riveran area that 
has seen consistent flooding in the past few yearsonly 4.4 percent of all residents have 
flood coverage. However, that number is up a dramatic 18.2 percent since 2005. And, as 
part of that overall growth, coverage in the SFHA was up 22 percent. 
People in the high-risk areas of New Hope are getting a better handle on their riskand 
theyre getting flood insurance. By mid-2006, 73 percent of residents in the SFHA were 
carrying flood insurance. However, only 1.7 percent of property owners outside the 
SFHA had coverage.
Just across the river, the town of Lambertville, New Jersey, also is making strides. While 
only 8 percent of all residents have flood insurance, that number is up 13 percent from 
2005. And even though just 5.4 percent of individuals outside the SFHA were covered by 
mid-2006, that number has been rising dramaticallyit jumped almost 19 percent since 
2005. Clearly, Lambertville residents in low- to moderate-risk areas are realizing that, 
even though they dont have to get flood insurance, they really do need it. 
Finally, the number of residents in the SFHA in Binghamton, New York, who now have 
NFIP coverage has increased by a full 19.5 percent since 2005. Such an increase in high-
risk areas is encouraging, but there is still a lot of work to do to bring coverage up from a 
mere 0.3 percent outside of the SFHAs in this community. 

Mitigation Can Prevent Losses
Carrying insurance is an important aspect of preparedness during every storm season. But 
insurance is just part of the story. Local leaders also must make sound floodplain 
management practices a priority to ensure the long-term safety of our nations 
communities. 
Risk insurance is a key component of the overall mitigation effort to create safer 
communities by reducing losses of life and property and enabling individuals and 
communities to recover more rapidly from disasters.
However, mitigation also consists of risk analysis and reduction:
 Risk analysis through flood mapping to identify hazards, assess vulnerabilities, and 
develop strategies to manage the risks associated with natural hazards.
 Risk reduction to reduce risk to life and property through land use controls, "smarter" 
building practices, and other tools.
Sound floodplain management planning and regulations save this country an estimated 
$1.1 billion in prevented flood damages annually, and structures built to NFIP criteria 
experience 80 percent less damage than structures not built to such standards. 
How do you protect structures from damage?  Possible activities include elevating, 
relocating, and retrofitting the structures themselves, as well as channeling water flow. 
But successfully undertaking such activities requires Federal, State, and local 
commitment to mitigation planning throughout all stages of the construction or 
reconstruction process.
Creating stronger and safer communities reduces loss of life and property, enables 
individuals and localities to rapidly recover from future events, and lessens the financial 
impact on State, Tribal, and local governments, as well as the United States Treasury. 

Now serving as Federal Insurance Administrator and Director of FEMA's Mitigation 
Division, David Maurstad was once Mayor of Beatrice, Nebraska, served as a Nebraska 
State Senator, and later held the office of Lieutenant Governor of Nebraska. He joined 
FEMA in 2001 as the Director of the Region VIII Office.

NFIP Market Penetration in Northeastern U.S.
	

Connecticut	1,301,670	32,662	2.5%
Delaware	298,736	21,191	7.1%
Maine	518,200 	7,677	1.5%
Maryland	1,980,859	61,966	3.1%
Massachusetts	2,443,580	45,687	1.9%
New Hampshire	474,606 	7,044	1.4%
New Jersey	3,064,645	207,175	6.8%
New York	7,056,860	120,253	1.7%
Pennsylvania	4,777,003	62,206	1.3%
Rhode Island	408,424	13,522	3.3%
Vermont	240,634	3,135	1.3%

*	Note: This number represents all households reported in the 2000 census, not just 
households in SFHAs.

Reaching for 100-Percent Coverage 
Melissa Klein, Ogilvy Worldwide

Special Flood Hazard Areas (SFHAs) receive this designation because hydrologic, 
hydraulic, and historical data show that significant floods have occurred and can occur in 
the area. Under Federal law, homebuyers in SFHAs are required to get flood insurance to 
receive a loan from a federally regulated lender. While the requirement provides many 
residents in high-risk areas with financial protection against flooding, many others remain 
unprotected. All SFHA residents, regardless of their mortgage status, need to assess their 
flood risk and protect themselves with flood insurance.  
Since 2004, the NFIP has increased its efforts to raise the number of those protected with 
flood insurance through marketing and through collaboration with the insurance and 
lending industries. Thus far, the results have been significant. In May 2005, the NFIP 
policy base had grown by 7,000 more than the previous year. Just 1 year later, the policy 
base had grown by 78,000. Despite the NFIPs unprecedented recent policy growth
almost 12 percentmore than 50 percent of buildings at the highest risk for flooding 
remain unprotected by flood insurance. 
In light of these statistics, FEMAs Mitigation Division has committed to helping insure 
100 percent of the homeowners, renters, and businesses located in the nations SFHAs. 
The NFIPs marketing program, FloodSmart, is working with community leaders and 
local officials, professionals in the real estate and financial fields, insurance agents, and 
others to help spread the word and reach this goal. FloodSmart also conducts targeted 
outreach to consumers and stakeholders in SFHAs. 
Facilitating Growth 
FloodSmart has conducted analyses of new sales and retention rates to show which flood 
insurance markets have seen significant increases in policies as well as those that have 
yet to be reached. Studying recent flood events also reveals high-risk areas with low 
flood coverage, where the NFIP policy base can be increased. For instance, after the June 
2006 floods that hit the Northeastern U.S., it became apparent that many residents of 
high-risk areas in that region lacked flood insurance protection. According to the recent 
RAND Corporation study of market penetration, only 28 percent of households in SFHAs 
across the Northeast are covered by flood insurance. That number drops to a mere 0.6 
percent of coverage in the regions low- to moderate-risk areas. 
In addition, many parts of the Southeastern U.S. are in high-risk areas, where flooding 
from hurricanes and tropical storms is a constant threat during the summer and fall 
months. Even after the devastating floods from Hurricane Katrina in 2005, Mississippi 
remains underprotected in the high-risk areas of the state. Only approximately 20 percent 
of households in the 5.2 million acres located in a floodplain across the state are insured 
against flooding.
The NFIP recognizes that holding onto the policies that are already in place is less labor- 
and cost-intensive than selling new policies. And policy retention is essential to increase 
the number of NFIP policies in force. According to a recent analysis, retention is lowest 
among first-year policyholders. Therefore, to boost retention rates, the FloodSmart 
campaign is also reaching out to all new purchasers of NFIP policies by sending them 
customized monthly mailings. 
While targeted marketing and outreach is necessary to raise 
awareness where policies are most needed, reaching 100-percent coverage in high-risk 
areas requires support from each NFIP community to make flood insurance protection a 
priority.   
Crossing the SFHA Boundary 
While working together to achieve 100-percent coverage in SFHAs is a high priority, 
properties in non-SFHA areas also are vulnerable and should be protected. An estimated 
20 to 25 percent of all flood insurance claims made annually continue to come from low- 
to moderate-risk areas. 
Also, while a significant percentage of recent NFIP policy growth has been through the 
purchase of Preferred Risk Policies (PRPs)increasing by 30 percent between May 31, 
2005, and May 31, 2006non-SFHA policy growth continues to lag for "other 
residential" and "non-residential" buildings. These also represent a PRP marketing 
opportunity for insurance agents. 
For more information about FloodSmarts flood insurance marketing strategies and 
outreach messages and materials, visit the FloodSmart.gov website. 

Melissa Klein is an Account Representative with Ogilvy Public Relations Worldwide, 
one of the J. Walter Thompson (JWT) companies supporting the NFIPs FloodSmart 
advertising and pubic awareness campaign.


New EC Photo Requirements


With the introduction of the NFIPs new Elevation Certificate (EC), all ECs certified on 
or after January 1, 2007, must be submitted on the new EC form and with few exceptions 
(discussed below) must include a least two recent photographs that show the front and 
back of the building and are taken and dated within 90 days of the submission date, 
which is the mailing date (not within 90 days of the EC certification date). If the EC 
certification date is older than 90 days, the insured or agent must provide photographs 
taken within 90 days of the submission date. If the building is a split-level or has multi-
level areas at ground level, at least two additional photographs showing views of both 
sides of the building must be submitted.
A building in the course of construction, without the "as-built elevations," can obtain a 
policy based on proposed elevations, even though photographs are not submitted. 
However, prior to the policy being renewed, a revised EC with "as-built elevations" must 
be provided along with the photographs. 
These new requirements pertain to all new business applications, including transfer of 
business, for elevation-rated risks with a policy effective date of January 1, 2007, or later. 
The requirements also apply to all renewal and endorsement transactions adding 
elevation rating effective on or after January 1, 2007.
Use of the Building Photographs sheets included with the new EC is not a requirement 
for photograph submission as long as the date the photographs were taken is provided and 
attested. All photographs must measure at least 3" x 3" and provide a good, clear image 
of the buildings distinguishing features. Analog or digital photographs are acceptable. 
Color photographs are preferred.
An EC submitted without the required photographs is not considered a valid EC unless 
the building is in the course of construction. Each WYO company may use its current 
business practice in handling ECs without photographs, whether this is using tentative or 
provisional rates, or rejecting the application.
In cases where the agent is transferring his or her entire book of business to another 
company or when a company acquires a book of business of another company, the 
photograph requirements do not apply. FEMA will continue to consider these policies as 
renewals even though they are reported as new business under the Transaction Record 
Reporting and Processing Plan. However, in cases where an individual insured decides to 
change agent and company, that application is considered new business and the 
photograph requirement applies.

NFIP Rule Changes
The following changes to the NFIP were implemented effective October 1, 2006. For 
more details about these changes, refer to the NFIPs Flood Insurance Manual accessible 
online (www.fema.gov/business/nfip/manual.shtm) or order a hardcopy subscription for 
$25 from FEMAs Map Service Center (MSC). To order by phone, call the MSC toll free 
at 800-358-9616 or fax your order to the MSC at 800-358-9620.
Severe Repetitive Loss Program
Properties that flood repeatedly cause financial hardship for the owners and have a 
significant, adverse financial impact on the NFIP, as well. In 2000, the NFIP established 
a Special Direct Facility (SDF) to identify those insured properties most prone to 
repeated flooding and to enable easier tracking of mitigation activities that would remove 
these properties from harms way. 
In response to legislation in the Flood Insurance Reform Act (FIRA) of 2004, the NFIP 
has now created a new category of repetitive lossSevere Repetitive Loss (SRL) 
propertiesfor identification and mitigation. See "Tracking Severe Repetitive Losses" on 
page 13 for a description of this new program and how it impacts those policies already 
held in the SDF. 
The Flood Insurance Manual contains a new SRL section about Severe Repetitive Loss 
properties that provides details about changes in the SDFs policies and procedures. The 
new definition for Severe Repetitive Loss properties is on page DEF 8 of the manual. 
New Photo Requirements
FEMA is making it easier to correctly rate policies for elevated buildings by requiring 
that all Elevation Certificates certified on or after January 1, 2007, be accompanied by at 
least two recent photographs (see "New EC Photo Requirements" on page 10 for details).
Preferred Risk Policies and Prior Losses 
Preferred Risk Policies (PRPs) offer eligible NFIP policyholders financial protection 
from flooding at a moderate cost. A building's eligibility for the PRP is based on several 
requirements, including its flood loss history. If one of the following conditions exists, 
regardless of any change(s) in ownership of the building, then the building is not eligible 
for the PRP:
 2 flood insurance claim payments, each more than $1,000; or
 3 or more flood insurance claim payments, regardless of amount; or
 2 Federal flood disaster relief payments (including loans and grants), each more than 
$1,000; or
 3 Federal flood disaster relief payments (including loans and grants), regardless of 
amount; or
 1 flood insurance claim payment and 1 Federal flood disaster relief payment (including 
loans and grants), each more than $1,000.
FEMA has clarified the PRP eligibility criteria pertaining to receipt of Federal flood 
disaster relief payments. Federal flood disaster relief payments (including loans and 
grants) are counted only if the building suffered flood damage. A flood insurance claim 
payment (building and/or contents) and a Federal flood disaster relief payment (including 
loans and grants) for the same loss are considered a single payment. 
Clarifying Crawl Space Rating
Determining which rating table to use for a building constructed before the Flood 
Insurance Rate Map (FIRM) was published for the area in which the structure is located 
can become more complex if the building has a crawl space. As of October 1, 2006, Pre-
FIRM buildings with subgrade crawl spaces may now, for the first time, use optional 
Post-FIRM elevation rating, provided that the lowest floor is below the Base Flood 
Elevation. The building must be reported statistically as a "submit-for-rate" policy using 
Risk Rating Method 2. To process these risks, agents must follow the submit-for-rate 
procedures on pages RATE 23-24. This is the only Pre-FIRM construction that can be 
rated using the submit-for-rate procedure.
Cancellation Code 01
Clarification has been provided in the manuals October 1, 2006, changes for situations in 
which an insured wants to cancel his or her policy because the building has been 
foreclosed or because it has sustained flood damage equal to or greater than its 
replacement cost and is considered a total loss. In such cases, agents must use 
cancellation/nullification reason code "01" on the Cancellation/Nullification Request 
Form and submit this with proper documentation to the current NFIP insurer to process 
the cancellation of the flood insurance policy. 

CRS Changes
A number of new communities have joined the Community Rating System or have 
improved their class rating as of October 1, 2006. See "Increasing Policyholder 
Discounts" on page 14 for these changes and "First-Rate Community" on page 1 for a 
description of the first community to receive the CRS Class 1 rating. 
Start of Waiting Period
There is a standard 30-day waiting period for new applications and for endorsements to 
increase coverage. If the application or endorsement form and the premium payment are 
received at the NFIP within 10 days from the date of application or endorsement request, 
or if mailed by certified mail within 4 days from the date of application or endorsement 
request, then the waiting period will be calculated from the application or endorsement 
date. 
An October 1, 2006, clarification states that agents must count the application date (or the 
endorsement date) plus 9 days to determine if the application or endorsement and 
premium payment were received within 10 days. When these materials are sent by 
certified mail, agents count the application date (or endorsement date) plus 3 days to 
determine if the application or endorsement and premium payment were mailed within 4 
days.
Getting the Details
You will find all recent enhancements to the Flood Insurance Manual by accessing the 
manual online (www.fema.gov/business/nfip/
manual.shtm) or by ordering it from FEMAs Map Service Center (800-358-9616). 
Semiannual revisions are identified by a vertical bar in the page margin next to the text, 
table, or illustration that has been changed.

Revised Lender Guidelines Due in 2007
The Mandatory Purchase of Flood Insurance Guidelines booklet is the NFIPs primary 
guidance document for lenders and servicers when it comes to National Flood Insurance. 
Several changes have occurred since this publication was last revised in 1999. For some 
time, work has been under way to update and clarify information in this document. 
Although the revised Guidelines was scheduled for distribution by the end of 2006, in 
light of pending legislation affecting the NFIP, FEMA viewed it beneficial to delay 
publication until the U.S. Congress votes on the House and Senate Bill versions of the 
Flood Insurance Reform and Modernization Act of 2006. The anticipated release and 
distribution of the updated/revised version of the Mandatory Purchase of Flood Insurance 
Guidelines (FEMA 186) has been extended to mid-2007.
Lenders and servicers should continue to use the current booklet as a source of guidance 
regarding flood insurance purchase requirements. A final source of guidance can be 
obtained from the appropriate Federal regulatory entity or Government Sponsored 
Enterprise. 
When the revised booklet is published, it will be announced in the e-Watermark 
(watermark.nfipstat.com) and a notice will be posted on the FEMA website 
(www.fema.gov/
business/nfip). 
Tracking Severe Repetitive Losses
F EMA is committed to eliminating or reducing damage to properties that are caught in 
the flood-repair-flood-repair cycle. Through the Flood Insurance Reform Act (FIRA) of 
2004, Congress authorized a pilot program to mitigate the most severe of these repetitive 
loss properties. As of March 2006, approximately 8,300 properties insured by the NFIP 
had reported so many losses or costly claims that they were categorized as "severe 
repetitive loss properties" and were placed into the new pilot program to track their 
mitigation. Included were some properties whose policies were formerly assigned to the 
Repetitive Loss Target Group, which has been phased out (see below). Effective January 
1, 2007, all policy transactions for Severe Repetitive Loss properties must be processed 
by the NFIP Special Direct Facility (SDF).
The Severe Repetitive Loss Program now includes any NFIP-insured property that has 
met at least one of the following paid flood loss criteria since 1978, regardless of 
ownership:
 Four or more separate claim payments of more than $5,000 each (including building 
and/or contents payments); or
 Two or more separate claim payments (building payments only) where the total of the 
payments exceeds the current market value of the structure.
In either case, two of the claims payments must have occurred within 10 years of each 
other. Multiple losses at the same location within 10 days of each other are counted as 
one loss and the payment amounts are added together.
The strategy for reducing the number of Severe Repetitive Loss properties is twofold. 
First, the NFIP has centralized in the SDF the processing of all flood insurance policies of 
these properties to obtain additional underwriting information, verify loss information, 
and collect information about their flood risk. Second, FEMA is implementing a new 
mitigation grant program authorized by FIRA 2004 to mitigate these properties. 
WYO companies and the NFIP Servicing Agent are notified 150 days prior to expiration 
of NFIP policies being moved to this group that renew on or after January 1, 2007. 
Ninety days before the expiration of the policy term, the WYO company notifies the 
policyholder, mortgagee, and agent of record about the movement of this property into 
the Severe Repetitive Loss group. Policyholders should continue to contact their agent 
directly for any service needs on the policy because he or she will remain the agent of 
record throughout the time that the property is in this group. 
Policies with effective dates on or after October 1, 2006, that are currently written 
through the SDF as part of the Repetitive Loss Target Group program, but do not match 
the loss characteristics of the new Severe Repetitive Loss group, are being identified by 
the NFIP Bureau and SDF. The SDF will notify the policyholder, mortgagee, and agent at 
least 90 days prior to the renewal date that their flood insurance may now be issued 
through a participating WYO company or the NFIP Servicing Agent.
The new mitigation grant program authorized by FIRA 2004 may provide Federal grant 
funds to pay for up to 75 percent (up to 90 percent if certain state mitigation floodplain 
requirements are met) of the cost of eligible mitigation activities, such as elevating the 
policyholders building. Mitigated properties may qualify for reduced flood insurance 
rates. Additional information about FEMAs  Hazard Mitigation Assistance programs is 
available online at www.fema.gov/pdf/rebuild/
comparison_chart_for_mitigation_
grant_programs_june_2006.pdf and from local floodplain managers and state hazard 
mitigation officials.

Increasing Policyholder Discounts 
Residents of more than a dozen NFIP communities are now receiving premium discounts 
of 5 percent or greater, because their community joined the Community Rating System 
(CRS) last year. In addition, on October 1, 2006, more than 30 communities already 
receiving CRS discounts were able to increase them by 5 to 20 percent. One CRS 
communityRoseville, Californiais now earning its residents the largest discount 
offered by the CRS: a 45-percent reduction on the annual premium paid for flood 
insurance coverage (see "First-Rate Community" on page 1 for a description of 
Rosevilles achievement). 
Reducing premiums is a compelling strategy for boosting flood insurance sales. And, 
saving property and lives can be an effective way to convince taxpayers to fund 
mitigation projects. The CRS is a successful FEMA program designed to meet these three 
goals: (1) reduce flood losses; (2) facilitate accurate insurance rating; and (3) promote the 
awareness of flood insurance.
A Class System
More than 15 years ago, the CRS was created as a mitigation incentive program based on 
a partnership of local, State, and Federal agencies and insurance industry experts to 
provide flood insurance premium reductions in recognition of proactive community 
floodplain management efforts that exceed NFIP minimum standards.
Modeled after the insurance industrys Community Fire Rating System, the CRS provides 
discounts in 5-
percent increments for each of 10 rating classes. A community accrues points to improve 
its CRS class rating and receive increasingly higher discounts. Points are awarded for 
engaging in any of 18 creditable activities, organized under four categories: 
	Public Information
	Mapping and Regulation
	Flood Damage Reduction
	Flood Preparedness.
Sometimes, it is merely a matter of documenting creditable activities that are already 
under way for a community to earn CRS credit. The number of points awarded for each 
activity is dependent on how well the community meets the goals of the CRS.
Most communities enter the CRS as a Class 9 (earning a 5-percent premium discount) or 
a Class 8 (earning a 10-percent discount). However, the following communities were 
already engaging in so many mitigation activities that, when they joined the CRS in 
October 2006, they entered at class levels that earned their residents discounts of 15 to 20 
percent. 
Once a community joins the CRS, it can continue to improve its class rating by engaging 
in mitigation and outreach activities that earn it even more points. As of October 1, 28 
communities improved their class by one step. Two communitiesWaveland, 
Mississippi, and Skagit County, Washingtonmoved to Class 5, making their residents 
eligible for a 25-percent discount on their flood insurance premiums.
Some communities engaged in so many creditable activities since their last rating, that 
they improved more than one class. The  communities listed at the top of the next page 
improved two CRS classes.
The community of Roseville, California, is especially notable. During this last rating 
cycle, Roseville jumped over three classesmoving from a Class 5 community with a 
25-percent premium discountto become the first Class 1 community, earning a 45-
percent premium discount for NFIP policyholders in the floodplain. 
1,049 Strong, and Growing!
The CRS was implemented in 1990 with 300 communities. By October 1, 2006, the 
number of CRS communities had grown to 1,049, representing more than 3 million NFIP 
policyholders. Although CRS communities represent less than 6 percent of the 20,236 
NFIP communities in the United States and its territories, they contain 67 percent of all 
NFIP policies in force. The accompanying bar chart shows the distribution of CRS 
communities in each class. Most are Class 9 and Class 8 communities. It takes only 500 
points to improve class ratings. Sometimes this can be accomplished with just one or two 
mitigation initiatives such as providing drainage system maintenance (maximum 330 
points), installing a flood warning system (maximum 225 points), keeping Elevation 
Certificates on file (maximum 162 points), or engaging in community outreach 
(maximum 315 points). Or, a community can accumulate enough points to lower 
insurance premiums dramatically by engaging in major activities such as acquisition and 
relocation of floodprone property (maximum 3,200 points) or instituting high regulatory 
standards for the floodplain (maximum 2,720 points). 
The CRS strategy is twofold: to recognize floodplain management and insurance 
activities that meaningfully distinguish one class of community from another, and to act 
as a catalyst to encourage communities to initiate new prevention activities.
Since 1990, 50 percent of all CRS communities have improved their CRS classifications 
by undertaking more creditable activities.
For more information about how to join the CRS or how to improve the class rating and 
premium discount of a community that is already participating in the CRS, contact the 
Insurance Services Office by email (nfipcrs@iso.com) or telephone (317-848-2898).

A Model For Retention
What happens to insurance retention when local flood maps are rezoned and thousands of 
NFIP policyholders are removed from the Special Flood Hazard Area (SFHA)? Many 
policyholders who are rezoned out of the floodplain might use this as an opportunity to 
drop their coverage at renewal. However, a collaborative education and marketing effort 
by local insurance agents and public officials can turn a rezoning scenario into a recipe 
for policy retention and growth.
Here is how one community did it. 
You Mean I Dont Have to Buy Flood Insurance?
More than 2 years ago, Watermark ran an article about the efforts undertaken by 
Northern Californias Sacramento Area Flood Control Agency (SAFCA) and FEMA 
Region IX to educate consumers about keeping NFIP insurance in place when flood maps 
were revised in their community (see "Map Prep" on page 12 of the 2004, Number 1 
Watermark located at www.fema.gov/pdf/nfip/
wm2004_1.pdf). As a result of levee improvements and resulting changes in Flood 
Insurance Rate Maps (FIRMs), more than 45,000 NFIP policyholders were removed from 
the floodplain in the Sacramento area in January 2004. 
Many property owners who were removed from the SFHA that January may have been 
tempted not to renew their flood insurance policies. However, months prior to remapping, 
SAFCAs outreach program cautioned policyholders that no zone is risk free and 
reminded them about NFIP coverage options for those whose property is located in 
lower-risk zonesin particular, the economical Preferred Risk Policy (PRP). 
Proactive Outreach
When communities found that FIRM changes also added a substantial number of 
properties to the SFHA, the SAFCA plan provided local officials with an orderly 
framework for ensuring timely property owner compliance with the mandatory purchase 
requirements set forth in the Flood Disaster Protection Act of 1973 and the National 
Flood Insurance Reform Act of 1994.
SAFCAs outreach strategy consisted of four phases, each involving a different group of 
stakeholders: community leaders, insurance agents, WYO companies, lenders, and 
property owners. When the first phaseproject developmentwas completed, the 
SAFCA program began working with local elected officials to build momentum for 
outreach. Next, SAFCA enlisted the support of, and trained, insurersthe agents and 
companies who are on the frontline of major flood insurance changes. Finally, the 
program directed outreach to property ownersthose people who will feel the monetary 
impact of the inception or end of the flood insurance mandatory purchase requirements. 
This final phase of SAFCAs outreach strategy included direct mailings to property 
owners in the affected areas, coordinating and implementing Town Hall meetings, 
developing a commercial property component, and conducting a media campaign. 
An Unprecedented Response
Prior to remapping, property owners in Sacramentos American River and South 
Sacramento Streams Assessment Districts spent more than $30 million each year on flood 
insurance and purchased roughly 25 percent of Californias NFIP policies. 
Although SAFCA estimated that the outreach campaign would result in at least a 15-
percent rate of flood insurance policy retention, in fact, the percentage of NFIP policies 
retained was much higher. By March 30, 2006, 74 percent of the 45,000 policyholders 
removed from the federal requirement to purchase flood insurance coverage for buildings 
in the SFHA that have loans from federally regulated lenders, maintained their flood 
insurance protection. Of this group, 43 percent opted to purchase PRPs. 
"This choice to purchase Preferred Risk Policies represents a savings of nearly $3 million 
in premium annually for Sacramento area NFIP policyholders," says George Deukmejian, 
a SAFCA consultant. "I think that people who arent required to buy flood insurance are 
more likely to stay in the NFIP if they can pay less for insurance by purchasing a PRP."
SAFCA estimated the total cost of the campaign was approximately $215,000, with 
SAFCA paying 25 percent ($54,000) of the projects costs, and FEMA providing the 
remaining 75 percent ($161,000). 
Adapting this Model to Your Community
Outreach programs like the one implemented in Sacramento provide valuable public 
education about flood hazards while enabling FEMA and WYO companies to meet 
ambitious policy growth goals. 
Although SAFCAs plan was a comprehensive one, it can be scaled down to meet the 
needs of smaller communities. WYO companies and their agents can get a jump on 
marketing PRPs in communities that are being remapped by knowing what changes in the 
FIRMs may affect their policyholders. For more information about the SAFCA/FEMA 
outreach program, contact the FEMA Region IX Mitigation Division at 510-627-7100.
  
Improving the Appeals Process
The NFIP claims appeals process is being strengthened, and Program policyholders are 
now receiving new documents that will explain these improvements.
Traditionally, FEMA used an informal process for handling appeals regarding decisions 
made about NFIP coverage or claims. However, Section 205 of the Flood Insurance 
Reform Act of 2004 required FEMA to establish a formal process for policyholders who 
are dissatisfied with a decision to deny a claim. The appeals process is an option for a 
policyholders right to file a lawsuit in federal district court for the disallowed portion of 
the claim, or to invoke the appraisal provision of the Standard Flood Insurance Policy 
(SFIP)a procedure to resolve disputes about the actual value of covered losses. 
The new appeals rule provides a process that enables policyholders to formally appeal the 
decisions of any insurance agent or adjuster, insurance company, FEMA employee, or 
contractor with respect to their SFIP claims, proofs of loss, and loss estimates. The rules 
effective date is November 13, 2006.  
A policyholder can initiate this formal appeals process after his or her insurance company 
issues its final determination in the form of a written denialin whole or in partof the 
claim. The appeal must be filed within 60 days of receiving the insurance companys 
final claim determination. FEMA will acknowledge receipt of an appeal in writing and 
advise the policyholder if additional information is required for full consideration of the 
appeal. Next, FEMA will review documentation submitted by the policyholder, and 
conduct any additional investigation needed. Finally, the policyholder and his or her 
insurance company will be advised of FEMAs decision regarding the appeal.
The formal appeals process outlined in this rule does not abolish or replace the right to 
file a lawsuit against the insurance company, nor does it expand or change the 1-year 
statute of limitation to file suit against the insurer for the disallowed portion of the 
insureds claim. To avoid potentially conflicting results as well as duplication of effort, a 
policyholder who files suit against an insurance company based on the denial of a claim 
or who has been subject to appraisal, is prohibited from filing an appeal under this 
process.

Supporting Local Loss Reduction Planning
Analyzing flood risk and developing long-range strategies for floodplain management are 
essential for ensuring that new development does not exacerbate local flood risks or 
create downstream flood hazards. Last year, the Community Rating System (CRS) 
revised several of its planning requirements and added a new element to its floodplain 
management planning category to provide additional credit toward improving the 
communitys class rating and increasing associated NFIP premium discounts. Tools are 
now available to help floodplain managers track flood hazards and guide regional growth 
in a way that does not adversely impact their community or downstream residents and 
businesses. 
CRS Activity 510: Floodplain Management Planning
Minor adjustments were made in the requirements in this category to match the credit 
criteria with planning requirements under the Disaster Mitigation Act of 2000. Now, a 
multi-hazard mitigation plan approved by a FEMA Regional Office will receive credit 
under this activity.
In addition, a new CRS elementarea analysisprovides credit for communities that 
provide an intensive review of the problems and flood protection alternatives in repetitive 
loss areas. Points for this element can be received in addition to or instead of the credit 
for a full floodplain management or hazard mitigation plan, which is required if a 
community has 10 or more repetitive loss properties.
New Tools
The 2006 CRS Coordinators Manual offers some new credits and sources of assistance 
for communities conducting an area analysis. One part of an analysis is to collect and 
record the data on flood and building conditions in the repetitive loss areas on new 
database software developed by FEMA.
National Flood Mitigation Data Collection Tool
This new FEMA software provides a step-by-step process to gather information about 
each building in the area to be analyzed. If the analysis concludes that site-specific 
approaches should be pursued, the data and the software can be helpful in determining 
which measures would be most appropriate. Use of the Data Collection Tool also 
facilitates updating FEMAs repetitive loss database. Data from the communitys work 
can be sent digitally to FEMA using the Tools formatting. Copies of the Tool are 
available at no cost by e-mailing NFIPCRS@iso.com or downloading from 
www.fema.gov/plan/prevent/
floodplain/Data_collection_tool.shtm (it is a very large file).
No Adverse Impact 
No Adverse Impact (NAI) is a concept developed and encouraged by the Association of 
State Floodplain Managers (ASFPM). NAI seeks to ensure that local flood problems are 
not increased by new development in the floodplain. For local governments, NAI 
floodplain management offers a framework to design programs and standards that meet 
their actual needs, not just the requirements of a federal or state agency.
The ASFPM has published a manual for understanding and implementing No Adverse 
Impact floodplain management. A Toolkit for Common Sense Floodplain Management 
offers 108 pages of step-by-step instructions, guidelines, and real-life examples of the 
NAI approach to floodplain management. It also has a crosswalk that relates tools in the 
toolkit to CRS credit. The toolkit can be downloaded from the ASFPM website 
(www.floods.org/NoAdverse
Impact/NAI_Toolkit_2003.pdf) at no cost. CRS communities can order a hard copy from 
NFIPCRS@iso.com.


Reducing Damage from Localized Flooding
FEMA Publication 511, Reducing Damage from Localized Flooding, is intended to help 
local officials understand what they can do to reduce the damage, public and private 
costs, and disruption that result from shallow, localized flooding. This is flooding that all 
too often escapes the attention received by larger floods and often takes place in areas 
that are not clearly mapped or subject to floodplain development regulations. The 
handbook is especially helpful for communities wrestling with repetitive loss areas 
subject to localized flooding. It can be downloaded free from FEMAs website 
(www.fema.gov/hazards/floods/flood-damage-toc.shtm).
Need More Information?
Check out the details about all CRS activities at the CRS Resource Center 
(training.fema.gov/
EMIWeb/CRS/). Click on the "Resources" tab for links to the CRS Coordinators 
Manual, CRS forms and newsletters, and contact information for FEMA Regional 
Offices, CRS/ISO Specialists, and State NFIP Coordinators. 
Agent Training May Earn CRS Credit
Does the department of insurance in your State mandate flood insurance training for 
agents? If so, your community could be earning points that will reduce insurance 
premiums for local NFIP policyholders.
A number of State Departments of Insurance now mandate flood insurance training for 
property and casualty agents so that property owners will be given correct information
before a flood occurs, as well as afterabout purchasing financial protection against 
flood losses and filing claims if a loss occurs. Numerous states also offer continuing 
education (CE) credit to agents who attend flood insurance training or successfully 
complete an online course, and some states include questions about flood insurance in 
their agent licensing examinations.
The NFIPs Community Rating System (CRS) awards points to participating 
communities that engage in floodplain mitigation activities beyond the NFIPs baseline 
requirements. When a CRS community increases the number of points it earns by 
documenting enough creditable activities, residents receive a reduction in their annual 
NFIP premiums.
Sometimes, State legislators put into place disclosure, training, or additional floodplain 
management requirements that make communities within that state eligible to receive 
CRS points. Now, as more states are mandating flood insurance training for their agents, 
CRS communities within these states are able to apply for credit in the CRS "Higher 
Regulatory Standards" category of creditable activities, which recognizes the benefit 
received by the NFIP for a state-required measure that is implemented in both CRS and 
non-CRS communities in that state. 
Communities can earn up to 45 CRS points just by documenting that their state has 
mandated regulatory standards. If the state mandates that property insurance agents must 
attend at least 3 hours of flood insurance training per year as a condition of obtaining or 
maintaining their license, CRS communities within the state can earn as many as 20 
points. A community can receive 10 points for 2 hours of required training and 5 points 
for 1 hour of required training. 
For more information about how to apply for this credit, contact the CRS field 
representative for your region. Contact information is available in Appendix G of the 
CRS Coordinators Manual, available online under "Resources" at the CRS Resource 
Center (training.fema.gov/EMIWeb/
CRS/).
New Insurance Outreach Toolkit
Earning the support of area residents and business owners for changes to local Flood 
Insurance Rate Maps (FIRMs) and informing property owners about the new insurance 
choices that may result is an important part of every communitys adoption of new maps. 
In 2005, the NFIPs flood awareness and advertising campaign, FloodSmart, and 
Hillsborough County (a large, highly populated, urban county surrounding Tampa), 
Florida, partnered to develop a comprehensive suite of outreach materials to explain the 
re-mapping process and its flood insurance implications. The suite of outreach materials 
was created to help community officials inform real estate agents, lenders, surveyors, 
builders, insurance agents, community groups, members of the media, and the public 
about the upcoming map changes and their impact on flood insurance. These materials 
were deployed for use in conjunction with the release of Hillsborough Countys digital 
FIRMs, or DFIRMs (see "Hillsborough County Tests Map Mod Outreach" on page 17 of 
the 2006, Number 2, edition of Watermark, located online at www.fema.gov/pdf/nfip/
wm2006_2.pdf). 
FloodSmart has incorporated feedback from the use of these outreach materials in 
Hillsborough County and has now created template versions of each piece. The new 
templates form a comprehensive toolkit that communities across the country can use to 
communicate more effectively about map changes and changes in insurance 
requirements. 
The templates for each of the materials are all in Microsoft Word (except for a 
PowerPoint presentation) and allow easy substitution of information particular to the 
county/community using it. Included are PDF samples of each piece as it was used when 
the preliminary DFIRMs were introduced to Hillsborough County. Now available on 
FEMAs website (www.fema.gov/business/nfip/
hillsbo1.shtm), the toolkit is divided into sections to reflect the audiences for whom the 
various pieces are designed. 
It is expected that this toolkit will be a tremendous resource for communities going 
through map studies and working to educate and inform individuals in their area. For 
more up-to-date information about flood insurance, visit www.floodsmart.gov. Insurance 
agents have their own section of the FloodSmart website (www.agents.floodsmart.gov).

Frequently Used FEMA Mitigation Webpages
When FEMA.gov reorganized its website in April 2006, many mitigation pages were 
moved to new areas. Following are the new locations of some of the most frequently used 
mitigation webpages.

About FEMAs Mitigation Division	www.fema.gov/about/divisions/mitigation.shtm

Disaster Preparation	www.fema.gov/plan/index.shtm

FEMA Flood Recovery Maps for  
	www.fema.gov/hazard/flood/recoverydata/index.shtm
   Louisiana and Mississippi	

FEMAs Map Service Center	msc.fema.gov

Flood Hazard Mapping	www.fema.gov/plan/prevent/fhm

Flood Map Modernization	www.fema.gov/plan/prevent/fhm/mm_main.shtm

Floodplain Management	www.fema.gov/plan/prevent/floodplain/index.shtm

FloodSmart Website for Consumers	www.FloodSmart.gov

HAZUS MH (FEMAs Software Program for 	www.fema.gov/plan/prevent/hazus
	  Estimating Potential Losses from Disasters)
	
Mapping Information Platform (MIP) 	www.hazards.fema.gov

Mitigation Best Practices Portfolio	www.fema.gov/plan/prevent/bestpractices

Mitigation Planning	www.fema.gov/plan/mitplanning

National Flood Insurance Program (NFIP)	www.fema.gov/business/nfip/index.shtm

National Flood Mitigation Data Collection Tool
	www.fema.gov/plan/prevent/floodplain/Data_collection_tool.shtm

Pre-Disaster Mitigation (PDM) Grant Program
	www.fema.gov/government/grant/pdm

Recovering and Rebuilding After a Disaster	www.fema.gov/rebuild/index.shtm

Repetitive Flood Claims (RFC) 	www.fema.gov/government/grant/rfc/index.shtm
   	
We, Too, Are the NFIP: JWT
Jim Caponigro, JWT

The NFIP is a single organization with several components, all uniquely suited to carry 
out its numerous and diverse functions. Fewer than 175 Federal employees work in the 
Mitigation Division at FEMA. But more than twice that many specialists work for FEMA 
contractors to support the efforts of their Mitigation Division counterparts. This article is 
the second in a series about the companies that currently are contracted to assist the 
Mitigation Division in fulfilling its mission. We want you to know who these companies 
are and what they do so that the next time you interact with the NFIP, youll have a better 
idea of how the organization works.
In 2003, FEMAs Mitigation Division began searching for a marketing company to help 
convince the country to protect their homes and businesses with flood insurance. It took 
more than a year and a half to award a contract to the J. Walter Thompson (JWT) 
advertising company. 
JWT carries a rich tradition in managing some of Americas best known brands. Their 
clients include Ford Motor Company, the United States Marine Corps, Orkin Pest 
Control, Kraft Foods, and Nestle, just to name a few. JWT is not only known for being 
the first advertising agency in existence, but the agency also has an enormous 
geographical footprint, with offices in 150 cities located in 86 countries. Advertising Age 
ranked JWT as the Number 3 agency network, worldwide, in 2005, with revenues of $1.3 
billion.
The primary goal of JWTs NFIP marketing strategy is policy growth. NFIP policy 
growth means financial security and peace of mind to those affected by flood waters, as 
well as less reliance on the governments disaster assistance fund. FEMA has tasked JWT 
with developing a program to reach an annual 5-percent net policy growth. Led by the 
companys Atlanta office and including members from our parent company, WPP, and 
three WPP sister companies, the JWT marketing team delivers the optimal variety of 
experience to meet this aggressive 5-percent net policy growth goal and to provide 
seamless marketing support to the NFIP. 
JWT manages brand direction, strategic planning, creative development, administration, 
research, and financial services for the NFIPs marketing initiatives. RMG Connect 
(Minneapolis, Chicago, New York) provides direct mail efforts, online advertising, and 
website development for the programcreating Floodsmart.gov and 
Agents.floodsmart.gov. Ogilvy Public Relations (Washington, DC) organizes and drives 
NFIP consumer, influencer, and media outreach efforts. Mindshare Media (Atlanta, New 
York) handles all NFIP media planning and placement for broadcast and print media.
Together, these companies supported the Mitigation Division in creating the FloodSmart 
campaign. The campaign communicates "Everyone is at risk" messagingfeaturing a red 
warning labelto the public and to key stakeholders, including the agent community, 
insurance companies, state and local public officials, real estate professionals, and 
lenders. It is important for consumers to realize that homeowners insurance doesnt cover 
flooding and just as important for the agent community to become ambassadors of the 
program.
JWT developed means to bring new customers into the flood insurance program, retain 
existing policyholders, and reacquire lapsed customers. Consistency across all 
communications and brand elements helped build program recognition immediately, 
continues to grow brand awareness for the NFIP across the country, and contributes to 
policy growth by linking consumers to agents.
An integrated communications campaign was established to surround consumers and key 
stakeholders with the risk message and to motivate them to take action to protect 
themselves. Direct response television is just one of the ways the FloodSmart campaign 
reaches a broad audience. Other target programs include print advertising, public 
outreach, direct mail, online banners, key word search, and sales support materials that 
provide insurance agents around the country with tools to help explain to their customers 
and prospects the risks of floods as well as the importance and benefits of NFIP coverage.
By fall 2006, NFIP messages on direct response TV had been seen 800 million times by 
cable TV viewing Americans. And by the end of 2006, direct mail had been sent to more 
than 9 million homes. Online advertising was seen as many as 100 million times. The 
NFIP print ad "Coaster" has reached more than 20 million readers of Parade and USA 
Weekend magazines. In 2006, JWTs public outreach efforts generated more than 2,000 
stories in daily newspapers and television news outlets about the benefits of flood 
insurance. 
JWT is now in the third year of its 5-year contract. New to the program this year was 
production of a television public service announcement (PSA) designed to gain consumer 
attention about the 2006 hurricane season. JWT has considerable experience in producing 
PSAs. For example, the PSA program JWT created for the U.S. Marine Corps focuses on 
the dedication and hard work of the Marine Corps. This program regularly achieves more 
than $5 million a year in free media exposure. 

Putting together a PSA program for the NFIP took several months. At the end of May 
2006, JWT began looking for a director to bring to life the idea of a new NFIP PSA. They 
settled on James Gartner, who recently filmed the movie "Glory Road" in New Orleans. 
This city became the central setting for the new NFIP PSA, titled "Listen." The PSA was 
designed to generate awareness and inform communities about the risks of flooding from 
hurricanes. In the PSA, experts predict another active hurricane season. Important to the 
concept was the use of water imagery to communicate this message, as well as having the 
message delivered by a credible source. It was decided to tell the story through 
musicperformed by musicians of New Orleans. 
Casting directors were sent out to scout locations and interview musicians who would 
perform in the PSA. Of the 110 musicians who auditioned, seven were hired. 
Accompanying Mary Jo Vrem (the Mitigation Divisions contract project manager) on 
the production filming were the JWT people responsible for putting this entire process 
together, from coming up with the idea to presenting it to FEMA to completing the PSAs 
production:  the producer, account manager, writer, and art director. After two 12-hour 
days, the action was put down on film. Locations included areas in the French Quarter, 
the Ninth Ward, and Jackson Square.
Following the shoot, editing took place in New York City under JWTs guidance. This 
portion of production took 2 weeks and included editing, coloring the film, adding 
graphics and titles, recording the voice-over narration, and mixing the music.
Finally, "Listen" was sent to television stations in 18 states along the Gulf Coast and 
Atlantic seaboard. It was first aired in August 2006the culmination of a 3-month 
process! It is too early to determine how widely this PSA has been used; however, the 
overall impact of the FloodSmart campaign has been significant since it began. Since the 
inception of the FloodSmart campaign in 2004, the NFIPs policy base has shown 27 
consecutive months of growth (through August 2006). And FEMAs growth goal has 
been surpassed in many states.

Jim Caponigro is a Senior Partner, Management Director at J. Walter Thompson.  He is 
responsible for brand strategy and all integrated business activities for the FloodSmart 
marketing campaign.

Re:Sources
Watermark seeks to serve its readers with as wide a variety of resources as possible. We 
remain dedicated to disseminating information about flood insurance. As our readership 
expands to include more engineers, surveyors, and community planners, we hope to 
increase the available resources to ensure that all of our stakeholders can provide 
themselves, their clients, and their community members with the tools needed to better 
protect against flood losses.
We offer this information for reference but do not necessarily endorse any organization, 
product, or service. Unless otherwise noted, resources cited are free of charge. Website 
addresses may have changed since this edition of Watermark went to press.

Publications
Mitigation Success Stories in the United States, IV
A joint production of the Association of State Floodplain Managers (ASFPM) and the 
Federal Emergency Management Agency, this publication is the fourth in a series of 
Mitigation Success Stories. 
According to the ASFPM, Mitigation Success Stories, Edition IV showcases examples of 
natural hazard mitigation activities and publicizes the benefits of mitigation successes 
across the country. Examples come from 39 communities in 24 states. 
The 100-page document is accessible on the ASFPM website (www.floods.org).

Large Floods in the United States: Where They Happen and Why
Jim O'Connor and John Costa authored this 2003 report for the U.S. Geological Survey 
(USGS) to show that the locations of most of the largest floods are related to regional 
climatology, topography, and basin size. The report may be accessed online at the USGS 
website (http://pubs.usgs.gov/circ/2003/
circ1245/pdf/circ1245.pdf) or by calling the USGS Information Services at 888-ASK-
USGS (888-275-8747).

Availability and Affordability of Insurance Under Climate Change: A Growing 
Challenge for the U.S.
This white paper was published in 2005 by Ceres, a national coalition of investors, 
environmental groups, and other public interest organizations working with business and 
industry to address sustainability challenges such as climate change. 
According to the Ceres website, the report was prepared immediately prior to Hurricane 
Katrina by a three-person collaboration that included a scientist, an insurance actuary and 
former regulator, and an insurance veteran of 50 years. They explored the insurability of 
risks from extreme weather events and climate change, and ways in which insurance 
affordability and availability could be adversely impacted in the U.S. in the coming years. 
Included in the paper are examples where affordability and availability of insurance are 
already at risk from rising weather-related losses and how future financial exposure for 
insurers, governments, businesses, and consumers could worsen if current climate and 
business trends continue. 
The 50-page white paper can be accessed on the Ceres website (www.ceres.org/pub/docs/
Ceres_insure_climatechange_120105.pdf).
Websites
www.flash.org
The Federal Alliance for Safe Homes (FLASH) is a non-profit organization dedicated to 
promoting disaster safety and property loss mitigation. 
FLASH produces educational materials and programs for consumers and building 
professionals about the importance of strengthening homes and safeguarding families 
from disaster. These include "Animated Homeowner How-To's" (a series of animations 
that guide homeowners and builders through tested and approved mitigation techniques 
for the home), "Blueprint for Safety" (a training program for building professionals about 
the latest disaster-resistant techniques and products), "FLASH Cards" (cards that 
provide disaster safety information in 20 topic areas), and the "One-Stop Hazard 
Resource Guide" (a media and consumer reference guide that provides concise safety 
information). Free memberships to FLASH include issues of their Blueprint for Safety 
News newsletter, available in print and electronic editions. Visit the website for details. 
www.nfipservices.com
Since 1983, insurance companies have been allowed to deliver and service NFIP policies 
in their own names, through the Write Your Own (WYO) Program. Agents may obtain 
flood policy application forms from a WYO company or directly from the federal 
government through the NFIP Direct Servicing Agent. 

Visitors to the NFIP Services website will find pages that guide homeowners through all 
of the steps of obtaining a flood insurance policy or submitting a claim, provide insurance 
agents with information about enrolling with the NFIP Direct Servicing Agent to enable 
policy placement, and make claims forms available to insurance adjusters who are 
settling claims on policies placed through the NFIP Direct Servicing Agent. This website 
also includes more than 20 publications and forms used in servicing NFIP policies. 

Just Around the Bend
More workshops will have been scheduled since publication of this issue. For updated 
workshop information, visit the NFIP website 
(www.fema.gov/business/nfip/wshops.shtm). 
For information about NFIP events for agents, lenders, and other stakeholders, call the 
NFIP Bureau and Statistical Agent Regional Offices (listed on the next page).
STATE/EVENT	CITY	DATE
		
ARKANSAS		
Agent and Lender Workshop	Little Rock	March 20

CALIFORNIA		
Agent Workshop	Los Angeles	February 23
Agent Workshop	Sacramento	February 27
Agent Workshop	Sacramento	March 7
Agent Workshop	Sacramento	March 15
Agent Workshop	Merced	April 10
Agent Workshop	Salida	April 11
Agent Workshop	Stockton	April 25
Agent Workshop	Bakersfield	May 15
Agent Workshop	Visalia	May 16

COLORADO		
Agent and Lender Workshop	Lakewood	March 13
Agent and Lender Workshop	Lakewood	April 17
Agent and Lender Workshop	Lakewood	June 12
Agent and Lender Workshop	Lakewood	July 17
Agent and Lender Workshop	Lakewood	August 14
	
DELAWARE		
Agent Workshop	Wilmington	April 4
		
FLORIDA		 
Agent Workshop	Deerfield Beach	February 27 
Agent Workshop	Deerfield Beach	February 28 
Agent Workshop	Sarasota	March 27 
Lender Workshop	Sarasota	March 28 
		
INDIANA		
Agent Workshop	Lafayette	May 15 
Agent Workshop	Indianapolis	May 16 
Agent Workshop	South Bend	May 17 
		
KANSAS		
Agent Workshop	Hutchinson 	February 20
Agent Workshop	Hutchinson 	February 21
Agent Workshop	Great Bend 	February 27
Agent Workshop	Topeka 	February 27
Agent Workshop	Wichita 	February 28
Agent Workshop	Topeka 	February 28
Agent Workshop	Overland Park 	March 1
Agent Workshop	Wichita	March 6
Agent Workshop	Wichita	March 7
Agent Workshop	Wichita	March 8 
Agent Workshop	Garden City 	March 8 
Agent Workshop	Garden City	March 13
Agent Workshop	Hayes	March 14
Agent Workshop	Salina	March 15
Agent Workshop	Wichita	March 27
Agent Workshop	Wichita	March 28
		
LOUISIANA		
Agent and Lender Workshop	Metairie	April 12
		
MARYLAND		
Agent Workshop	Wye Mills	March 15
Agent Workshop	Glen Burnie	March 20
Agent Workshop	Glen Burnie	March 21
Agent Workshop	Glen Burnie	May 22
Agent Workshop	Glen Burnie	May 22
		


STATE/EVENT	CITY	DATE

MICHIGAN		
Agent Workshop	Livonia	April 24 
Agent Workshop	Lansing	April 25 
Agent Workshop	Grand Rapids	April 26 		

MINNESOTA		
Agent Workshop	St. Cloud	June 5 
Agent Workshop	Eden Prairie	June 6 
Agent Workshop	Rochester	June 7 

MISSOURI		 
Agent Workshop	St. Louis 	February 13
Agent Workshop	St. Louis 	February 14
Agent Workshop	St. Louis 	February 15
Agent Workshop	Independence	March 29
Agent Workshop	Springfield	April 10
Agent Workshop	Columbia	April 11
Agent Workshop	Cameron	April 12
Agent Workshop	OFallon	May 1
Agent Workshop	Springfield	May 2
Agent Workshop	Kansas City 	May 3
Agent Workshop	Springfield	May 15
Agent Workshop	Springfield	May 16

NEW MEXICO		
Agent and Lender Workshop	Farmington	March 1

OHIO		
Agent Workshop	Mentor	March 14 
Agent Workshop	Richfield	March 15 
Agent Workshop	Perrysburg	April 10 
Agent Workshop	Columbus	April 11
Agent Workshop	Miamisburg	April 12
Agent Workshop	Cincinnati	May 23
Agent Workshop	Chillicothe	July 17
Agent Workshop	Bellville	July 18
Agent Workshop	Findlay	July 19
		
OREGON		
Agent and Lender Workshop	Eugene	March 15 
		
PENNSYLVANIA		
Agent Workshop	Philadelphia	May 17
		
TEXAS		
Agent and Lender Workshop	Garland	March 8
		
UTAH		
Agent Workshop	Provo	March 20
Agent Workshop	Salt Lake City 	March 21
Agent Workshop	Ogden	March 22

VIRGINIA		
Agent Workshop	Richmond	March 14
Agent Workshop	Norfolk	June 6
Agent Workshop	Norfolk	June 8

WASHINGTON
Agent and Lender Workshop	Seattle	March 9 
		
WISCONSIN		
Agent Workshop	Wausau	March 27
Agent Workshop	Madison	March 28 
Agent Workshop	Oak Creek	March 29


National Flood Insurance Program
www.fema.gov/business/nfip
NFIP
 Telephone Numbers


Number	  Service

800-638-6620	Direct Business

800-720-1093	Agent Information 

800-427-4661	General Information

800-611-6125	Lender Information

800-427-5593	TDD

877-336-2627	FEMA Map Assistance Center
	(Information about flood hazard maps and map changes) 

800-358-9616	FEMA Map Service Center 
	(Order flood maps and FIS studies,
Flood Insurance Manual, and
	Community Status Book)

800-480-2520	FEMA Distribution Center 
301-497-6378 FAX	(Order free NFIP forms and 
	public awareness materials)

Regional Office 
Telephone Numbers

		NFIP Bureau & 
Region	FEMA	Statistical Agent

Region I	617-956-7501	781-848-1908
CT, MA, ME, NH, RI, VT	

Region II	212-680-3600	856-489-40032
NJ, NY
Caribbean Office-PR,VI	787-729-76241	281-829-68803	
    

Region III	215-931-5608	856-489-4003
DC, DE, MD, PA, VA, WV

Region IV	770-220-5200	770-887-6865
AL, GA, KY, MS, NC, SC, TN
FL  	770-220-54004	813-779-96425
	
Region V	312-408-5500	708-326-3072
IL, IN, MI, MN, OH, WI

Region VI	940-898-5399	281-829-6880
AR, LA, NM, OK, TX

Region VII	816-283-7061	785-242-1097
IA, KS, MO, NE

Region VIII	303-235-4800	303-275-3475
CO, MT, ND, SD, UT, WY

Region IX	510-627-7100	916-780-7889
AZ, CA, GU, HI, NV

Region X	425-487-4600	425-482-0316
AK, ID, OR, WA

1 FEMA contact number for Puerto Rico and Virgin Islands
2 B&SA contact number for Regions II and III
3  B&SA contact number for Puerto Rico and Virgin Islands
4 FEMA contact number for Florida
5 B&SA contact number for Florida