WATERMARK 2005, Number 1
National Flood Insurance Program

Message from the Acting Administrator

Dear Watermark Reader,
It's rare that I get the chance to address such a large group of people at once, so I want to 
take this opportunity to say thank you for some great work done after the hurricanes and 
storms that battered Florida, the Gulf states, and the entire South and Central East Coast 
last year. This was work that saved lives, gave people comfort, and made communities 
safer for the future.

Thank you, to all the disaster response people from local and State offices, FEMA 
regions, and FEMA headquarters. 
Thank you, to the building contractors, engineers, and just plain folks who came from 
across the country to help the storm victims pick up the pieces and start over. They 
included sewer workers and electricity linemen from Arkansas, Virginia, Iowa, and other 
states.

Thank you, to State floodplain coordinators, insurance commissioners and their staff, 
insurance companies, agents, and adjusters who labored for days, weeks, and longer, to 
make things as right as they could.
To the medical teams from Missouri, Texas, Oklahoma, Oregon, California, Georgia, and 
throughout the country who rose to this occasion, thank you.
None of this was easy work. Some folks were out in the tropical weather for many weeks 
at a time. Some workers were injured helping people get to their homes or getting 
electricity flowing. 
These disasters could have been a lot worse. But they weren't because of the years of 
persistent efforts by FEMA's regional and headquarters staff to make sure people are 
insured against loss and to mitigate potential flood risks. Thank you to all of these people 
for their work at FEMA and also for going to the places they were needed, to knock on 
doors, hand out drinking water, and simply hear people talk. 
There have been so many who responded to these recent disasters and who helped move 
millions of people from response to recovery. I'd like to thank each of you who helped. If 
you are out there, thank you.

Sincerely,

David I. Maurstad
Acting Director
Mitigation Division
Emergency Preparedness and Response Directorate


V-Zone Premium Reductions and More

Recent program changes mean good news for owners of some insured elevated buildings 
in V Zones. Following are highlights of this and other NFIP program changes that 
became effective on October 1, 2004.
Enclosures in V Zones
NFIP procedures for determining rates in V Zones have long provided that a Post-FIRM 
elevated building that has the area below its lowest elevated floor enclosed with insect 
screening or lightweight lattice may qualify for Free-of-Obstruction Rates, if the 
screening or lattice meets NFIP specifications.
A similar provision has been made for another type of enclosure system. For rating 
purposes, certain kinds of privacy "slats" or "shutters" now may be treated as functionally 
equivalent to insect screening or lattice. To qualify for Free-of-Obstruction Rates, the 
buildings slats or shutters must be made of wood or plastic no thicker than   1 inch. In 
addition, at least 40 percent of the area of the slats or shutters must be open.
Although this change became effective October 1, it is retroactive to April 30 of last year. 
If you write flood in V Zones, please review your book of business for Post-FIRM 
elevated buildings with enclosures. Property owners whose policies were written or 
renewed on or after April 30, 2004using With-Obstruction Rates for slatted or 
shuttered enclosures that meet NFIP specificationsare now eligible to use Free-of-
Obstruc-tion Rates and receive a premium refund for the current policy term.
NFIP specifications for lattice remain unchanged. Lattice must be made of wood or 
plastic no thicker than 1/2 inch, and 40 percent of the area of the lattice must be open. 
Whatever enclosure system is usedscreening, lattice, slats, or shuttersit must be 
designed and installed to collapse under the stress of high tides or wind-driven water 
without jeopardizing the structural support of the building. Any machinery or equipment 
below the lowest elevated floor must be at or above the Base Flood Elevation to qualify 
the building for Free-of-Obstruction Rates.
The new provision for slats and shutters is documented on pages RATE 7 and 20, 
CONDO 19, and LFG 7, 44, and 52 of the October revisions supplement.
General Rules Section
Clarification about what documents constitute evidence of insurancenamely, a copy of 
the Flood Insurance Application and premium payment, or a copy of the policy 
declarations pagehas been added to page GR 7.
On page GR 8, a change has been made in the guidance about policy effective dates and 
waiting periods. Item VIII.C.5., "New Policy (in connection with a condominium 
associations purchase of an RCBAP)," was reworded to make it clearer that "the 30-day 
waiting period does not apply if the condominium association is required to obtain flood 
insurance as part of the security for a loan under the name of the condominium 
association." Otherwise, the 30-day waiting period will be enforced.
Application, Rating, and Condominiums Sections
Language has been added in the Application section to assist agents with substantial 
improvement and substantial damage determinations and with handling of premium 
underpayments.
On page APP 5, a new paragraph explains how to enter the construction date for a 
substantially damaged building on the Flood Insurance Application. The paragraph also 
explains that "substantial improvement" includes "substantial damage" whether or not 
repairs actually have been made. Finally, the paragraph notes that, for a building to be 
considered substantially damaged, the agent must submit a determination statement from 
a community official to the NFIP along with the application and premium payment.
On pages APP 6-8, information about payment, mailing, and handling of NFIP Direct 
Program applications has been updated. The section concludes with clarification of how 
to prorate building and contents coverage when a client submits less than the full 
premium that was due.
Pages RATE 7 and 20 now provide specifications for slats and shutters that have been 
installed below the lowest elevated floor of an elevated building.
At the bottom of page RATE 12, a newly added table presents the textual information 
about the NFIPs $500 and $1,000 standard deductibles in facts-at-a-glance format.
The Condominiums Section also has been adapted to include specifications for slats and 
shutters below the lowest elevated floor of an elevated building. These are now part of 
footnote 2, "Free of Obstructions," on page CONDO 19.
Lowest Floor Guide Section
Pages LFG 3-7 have a new look, thanks to the redesign of the document from which 
these pages are reproducedthe NFIP leaflet "Insurance Agents Lowest Floor Guide."
Other than appearance, the only change on LFG 3-7 involves the "Distinguishing 
Feature" paragraph for V Zone Building Diagram #5 at the top of page LFG 7. That 
paragraph now includes specifications for lattice, slats, and shutters below the lowest 
elevated floor of an elevated building. Specifications for slats and shutters also have been 
added to pages LFG 44 and 52.
 Below the non-elevated building drawing on page LFG 21, the "Machinery or 
Equipment" and "Lowest Floor" specifications have been revised.
Preferred Risk Policy Section
On pages PRP 1-2, language has been added to emphasize several key points about the 
expanded Preferred Risk Policy eligibility criteria and coverage options that became 
effective on May 1, 2004:
	The requirement that the building must be in a B, C, or X Zone on the effective 
date of the policy applies both to building/contents coverage and to contents-only 
coverage.
 Although contents located entirely in a basement are not eligible for contents-only 
coverage, contents located entirely in an enclosure are eligible.
	When a PRP is endorsed midterm to increase coverage, the amount of increase is 
subject to the coverage limits in effect when the policy was written or renewed. When a 
PRP written or renewed before May 1, 2004, is endorsed midterm to increase coverage, 
the higher limits that became effective on May 1 do not apply.
Renewal Section
The Renewal Invoice used in NFIP Direct business has been redesigned and renamed the 
Renewal Notice. The Expiration Invoice also has been redesigned and renamed the Final 
Notice. The new forms are reproduced on pages REN 4-7.
The Renewal Letter formerly on page REN 5 has been deleted.
The Credit Card Payment Form, now on page REN 8, has been revised to allow credit 
card payment of premium by American Express and Diners Club in addition to VISA and 
MasterCard.
Cancellation/Nullification Section
In subsection "B. Reason Codes for Cancellation/Nullification of NFIP Policies," 
descriptions of when and how various cancellation/nullification reason codes are used 
have been expanded for the following:
Reason 1 - Building Sold or Removed
Reason 4 - Duplicate NFIP Policies
Reason 8 - Policy Not Required by Mortgagee
Reason 19 - Insurance No Longer Required by the Mortgagee Because the Structure Has 
Been Removed from the SFHA by Means of LOMA or LOMR.

What Else Is New?
A number of other changes and enhancements were introduced in the October revisions 
supplement to the Flood Insurance Manual.
	Most of the mailing addresses and some of the other contact information for the 
NFIP Servicing Agent have changed. Complete, up-to-date contact information is 
provided on page REF 3.
	The Servicing Agent contact information is intended only for agents who write 
with the NFIP Direct Program. Agents who write with the NFIP WYO Program should 
submit their materials and questions to their respective WYO companies.
	A new mailing address for the NFIP Region VIII Office is noted on page REF 6. 
The office provides training and other services for NFIP stakeholders in Colorado, 
Montana, North Dakota, South Dakota, Utah, and Wyoming. The offices telephone and 
fax numbers remain unchanged.
	On page CERT 5, the reauthorized Residential Basement Floodproofing 
Certificateusable through April 30, 2007has replaced the old certificate, which had 
expired.
	In the Flood Maps section, the web site address of the FEMA Map Service Center 
on pages MAP 1, 4, and 5 has been updated.
	The Community Rating System (CRS) section has been revised to reflect 38 
changes in the CRS Eligible Communities list since May 1, 2004. For information about 
the October changes and the benefits of the CRS for communities and policyholders, see 
"CRS: Movin On Up" on page 26.
	The Index has been expanded so that agents and other users of the manual can 
locate topics of concern more easily.

WYO Agents: Heads Up, Please!
Its great to be popular, but the NFIP Servicing Agent has become a bit too popular with 
Write Your Own (WYO) agents. The Servicing Agent reports that it receives large 
volumes of misdirected mail and telephone calls from WYO agents.
Only agents who write with the NFIP Direct Program should submit mail and calls to the 
NFIP Servicing Agent. If you write with the NFIP WYO Program, please submit your 
mail and telephone calls to your WYO company. By doing so, you wont just help the 
NFIP control its costs, youll also avoid delays in processing for your flood insurance 
clients.


Flood Reform Puts Agents Front and Center
M. Rita Hollada, CPCU, CIC, CPIA

Passage of the Flood Insurance Reform Act of 2004 has landed agents on center stage. 
While the recent legislation resulted in the reauthorization of the National Flood 
Insurance Program through September 30, 2008, it also contains mandates that increase 
the responsibility of agents toward their insureds. Although the final regulations have not 
been determined, what is certain is that agents will be required to have more knowledge 
about the uniqueness of the flood insurance policy, its provisions, and its limitations
and will be responsible for conveying that knowledge to their customers at the point of 
sale. 
The reason that much of this language has come about is the perception among legislators 
that agents do not know that flood is excluded from property policies, do not know that 
there is a specialty program for flood, do not advise their clients of the flood risk and 
availability of flood insurance, and do not appreciate the limited nature of the flood 
insurance policy. That being said, the legislators would like to fix all of these ills with 
one quick stroke of the pen.
The legislation calls for the establishment of minimum training and education 
requirements for flood insurance agents. The NFIP will work with state insurance 
departments to establish requirements appropriate to the individual state circumstances, 
but at a minimum, states will be encouraged to include flood insurance material in pre-
licensing education and examinations, and to award CE credit for flood courses. Many 
states will go further and establish required continuing education in flood insurance as 
North Carolina and Maryland have done. For agents, the time to get this education is 
sooner rather than later. In the future, the agent will be responsible for informing 
prospective policyholders about the scope of coverage as well as limitations and 
exclusions.
The legislation also calls for the establishment of a number of point-of-sale documents. 
These include supplemental forms outlining in simplified format the coverage being 
purchased as well as an explanation of how property will be valued at the time of loss. 
These forms are still under development by the NFIP, but an agent would be wise to 
review the flood policy language with a client and point out the section that lists 
"property not covered." Additionally, an agent should explain that most flood coverage is 
paid on an actual cash value basis. 
An "acknowledgement form" is under development that will include a statement that the 
purchaser of property insurance has been advised that contents are not covered unless this 
coverage has been purchased as a separate line of coverage. This form will also 
acknowledge that the purchaser has received a copy of the Standard Flood Insurance 
Policy. While the logistics of these requirements are being determined. An agent can 
begin to secure some agency documentation by the use of an ACORD 60. This is the 
"Flood Insurance Notice/Rejection" optional form that includes advisory text as provided 
by FEMA. 
A final requirement of the legislation is the production of a Flood Insurance Claims 
Handbook. Again, this handbook is in the formative stages, but when completed it will be 
required to be provided to each policyholder at the time of purchase and at the time of a 
claim. It is advisable for agents to review claims procedures as outlined on the last page 
of the Standard Flood Insurance Policy. 
There is an abundance of additional language in the Flood Insurance Reform Act of 2004, 
much of which affects the administration of the National Flood Insurance Program. 
However, the intent seems clear. Agents will be expected to take a much more active role 
in understanding the flood insurance product and in conveying information about it to 
their prospects and clients.
 
M. Rita Hollada is vice president of The Insurance Professionals Inc., a consulting and 
professional education group. She currently serves as the Chairman of the Flood 
Insurance Producers National Committee. Hollada also teaches professional development 
courses for Insurance Agents & Brokers, an association serving more than 1,600 
members in Pennsylvania, Maryland, and Delaware. 
This article is adapted from one that originally appeared in the October 2004 issue of 
IA&B's Primary Agent magazine. See more details about the Flood Insurance Reform 
Act of 2004 in our next edition of Watermark.


Recognizing Agency Excellence
The NFIP relies on the hard work and creativity of thousands of agents to sell the 
insurance that helps flood victims begin the process of recovery. Those insurance agents 
who take the greatest initiative in educating their customers about flood risk and 
protection set an example of how to make the NFIP public-private partnership work to 
benefit communities throughout the United States and its territories.
At the National Flood Conference each year, FEMA honors three insurance agencies for 
the work they've undertaken on behalf of the NFIP. Agencies are nominated for this 
honor on the basis of their flood portfolio growth during the previous year, the marketing 
strategies they've used to increase flood insurance policy sales, their activities to promote 
flood awareness, and their adherence to NFIP underwriting guidelines. Every Agency of 
the Year Award winner has shown innovation and dedication in achieving the NFIP's 
goals of protection from flood losses. The 2004 winners are no exception.
Cape Fear Insurance Associates, Inc.
When Cape Fear Insurance Associates, Inc., opened in Southport, North Carolina, in 
1999, it had no flood insurance policies on the books. But by the end of 2003, the agency 
had 375 flood insurance policies in force, nearly a 34 percent increase just from the 
previous year. 
Walter Hester, the owner of Cape Fear Insurance Associates, Inc., has established a 
reputation for being the insurance agency that is the most knowledgeable about flood 
insurance in the Brunswick County area. All three of the agency's insurance agents are 
trained to quote and sell flood insurance. Customer referrals are frequent, and all clients 
are quoted rates for flood insurance coverage regardless of the flood zone in which their 
property is located. In fact, Cape Fear Insurance Associates, Inc., has a 90 percent 
success rate in marketing and writing NFIP policies in B, C, and X Zones. To reach 
property owners in these moderate flood risk areas, Hester uses direct mail marketing that 
includes a brochure with sample pricing.
One of the agency's most successful marketing strategies has been to offer free flood 
zone determinations to builders, real estate agents, and potential buyers. As a member of 
the North Carolina Home Builders Association, Hester has offered training to area 
builders about construction techniques that minimize flood insurance premiums in the 
floodplain. Hester also holds monthly meetings with area real estate firms and quarterly 
meetings with the Brunswick County Board of Realtors to ensure that real estate agents in 
his community understand flood insurance issues that will impact their clients. As a result 
of these meetings, since April 2003, flood zone determinations and Elevation Certificates 
must accompany all multiple listings in Brunswick County. Non-compliant submissions 
are returned without being listed. 
New homebuyers are encouraged to carry flood insurance for at least 1 year to provide 
coverage while they orient themselves to coastal weather and flooding conditions. The 
follow-up program Hester has developed for renewing these policies as they near 
expiration has resulted in a 95 percent retention rate.
Cape Fear Insurance Associates, Inc., has held forums in gated communities and 
subdivisions located in unnumbered A Zones to educate developers and homeowners 
about reducing flood insurance premiums by adjusting construction plans to decrease 
flood risks. Many homes constructed along Brunswick County's coastline are valued 
higher than the NFIPs $250,000 residential building coverage limit. The agency has 
increased its Excess Flood sales by implementing a mailing and telephone follow-up 
program for all homes valued at greater than $250,000.
The Dunagan Allstate Insurance Agency
Located in Brunswick, Georgia, the Dunagan Allstate Insurance Agency is a full service 
property and casualty agency that has been in business for more than 30 years. The 
agency employs eight full-time staff who market flood insurance to all of the agency's 
home and automobile insurance customers by advising them about the flood insurance 
needs and requirements for their area. Customers located in moderate-risk flood zones are 
given as much information as those in Special Flood Hazard Areas. Whenever eligible, 
customers are advised to take advantage of the NFIP's Preferred Risk Policy. By the end 
of 2003, the agency had 1,034 flood insurance policies in force. 
All of the agency employees are required to complete annual flood insurance training 
offered through their Write Your Own (WYO) company, Allstate. In addition, agency 
owner, Rob Dunagan, makes available to his staff and clients a variety of flood awareness 
informational brochures and fliers produced by his WYO company. The agency's annual 
mailings are timed to coincide with media attention to hurricane season to remind the 
agency's customers of the importance and availability of flood insurance. 
The agency sponsors monthly flood insurance training sessions for other NFIP 
stakeholders such as real estate agencies, builders, lenders, and surveyors. While 
providing refreshments, agency specialists answer questions and provide one-on-one 
training.
In response to an internal Allstate re-underwriting initiative in which the agency 
discovered that many of its customers misunderstood NFIP policies and procedures, 
Dunagan Allstate Insurance Agency hosted a flood education meeting in a local hotel that 
drew more than 200 consumers, real estate agents, mortgage brokers, insurance agents, 
surveyors, architects, building officials and other community, regional, and national 
officials. The event featured a panel discussion by NFIP stakeholders and FEMA 
officials. 
Housing Insurance Services, Inc.
 The Housing Authority Insurance Groupmade up of 9 companieshas been in 
business for 16 years, providing insurance to housing authorities and public housing 
groups. With 92 employees, Housing Insurance Services, Inc., has managed the Group's 
flood insurance coverages since June 2003, producing 151 NFIP policies in force within 
the first 6 months.
Housing Insurance Services, Inc., has used a number of successful marketing strategies to 
reach its 900 members. The agency began by assigning key staff members to their flood 
team, writing a flood business plan that was published throughout the company, selecting 
a WYO company with goals similar to that of the Group, and then providing internal 
training for employees that included an interactive CD presentation about flood 
insurance. Employees are given a Housing Insurance Services, Inc., rain slicker when 
they sell their first flood policy.

Next, the agency introduced their Group members to the flood program. Nearly 3,000 
informational mailings about flood insurance risk and protection were sent to the 
agency's members and affiliates. Housing Insurance Services, Inc., now uses two 
quarterly newslettersThe Pinwheel for staff and Insite for Group membersto 
continue flood education. In addition, using direct mail, the agency regularly contacts 
members to offer flood insurance information. 
Housing Insurance Services, Inc., also makes use of its web site 
(www.housingcenter.com) to raise member awareness of flooding issues. The site 
includes a page dedicated to flood coverage that answers common questions and provides 
contact information for those who want to learn more about the NFIP.
Housing Insurance Services, Inc., also uses its Housing Television Network (HTVN), an 
interactive satellite training station, to promote flood protection. Housing authority 
members purchase the satellite equipment and then become students in weekly satellite 
training classes. There are currently 150 HTVN training sites throughout the United 
States. The agency has produced 200 hours of training for its members that includes 
strategically placed advertisements for flood insurance. In addition, Housing Insurance 
Services, Inc., provides an on-site presence to promote flood insurance awareness within 
the housing industry by distributing NFIP literature at trade shows held across the United 
States.  
 


Risky Behavior
Dr. Jacqueline Meszaros, University of Washington, Bothell

Editor's Note: The following article is based on the keynote speech that Dr. Meszaros 
gave at the 2004 National Flood Conference held in Seattle, Washington, last May.

Good morning. I'm pleased to have this opportunity to talk with you about my field, 
Behavioral Decision Theory, because it is an exciting area for research and a powerful 
tool for understanding the real world. However, I should probably start with the normal 
disclaimer: I am an academic so I'm going to tell you some stuff that you already know, 
but I'm going to dress it up in some theory and jargon. In this case, the theory and jargon 
of behavioral decision research. My aim is that, after I've done all this, you will better 
understand what you already know and can perhaps become more effective when 
working with your constituencies. Or at least, less baffled.
The main thing you already know is: people sometimes seem pretty irrational when it 
comes to decisions about preparing for certain natural hazards. In some instances, they 
simply are imprudent. They refuse to buy flood insurance no matter how cheap you make 
it; they build their homes as close to a rip tide as they can possibly get; or they won't so 
much as strap their water tanks or tall bookcases when they live in earthquake country. In 
other situations, they avoid risks at great cost. They buy flight insurance at insane prices 
(actuarially speaking); they refuse to bring their mail into their homes from fear of 
bioterror attack; or they drive from New York to Florida (increasing their chances of 
injury) in order to avoid the risk of a terrorist attack on a plane. 
Behavioral decision theorists begin our studies of these kinds of issues by laying out what 
"rational" means, using an economic definition. Economically, a risk consists of a 
probability that an event will happen and the outcomes associated with that event. When 
you multiply the probability by the outcome, you get the "expected value" of the risk. For 
example, the expected value of a lottery ticket is the probability of winning times the 
payout. The expected value of a flood is the probability of a flood times the losses it 
would cause. If that expected value is more than the cost of insurance, it is rational to buy 
the insurance. But we see over and over, in the realm of low-probability/high-
consequence risks like flood and earthquake, people refuse to make investments that are 
not only economically rational, but, as in the case of some flood insurance, heavily 
subsidized. As flood professionals, you should find it interesting that one of the first 
large-scale, behavioral economic studies ever conducted was a flood insurance study. In 
1977, Howard Kunreuther and 15 others from around the country, including a number of 
folks at FEMA, looked at situations in which people who were offered heavily subsidized 
insurance against floods refused to take advantage of it. Using the economic framework I 
described previously, which is based on probabilities, losses, and costs for protection, this 
study identified that people were inaccurate in their estimates of potential losses; they had 
an inaccurate understanding of what insurance would cover; and they were inaccurate in 
their understanding of how much insurance coverage would cost.
In some ways, this study was path- breaking because it got everyone's attention, including 
the economic community's. In another way, it was quite limited because it looked only at 
estimated probabilities, losses, and costs. Having looked at this work, you might draw the 
inference that all you have to do is to get people better estimates of what the probability 
of a loss is and of what insurance coverage is going to cost them, and the problem will be 
solved. But, of course, you know that this isn't true; it is only one step. I'd like to share 
some of what's developed since that path-breaking 1977 study. The theories that have 
come along will help you better understand why your constituents seem so irrational, and, 
therefore, how better to reach them.
Perhaps the most powerful insights in behavioral economics come from "Prospect 
Theory," which won Daniel Kahneman the Nobel Prize in Economics in 2002. In part, 
Prospect Theory says that there is a total switch in the way people behave when they 
consider risks associated with gains versus risks associated with losses. We tend to be 
risk averse in gains; risk seeking in losses. 
Test yourself. Are you risk averse in gains? If I offered you the choice between $10,000 
right now or a 50 percent probability of $22,000 to be collected in the future, which 
would you want? If you take the sure thing of $10,000 right now, then you are risk 
averse. Do you want to know just how risk averse you are? Ask yourself: How much 
more than $22,000 would it take for you to prefer the gamble over the sure thing? 
Now, are you risk seeking in losses? If I give you a choice between losing $2,400 for sure 
or a 50 percent chance of losing $5,000, which of those do you prefer? Most of you 
would prefer to live with the risk. How risk averse are you?  How much more would you 
be willing to gamble in order to avoid giving up that $2,400? 
Let's apply this "sure thing" principle to flood insurance. If people don't have flood 
insurance, the very first dollar they are asked to pay for such insurance may feel to them 
like a loss. In this situation, we would not be surprised to find them to be risk seeking. 
Like most of you in the hypothetical example above, they'd rather live with a 
probabilistic loss of a flood than to take the certain loss of premium payments. At some 
point, the probability or size of loss may cause them to prefer the sure loss to the 
probabilistic one, but in the real world we can't expect that to happen at the actuarially 
fair point. It happens at a point that is determined by individuals' subjective judgments 
and risk tastes.
Economists usually assume that only the expected value of risks matters, not the type of 
risk or the context in which it occurs. But Prospect Theory research has already shown 
that all risks are not the same because people treat risks in the realm of gains differently 
from risks in the realm of losses. Other researchers have identified additional factors that 
show predictable patterns in how people treat different types of risk differently. Some of 
this is quite relevant to natural hazard insurance. 
In the risk communication field, Peter Sandman identified a set of what he calls "outrage 
factors." When risks include outrage qualities, people worry more about them, demand 
more protection from them, and are willing to invest more to protect themselves against 
them. For example, an involuntary risk is perceived as worse than a voluntary risk. 
Forcing parents to have their child vaccinated is worse than giving parents the choice to 
vaccinate. An uncontrollable risk, like the car that somebody else is driving, is more 
onerous and is considered more dangerous than a controllable risk such as the car that I'm 
driving.
Catastrophic risks are those that can kill many, many people all at once. Plane crashes kill 
many people at a time; they have catastrophic potential. Auto accidents typically kill only 
small numbers of people at a time. Notoriously, people are more frightened of air crashes 
than auto crashes, though far more people die each year in the latter than the former. 
As you try to understand why the same citizens who seem perfectly happy living with 
severe flood risks or building on the side of volcanic      Mt. Rainier will bug the 
government to do something about high-tension electrical wires or asteroids, consult the 
outrage factors. The patterns are fairly clear and consistent. 
Common, cognitive rules of thumb, or "heuristics," also affect risk perceptions and 
preferences in ways that pertain to hazard preparation and insurance. For example, one, 
called availability, is powerful because it seems linked to how we use our memory in 
basic ways. When we can call something quickly to mind from our memory, we tend to 
think of that thing as more probable or common than things we have more trouble 
recalling. But commonness, which is linked directly to probability, is not the only thing 
that affects memory. When things are horrible or surprising, we recall them more easily. 
These days, terrorism comes to mind quickly, so the availability heuristic makes many of 
us feel as though terrorism is a more likely event than it actually is. Floods are not so 
dreadful or vivid to most of us, so we do not tend to assess their probability as high as 
some rarer threats.
Representativeness is another heuristic. We tend to think that things we have encountered 
in the past are representative of what we are going to encounter in the future. In the 
insurance field, people who have encountered floods in the past will tend to assume that 
future floods will look like those they've already experienced. Or, if floods haven't 
happened in an area, people think that the probability of encountering one in the future 
will be low. The same is true for earthquakes. Fortunately, education can often help us 
adjust our initial, heuristic-driven assessments of probabilities and outcomes. Reports of 
objective studies can help. Vivid scenarios and descriptions of past or potential disasters 
can also often help us recalibrate our assessments. (Of course, these can also be abused to 
influence someone to worry too much or too little.)
To help individuals make good decisions about when to invest in protections and 
insurance, experts judgments about risks are, of course, crucial. Unfortunately, experts 
are hampered by a number of factors from achieving agreement on when disasters will 
happen to what exactly their effects will be. Rareness means statistical techniques are not 
perfectly valuable; think here of volcanic eruptions.  Interaction effects mean no single 
force will determine a particular outcome; think of predicting the path of a hurricane. 
Complexity means causal analyses are hard to develop; think here of predicting 
earthquakes. In most natural hazard arenas, one or more of these effects is at play, and 
expert assessments are seldom in perfect agreement.
When experts offer different or contradictory conclusions, another decision phenomenon 
comes into play: ambiguity. If the experts all agree, you face a risk but you probably have 
a pretty good idea of what the potential outcomes are. You can take a gamble with a 
pretty good understanding of what is possible. If the experts don't agree, you can't 
actually know which set of estimates best represents reality. 
Ambiguity, it turns out, can have as strong an effect on decisions (or even stronger in 
some cases) as does risk itself. Insurers demand a much higher price to insure an 
ambiguous risk. Patients refuse to undertake ambiguous treatments. Remember, a risk 
that is ambiguous could be either much less or much worse, but insurersjust like other 
peoplereact pessimistically to the ambiguity, as if they assume that the worst outcomes 
are more likely than the best. 
There is some evidence that people tend to use ambiguous information to support 
whatever position they held in the first place. If parents are given ambiguous information 
about a vaccine risk for their child, the non-vaccinators will take that information to 
suggest that they ought to get even more vehemently opposed to vaccination. The 
vaccinating parents will be reassured that vaccination is indeed a safe thing to do. This 
phenomenon seems to work not just on an individual basis but also collectively. Cass 
Sunstein at the University of Chicago Law School has identified a phenomenon called 
"social amplification" where, with certain kinds of ambiguous risks, once a dialogue 
starts, people begin to adopt each others' position and interpret the ambiguous 
information to most strongly support one particular direction or another. In other words, 
when the ambiguity of the information is placed front and center in the rhetoric of a 
group discussion, it seems to amplify a group's initial tendencies. Sunstein points out that 
something like this seems to have been at work in a number of communities where 
NIMBY (not in my back yard) movements sprung up to oppose the location of hazardous 
facilities. In a community predisposed against earthquake preparation investments, by 
this logic, the inherent ambiguity of earthquake predictions would tend to amplify 
reluctance to invest in preparations.
So far we've looked at probability distortions, context distortions, and estimate 
distortions. There is another type of factor that the early flood researchers mentioned but 
that is only recently being more systematically explored: What determines who won't 
insure at all? Kunreuther and his colleagues in 1977 noticed that there seem to be people 
who worry about hazards and people who don't worry about them, and they realized that 
worry seemed to be an important factor. Nearly 30 years later, we are still trying to get a 
better and deeper understanding of what they were seeing in that study. 
We had the opportunity to study the role of worry about earthquakes in preparation for 
them right here in Seattle after the 2001 Nisqually earthquake. Nisqually had a moment 
magnitude of 6.8, comparable to Northridge. But Nisqually's center was 33 miles deep, so 
the force dissipated as it moved upward, and ground shaking was only relatively 
moderate. Even so, Nisqually was the most costly disaster in Washington State history, 
because we had lots and lots of assets exposed. As a result of the Nisqually earthquake in 
2001, we had one heart attack death and $2 billion in estimated losses. The Northridge 
earthquake resulted in 57 deaths and $40 billion worth of losses. 
We actually have a known seismic fault running beneath Seattle that puts us at risk for an 
earthquake something like Northridge's. The Seattle Fault runs underneath Interstate 90 
and out into Elliott Bay. It goes nearly directly under Boeing, Starbucks, and 
Amazon.com. We even built our new baseball and football stadiums directly on top of it 
(although we took some serious precautions in construction). If the Seattle Fault 
earthquake occurs, believe me, it will be known as THE Seattle Earthquake, given the 
assets that are sitting directly on top of it. The levels of shake in downtown Seattle would 
be two to three times the levels that we experienced in Nisqually. 
Our population heard this information about the risk of future earthquakes following 
Nisqually, and we expect that they were paying some attention since they had just 
experienced the first big earthquake of their entire lives in this region. So, we took the 
opportunity to survey members of the National Federation of Independent Businesses 
whose businesses were located in the area hardest hit by Nisqually. We received more 
than 800 responses from the CEOs and key decision makers in their small businesses. 
What we learned was that Nisqually had two kinds of effects on people. Two-thirds of 
our respondents said, "Oh, that wasn't so bad. We did pretty well; we think we are 
prepared for an earthquake"...even though the press made it clear that this was not one of 
the big earthquakes that we are susceptible to. Only one-third of respondents said, 
"Whoa, I hadn't realized that we have earthquakes here. This sounds pretty serious. I 
think we should get better prepared." The News Tribune in Takoma picked this up and 
divided us into grasshoppers who want to play until the bad weather comes, and ants who 
are taking care to put things away in advance of the bad situations that are forthcoming.
We examined which of the surveyed businesses added mitigations following the 
earthquake. We found that, on average, responding firms added one mitigation such as 
practicing their disaster plans, having supplies in place, and so forth. The disruption and 
direct losses that someone experienced were significant in predicting whether or not they 
added mitigations. You see this response in flood research as well: people who have 
flood losses tend to be more likely to prepare and insure against future flood losses. 
We also found, though, that the people who had mitigated prior to the earthquake were 
even more likely to mitigate after it, independent of their business disruption and direct 
losses. In other words, the people who were already worried and had taken precautionary 
steps in the first place took even more steps after this event, no matter what their personal 
experience of the quake was like. Also: Those who indicated that the quake caused them 
to worry more were the most likely to add preparations, independent of their estimates of 
how likely or how serious future earthquakes will be. In other words, worry (an 
emotional factor) was more important than estimates related to expected value (the 
rational factors) in predicting preventive behaviors. 
Nisqually taught us: (1) when a disaster occurs but doesn't affect us, some of us decide 
that maybe we don't have to get any better prepared; (2) the cautious grow even more 
cautious after a disaster; and (3) worry, more than information about probabilities, is key 
to getting mitigations in place. Our initial concerns about whether people understand 
hazard information have evolved to a rich set of appreciations of how risk, tastes, context, 
information, and imperfections all matter in decision making. Now we are beginning to 
look at emotional factors and decision process factors to see the effect they have on how 
decisions are made. I hope that having a better appreciation for why people seem so 
irrational in the face of predictable risks will make it easier for you to work more 
constructively with your constituents. Thank you for letting me share this with you. 
 
Dr. Jacqueline Meszaros teaches Knowledge Management and Decision Making at the 
University of Washington's Bothell campus. She has studied decisions about ambiguous 
and high-consequence risks for nearly a decade. For the past 4 years, her focus has been 
on earthquake risks. She also works as a principal investigator with the National Science 
Foundation's Pacific Earthquake Engineering Research Center at the University of 
California at Berkeley.

Some Important 
Outrage Factors
A risk has more outrage potential when it is:
	involuntary
	uncontrollable
	unfamiliar
	invisible
	unnatural
	not understood
	potentially harmful to many people at once
	associated with vulnerable populations
	inequitably distributed


Set Your Sights On Florida
Join us in Florida for the 2005 National Flood Conference from May 31 through June 3 at 
the Marco Island Marriott (www.marcoislandmarriott.com). 
"Tides of Change: Reforming the NFIP" is the theme for the upcoming conference, where 
more than 30 workshops and town halls are being scheduled to keep you up to date on all 
of the issues relevant to NFIP stakeholders. Whether you're new to the program or a 
seasoned expert, you'll learn how technology, training, and teamwork can boost your 
effectiveness.
Who should attend? This conference is designed for insurance agents and representatives 
of insurance companies, flood zone determination companies, and lending institutions; 
State and local officials; claims adjusters, real estate professionals, and surveyors; and 
home builders.
Conference registration materials have been posted on the NFIP web site 
(www.fema.gov/nfip). For more information, call Catherine King at 301-918-1439 (TDD 
301-918-1409), or send an e-mail message to bsa-support@nfipstat.com or a fax to 301-
918-1498. 


Coastal Flood Hazards 
Emily Hirsch, FEMA
The risk of flooding is highest along coastlines and adjacent to lakes and rivers. Many 
coastal storms are accompanied by storm surgea dome of ocean water that can rise as 
high as 20 feet at its peak and can stretch as much as 50 to 100 miles wide. Storm surge 
can force creeks and rivers to breach their banks as it moves inland. When a storm surge 
coincides with high tide, it can rise even higher and travel farther. The best way to protect 
residents from coastal flooding is by reducing construction in coastal areas and by 
ensuring that those structures built in the coastal floodplain are elevated, floodproofed, 
and insured against flood damage.
Determining where the risk of coastal flooding is highest is the job of FEMA's Flood 
Insurance Rate Maps. The FEMA Region IX office recently completed an effort to 
review and update the technical guidance materials developed for coastal flood hazard 
analyses to enable FEMA's flood hazard mapping partners to produce high quality flood 
data in coastal areas.
This project was initiated in October 2003 and was conducted in two phases. Phase I 
included review of existing guidelines and methods, research of relevant literature, 
formation of a Technical Working Group, technical presentations on the State-of-the-
Science in coastal processes, workshops, focused technical studies, and summary reports. 
The Phase I draft report was completed in June 2004. 
Phase II involved preparation of an outline for new guidelines with an emphasis on the 
Pacific Coast, development of detailed procedures for performing flood hazards studies 
on the Pacific Coast, conducting a third workshop, and preparation of draft and final 
guidelines. The Phase II draft report was completed in November 2004. 
The participants in the Technical Working Group and workshops included staff from 
several FEMA Regional Offices and National Headquarters as well as from other Federal 
agencies, academicians, scientists, and engineers. Although the products produced 
through this project do not address every possible coastal flood hazard situation, they will 
undoubtedly be valuable resources to those involved in identifying coastal flood hazards 
nationwide.  

Emily Hirsch is a Hydraulic Engineer in the Mitigation Division's Risk Identification 
Branch, where she coordinates coastal engineering issues.

The FloodSmart Campaign

The NFIP's integrated advertising and marketing campaign, "FloodSmart," was 
developed in 2004 to increase policy growth 5 percent annually. FloodSmart is designed 
to drive consumers to take action and respond, right away, to the NFIP's electronic and 
print media messages by calling a toll-free number, visiting FloodSmart.gov, or 
contacting an insurance agent in their area to get more information and to purchase a 
policy. 
Through FloodSmart, consumers will learn that floods are the most common natural 
disaster in the United States, causing more than $7.1 billion in property damage in the 
last 10 years. Flooding occurs in all 50 states, and not just in those areas considered to be 
high-risk areas. In fact, one in four flood insurance claims is submitted by someone who 
lives in a low or moderate flood risk zone. 
There are eight core elements of the FloodSmart campaign.
Consumer and Stakeholder Education 
Informing consumers and NFIP stakeholders about basic facts as well as changes in the 
NFIP is the foundation of the FloodSmart campaign. The following methods are used to 
reach these audiences.
	Agent newsletter: A monthly newsletter has been created to update agents about 
campaign elements. 
	Fact sheets and brochures: "Marketing Tips for Agents" and a new general 
information brochure have been developed as part of the FloodSmart campaign, as well 
as new Preferred Risk Policy (PRP) consumer and commercial brochures to explain the 
new pricing system for those customers who qualify for low-cost policies.
	Media outreach: Materials have been developed and distributed to consumer and 
trade press about the FloodSmart campaign, availability of the PRP, and tips on how to 
prepare before a flood and what to do after a flood.
	Conference support: FloodSmart campaign messages are being delivered at 
insurance industry conferences, association meetings, and directly to agents and WYOs.
New FloodSmart.Gov Web Site
 A new consumer web site, www.FloodSmart.gov, provides information on preparing 
homes for flooding, tools for assessing one's risk of flooding and estimating the cost of 
flood insurance premiums, and listings of local insurance agents. This site also contains 
links to other community-based information.
Television Commercials 
Two 30-second direct response commercials are being broadcast on national cable 
networks. "Homeowners" reminds consumers that flood coverage is not included in 
homeowners insurance. "Ignoring the Flood" focuses on the consequences of ignoring the 
risk of flooding. These commercials have aired on networks 

that included Bravo, CMT, ESPN, Fox News, and The Weather Channel.
Print Advertising 
Ads in Parade Magazine and USA Weekend have run in conjunction with television 
commercials in select targeted markets to strengthen the campaign message in areas 
especially prone to flooding.
On-line Media 
Banner ads have been strategically placed on web sites to reach the campaign's target 
audience. Direct links to FloodSmart.gov are positioned on search engine main pages to 
drive traffic to this web site. 
Consumer and Agent Direct Mail 
FloodSmart consumer mailings focus on the following three strategies. 
Acquisition Mailings 
These mailings carefully target consumers with a high propensity to purchase a policy 
based on:  
	Flood policy penetration within their geographic area.
	Purchasing behavior (how it relates to flood activity).
	Potential growth opportunity by community.
	Flood history and seasonality.
All acquisition mailings encourage consumers to contact their agent (or an agent in their 
area) to purchase a flood policy through the NFIP. 
Retention Mailings 
These mailings are sent monthly to current NFIP customers who are statistically unlikely 
to renew their policies. The consumers are directed to contact their current agent to renew 
their policy. 
Win-Back Mailings 
These mailings are delivered monthly to customers whose NFIP policies have lapsed. 
Agent Co-Op Program
The Agent Co-Op Program is designed to provide insurance agents with a way to tie into 
the national FloodSmart campaign by using pre-approved, NFIP-oriented, creative 
advertising materials. Agents are reimbursed for a portion of their advertising costs. 
Those agents who complete flood-specific training are rewarded with additional 
reimbursement dollars. In addition, WYO companies and insurance associations can 
participate by taking advantage of a unique "grouped" advertising program.
E-newsletter
Subscribe on FloodSmart.gov to the campaign's monthly e-newsletter. The newsletter 
provides in-depth information about flood insurance, recent personal testimonials, and 
current flood events. It is sent directly to your e-mail address. Agents may use the 
contents of the e-newsletter in their own communications with policyholders and 
prospects.
Becoming FloodSmarter
It's easy to spot the new campaign elements. Just look for the "red warning label" and the 
new NFIP logo on campaign materials. For more information about the NFIP's new 
advertising and marketing campaign, log on to www.FloodSmart.gov. 


New Flood Maps Coming
Bruce A. Bender, Bender Consulting Services

For the past several years, industries that routinely use and rely on Flood Insurance Rate 
Maps (FIRMs) have been calling for them to be updated to more accurately depict current 
risks of flooding.  In response, the President approved a multi-year nationwide effort, 
called Multi-Hazard Flood Map Modernization, or "Map Mod," to update the FIRMs and 
present them in digital form. The resulting maps will be more reliable and provide 
quicker and easier access to the data.
Every NFIP stakeholder will benefit from this exciting new opportunity. These 
stakeholders range from the local officials responsible for managing development and 
emergency response to lenders and agents responsible for offering the proper financial 
protection from flood losses to their clients.
What's Different about the New Maps?
Map Mod will use state-of-the-art technology.  New engineering practices and tools will 
streamline floodplain studies and improve results. Capturing interim data throughout the 
process will improve data quality and provide access to mapping products earlier in the 
mapping lifecycle.  Spatial visualization techniques will provide easy viewing and 
analysis of the information.  Data quality will also be enhanced through refined 
standards.

Who Will Make It Happen?
Map Mod is a collaborative process and a new way of doing business for government 
officials at all levels.  These officials and other stakeholders will be active in mapping 
operations (e.g., collecting, updating, and adopting data).  Leveraging of partnerships will 
allow States and communities to choose the extent of their involvement.
FEMA's mapping partners participated in the Map Mod business planning process, 
identifying levels of involvement in mapping operations.  FEMA's first Multi-Year Flood 
Hazard Identification Plan (MHIP) provides a 5-year forecast of flood mapping activities, 
thereby enabling mapping partners and flood map users to better plan for map updates, 
increase opportunities for sharing common data sets, and leverage resources across all 
levels of government and industry.
How Does It Impact Insurance?
Insurance agents and Write Your Own companies play an important role in educating the 
public. In addition to knowing when the map changes will occur, insurance professionals 
will need to know what to do and what to tell home and business owners about managing 
their flood insurance coverage. In some situations, taking advantage of the NFIP's 
grandfathering rule may make sense; while in others, continuing protection with a 
Preferred Risk Policy (PRP) may be the solution. Now available for commercial and 
renter markets, the PRP will play an even more important role in ensuring the best 
coverage for the home and business owners as the maps change.  Either way, the risks are 
changing and continue to be real. The key is to stay informed, be "FloodSmart," and 
know what solutions to offer your clients.  The box below shows an example of options 
for when a flood zone changes. As always, refer to the Flood Insurance Manual for 
specific details.
Benefits to NFIP Stakeholders
Map Mod touches a broad stakeholder community whose members will see different 
benefits. Community planners and local officials will gain a greater understanding of the 
flood hazards and risks that affect their communities. Builders and developers will have 
detailed information for making well-informed decisions on where to build and how they 
can affect flood zones. Insurance agents and lending institutions will clearly understand 
map changes and what they need to do. Home and business owners will be better 
informed about their current flood risks.
For more information on Map Mod, visit hazards.fema.gov or 
www.fema.gov/fhm/mm_main.shtm.  FEMA's Map Mod Plan, the MHIP, is available at 
www.fema.gov/fhm/ mh_main.shtm.  To learn more about what FEMA is doing to help 
educate consumers about their risk as well as tools, tips, and material for agents 
(including the co-op advertising program), go to www.floodsmart.gov. 

After running an insurance agency and then managing the growth of one of the largest 
WYO company flood insurance programs for more than 10 years, Bruce A. Bender now 
manages his own consulting firm. He is also part of the Map Modernization consortium 
and is a member of the J. Walter Thompson "FloodSmart" team. 



Getting to Know the NFIP's Coverage Options
Tuula Young, FEMA
Is flood insurance really a specialty product? Before you decide, perhaps you should 
consider your ability to assist your clients in choosing appropriate loss mitigation 
vehicles for common perils. Water damage, a common occurrence, comes in many forms, 
including mold, seepage, appliance leaks, and various degrees of flooding. Some water 
damage can be covered by other types of insurance such as homeowners. Sometimes, 
other insurance may be the best option. By understanding when flood insurance coverage 
would benefit your business and personal property insurance clients, you can provide the 
expert advice they need to protect themselves against flood damage.
At the mention of floods, the first image that comes to the minds of many people is of 
houses floating downriver during highly publicized catastrophic flooding events. 
Fortunately, in most parts of the country, such occurrences are the exception, not the rule. 
On the other hand, flooding events that result in a handful of properties being impacted 
by a few inches of water, although not publicized, are common. Spring rains, melting 
snow, summer, autumn and winter storms, and rising creeks and rivers that overload 
drainage systems and inundate normally dry areas are not considered catastrophic events, 
although they can be financially ruinous to the property owners impacted. As little as 2 
inches of flood water that has been contaminated by sewage or dead animals can damage 
floors, carpeting, and personal property, sending mold creeping up walls. Becoming a 
flood victim is traumatic, but it is even more devastating to find that your homeowners or 
fire policy does not cover flood damage and that flood insurance may have been 
available, but was not offered. 
Flood loss data from across the country demonstrate a lack of flood insurance training 
among agents. Flood insurance coverages require an understanding of complex 
floodplain management and lender compliance issues. Insurance companies should see 
that their agents obtain Continuing Education Units in flood insurance courses. 
Unfortunately, in regions that do not normally experience catastrophic flooding events, 
many insurance agents do not take advantage of flood insurance training opportunities. 
These agents sometimes offer incorrect information about floods and flood insurance 
coverage, with disastrous results. 
We urge agents to invest the time to expand their knowledge of flood insurance. Training 
opportunities are available via WYO companies and the NFIP's regional offices. 
Upcoming NFIP workshops are listed online (www.fema.gov/nfip/ a_wshop.shtm) and 
on page 38 of this newsletter. The NFIP even offers online flood insurance training free 
of charge. Visit the NFIP FloodSmart Agent training site (training.nfipstat. com/) for 
more information. 

Tuula Young has been a Program Specialist in the Risk Communications Branch of 
FEMA's Mitigation Division for nearly 5 years. Previously, she owned an insurance 
agency and had 20 years experience in multiple lines of insurance and financial services.


Preparing for Spring Floods
Lynd Morris, NFIP Bureau and Statistical Agent

Icicles begin to drip along the eaves, early snowdrops and crocuses push through the 
snow. The air and ground become warmer, and trees and bushes develop tiny buds. 
Spring has arrived. 
In the Northern Hemisphere, meteorologists designate March, April, and May as the 
spring months. The earth's axis begins to tilt toward the sun during these months, 
exposing the large land masses in the Northern Hemisphere to warming solar rays. 
Gradually, the average temperature rises, and snowpack that formed during the winter 
months when the earth's axis was tilted away from the sun begins to melt. The stage is set 
for spring flooding.
The Snow's Got to Go
When the snowpack that has built up in cold climates during the winter begins to melt, it 
moves downstream, eventually draining into lakes, reservoirs, and finally the ocean. A 
heavy snowpack is good insurance that reservoirs will collect enough water in the spring 
to sustain communities and agriculture throughout the summer. 
"River flooding occurs when runoff exceeds the ability of a river to convey water 
downstream," explains Frank Richards of the National Oceanic and Atmospheric 
Administration's (NOAA's) Office of Hydrology. "Snowmelt flooding is most common in 
the Midwest, where river basins are relatively flat, and river beds drop gradually along 
their length. These conditions mean that water moves slowlyand, just as when vehicles 
move too slowly on urban roadways, massive congestion can occur. When this happens 
in a river, not only does the water back up, but it also rises, eventually causing flooding. 
While elevation differences and river flow rates sometimes are more pronounced in the 
Mid-Atlantic and Northeast than in the Midwest, snowmelt flooding is not uncommon 
there, either." 
According to NOAA's Richards, another type of flooding occurs exclusively in winter 
and early spring. "Ice jam flooding is caused by either snowmelt or runoff from rainfall. 
As levels rise on ice-covered streams, the ice sheet can fracture into chunks, some as 
large as the ubiquitous SUVs. As these masses of ice flow downstream, they sometimes 
jam up at constrictions or bends in the river or at bridges, much like traffic backing up at 
the site of an auto wreck. Water can rise rapidly behind these ice dams, causing 
significant upstream flooding. Occasionally, the jam can give waycausing a gush of 
water and chunks of ice to move downstream."
April Showers Bring MayFloods?
Snowmelt is not the only cause of spring flooding. "When the Northern Hemisphere 
moves from winter to summer, the atmosphere readjusts itself," says Richards. "This is a 
transition season in which cold air tends to get pushed north and overrun by warm, moist 
air from the south. The clashes of these air masses trying to outflank each other result in 
instability and convection, causing severe weather that includes tornadoes, 
thunderstorms, hail, and flash flooding." (See the 2004 Watermark, Number 2, pages 16-
23, for descriptions of these severe weather phenomena.)
"Unlike snowmelt and ice jam flooding, which are most severe in areas immediately 
adjacent to rivers, flash flooding can strike anywhere, including locations far removed 
from rivers and streams," adds Richards. "Flash flooding usually is limited in the extent 
of the area it affects, and, as the name implies, its onset is rapid. It typically results from 
pockets of intense rain that fall far faster than soils can absorb it. As a result, water not 
only pools in low areas, including underpasses and basements, but also pushes small 
streams out of their banks." 
No Region Is Immune
States that experience little or no snowfall do not accumulate snowpack or experience 
spring snowmelt. Violent spring thunderstorms may be infrequent in some parts of the 
United States. However, even though some states experience fewer spring flood 
conditions than others, no state has escaped spring flooding entirely. 
Although data is unavailable for losses suffered by millions of uninsured flood victims, 
the NFIP keeps track of the flood insurance claims paid to insured property owners 
throughout the United States and its territories. An analysis of these paid claims provides 
some clues about where and when spring floods have been most severe. 
Of the 818,992 flood insurance claims that were paid in the United States between 
January 1, 1980, and October 31, 2004, nearly 29 percent (234, 350) were paid for losses 
that resulted from spring floods. 
Following is a summary of the years in which the largest flood losses were paid in each 
FEMA Region during March, April, and May. October 31, 2004, reports were used to 
compile this summary, which includes data gathered by the NFIP between March 1, 
1980, and May 31, 2004. See the State Stats tables beginning on page 31 for spring flood 
loss distribution by policy type for each FEMA Region during the last 25 years. 
Region I
Although most flood insurance claims in FEMA Region I states (Connecticut, Maine, 
Massachusetts, New Hampshire, Rhode Island, and Vermont) have been paid for fall 
flood losses in the last 25 years, spring flooding in this region is responsible for an 
average of 231 paid losses each year.
Altogether, in the last 25 years, the NFIP paid nearly $52.3 million for 5,786 Region I 
spring flood claims. 
Region II
Winter floods have taken the highest toll in flood losses in FEMA Region II states and 
territories (New Jersey, New York, Puerto Rico, and the Virgin Islands) during the last 25 
years. However, spring flooding is responsible for more than a quarter of this region's 
total NFIP paid claims since 1980. An average of 1,016 NFIP losses has been paid in 
Region II states during each of the last 25 springs. 
Altogether, in the last 25 years, the NFIP paid more than $160.3 million for 25,404 
Region II spring flood claims. 
Region III
Since 1980, floods have been responsible for an average of 340 paid losses every spring 
and have accounted for 12.4 percent of the annual paid claims in FEMA Region III Mid-
Atlantic states (Delaware, the District of Columbia, Maryland, Pennsylvania, Virginia, 
and West Virginia). 
Altogether, in the last 25 years, the NFIP paid nearly $95.6 million for 8,503 Region III 
spring flood claims. 
Region IV
During the last 25 years, nearly 19 percent of all spring flood losses have been paid in 
FEMA Region IV Southeastern states (Alabama, Florida, Georgia, Kentucky, 
Mississippi, North Carolina, South Carolina, and Tennessee). There has been an average 
of 1,758 paid losses in this region each spring since 1980. 

Altogether, in the last 25 years, the NFIP paid nearly $635.7 million for 43,966 Region 
IV spring flood claims. 
Region V
Spring is the worst flood season in FEMA Region V Great Lakes states (Illinois, Indiana, 
Michigan, Minnesota, Ohio, and Wisconsin). During the last 25 years, more than 40 
percent of all paid losses from this region have resulted from spring floods, with an 
average of 824 NFIP claims paid each spring.
Altogether, in the last 25 years, the NFIP paid more than $207.4 million for 20,609 
Region V spring flood claims. 

Region VI
Nearly 45 percent of all spring losses paid by the NFIP in the United States and its 
territories since 1980 have been paid in FEMA Region VI states (Arkansas, Louisiana, 
New Mexico, Oklahoma, and Texas). In the last 25 years, the NFIP has paid an average 
of 4,203 Region VI claims during each spring flood season.
Altogether, in the last 25 years, the NFIP paid more than $1.3 billion for 105,085 Region 
VI spring flood claims. 
Region VII
More than a third of all NFIP paid losses in FEMA Region VII states (Iowa, Kansas, 
Missouri, Nebraska) have occurred during the spring months. Since 1980, the NFIP has 
paid an average of 511 claims during each spring flood season.
Altogether, in the last 25 years, the NFIP paid more than $134 million for 12,765 Region 
VII spring flood claims. 




Region VIII
Spring is the worst flood season for FEMA Region VIII Rocky Mountain and Plains 
states (Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming). Flooding 
during the spring months has produced more NFIP losses in Region VIII since 1980 than 
in all of the other seasons combined. Excluding 1997, the average number of paid losses 
in this region each spring has been 75. However during the spring of 1997, severe 
flooding along the Red River of the North produced 4,818 paid losses. Of these, 86 
percent of claims were paid in North Dakota, and 11 percent of claims were paid in South 
Dakota.
Altogether, in the last 25 years, the NFIP paid more than $131.6 million for 6,605 Region 
VIII spring flood claims. 
Region IX
Although winter is the worst flood season in the FEMA Region IX states and territory 
(Arizona, California, Guam, Hawaii, and Nevada), with nearly 73 percent of this region's 
losses paid during December, January, and February, spring floods account for more than 
15 percent of the region's paid losses. An average of 24 NFIP losses has been paid in 18 
of the last 25 springs; however, spring floods produced many more paid claims in the 
years listed below.
Altogether, in the last 25 years, the NFIP paid more than $64.4 million for 4,640 Region 
IX spring flood claims. 
Region X
Autumn and winter are the most damaging flood seasons in FEMA Region X states 
(Alaska, Idaho, Oregon, and Washington). However, since 1980, spring floods have 
contributed more than 8 percent of all NFIP claims paid in this region. In each of the last 
25 years, an average of 30 spring flood losses was paid in Region X states.

Altogether, in the last 25 years, the NFIP paid more than $157.6 million for 9,187 Region 
X spring flood claims. 
Alerting Those at Risk 
By the end of July 2004, the U.S. Census Bureau estimated that there were just over 122 
million housing units in the United States. But according to NFIP records, by the end of 
July 2004, there were fewer than 4.5 million NFIP policies in force, including 
commercial policies. This means that more than 96 percent of housing units in the United 
States did not have flood insurance coverage! Given that spring flooding is a real hazard 
in every region of the United States, why do so many buildings still lack flood insurance 
coverage?
Countless flood victims have admitted that they didn't realize they needed flood 
insurance coverage. And, in spite of the fact that consumers are statistically more likely 
to become flood victims than fire victims, awareness of the flood hazard and the 
availability of flood insurance protection remains low. 
Exposure to sound information about flood risks is one of the many factors that influence 
a consumer's decision to purchase flood insurance protection. (Read "Risky Behavior" on 
pages 812 for a discussion of other factors.) Keeping protection against flood losses 
alive in the public's mind is the primary function of seasonal flood awareness campaigns.
Campaigning for Flood Preparedness
Each of the last three editions of Watermark has contained an article addressing seasonal 
flooding. These articles were accompanied by lists of suggestions for planning and 
implementing local flood awareness campaigns tied to the upcoming season's flood 
threat. Following is a synopsis of these suggestions. 
Create a Plan
Consider developing a flood awareness campaign that includes the five steps below. A 
minimal investment of time and resources now can pay off in a significant savings of life 
and property in your community when the unexpected happens.
1.		Identify potential partnerships.
2.		Create a campaign strategy.
3.		Collect resources.
4.		Implement the campaign.
5.		Measure the campaign's 
success.
Identify Potential Partnerships
Does your community participate in the NFIP? Check out the list on the NFIP web site 
(www.fema.gov/fema/ csb.shtm) to see if your community is among the more than 
20,000 NFIP communities in the United States and territories. If you discover that your 
community is not yet participating in the NFIP, visit the NFIP State Coordinators' page of 
the Association of State Floodplain Managers web site (www.floods.org/StatePOCs/ 
map.asp) to access contact information for your NFIP Coordinator who can provide the 
help your community needs to join the NFIP.
If your community is participating in the Program, NFIP stakeholders in your area could 
provide an invaluable public service by collaborating to conduct flood awareness 
campaigns to protect lives and property. On page 23 is a partial list of potential campaign 
partners. Invite them to share their public awareness goals and interest in partnering with 
you in your community outreach efforts.
Create a Campaign Strategy
Hold a planning meeting with potential partners and set concrete campaign goals such as 
a total number of materials distributed, an increase in the community's flood insurance 
policy count by a specific date, or a measurable decrease in requests for disaster 
assistance after the next flood disaster. 
Discuss available resources and determine which activities to implement. Decide on a 
budget and how it will be tracked. Determine who will be responsible for each part of the 
campaign and by what date. Build into your plan simple ways to communicate on a 
regular basis to all partners the campaign's status, as well as its completion. 
Collect Resources
Once youve determined your partners and agreed upon campaign goals, set a budget, 
and developed an implementation calendar, you are ready to begin gathering information 
for use in direct mail letters to consumers, press releases, newspaper articles, or "Letters 
to the Editor." See the box below for a list of data sources.
Fliers, booklets, and brochures about flood preparedness are useful handouts at flood 
awareness displays and make great stuffers in direct mailings. A number of organizations 
have developed flood awareness and preparedness materials for distribution to the public. 
Many of these items can be ordered in quantity and at no cost. See the box on page 24 for 
a list of organizations that produce flood-related materials that can be used in consumer 
education. 
Implement the Campaign
Now that you have information and literature to offer your community, you are ready to 
conduct the campaign. Following are suggestions for a few of the activities you might 
consider undertaking.
Consumers
There is no substitute for direct contact when it comes to community outreach and public 
awareness.
	Offer to make presentations about flood exposure and preparedness to local 
business, service, and educational organizations.
	Provide a "flood information" presence at local libraries and schools as well as at 
consumer events such as fairs and mall expos. Distribute free flood preparedness 
pamphlets and fliers.
	Conduct direct mailings of NFIP literature to homeowners, renters, and businesses 
in the floodplain. To reduce mailing costs, coordinate these with regular mailings such as 
utility bills or bank statements. To help determine campaign exposure, keep track of how 
many pieces of mail contained a flood awareness message.
	Hold a flood awareness competition in the schools with prizes for students who 
illustrate flood hazards and preparedness. Display winning illustrations publicly and 
inform the local press about this photo opportunity. Keep track of media coverage.
	Create a flood awareness web site for your community. Include links to the NFIP, 
ARC, ASFPM, and NWS. If possible, build into the site the capability of measuring the 
number of visitors.
	Place a flood awareness message on a billboard that is located along a heavily 
traveled road.
News Media
	Offer historical local flood damage and insurance coverage statistics as well as 
experts who can be interviewed about flood preparedness. Keep track of interviews that 
are held and articles published with flood awareness themes.
	Write newspaper articles or "Letters to the Editor" that describe local flood 
hazards. Include historical statistics about local flood damage and highlight preparedness 
strategies and insurance protection. Publish a special section in your paper with flood 
emergency information that includes the phone numbers of local emergency services 
offices, the American Red Cross chapter, and the nearest hospitals. Publish emergency 
evacuation routes for areas prone to flooding. Keep a file of all submissions that are 
published. 
	Involve local meteorologists in your awareness campaign by inviting their 
participation in outreach events. 
	Ask local radio and television stations about their requirements for public service 
announcements (PSAs). Develop several short PSAs about flood preparedness and 
submit these to all stations. Refer to PSAs that are available on the FEMA web site 
(www.fema.gov/ library/psa). Request a record of when the PSAs aired as well as the 
size of the projected audience to help measure exposure.
Measure the Campaigns Success
No campaign is complete until its success is quantified. Measuring a shift in awareness 
without the aid of costly, labor-intensive polls and surveys can be challenging. However, 
you can estimate how many of your fellow citizens were exposed to the flood protection 
message as you conduct your campaign. How many presentations were made, and how 
many people attended each? How often did you or your campaign partners send out direct 
mailings that included a flood awareness message? How many people were on the 
mailing lists you used? Did you order flood preparedness literature to distribute at a 
consumer event or to stock a flood awareness table at the local library or other public 
location? How many pieces of literature did you start with, and how many do you have 
left? 
Media outlets regularly analyze the size and demographics of their audiences. If flood 
awareness articles were published or PSAs were used by local radio and TV, find out the 
projected size of their audience. Put together a short summary of what you learned, what 
worked, and what youd do differently. Send a copy of your report to each of your 
partners and celebrate your successes.
It may take weeks or even months before increased consumer awareness will be reflected 
in flood insurance sales. It may take even longer to see a reduction in the number of 
disaster assistance applications after a flood. But by publicizing flood preparedness now 
and repeating your efforts prior to and during each upcoming flood season, you will see 
your neighbors and colleagues reflecting a growing concern about flood risks. Not only 
will consumers in your area become more likely to proactively protect themselves against 
flood losses, but they also will be more likely to support proposed flood prevention and 
mitigation projects designed to avert flood damage. 
Spring Forward
When winter turns to spring, thunderstorms exacerbate flooding as precipitation drains 
into waterways already carrying increased volumes of water from snowmelt. Both 
conditions can spell trouble for communities located in the floodplain. When the water 
begins to rise, it will be too late to warn your community about the dangers of flooding. 
The NFIP has a 30-day waiting period before flood insurance policies take effect. 
However, when you inform home and business owners about flood risks and urge them to 
protect themselves financially from flood losses now, you will have empowered them not 
to gamble with a predictable risk. And, after the sun comes out and the water recedes, the 
success of your efforts will be measured by the number of NFIP policyholders who can 
look forward to rebuilding their homes and their lives without the burden of paying back 
disaster assistance loans. 

Lynd Morris has worked with the NFIP as a communications specialist since 1983 and 
has been the writer and associate editor of the Watermark for the last 7 years.

Sites Providing Storm and Flood Statistics

www.ncdc.noaa.gov/oa/ncdc.html   The National Weather Services (NWSs) National 
Climatic Data Center (NCDC) site contains a variety of resources about storms. In 
particular, see the NCDCs Storm Data page (www4.ncdc.noaa.gov/cgi-
win/wwcgi.dll?wwEvent~Storms) to collect data about flooding in a distinct location, 
during a specified time frame.
www.fema.gov/library/drcys.shtm   This section of the Federal Emergency Management 
Agency site contains information pertaining to Presidential Disaster Declarations for all 
perils, listed by date and affected counties.
www.wrh.noaa.gov/wrhq/nwspage.html   This National Oceanic and Atmospheric 
Administration site includes a map of NWS offices across the United States (with links to 
each office) that can be used to research local weather history.
www.nws.noaa.gov/oh/hic/archive/index.shtml	The NWS Hydrologic Information 
Center site contains flood summary information data (1997 to present). 
www.ems.psu.edu/WeatherWorld/summaries/sumtables.html   The Pennsylvania State 
University "Weather World" site contains summaries of the weather systems that caused 
flooding and other weather-related disasters (1996 to present).
www.usgs.gov/themes/flood.html   The U.S. Geological Survey site flood page includes 
links to several reports of flood disasters and the climate conditions that caused them.

Organizations Producing Flood Awareness Materials

National Flood Insurance Program (NFIP)   Visit the NFIP web site publications page 
(www.fema.gov/nfip/libfacts.shtm) for a list of flood-related consumer items, and the 
forms page (www.fema.gov/nfip/order.shtm) to download an order form for obtaining 
public awareness materials that are available in quantity and free of charge.
American Red Cross (ARC)   Check with your local Red Cross chapter or emergency 
services department for flood-related materials. Links to local chapters are available on 
the ARC web site (www.redcross.org/where/chapts.html).
Association of State Floodplain Managers (ASFPM)   Visit the web site of the 
Association of State Floodplain Managers (www.floods.org/links.htm) for links to 
national, state, and local organizations that are flood related. Most of these organizations 
produce public awareness materials.
National Weather Service (NWS)   Download publications from the web site of the 
National Oceanic and Atmospheric Administration (NOAA) by visiting 
www.nws.noaa.gov/om/brochures.shtml and scrolling down to the section marked 
"Floods." You also can order as many as 300 free printed copies of the listed brochures 
from your local NWS office or by sending an e-mail request to the NOAA Outreach Unit 
(NOAA-OUTREACH@noaa.gov). 
United States Geological Survey (USGS)   Visit the bookstore section of the USGS web 
site (http://store.usgs.gov/) for a range of low-cost books and reports. Once in the store, 
select the "Pamphlets, Fliers, and Brochures" option in the left column to view dozens of 
additional publications on many flood-related topics that are available at no cost.

Potential Campaign Partners and Their Contributions

Community floodplain and emergency response officials
	Access to local information about hazards, protection, and preparedness
	Personnel who can offer presentations and staff booths at consumer events
	Flood awareness messages on giveaway materials using public awareness funding
	A flood awareness page on the local government web site

Local and regional insurance companies and professional insurance associations
	Insurance expertise about coverage against flood, wind, lightning, and hail 
damage
	Personnel who can offer presentations and staff booths at consumer events
	Funding for the development of local flood awareness giveaways that include 
their name/logo

Local lending institutions
	Flood protection messages in their regular mailings to customers
	Funding for the development of local flood awareness giveaways that include 
their name/logo

Local home improvement stores
	Specialists to offer presentations about floodproofing
	Funding for the development of local flood awareness giveaways that include 
their name/logo

Local media 
	Flood awareness messages in local news stories
	Funding for the development of local flood awareness giveaways that include 
their name/logo
	Funding for a flood awareness booth at local consumer events
	Flood preparedness information on their web sites

Local schools and libraries
	Flood awareness and preparedness sections in curriculum
	Sponsoring a flood forum or science event with floods and other natural hazards 
themes
	Space and materials for producing a flood awareness table or booth
	Flood preparedness information on their web sites

Local service organizations
	Venues for presentations about flood preparedness 
	People to staff awareness booths at consumer events 
	Funding for the development of local flood awareness giveaways that include 
their name/logo
	Flood preparedness information on their web sites


CRS: Movin On Up

The NFIP's Community Rating System (CRS) is continuing to grow. On May 1, 2004, 
the number of CRS communities qualifying for discounts on their residents flood 
insurance policies topped 1,000 for the first time ever. As of October 1, the number of 
CRS communities had increased to a new record of 1,006.
According to the CRS homepage on FEMA's web site (www.fema.gov/ nfip/crs.shtm), 
CRS communities account for fully two-thirds of the NFIP's policy base.
The Win-Win Solution
Begun in 1990, the CRS is an innovative program that combines flood mitigation with 
flood insurance to improve the quality of life for residents of flood-prone communities. 
When a community enters the CRS, it agrees to undertake floodplain management and 
other flood mitigation activities that exceed the NFIP's minimum requirements.
As mitigation activities are completed and documented, NFIP policyholders in the 
community become eligible for discounts on their premiums. In time, the completed 
mitigation activities help to reduce the threat of flood damage in the community and the 
NFIP's cost of claim settlements. With the CRS, everyone wins.
CRS communities are rated on a 10-step scale (Class 10 = no discount, Class 1 = highest 
discount) according to the flood mitigation activities that they complete in any of four 
broad categories: 
	Public Information
	Mapping and Regulation
	Flood Damage Reduction 
	Flood Preparedness.
CRS class is associated with a premium discount that ranges from 5 percent for a Class 9 
designation to 45 percent for a Class 1 designation.
Stars of the Period
Seven communities were admitted to the CRS effective October 1, and another two 
communities were reinstated in the program. Nearly 25 communities had improved their 
rate classes over the previous 6 months, thereby increasing the premium discounts 
available to their residents.
The stars of the half-year period were:
	The City of Wood Dale, Illinois;
	Clackamas County, Oregon; and
	The Town of Grifton, North Carolina.
Improving CRS communities typically move up one class at a timeas Class 9 to 8, or 
Class 8 to 7. However, the northeastern Illinois community of Wood Dale completed so 
many flood mitigation activities that it jumped from Class 8 to Class 5. People who buy 
or renew flood insurance in Wood Dale on or after October 1 will receive a discount of 
25 percent on their premiums.
Although most participating communities enter the CRS at Class 9, Clackamas County, 
Oregon, and the Town of Grifton, North Carolinaboth admitted to the CRS on October 
1entered at Class 5 by virtue of the extensive mitigation activities they'd already 
completed. Their policyholders, too, will receive 25 percent discounts on flood insurance 
written or renewed on or after October 1.
The table above shows the October 1 breakdown of CRS communities among rate 
classes.
How the CRS Benefits Communities
Year after year, floods are the nation's most common, and costly, natural disaster. Few 
communities can become totally free from risk of flood. The goal of the CRS is, rather, to 
work with communities to reduce flood-related property damage, economic disruption, 
and loss of life.
As the table shows, there isn't a Class 1 community at present. In fact, the CRS has never 
had a Class 1 communitybut the first one might not be long in coming. On October 1, 
2000, the City of Tulsa, Oklahoma, became the CRS's first Class 3 community. Three 
years later, Tulsa moved up to Class 2. 
Tulsa's extraordinary commitment to flood mitigation ensures that harm to people and 
property from any future flood there will be minimal. Flood mitigation truly is a quality-
of-life measure, because it benefits everyone in a community, not just NFIP 
policyholders. As for the policyholders in Tulsa, they receive a 40-percent discount on 
their flood insurance premiums. Will they reach the 45 percent maximum discount?
Other leading prospects to become the first CRS Class 1 community include King 
County, Washington, and the City of Fort Collins, Colorado. Both communities reached 
Class 4 in October 2001, earning their NFIP policyholders a 30-percent premium 
discount.
Fort Collins became committed to flood mitigation, and the CRS, after an early 1997 
flood killed five people there, injured another 60 people, and caused more than $200 
million in property damage. Barely 2 years later, an even worse floodcaused by the 
second heaviest rainfall in Colorado historyswept through Fort Collins. However, in 
the 2 intervening years, people in the floodplain had been given financial incentives to 
demolish or move their buildings, and the resulting open space was converted to a public 
park. Property damage from the 1999 flood in Fort Collins was minimal, and officials 
estimated that 100 lives were saved by the flood mitigation measures undertaken after the 
1997 flood. 
Enrolling in CRS
If your community would like to benefit from participation in the Community Rating 
System, it's not difficult to get started. First, the community's chief executive must 
appoint a CRS coordinator to handle the application process and serve as liaison between 
the community and the NFIP. The CRS coordinator may wish to assemble a small but 
broad-based advisory group.
Next, the CRS coordinator should visit the Community Rating System Resource Center 
on the web site of FEMA's Emergency Management Institute at http://training.fema.gov/ 
emiweb/crs/index.htm.
 The online CRS Resource Center makes it easy for communities to learn about, and 
apply for participation in, the CRS.
The Getting Started button at the bottom left of the homepage screen provides a brief 
overview of the CRS and a link to an online Quick Check that lets visitors find out 
whether their communities could qualify for the 500 points needed to join the CRS. Just 
below that, the Introduction, Procedures, and Application Process tabs provide all of the 
initial information needed.
Application assistance also is available from the Insurance Services Office (ISO) by 
telephone (317-848-2898), e-mail (nfipcrs@iso.com), or regular mail at the following 
address:
NFIP/CRS
PO Box 501016 
Indianapolis IN  46250-1016
If your community decides to join the CRS, ISO specialists will help the CRS coordinator 
apply to the program and design, implement, and document flood mitigation activities 
that earn premium discounts. Before long, your community, too, can be "movin' on up." 

Distribution of CRS Communities
by Rate Class, with Premium Discounts1
as of October 1, 2004
									Flood
		Number	Share of	Insurance
	Rate	of	Total	Premium
	Class	Communities	Communities	Discount2

	1	0		45%
	2	1	<1%	40%
	3	0		35%
	4	2	<1%	30%
	5	26	2%	25%
	6	53	5%	20%
	7	196	18%	15%
	8	407	36%	10%
	9	321	29%	5%
	Total	1,006	90%	-
	1Preferred Risk Policies and Mortgage Portfolio Protection Program policies are 
not eligible for CRS premium discounts.
2These discounts apply in Zones A, AE, A1-A30, V, V1-V30, AO, and AH. In all other 
zones, the discount is 10% for Classes 1-6 and 5% for Classes 7-9.
Source: CRS Section, NFIP Flood Insurance Manual, October 1, 2004, Revisions 
Supplement


Farewell, and Thanks, to a Class 1 Gentleman

Last July, Richard Decker stepped aside from his 17-year role as the first Chair of the 
Community Rating System Task Force.
Widely known and respected for his several decades of experience in the property and 
casualty insurance industry, Dick was appointed Task Force Chair by the Federal 
Insurance Administrator in 1987, when the multidisciplinary stakeholder group was 
formed. The group's mission was to develop ways to provide communities with 
incentives to go beyond the NFIP's baseline standards for floodplain management and 
flood mitigation.
The result, 3 years later, was the launch of the NFIP's innovative Community Rating 
System (CRS). Its credo? 
	To reduce flood losses
	To promote awareness of flood insurance
	To facilitate accurate rating for flood insurance
Initially, 300 communities participated in the CRS. With Dick at the helm, the CRS grew 
steadily, matured, and began to realize its potential. Today, 1,116 communities 
participate in the CRS. These communities earn discounts on flood insurance premiums 
by completing approved flood mitigation measures. Although CRS communities 
constitute less than 6 percent of all communities that participate in the NFIP, they 
represent 66 percent of the NFIP's 4.4 million policies in force.
Dick Decker formally resigned from his position as Chair at the mid-July meeting of the 
CRS Task Force in Boulder, Colorado. Grateful members of the Task Force presented 
him with a plaque conferring on him "Honorary Class 1" status.
Farewell, Dickand thank you for your wisdom, your humor, and your remarkable 
ability to get people to work together. The NFIP is indebted to you. So, too, are the 
residents of the 1,116 CRS communities.



NextGen Project Update

The NextGen project is modernizing the NFIP by developing web-based, e-Government 
flood insurance capabilities. Delivery is scheduled for 2006. At present, NextGen is 
building prototypes that undergo extensive testing to ensure that they work under current 
and future processes, meet real NFIP turnaround and volume demands, and can be used 
and maintained at a reasonable cost. 
SQANet
SQANet stands for "Simple and Quick Access" to the web-based, dynamic, and secure 
policy and claim reports. SQANet eventually will be available to all NFIP stakeholders, 
from FEMA headquarters and Regional staff to State personnel and WYO companies. As 
a pilot program with a small but growing number of users, SQANet has been used to 
provide FEMA and WYO companies with access to repetitive loss reports. 
SQANet reports are available through user-friendly "dashboards," which provide each 
group of stakeholders with an introductory screen of graphs and report listings most 
relevant to their region, company, or business focus. Users also can access a mix of 
reports covering all aspects of the NFIP. Throughout SQANet, security and privacy 
standards are strictly enforced, preventing unintentional release of proprietary data to 
unauthorized viewers.
FREE
Flood Rating Engine Environment (FREE) is a web-based rating engine prototype that 
allows users to accurately quote flood insurance policies in seconds. The first release of 
FREE focuses on Submit-for-Rate policies and allows the rating of a large portion of 
zone combinations. The user interface includes dynamic features to expedite form 
submission by providing options based on information already entered by a user. The 
output page provides easy-to-understand quotes that can be relayed quickly to customers 
and agents.
Watermark will bring you updates on NextGen as this project continues to develop and 
NFIP technology becomes more user friendly. Check out NextGen's web site 
(NFIPNextGen.com) for a look at what is currently available. 


Open Houses, Not Just For Sundays
David Schein, FEMA


FEMA Regional Offices are required to conduct informational meetings in communities 
affected by floodplain mapping changes. When the draft maps, called preliminary maps, 
become available, they are presented to local communities. Discussion includes what was 
done, why, and how, and any feedback, including better information, is sought. 
Simplifying the Presentation
Historically, these meetings were essentially lectures, with FEMA staff, the study 
contractor, and a representative from the state NFIP coordinating agency making 
presentations to a room of people. There was no way to tell in advance how well attended 
a meeting would be, nor how well the audience understood the information after it was 
presented. The presentation often focused on the regulations for determining whether 
property was "in the floodplain" or "out." 
In describing flood risk to the public, FEMA has presented and maintained that everyone 
is exposed to a flood hazard, and it is only their degree of risk that varies. But the 
inception of Map Modernization, countywide floodplain mapping, new engineering 
techniques, and the department-wide emphasis on partnering has caused FEMA Region V 
(headquartered in Chicago) to consider an alternate approach to presenting this message 
in the context of the public "lecture" meeting. The region's Hazard Identification and Risk 
Assessment Branch developed a new meeting concept called the "Flood Risk Information 
Open House." Here is how it works.
Several weeks before the meeting, FEMA's Region V Office works with the community 
floodplain administrator, the state NFIP coordinating agency, the mapping contractor, 
and the state emergency management agency to coordinate the Open House. Unlike the 
one-sided lecture format, the new, interactive Open House format includes brief opening 
remarksthen the audience visits displays staffed by experts with whom they can discuss 
issues in depth.  
This informal meeting structure helps attendees to better understand flood risk data and 
acquire information for making good risk management decisions. For instance, four 
corners of the meeting room are typically set up with signs or displays marked simply 
"Flood Risk Maps," Flood Insurance," Flood Protection Standards (Regulations)," and 
"Hazard Mitigation." Other displays may address the role of NFIP state coordinators, the 
map change process, local permit rules, or anything else that seems appropriate. 
The First Open House 
Our first Open House was conducted in Indianapolis. The City arranged for the meeting's 
publicity and had extensive involvement in the event, providing technical staff from the 
Building, Code Enforcement, and Geographic Information Systems (GIS) departments to 
answer questions and demonstrate the City's sophisticated permit tracking and GIS 
capabilities. Staff brought laptop computers loaded with address-
specific data and map overlays showing the existing floodplain and the proposed 
revisions, so homeowners could see the "before" and "after" versions of the flood maps 
and how the revision affected their property.
The City arranged for three local insurance brokers to staff a "Flood Insurance" table at 
the Open House. (We chose more than one agent/broker so as not to suggest that any 
particular agent or company was "approved" or otherwise preferred by the public 
agencies present.) Real estate professionals also attended, as did a neighborhood 
association. The private-public partnerships generated by having these important NFIP 
stakeholders at the meeting should serve the program well in the future. 
Judging from the feedback we received and the fact that nearly 60 people attended the 3-
hour Open House, we intend to conduct all future floodplain map presentation meetings 
in this new successful format. 
More information about this meeting process can be obtained by calling Terry Reuss Fell, 
Chief of the Hazard Identification and Risk Assessment Branch, FEMA Region V, at 
312-408-5587, or by emailing her (terry.fell@dhs.gov). 



David Schein is the Senior Program Manager in FEMA's Region V Mitigation Division. 
He has conducted more than 700 public meetings to explain the NFIP to citizens, local 
elected officials, consulting engineers, attorneys, trade groups, bankers, insurance agents, 
real estate professionals, and Federal and State regulatory agencies. 



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 endorse any organization, product, or 
service. Unless otherwise noted, resources cited are free of charge. Web site addresses 
may have changed since this edition of Watermark went to press.
Publications
Risk Management for Small Business
This easy-to-use resource was designed to help small businesses incorporate risk 
management into their business plans. Prepared for those who have had little or no 
previous experience in risk management, the manual includes worksheets and check lists 
for identifying and analyzing risks. It is available from the Public Entity Risk Institute 
(PERI) by faxing your order to 703-352-6339 ($15) or downloading it at no cost from the 
PERI web site (www.riskinstitute.org/newsite/test.php?pid=pubs &tid=1126).
Water and Disasters: Be Informed and Be Prepared
The theme for the 2004 World Water Day was "Water and Disasters." This booklet, 
prepared by the World Meteorological Organization (WMO), explains the science behind 
water-related hazards, explores their impact, and describes mitigation efforts for reducing 
vulnerability. It is available by writing to the WMO at 7 ib, Avenue de la Paix, CH1211, 
Geneva 2, Switzerland or by accessing it online (www.waterday 
2004.org/docs/WWD_En.pdf).
Web Sites
www.disastereducation.org
Education about disasters just got a little easier. The National Disaster Education 
Coalition (NDEC) is composed of federal agencies and national not-for-
profit organizations that work together to develop and disseminate consistent educational 
information for the public about disaster preparedness. The goal of the NDEC is to 
formulate information and advise the public about how to prepare effectively for and 
respond to natural and human-caused disasters. NDEC member agencies ensure that 
disaster safety messages are appropriate, accurate, research-based, and presented in 
understandable language.
www.nlic.org
The National Lenders Insurance Council (NLIC) has replaced its old web site. The new 
site includes interactive features such as a Message Board, an Opinion Poll, a Site Search 
tool, E-Mail Subscription, and more. 


State State

In each issue of Watermark we try to include at least one analysis of NFIP policy or loss 
data that you can use to tailor your marketing and public awareness efforts to reflect 
flood risks in your state. You can cite statistics from the data tables in cover letters, fliers, 
and advertisements, or you can give them to the news media to provide a historical 
context for local flooding and to alert the public about the probability of future flood 
risks. 
This issues tables focus on NFIP spring flood loss data. Statistics are drawn from the 25 
springs between March 1, 1980, and May 31, 2004 (data as of October 31, 2004). During 
this period, the NFIP paid more than $2.8 billion for 234,350 claims for spring flood 
losses. 
Floods can affect entire regions. Therefore, information in the State Stats Tables is 
organized by FEMA Region. The tables break out NFIP paid flood losses by occupancy 
type, flood zone, and selected policy forms (Preferred Risk Policy, Residential 
Condominium Building Association Policy, and Mortgage Portfolio Protection Program 
Policy). As you can see, even policyholders in moderate-risk B, C, and X Zones 
experience spring flood losses. And with the recent changes to the Preferred Risk Policy 
(PRP) available for property owners and renters in B, C, and X Zones, insurance against 
flood losses is more affordable than ever. 

Region I NFIP Spring Loss DistributionMarch, April, and May
		
March 1,1980,through	May 31,2004	(Data as of	October 31,2004)		
	Connecticut	Massachusetts	Maine	New Hampshire	Rhode Island	Vermont
Paid Losses	1,922	2,031	872	394	303	268
Claim Payments	$15,268,351	$15,152,364	$13,020,151	$2,522,605	$3,821,310	$2,513,096
Average Claim Payment	$7,944	$7,461	$14,931	$6,403	$12,612	$9,377
Occupancy						
Single Family						
Paid Losses	1,367	1,456	489	289	161	163
Claim Payments	$7,807,452	$8,581,369	$4,220,806	$1,642,809	$907,461	$765,819
2 - 4 Family						
Paid Losses	115	181	79	35	18	16
Claim Payments	$640,652	$985,168	$1,019,977	$87,479	$97,952	$116,699
Other Residential						
Paid Losses	111	131	42	8	0	9
Claim Payments	$1,721,983	$871,473	$865,453	$98,997	$0	$86,486
Non-Residential						
Paid Losses	329	263	262	62	124	80
Claim Payments	$5,098,265	$4,714,354	$6,913,916	$693,320	$2,815,896	$1,544,092
Zone						
A Zone						
Paid Losses	1,040	1,175	451	225	181	157
Claim Payments	$9,601,975	$7,970,376	$7,232,237	$1,702,466	$1,976,611	$2,019,494
V Zone						
Paid Losses	134	135	3	1	39	0
Claim Payments	$492,786	$1,623,078	$13,901	$1,041	$872,292	$0
B,C and X Zone						
Paid Losses	541	583	138	85	76	41
Claim Payments	$4,286,708	$5,212,284	$2,282,756	$472,840	$823,003	$282,542
Other Zone						
Paid Losses	207	138	280	83	7	70
Claim Payments	$886,883	$346,627	$3,491,258	$346,258	$149,404	$211,060
Special Policies						
PRP						
Paid Losses	45	149	11	11	13	8
Claim Payments	$275,206	$755,835	$40,966	$80,988	$52,976	$82,271
RCBAP						
Paid Losses	10	54	0	0	0	0
Claim Payments	$956,686	$279,554	$0	$0	$0	$0
MPPP						
Paid Losses	0	0	0	0	0	0
Claim Payments	$0	$0	$0	$0	$0	$0

Region II NFIP Spring Loss DistributionMarch, April,and May

March 1,1980,through May 31,2004 (Data as of October 31,2004)
New Jersey     New York     Puerto Rico     Virgin Islands
Paid Losses     11,738      10,464      3,013      193 Claim Payments     $86,067,479      $57,691,147      $15,764,285      $1,136,583 Average Claim Payment     $7,332      $5,513      $5,232      $5,889
Occupancy
Single Family
Paid Losses     8,800     8,165     2,326     78 Claim Payments     $53,544,764     $42,276,392     $9,036,869     $300,831 2 - 4 Family Paid Losses     1,385     1,104     100     11 Claim Payments     $7,179,262     $3,280,135     $384,103     $29,112 Other Residential Paid Losses     253     181     64     11 Claim Payments     $1,838,068     $663,588     $199,112     $16,850 Non-Residential Paid Losses     1,296     1,006     522     93 Claim Payments     $23,500,651     $11,432,964     $6,141,701     $789,790
Zone
A Zone
Paid Losses     10,163     3,828     2,563     112 Claim Payments     $73,639,399     $27,507,152     $12,463,727     $738,859 V Zone Paid Losses     192     251     11     1 Claim Payments     $1,797,662     $7,594,648     $54,070     $190 B,C and X Zone Paid Losses     730     1,689     388     60 Claim Payments     $7,609,011     $10,473,680     $2,926,543     $359,269 Other Zone Paid Losses     653     4,696     50     20 Claim Payments     $3,021,408     $12,115,667     $319,296     $38,264
Special Policies
PRP 
Paid Losses     32     125     18     2 Claim Payments     $131,096     $742,833     $112,533     $26,942 RCBAP
Paid Losses     13     4     1     0 Claim Payments     $108,409     $9,771     $14,133     $0 MPPP
Paid Losses     0     0     0     0 Claim Payments     $0     $0     $0     $0

Region III NFIP Spring Loss DistributionMarch, April, and May
	
March 1,1980,through	May 31,2004	(Data as of	October 31,2004)		
	District of Columbia	Delaware	Maryland	Pennsylvania	Virginia	West Virginia
Paid Losses	1	252	237	1,968	1,742	4,335
Claim Payments	$13,533	$1,717,393	$1,909,430	$10,035,452	$19,887,448	$62,720,421
Average Claim Payment	$13,533	$6,815	$8,057	$5,099	$11,416	$14,468
Occupancy						
Single Family						
Paid Losses	0	198	158	1,513	1,066	3,221
Claim Payments	$0	$1,043,797	$590,255	$6,047,498	$7,692,302	$31,264,732
2 - 4 Family						
Paid Losses	0	8	3	79	49	90
Claim Payments	$0	$34,286	$3,513	$210,103	$352,558	$1,041,944
Other Residential						
Paid Losses	0	19	10	29	44	67
Claim Payments	$0	$196,792	$61,023	$236,941	$2,539,272	$946,787
Non-Residential						
Paid Losses	1	27	66	347	583	957
Claim Payments	$13,533	$442,518	$1,254,639	$3,540,911	$9,303,316	$29,466,957
Zone						
A Zone						
Paid Losses	1	145	149	1,200	1,202	2,928
Claim Payments	$13,533	$1,142,233	$1,587,782	$6,462,588	$15,850,604	$50,004,937
V Zone						
Paid Losses	0	85	7	0	14	0
Claim Payments	$0	$492,190	$12,203	$0	$187,499	$0
B,C and X Zone						
Paid Losses	0	21	52	533	292	711
Claim Payments	$0	$81,452	$240,119	$2,708,920	$2,571,671	$9,602,785
Other Zone						
Paid Losses	0	1	29	235	234	696
Claim Payments	$0	$1,519	$69,326	$863,943	$1,277,674	$3,112,699
Special Policies						
PRP						
Paid Losses	0	4	11	67	48	161
Claim Payments	$0	$19,153	$55,723	$553,255	$318,102	$2,143,184
RCBAP						
Paid Losses	0	0	1	1	0	5
Claim Payments	$0	$0	$2,300	$13,132	$0	$55,738
MPPP						
Paid Losses	0	0	0	0	0	10
Claim Payments	$0	$0	$0	$0	$0	$90,195

Region IV NFIP Spring Loss DistributionMarch, April, and May
		
March 1,1980, through May 31,2004	(Data as of October 31,2004)		
	Alabama	Florida	Georgia	Kentucky	Mississippi	North Carolina	South Carolina	Tennessee
Paid Losses	3,996	12,690	1,919	8,225	11,706	2,684	499	2,265
Claim Payments	$70,988,541	$227,202,702	$27,213,106	$134,924,150	$118,570,335	$23,854,374	$3,372,851	$30,038,031
Average Claim	Payment $17,765	$17,904	$14,181	$16,404	$10,129	$8,888	$6,759	$13,262
Occupancy								
Single Family								
Paid Losses	3,290	10,565	1,640	6,650	9,777	2,092	388	1,760
Claim Payments	$42,549,389	$191,100,615	$21,769,588	$93,671,234	$93,897,652	$15,502,936	$2,383,725	$16,804,959
2 - 4 Family								
Paid Losses	66	647	50	330	152	151	47	105
Claim Payments	$861,905	$9,975,411	$374,534	$6,731,464	$1,180,658	$1,362,480	$247,307	$1,063,856
Other Residential								
Paid Losses	73	658	74	99	358	82	26	66
Claim Payments	$1,150,972	$12,631,723	$1,058,153	$2,940,860	$5,351,854	$1,085,841	$199,301	$1,481,581
Non-Residential								
Paid Losses	566	820	154	1,146	1,413	359	38	333
Claim Payments	$26,422,724	$13,494,952	$4,009,854	$31,580,593	$18,067,532	$5,903,118	$542,517	$10,686,600
Zone								
A Zone								
Paid Losses	1,958	9,549	1,215	5,581	7,612	1,358	251	1,385
Claim Payments	$35,241,662	$178,517,158	$18,999,363	$96,128,591	$83,846,525	$11,122,619	$1,158,132	$19,601,618
V Zone								
Paid Losses	23	1,552	2	0	1	707	49	2
Claim Payments	$135,940	$34,647,928	$3,159	$0	$2,086	$6,919,480	$528,335	$10,033
B,C and X Zone								
Paid Losses	1,629	1,200	544	1,570	1,611	504	171	603
Claim Payments	$33,173,399	$10,430,358	$6,969,210	$26,277,857	$18,422,004	$4,906,340	$1,470,685	$8,965,148
Other Zone								
Paid Losses	386	389	158	1,074	2,482	115	28	275
Claim Payments	$2,437,540	$3,607,257	$1,241,375	$12,517,702	$16,299,721	$905,936	$215,698	$1,461,231
Special Policies								
PRP								
Paid Losses	271	240	166	221	276	101	70	197
Claim Payments	$4,646,939	$1,793,282	$1,746,030	$3,965,091	$3,102,526	$677,816	$576,480	$2,103,393
RCBAP								
Paid Losses	0	84	1	12	2	10	18	1
Claim Payments	$0	$2,047,695	$53,476	$734,472	$13,011	$165,942	$139,322	$12,125
MPPP								
Paid Losses	2	2	0	20	3	1	0	5
Claim Payments	$19,203	$25,414	$0	$319,884	$23,886	$4,186	$0	$70,029

Region V NFIP Spring Loss DistributionMarch, April, and May
		
March 1, 1980, through May 31, 2004 (Data as of October 31, 2004)
	Illinois	Indiana	Michigan	Minnesota	Ohio	Wisconsin
Paid Losses	6,539	2,165	3,167	4,284	3,797	714
Claim Payments	$42,590,796	$22,621,618	$18,057,885	$73,489,947	$45,738,913	$6,993,731
Average Claim Payment	$6,513	$10,449	$5,702	$17,155	$12,046	$9,795
Occupancy						
Single Family						
Paid Losses	5,633	1,847	2,911	3,753	3,094	609
Claim Payments	$34,210,294	$17,110,742	$15,153,327	$60,624,078	$27,854,229	$5,227,141
2 - 4 Family						
Paid Losses	125	90	41	59	84	8
Claim Payments	$653,658	$573,060	$204,298	$1,068,930	$1,184,991	$40,406
Other Residential						
Paid Losses	77	24	30	37	95	7
Claim Payments	$400,566	$113,042	$119,027	$599,887	$961,580	$44,235
Non-Residential						
Paid Losses	704	204	185	435	523	90
Claim Payments	$7,326,278	$4,824,774	$2,581,234	$11,197,052	$15,737,827	$1,681,948
Zone						
A Zone						
Paid Losses	4,196	938	2,099	2,581	2,604	561
Claim Payments	$31,917,207	$13,248,161	$12,325,365	$47,537,122	$33,443,158	$5,647,624
V Zone						
Paid Losses	0	0	0	0	0	0
Claim Payments	$0	$0	$0	$0	$0	$0
B,C and X Zone						
Paid Losses	762	317	630	1,650	659	127
Claim Payments	$4,993,982	$3,689,526	$3,955,884	$25,390,064	$9,049,731	$1,224,680
Other Zone						
Paid Losses	1,581	909	438	53	534	26
Claim Payments	$5,679,607	$5,669,373	$1,776,637	$562,761	$3,246,024	$121,427
Special Policies						
PRP						
Paid Losses	257	75	78	1,275	170	51
Claim Payments	$1,873,661	$918,754	$689,631	$19,118,458	$2,669,784	$774,205
RCBAP						
Paid Losses	4	0	0	9	6	0
Claim Payments	$26,624	$0	$0	$143,885	$106,928	$0
MPPP						
Paid Losses	1	1	0	1	5	0
Claim Payments	$3,517	$5,161	$0	$4,904	$120,466	$0

Region VI  NFIP Spring Loss DistributionMarch, April, and May	
	March 1,1980,through	May 31,2004 (Data as	of October 31,2004)		
	Arkansas	Louisiana	New Mexico	Oklahoma	Texas
Paid Losses	1,047	82,581	93	3,653	17,788
Claim Payments	$12,778,979	$1,001,364,660	$769,775	$60,717,365	$250,537,878
Average Claim Payment	$12,205	$12,126	$8,277	$16,621	$14,085
Occupancy					
Single Family					
Paid Losses	726	68,219	86	2,916	15,335
Claim Payments	$7,206,941	$808,151,639	$691,431	$44,508,470	$207,973,591
2 - 4 Family					
Paid Losses	63	7,627	3	141	410
Claim Payments	$678,321	$69,111,374	$31,250	$1,516,954	$4,500,787
Other Residential					
Paid Losses	44	1,536	1	192	614
Claim Payments	$762,552	$28,020,718	$20,098	$4,952,050	$9,610,491
Non-Residential					
Paid Losses	213	5,179	3	404	1,429
Claim Payments	$4,130,341	$95,927,029	$26,997	$9,739,890	$28,453,008
Zone					
A Zone					
Paid Losses	638	51,870	61	2,353	7,510
Claim Payments	$8,801,951	$670,389,734	$510,046	$36,643,454	$121,867,385
V Zone					
Paid Losses	0	326	0	0	33
Claim Payments	$0	$2,683,000	$0	$0	$351,538
B,C and X Zone					
Paid Losses	291	26,249	6	1,164	8,564
Claim Payments	$2,707,768	$297,191,330	$58,365	$23,164,438	$110,308,742
Other Zone					
Paid Losses	113	4,135	26	136	1,680
Claim Payments	$1,169,604	$31,089,348	$201,364	$909,472	$17,997,631
Special Policies					
PRP					
Paid Losses	46	3,852	0	64	1,714
Claim Payments	$720,751	$56,027,421	$0	$565,092	$17,584,520
RCBAP					
Paid Losses	2	68	0	10	20
Claim Payments	$44,729	$1,655,928	$0	$45,066	$189,908
MPPP					
Paid Losses	1	10	0	0	1
Claim Payments	$11,000	$134,713	$0	$0	$13,700

Region VII NFIP Spring Loss DistributionMarch, April, and May	
	March 1,1980,through	May 31,2004 (Data	as of October 31,2004)	
	Iowa	Kansas	Missouri	Nebraska
Paid Losses	1,556	504	10,385	341
Claim Payments	$16,689,592	$4,095,860	$111,141,650	$2,441,716
Average Claim Payment	$10,726	$8,127	$10,702	$7,160
Occupancy				
Single Family				
Paid Losses	1,318	409	8,211	319
Claim Payments	$11,822,518	$2,836,846	$61,424,474	$2,225,638
2 - 4 Family				
Paid Losses	22	7	301	0
Claim Payments	$113,002	$34,957	$2,436,769	$0
Other Residential				
Paid Losses	3	2	112	8
Claim Payments	$21,440	$25,802	$1,836,590	$43,255
Non-Residential				
Paid Losses	213	86	1,761	14
Claim Payments	$4,732,632	$1,198,255	$45,443,817	$172,824
Zone				
A Zone				
Paid Losses	1,377	340	8,757	238
Claim Payments	$14,927,546	$3,079,114	$99,659,858	$1,696,316
V Zone				
Paid Losses	0	0	0	0
Claim Payments	$0	$0	$0	$0
B,C and X Zone				
Paid Losses	146	138	923	77
Claim Payments	$1,657,183	$941,174	$7,942,138	$647,130
Other Zone				
Paid Losses	33	26	705	26
Claim Payments	$104,863	$75,571	$3,539,654	$98,271
Special Policies				
PRP				
Paid Losses	48	18	136	12
Claim Payments	$509,565	$93,043	$1,140,378	$118,724
RCBAP				
Paid Losses	0	0	0	0
Claim Payments	$0	$0	$0	$0
MPPP				
Paid Losses	0	0	2	0
Claim Payments	$0	$0	$17,900	$0

Region VIII NFIP Spring Loss	DistributionMarch,April,and	May		
	March 1,1980,through	May 31,2004	(Data as of	October 31,2004)		
	Colorado	Montana	North Dakota	South Dakota	Utah	Wyoming
Paid Losses	285	300	5,066	782	145	32
Claim Payments	$2,682,284	$1,358,003	$114,838,954	$10,563,934	$2,342,013	$129,030
Average Claim Payment	$9,412	$4,527	$22,669	$13,509	$16,152	$4,032
Occupancy						
Single Family						
Paid Losses	244	259	4,337	673	103	22
Claim Payments	$2,213,606	$1,266,128	$92,628,808	$8,986,662	$1,458,789	$41,922
2 - 4 Family						
Paid Losses	8	7	155	7	5	2
Claim Payments	$30,733	$9,498	$3,395,436	$111,308	$7,055	$11,545
Other Residential						
Paid Losses	1	4	80	11	7	1
Claim Payments	$1,287	$2,583	$3,290,759	$106,339	$64,720	$2,583
Non-Residential						
Paid Losses	32	29	494	91	30	7
Claim Payments	$436,658	$70,349	$15,523,951	$1,359,625	$811,450	$72,980
Zone						
A Zone						
Paid Losses	172	109	2,378	288	43	7
Claim Payments	$1,940,778	$514,898	$59,084,681	$3,884,199	$882,410	$29,671
V Zone						
Paid Losses	0	0	0	0	0	0
Claim Payments	$0	$0	$0	$0	$0	$0
B,C and X Zone						
Paid Losses	75	112	2,270	379	34	11
Claim Payments	$562,603	$515,085	$41,993,573	$5,475,336	$480,910	$16,943
Other Zone						
Paid Losses	38	79	418	115	68	14
Claim Payments	$178,903	$328,020	$13,760,700	$1,204,400	$978,694	$82,416
Special Policies						
PRP						
Paid Losses	36	80	1,970	272	1	2
Claim Payments	$214,382	$422,665	$34,101,482	$3,695,108	$633	$123
RCBAP						
Paid Losses	0	4	8	0	0	0
Claim Payments	$0	$3,000	$317,679	$0	$0	$0
MPPP						
Paid Losses	0	0	0	0	0	0
Claim Payments	$0	$0	$0	$0	$0	$0

Region IX NFIP Spring Loss DistributionMarch, April, and May)		
	March 1,1980,through	May 31,2004 (Data as of	October 31,2004)		
	Arizona	California	Guam	Hawaii	Nevada
Paid Losses	109	4,280	0	209	42
Claim Payments	$977,484	$61,324,868	$0	$1,808,505	$334,418
Average Claim Payment	$8,968	$14,328	$0	$8,653	$7,962
Occupancy					
Single Family					
Paid Losses	93	3,347	0	150	26
Claim Payments	$818,978	$40,490,881	$0	$1,306,122	$178,549
2 - 4 Family					
Paid Losses	2	305	0	18	1
Claim Payments	$40,901	$7,466,197	$0	$121,474	$632
Other Residential					
Paid Losses	0	133	0	8	3
Claim Payments	$0	$3,511,278	$0	$38,511	$14,601
Non-Residential					
Paid Losses	14	495	0	33	12
Claim Payments	$117,605	$9,856,512	$0	$342,398	$140,636
Zone					
A Zone					
Paid Losses	73	2,268	0	122	15
Claim Payments	$811,395	$39,362,824	$0	$1,082,259	$180,732
V Zone					
Paid Losses	0	100	0	22	0
Claim Payments	$0	$1,647,656	$0	$304,814	$0
B,C and X Zone					
Paid Losses	22	1,167	0	27	12
Claim Payments	$144,516	$14,578,841	$0	$244,863	$88,494
Other Zone					
Paid Losses	14	745	0	38	15
Claim Payments	$21,573	$5,735,547	$0	$176,569	$65,192
Special Policies					
PRP					
Paid Losses	4	246	0	0	2
Claim Payments	$3,328	$2,952,703	$0	$0	$11,545
RCBAP					
Paid Losses	0	57	0	2	0
Claim Payments	$0	$5,625,209	$0	$27,034	$0
MPPP					
Paid Losses	0	3	0	0	0
Claim Payments	$0	$8,242	$0	$0	$0

Region X NFIP Spring Loss DistributionMarch, April, and May
	March 1,1980, through May 31,2004 (Data as	of October 31,2004)	
	Alaska	Idaho	Oregon	Washington
Paid Losses	100	84	146	437
Claim Payments	$1,027,577	$443,514	$1,486,582	$7,807,910
Average Claim Payment	$10,276	$5,280	$10,182	$17,867
Occupancy				
Single Family				
Paid Losses	92	75	101	386
Claim Payments	$954,609	$331,650	$1,044,673	$6,848,766
2 - 4 Family				
Paid Losses	2	0	11	5
Claim Payments	$42,267	$0	$56,763	$41,054
Other Residential				
Paid Losses	1	3	3	4
Claim Payments	$1,646	$20,633	$79,262	$12,835
Non-Residential				
Paid Losses	5	6	31	42
Claim Payments	$29,056	$91,231	$305,885	$905,255
Zone				
A Zone				
Paid Losses	67	62	82	141
Claim Payments	$761,936	$322,625	$893,362	$1,762,126
V Zone				
Paid Losses	0	0	3	1
Claim Payments	$0	$0	$70,939	$15,247
B,C and X Zone				
Paid Losses	20	16	26	102
Claim Payments	$176,578	$73,057	$139,772	$1,846,179
Other Zone				
Paid Losses	13	6	35	193
Claim Payments	$89,062	$47,832	$382,510	$4,184,358
Special Policies				
PRP				
Paid Losses	2	5	7	54
Claim Payments	$7,395	$13,057	$73,077	$938,918
RCBAP				
Paid Losses	0	0	1	1
Claim Payments	$0	$0	$8,445	$102
MPPP				
Paid Losses	0	0	0	0
Claim Payments	$0	$0	$0	$0


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Tips for Filing Your Flood Insurance Claim

If your community has been flooded, and your property or home has suffered flood 
damage, please follow these instructions to file your flood insurance claim.
Immediately
Call your agent or insurance company. Have the following information with you when 
you place your call: 
1. The name of your insurance company (your agent may write policies for more than one 
company); 
2. Your policy number; and 
3. A telephone number/e-mail address where you can be reached.
When you file your claim, ask for an approximate time frame during which an adjuster 
can be expected to visit your home so you can plan accordingly.
Once You Have Reported Your Loss
An adjuster will work with you to calculate the value of the damage and prepare a repair 
estimate.
Please keep your agent advised if your contact information changes. If you are still in a 
shelter or cannot be easily reached, please provide the name of a designated relative or 
point-of-contact who can reach you.
Before The Adjuster Arrives
Local officials may require the disposal of damaged items. If you dispose of items, please 
keep a swatch or other sample of damaged item(s) for the adjuster.
Separate damaged items from undamaged items. If necessary, place items outside the 
home.
Take photos. Take photos of any water in the house and damaged personal property. 
Your adjuster will need evidence of the damage and damaged items (i.e., carpeting 
swatches, curtains, chairs) to prepare your repair estimate.
Make a list of damaged or lost items and include their age and value where possible. If 
possible, have receipts for those items available for the adjuster.
If you have damage estimates prepared by one or more contractors, provide them to the 
adjuster since they will be considered in the preparation of your repair estimate.
Contact your insurance company if an adjuster has not been assigned to you within 
several days.

DEFINITION

Proper Openings
Good conversations begin with these, blockbuster movies and successful Broadway shows always have them,
and any enclosure worth insuring against flood damage must include them. For the NFIP to consider an opening
to be proper, it must be designed so that water can flow through enclosures beneath the building instead of
against it.
The Flood Insurance Manual provides the dimensions and location for these openings in its definition for Proper
Openings  Enclosures (Applicable to Zones A, A1-A30, AE, AO, AH, AR, and AR Dual).
"All enclosures below the lowest elevated floor must be designed to automatically equalize hydrostatic flood
forces on exterior walls by allowing for the entry and exit of floodwaters. A minimum of two openings, with
positioning on at least two walls, having a total net area of not less than 1 square inch for every square foot
of enclosed area subject to flooding must be provided. The bottom of all openings must be no higher than 1
foot above grade."


Just Around the BendMany more workshops will have been added to our schedule since 
publication of this issue. Please visit the NFIP web site 
(www.fema.gov/nfip/wshops.shtm) for updated workshop information, or contact the 
NFIP Bureau and Statistical Agent Regional Offices (listed on the next page) for 
information about NFIP events for agents, lenders, and other stakeholders.

STATE/EVENT	CITY	DATE

COLORADO
Agent and Lender Workshop	Lakewood	May 11
Agent and Lender Workshop	Lakewood	June 15
Agent and Lender Workshop	Lakewood	July 13

CONNECTICUT
Agent Workshop	Norwalk	May 4
Agent Workshop	New London	May 5
Agent Workshop	Middletown	June 29
Agent Workshop	Wethersfield	September 6
Agent Workshop	Norwalk	September 7
Agent Workshop	New London	September 8

FLORIDA
Agent Workshop	Key West	May 3
Agent Workshop	Vero Beach	May 26
Agent Workshop	Gainesville	May 31
Agent Workshop	Daytona	June 1
Agent Workshop	Jacksonville	June 2
Agent Workshop	Miami	June 15
Agent Workshop	Pensacola	July 19
Agent Workshop	Destin	July 20
Lender Workshop	Milton	July 21

ILLLINOIS
Agent Workshop	East Peoria	May 24
Agent Workshop	Belleville	May 25
Agent Workshop	Springfield	May 26
Agent Workshop	Naperville	June 8
Agent Workshop	Orland Park	June 9
Lender Workshop	Schaumburg 	August 2
Lender Workshop	Springfield 	August 4

INDIANA
Lender Workshop	Indianapolis 	June 23

IOWA
Agent and Lender Workshop	Des Moines	May 10
Agent and Lender Workshop	Ft. Dodge	May 11
Agent Workshop	Des Moines	May 19
Agent and Lender Workshop	Sioux City	August 16
Agent and Lender Workshop	Council Bluffs	August 17

KANSAS
Agent and Lender Workshop	Manhattan	July 19
Agent and Lender Workshop	Salina	July 20
Agent and Lender Workshop	Colby	July 21

LOUISIANA
NFIP Flood Forum	Baton Rouge	May 3
NFIP Flood Forum	St. Tammany Parish	May 5

MARYLAND
Agent Workshops	Lanham	May 17
Lender Workshop	Lanham	May 18
Agent Workshop	Glen Burnie	May 19

MASSACHUSETTS
Agent Workshop	West Springfield	May 18

MICHIGAN
Agent Workshop	Livonia	May 10
Agent Workshop	Mount Pleasant	May 11
Agent Workshop	Kalamazoo	May 12
Lender Workshop	Livonia 	August 25

MINNESOTA
Lender Workshop	Eden Prairie 	September 8

MISSOURI
Agent Workshop	Hollister	May 3
Agent Workshop	Hollister	May 24
Agent Workshop	Neosho	May 25
Agent Workshop	Joplin	May 26

NEBRASKA
Agent and Lender Workshop	Kearney	August 2
Agent and Lender Workshop	Ogallala	August 3
Agent and Lender Workshop	Columbus	August 9
Agent and Lender Workshop	Lincoln	August 10
Agent and Lender Workshop	So. Sioux City	August 23
Agent and Lender Workshop	Omaha	August 24

OHIO
Agent Workshop	Norwood	May 18
Lender Workshop	Richfield 	August 11

PENNSYLVANIA
Agent Workshop	Plymouth Meeting	June 14

RHODE ISLAND
Agent Workshop	Warwick	June 23

TEXAS
Agent and Lender Workshop	El Paso	May 5
NFIP Flood Forum	Dallas	June 7
NFIP Flood Forum	San Antonio	June 9

VIRGINIA
Agent Workshop	Manassas	May 10
Agent Workshop	Richmond	May 11
Agent Workshop	Norfolk	May 12
Agent Workshop	Eastern Shore	May 13

WEST VIRGINIA
Agent Workshop	Bridgeport	May 3
Agent Workshop	Charleston	May 4

WISCONSIN
Lender Workshop	Madison	July 21


Telephone Numbers

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	617-223-9540	781-848-1908
CT, MA, ME, NH, RI, VT	

Region II	212-680-3600	856-489-4003
NJ, NY
    Caribbean Office-PR,VI	787-296-35001	281-829-68802	
    

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

Region IV	770-220-5400	770-396-9117
AL, GA, KY, MS, NC, SC, TN
    FL  		813-975-74513
	
Region V	312-408-5500	630-577-1407
IL, IN, MI, MN, OH, WI

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

Region VII	816-283-7061	913-780-4238
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	425-488-5820
AK, ID, OR, WA

1FEMA contact number for Puerto Rico and the Virgin Islands.
2NFIP B&SA contact number for Puerto Rico and the Virgin Islands.
3NFIP B&SA contact number specifically for Florida.