flood - the cbra property that will give you an … - the cbr… · 9/27/2017 marshall katz ms,...

FLOOD - The CBRA Property that Will Give You an E & O Claim

Sponsored By:

9/27/2017

Marshall Katz MS, LUTC, CIC, LIA, AAI 1

FLOOD - The CBRA Property That Will Give You an E & O

ClaimPlease turn off cell phones and stow away. Thanks

Disclaimer The information in this outline is to be used as a guide only. Neither the author, M.A.I.A., affiliates, or any other organizations associated with this are liable for misprints, typos, interpretations held different from any person or organization. Riders, endorsements, coverage, and any policies not

being able to cover exposures are the agent and company responsibilities.

Timeline:

11:30 - 12:00

� Where can I find if an insured is a CBRA

property

� What is a CBRA property

� How can the property become ineligible for

an NFIP policy

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Timeline:

12:00 - 12:30

� Concealment, fraud and policy voidance

� Reduction and reformation of coverage

� Monday morning quarterbacking

From the NFIP manual.

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The Coastal Barrier Resources Act (Pub. L. 97-348) and the Coastal

Barrier Improvement Act of 1990 (Pub. L. 101-591) are Federal laws

that were enacted on October 18, 1982, and November 16, 1990,

respectively. The legislation was implemented as part of a Department

of the Interior (DOI) initiative to minimize loss of human life by

discouraging development in high-risk areas, reduce wasteful

expenditures of Federal resources, and preserve the ecological

integrity of areas Congress designates as a Coastal Barrier

Resources System (CBRS) and Otherwise Protected Areas (OPAs).

The laws provide this protection by prohibiting all Federal

expenditures or financial assistance, including flood insurance, for

residential or commercial development in areas so identified.

The CBRS includes two types of units, System Units and

Otherwise Protected Areas (OPAs). System Units are

predominately comprised of privately owned areas, though

they may also contain areas that are held for conservation

and/or recreation. Most new Federal expenditures and

financial assistance, including Federal flood insurance, are

prohibited within System Units. OPAs are predominantly

comprised of conservation and/or recreation areas, though

they may also contain private areas that are not held for

conservation and/or recreation. OPAs are denoted with a �P� at

the end of the unit number. The only Federal spending

prohibition within OPAs is the prohibition related to Federal

flood insurance.

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To determine whether a building is eligible for

flood insurance coverage, the agent/producer

should consult the list of communities where

coastal barriers and/or OPAs have been

identified. The list is included in this section

and is available for review on the Federal

Emergency Management Agency (FEMA)

website at http://www.fema.gov/coastal-barrier-

resourcessystem.

For the most current and best available CBRS maps

and boundary data, please go to the U.S. Fish and

Wildlife Service (FWS) CBRS Mapper at

https://www.fws.gov/ ecological-services/habitat-

conservation/cbra/maps/ mapper.html. The FWS

website at https://www.fws. gov/ecological-

services/habitat-conservation/coastal. html also

provides additional information regarding CBRA

property determinations.

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The U.S. Fish and Wildlife Service (Service) is not responsible for any misuse or misinterpretation of this digital data set, including use of these boundaries (which are approximate digital representations of the boundaries shown on the official maps) to determine eligibility for Federal expenditures and financial assistance including Federal flood insurance. The official Coastal Barrier Resources System (CBRS) maps (not these digital data) are the controlling documents of the CBRS boundaries and are maintained by the Service.Copies of the official CBRS maps are available for viewing at the Service Headquarters office and are also available for download on the CBRS Mapper and at the Maps web page. For information on obtaining an official determination of whether or not an area or specific property is located within the CBRS, please visit the Determinations web page. For information on project consultations, please visit the Consultations web page. For general questions regarding the CBRS, you may contact [email protected]. For information on the horizontal accuracy of this digital data set, please read the metadata.Base cartographic information used as part of this CBRS Mapper has been provided through third party products. The FWS does not maintain, and is not responsible for the accuracy or completeness of the base cartographic information.This application may not be fully accessible to people with disabilities. If you need assistance accessing this mapper or CBRS data email us at: [email protected].

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Boundaries of the John H. Chafee Coastal Barrier Resources

System (CBRS) shown on this map were transferred from

the official CBRS maps for this area and are depicted on

this map (in red) for informational purposes only. The

official CBRS maps are enacted by Congress via the Coastal

Barrier Resources Act, as amended, and are maintained by

the U.S. Fish and Wildlife Service. The official CBRS maps

are available for download at

http://www.fws.gov/habitatconservation/coastal_barrier.html.

Disclaimer on the prior map.

Buildings may be eligible for flood insurance

even if they are located within such areas.

Eligibility depends upon which Act identified

that community as having such areas.

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Eligibility under the 1982 Act for a building in a CBRS

area requires that:

o A legally valid building permit for the construction

of the building was issued prior to October 1, 1983;

and

o The building was built (walled and roofed) prior to

October 1, 1983; and

o The building was not substantially improved or

substantially damaged on or after October 1, 1983.

Was the building permitted and built prior to October 1 1983?

No No coverage

Was the building substantially improved or substantially damaged after October 1 1983?

Yes No coverage

No Coverage

Eligibility under the 1982 Act

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Eligibility under the 1990 Act for a building in a

CBRS area or an OPA requires that:

For CBRS areas:

o A legally valid building permit for the construction of

the building was issued prior to November 16,

1990; and

o The actual start of construction of the building was

prior to November 16, 1990; and


substantially damaged on or after November 16,

1990.

Was the building permitted and started prior to November 16 1990

No No coverage

Was the building substantially improved or substantially damaged after November 16 1990

Yes No coverage

No Coverage

Eligibility under the 1990 Act

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For OPAs:

o A legally valid building permit for the construction of the

building was issued prior to November 16, 1991; and

o A building in an OPA was built (walled and roofed) no

later than November 16, 1991; and


substantially damaged after November 16, 1991. OR

o The building is used in a manner consistent with the

purpose for which the area is protected, regardless of

the date of construction.

Coastal Barrier Resources Act� Find out if property is in a coastal barrier� Find out if property is eligible for coverage for new and

renewal business

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US Fisheries Local OfficeConnecticut, Rhode Island, and MassachusettsNew England Field Office70 Commercial Street, Suite 300Concord, NH 03301603-223-2541

�Are some structures located within the CBRS eligible for

Federal flood insurance?

Federal flood insurance is available within the CBRS if the

subject structure was constructed (or permitted and under

construction) before the CBRS unit�s prohibition date (which is

included in the Service�s CBRA determination letter and shown

on FEMA�s FIRMs).

http://www.fws.gov/CBRA/index.html

US Fisheries Local OfficeConnecticut, Rhode Island, and MassachusettsNew England Field Office70 Commercial Street, Suite 300Concord, NH 03301603-223-2541

�Are some structures located within the CBRS eligible for

Federal flood insurance?

If an existing insured structure within the CBRS is

substantially improved or damaged (i.e., over 50 percent of

the structure�s market value), the Federal flood insurance

policy cannot be renewed.�

Protected areas may still be able get NFIP coverage?

http://www.fws.gov/CBRA/index.html

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Substantial Damage. Damage of any origin sustained by a building

whereby the cost of restoring the building to its before-damaged condition

would equal or exceed 50% of the market value of the building before the

damage occurred.

Substantial Improvement. Any reconstruction, rehabilitation, addition,

or other improvement of a building, the cost of which equals or

exceeds 50% of the market value of the building before the �start of

construction� of the improvement. Substantial improvement includes

buildings that have incurred �substantial damage,� regardless of the actual

repair work performed. The term does not, however, include either any

project for improvement of a building to correct existing state or local code

violations or any alteration to a �historic building,� provided that the

alteration will not preclude the building�s continued designation as a

�historic building.�

More from Tom Young � Region 1 Director

�Not exactly sure who you are referring to, NFIP or the community official? Substantial Improvement definition from the FIM, you have. Each community must have their own definition so it is important to communicate with the code enforcement officers.

It depends upon the community regulations. The NFIP may have the definition but communities can choose to enforce to a higher standard. If there is a loss, substantial damage, there will still need to be a letter from the community indicating that substantial damaged occurred prior to ICC coverage being afforded.

It would appear that for the definition of substantial improvement, that this definition is not cumulative, as it doesn�t

say cumulative. It does appear to allow Substantial Damage to override Substantial Improvement, as the value prior to the damage is taken into consideration, prior to correction or improvement. This is probably done so that work is not done piecemeal, strung out over years, so that if ICC is to be requested, it is done promptly.�

9/27/2017


Dear Agent:

We have processed your application for the above referenced property utilizing the information provided on the application. This letter is to inform you that the community and map panel in which the insured building is located has designated areas which fall within the Coastal Barrier Resources Act (CBRA). We are bringing this to your attention to avoid any potential Errors & Omissions claims. Please review the flood map to verify if this property is indeed located in a CBRA designated area.

If you determine that the risk is located in a CBRA designated area and was constructed or substantially improved after October 1, 1983, the policy must be cancelled by submitting a signed and completed cancellation request

Please be aware that in the event of a loss, if we have not received substantiation as to whether or not the property is in a CBRA designated area, the claim settlement will be delayed pending determination of eligibility. Should the risk be found to be located in an ineligible area, the claim must be denied and the policy nullified.

If we can be of further assistance, please feel free to call our toll-free number and a customer services representative will be happy to assist you.

Sincerely.

Pay

Attention!

COMMUNITY NAME STATE/COMMUNITY NUMBER/COASTAL BARRIER AREA(S)/OTHERWISE PROTECTED AREA(S)

Aquinnah (Town) MA 250070 Y YBarnstable (Town) MA 250001 Y YBeverly (City) MA 250077 Y NBoston (City) MA 250286 Y YBourne (Town) MA 255210 Y NBrewster (Town) MA 250003 Y NChatham (Town) MA 250004 Y YChilmark (Town) MA 250068 Y YCohasset (Town) MA 250236 Y NDartmouth (Town) MA 250051 Y YDennis (Town) MA 250005 Y YDuxbury (Town) MA 250263 Y NEastham (Town) MA 250006 Y YEdgartown (Town) MA 250069 Y YEssex (Town) MA 250080 Y NFairhaven (Town) MA 250054 Y NFalmouth (Town) MA 255211 Y NGloucester (City) MA 250082 Y NGosnold (Town) MA 250071 Y YHull (Town) MA 250269 Y NIpswich (Town) MA 250086 Y Y

COASTAL BARRIER RESOURCES SYSTEM LIST OF COMMUNITIES

As of 09/27/2017

9/27/2017



Kingston (Town) MA 250270 Y NManchester (Town) MA 250090 Y NMarion (Town) MA 255213 Y NMarshfield (Town) MA 250273 Y NMashpee (Town) MA 250009 Y YMattapoisett (Town) MA 255214 Y NNantucket (Town) MA 250230 Y NNewbury (Town) MA 250096 N YOak Bluffs (Town) MA 250072 Y YOrleans (Town) MA 250010 Y YPlymouth (Town) MA 250278 Y NProvincetown (Town) MA 255218 N YQuincy (City) MA 255219 N YRockport (Town) MA 250100 Y NRowley (Town) MA 250101 N YSalisbury (Town) MA 250103 N YSandwich (Town) MA 250012 Y YScituate (Town) MA 250282 Y NSwampscott (Town) MA 250105 Y NSwansea (Town) MA 255221 Y N


As of 09/27/2017


Tisbury (Town) MA 250073 Y NTruro (Town) MA 255222 Y YWareham (Town) MA 255223 Y NWellfleet (Town) MA 250014 N YWest Tisbury (Town) MA 250074 Y NWestport (Town) MA 255224 Y YWinthrop (Town) MA 250289 N YYarmouth (Town) MA 250015 Y Y


As of 09/27/2017

9/27/2017


� So you told the insured they are in a

Coastal Barrier Resource System

� You told them they can not purchase

NFIP coverage any longer or at all and

� Don�t like the E & S price you just gave

them

� They want to dispute it

� Tell them to call?

What is a Property Determination?

A "CBRA property determination" is a determination made by the

Service of whether or not a specific property is located within the

CBRS. The Service's determination is based upon materials

provided by the requester and the official CBRS map of the area.

The Service's response contains an in/out determination and the

prohibition date for Federal flood insurance if the property is located

within the CBRS. This information is then used by the insurance

agent and the NFIP to determine the Federal flood insurance

eligibility of the property in question. All interested parties should

check the CBRS mapper first to see if the property may be located

in the CBRS. If the property is located in the buffer area, an official

Service property determination should be requested.

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What Materials are Required for a Property

Determination?

In order for the Service to make a property determination,

the requestor should submit a map showing the location of

the property and at least two of the following: a property

record card, deed, elevation certificate, flood insurance

application, flood policy declarations, copy of the Federal

Emergency Management Agency's (FEMA) Flood Insurance

Rate Map (FIRM), and/or flood hazard determination.

Calculating Bldg. Coverage � helpful places

www.visionappraisals.com www.patriotproperties.com http://csc-ma.us

commonwealth communities http://www.mass.gov/cc

MA Registry of Deeds http://www.sec.state.ma.us/rod

http://publicrecords.netronline.com

Don�t

need theseseparately

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Use this grid only

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Who do I Contact for a Property Determination?

� All interested parties, except insurance agents, should contact

the appropriate Service's Ecological Service Field Office for

the jurisdiction in which the property in question is located.

� Insurance agents should send requests for CBRA

determinations to the NFIP Direct Servicing Agent, or NFIP

Write Your Own insurer to whom the application for flood

insurance coverage is being made.

� The insurer will send the request to the NFIP Bureau, who will

in turn submit the case to the Service for an official

determination.

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Connecticut, Rhode Island, and

Massachusetts

New England Field Office

70 Commercial Street, Suite 300

Concord, NH 03301

603-223-2541

U.S. Fish and Wildlife Service Office Address

How long does it take to

process a request? It

generally takes several

months for the Service to

complete a CBRA

determination.

https://www.fws.gov/ecological-services/es-library/PDFs/CBRA_Property_Determinations_processFB.pdf

Frequently Asked Questions

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What if we don�t tell the truth about property facts on the application?

I. AgreementFEMA agrees to pay for direct physical loss by flood if1. Correct premium paid2. Comply with all terms3. Gave accurate information

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B. Concealment or Fraud and Policy Voidance 1. With respect to all insureds under this policy, this policy: a. Is void; b. Has no legal force or effect; c. Cannot be renewed; and d. Cannot be replaced by a new NFIP policy; if, before or after a loss, you or any other insured or your agent have at any time: (1) Intentionally concealed or misrepresented any material fact or circumstance; (2) Engaged in fraudulent conduct; or (3) Made false statements; relating to this policy or any other NFIP insurance. 2. This policy will be void as of the date the wrongful acts described in B.1. above were committed. 3. Fines, civil penalties, and imprisonment under applicable Federal laws may also apply to the acts of fraud or concealment described above. 4. This policy is also void for reasons other than fraud, misrepresentation, or wrongful act. This policy is void from its inception and has no legal force under the following conditions: a. If the property is located in a community that was not participating in the NFIP on the policy's inception date and did not join or reenter the program during the policy term and before the loss occurred; or b. If the property listed on the application is otherwise not eligible for coverage under the NFIP.

If you or your agent lied We cancel your policy Effective on the lie Not sell you another one Fines, civil penalties and jail could apply Policy is void if;

� Community is not eligible� Property not eligible

B. Concealment, Fraud or Policy Voidance. Easier Way.

Renewal Check?

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G. Reduction and Reformation of Coverage (partial information)1. If the premium we received from you was not enough to buy the kind

and amount of coverage you requested, we will provide only the amount of coverage that can be purchased for the premiumpayment we received.

2. The policy can be reformed to increase the amount of coverage

a. Discovery of insufficient premium or incomplete rating information before a loss.(1) If we discover before you have a flood loss that your

premium payment was not enough to buy the requested amount of coverage, we will send you and any mortgagee or trustee known to us a bill for the required additional premium for the current policyb. Discovery of insufficient premium or incomplete rating information

after a loss.(1) If we discover after you have a flood loss that your

premium payment was not enough to buy the requested amount of coverage, we will send you and any mortgagee or trustee known to us a bill for the required additional premium for the current and the prior policy terms. (see FEMA letter in back of book regarding prospective only)

Describe how Reduction and Reformation of Coverage works�

G. Reduction and Reformation of Coverage

1.If the premium received was not enough to buy the kind and amount of coverage requested, then after a loss

2. Coverage will match premium received by the flood program

And�don�t forget what the misrepresentation paragraph states.

How Reduction and Reformation of Coverage works. Easier Way.

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G. Reduction and Reformation of Coverage3. Coverage can be reformed to correct inadequate

premium

a. If before a loss.(1) pay the bill the flood program issues

within 30 days

b. If after a loss.(1) Pay the bill the flood program issues

within 30 days for the discrepancy from date of discovery moving forward according to FEMA letter in the back of the book. No longer retrospective, just prospective.

How Reduction and Reformation of Coverage works. Easier Way.

The importance of being set up properly.

Consider:

� Not renewing automatically without a review

� Having an internal NFIP expert go to person

� Having a specific renewal department

So that you don�t have to use your E & O insurance?

9/27/2017


Monday morning quarterbacking after an

uninsured event and when do we bring our

insurance policy into play?

Dial the number

Tell them what agency your calling from and

Let your E & O carrier guide you through the

process and

Our limit per occurrence is only what

Questions

Comments

Suggestions?

9/27/2017


Thank you for sharing your hour with MAIA and myself!

Enjoy the rest of the day.

flood - the cbra property that will give you an … - the cbr… · 9/27/2017 marshall katz ms,...

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