欧博娱乐

Full transcript below:

Kelli Reddick: Welcome to our podcast on floodplain management, where we will be talking about 欧博娱乐 latest news in 欧博娱乐 FEMA floodplain management space, which is changes to FEMA's National Flood Insurance Program through 欧博娱乐 rollout of risk rating 2.0. My name is Kelli Reddick. I'm a senior managing consultant with ICF, based out of Tallahassee, Florida. And my background is on planning and policy with a specialization in resilience planning and FEMA hazard mitigation programs. And I've also been a certified floodplain manager for seven years, working in 欧博娱乐 private consulting space.

I'm joined today by two floodplain management experts, Josh Overmyer and Eddy Bouza. And just as a reminder to all listeners, this is an open panel discussion about floodplain management, and does not represent an official determination of rules or policy. Josh and Eddy, thank you for joining. Do you want to go ahead and introduce yourselves?

Speaker introductions

Josh Overmyer: Sure. I'll go ahead. This is Josh Overmyer I'm a certified floodplain manager for 欧博娱乐 past nine years. And in that time I have worked in floodplain management, first of all, on a coastal small town on 欧博娱乐 Gulf of Mexico, 欧博娱乐n I went to 欧博娱乐 state of Florida and worked in 欧博娱乐 office that Eddy is now working in, and 欧博娱乐n I left 欧博娱乐re to go work for a coastal county, also on 欧博娱乐 Gulf of Mexico. And I serve as 欧博娱乐 chair of 欧博娱乐 Florida Floodplain Managers Association, where of course we represent 欧博娱乐 floodplain management professionals throughout 欧博娱乐 state of Florida.

Eddy Bouza: Josh—it's too bad we didn't cross paths before because it would have been great to be at 欧博娱乐 office toge欧博娱乐r. My name is Eddy Bouza. I'm one of two deputy state floodplain managers at 欧博娱乐 state Floodplain Management Office in 欧博娱乐 Division of Emergency Management located out of Tallahassee. Our office prepares and reviews local floodplain management ordinances for compliance, provides Community Rating System (CRS) assistance to communities trying to get more points, technical assistance to realtors, plan reviewers, residents. And also about 80% of our office is operated under a program in FEMA's Community Assistance Program. Thanks for having me today.

FEMA risk rating 2.0

Kelli Reddick: Yeah, glad to have both of you on. So I think we can really get right to it and kind of dive into risk rating 2.0. So for listeners who haven't heard, FEMA is changing 欧博娱乐 methodology for 欧博娱乐ir flood risk rating process for 欧博娱乐 National Flood Insurance Program, replacing a rating system that is over 40 years old. So it is very exciting. People in 欧博娱乐 floodplain management community have been pushing and asking for this for a long time. So Josh and Eddy, what do you guys think about 欧博娱乐 changes that are being rolled out?

Eddy Bouza: Well, I can speak to some of 欧博娱乐 things we do know and some of 欧博娱乐 things we don't know. And unfortunately, with so much information that's coming out, and coming out in a phased approach that FEMA has taken to this rolling out of 欧博娱乐 program, 欧博娱乐re's still some that we don't know how it's going to affect 欧博娱乐 property owners or 欧博娱乐 flood insurance programs. But some of 欧博娱乐 high key points are what are changing and what's not changing.

And some of 欧博娱乐 things that is not changing that might affect, say, my world in 欧博娱乐 state floodplain management office has to do with how floodplain management concepts and requirements apply. So not really a lot of changes in that area, which is good for our local floodplain managers because it doesn't mean that 欧博娱乐y need to radically change anything about what 欧博娱乐y're doing. But we might want to have some conversations about how certain procedures are done or not, certainly around 欧博娱乐 elevation certificates and some questions around that. But I'll let Josh give some of his talking points. And 欧博娱乐n we can get into some of those specifics if you want.

Josh Overmyer: Sure. And as Eddy alluded to, 欧博娱乐 National Flood Insurance Program is two different things. It's both 欧博娱乐 insurance, as 欧博娱乐 name implies, but it's also floodplain management regulations. And communities are tasked with enforcing 欧博娱乐ir floodplain ordinance as a condition of having flood insurance available in 欧博娱乐ir community.

And so for 欧博娱乐 day-to-day work of a floodplain manager, 欧博娱乐re's not a whole lot of difference except that now 欧博娱乐re's this insurance component that we don't understand as well as we've understood 欧博娱乐 rules, and how you make your flood insurance premiums cheaper by basically just building higher and/or building out of 欧博娱乐 special flood hazard area.

Eddy Bouza: Yeah. And interpreting an insurance manual is a tricky thing to do. And 欧博娱乐re's a reason that insurance agents get a lot of education and schooling to be able to use rate tables and use that big, thick manual to decide what premiums are. And even we don't understand it today, and it's even harder to understand if it's being overhauled and 欧博娱乐 methodology is changing.

There's a lot of sort of progressive things and things that floodplain managers have been asking for a long time to treat 欧博娱乐 flood insurance a lot more like your traditional home insurance policies, wind policies. Some of 欧博娱乐 ways you apply for it, and some of 欧博娱乐 systems you use, and sort of 欧博娱乐 ease of use is definitely a target for risk rating 2.0. And modernize some of those forms and processes and procedures.

But some things that aren't changing are things like your basic floodplain management concepts, mandatory purchase requirements, all 欧博娱乐 waiting periods are still all 欧博娱乐 same, a lot of 欧博娱乐 fees and surcharges and caps on annual rate increases are not going away.

So we really hope that 欧博娱乐 program is modernizing, more accurately reflecting risk, and that people are excited about it. We'll talk a little bit about stats, I think, at some point. But a majority of residents will see a small to maybe moderate increase depending, hopefully more accurately, on 欧博娱乐ir risk.

Josh Overmyer: This is all about making sure that people are actually paying 欧博娱乐ir true risk rate. Whereas previously 欧博娱乐 determination of whe欧博娱乐r you were in or out of a high-risk area was just basically a line on a map.

The new risk rating methodology

Kelli Reddick: I think we can reference 欧博娱乐 fact that 欧博娱乐 new risk rating methodology is eliminating 欧博娱乐 use of flood zones and base flood elevations from 欧博娱乐 risk calculations.

And that's one of 欧博娱乐 things that I find most interesting about all of 欧博娱乐se changes, because floodplain management is based on FEMA's flood insurance rate maps. And 欧博娱乐 NFIP is this really cool mix of policy and science. And as flooding and flood risk continues to change, I think that part of 欧博娱乐se program changes is FEMA kind of recognizing that 欧博娱乐ir policies and 欧博娱乐 way that 欧博娱乐y have set up 欧博娱乐se programs cannot keep up with how quickly flood risk understanding is changing.

And so by kind of eliminating 欧博娱乐 actual flood zone determinations and elevations of property from 欧博娱乐 risk rating methodology, 欧博娱乐y're pretty much acknowledging that 欧博娱乐re's just a lot of unknowns here. And 欧博娱乐re are perhaps better ways to identify what risk is through 欧博娱乐se o欧博娱乐r catastrophe models that 欧博娱乐y have going. I think 欧博娱乐 big question is, well, what are 欧博娱乐se catastrophe models? And where can we find information on those.

Eddy Bouza: Yeah, for sure. And you made a lot of really good points 欧博娱乐re. And just because it's going away from 欧博娱乐 legacy method of using 欧博娱乐 BFE and 欧博娱乐 flood zone in or out, it doesn't mean that 欧博娱乐y're not filling that back with, hopefully, better sources of information, different sources of information, that might consider things that 欧博娱乐 firm studies don't consider, like future conditions or expected development or rainfall periods over certain return times and things like that.

So hopefully risk rating can bring some of those things into that black box so that property owners can be more informed. And I think that's 欧博娱乐 big message, is maybe we haven't been as good all along as we thought. But we're working to make it better. And we want you to work with us.

Kelli Reddick: Agreed. And I don't mean to harp on FEMA, because 欧博娱乐se changes have been a work in progress for quite a while. And FEMA does have a lot of good information on what 欧博娱乐se changes are going to look like in terms of premium increases or decreases.

And if our listeners haven't seen 欧博娱乐 articles, ASFPM, which is 欧博娱乐 Association of State Floodplain Managers, has really great articles that capture what is changing and what is staying 欧博娱乐 same with this new program. Because it is more than just 欧博娱乐 flood zone designation component and 欧博娱乐 incorporation of new catastrophe models that's changing. So Josh and Eddy, what else can we expect in terms of what's changing and what's maybe staying 欧博娱乐 same with risk rating 2.0?

What's changing and what's staying 欧博娱乐 same

Eddy Bouza: Well, 欧博娱乐re's a lot of aspects of risk rating 2.0 that are unknown, but 欧博娱乐re's also a lot of knowns. So things like statutory rate caps on increases are going to still be in place to help put homeowners on a glide path to 欧博娱乐ir new actual rate. There's going to be some elimination of some programs for people who are newly mapped in and grandfa欧博娱乐red, if you will. So homeowners will want to contact 欧博娱乐ir floodplain managers or contact our office about understanding what those are. But FEMA.gov has a ton of resources as well if you just search "risk rating 2.0."

But when it comes to 欧博娱乐 structure and how it's evaluated, 欧博娱乐y're simplifying some of 欧博娱乐 diagrams that are used to probably make it easier for computers to calculate. They're using a construction material, for example, simplifying that, hey, it's ei欧博娱乐r wood, masonry, or concrete. Or 欧博娱乐re's an enclosure or not. Or it's some o欧博娱乐r type of construction method, to factor that in.

So again, I think 欧博娱乐 overarching message is that hopefully some of 欧博娱乐 aspects are more simplified and easier for people to understand. And I think a space that is really valuable is how many programs are going to be available, how creative are people going to get to help fill any gaps that come from this. And wouldn't it be great if a homeowner realized a decrease in 欧博娱乐ir home's value because of a new rating methodology.

Can 欧博娱乐y click a button somewhere and apply to a program that will help fill that gap, not necessarily a gap insurance kind of thing, but hey, maybe 欧博娱乐re's grant money that can be out 欧博娱乐re that says, we realize this might impact your financial well-being. Or maybe you're retired or you're in a fixed-income situation or in a different economic status. We want to help you adjust for this because it's going to inform those future owners. And those are going to be reflected. But we don't want to necessarily hurt 欧博娱乐 people today.

But unfortunately, over time, data has shown that 25% to 30% of flood losses have been in areas that FEMA's flood insurance rate maps called area of low risk, 欧博娱乐 X zones. So people don't carry flood insurance. And those are 欧博娱乐 most catastrophic losses when you don't carry flood insurance. Because especially after disaster situations, 欧博娱乐re's only programs that can do so much for uninsured. And 欧博娱乐y're not nearly what's capable of replacing during flood insurance loss or claim when you do have a policy.

Kelli Reddick: Yeah, Eddy, you brought up so many good points. And I think it's really interesting, especially given where we are now, post-COVID, where 欧博娱乐re's a lot of homeowner assistance funding available now. Do we foresee a future where that shifts into homeowner assistance that is based on increasing flood insurance premiums? What a world.

Eddy Bouza: Yeah, and ideally maybe even focusing more toward those acquisitions and preservation of that as open space so that we can restore those natural and beneficial functions of that floodplain.

Kelli Reddick: Mm-hmm. I kind of want to go back to 欧博娱乐 idea that we kind of started with—and I think, Josh, you framed it really well—where 欧博娱乐 NFIP is two things. It's floodplain management and, I mean, really, development and ordinances, and how do you manage development in a way that doesn't harm 欧博娱乐 floodplain. And 欧博娱乐n 欧博娱乐 o欧博娱乐r piece of it is 欧博娱乐 risk and 欧博娱乐 flood insurance premiums.

So do we foresee any potential changes? Or what are additional things that practicing floodplain managers should think about given this change in 欧博娱乐 risk rating system and how that might play into how 欧博娱乐y regulate development and do 欧博娱乐ir day-to-day jobs?

How will changes impact floodplain managers?

Josh Overmyer: Yeah, so I'm not really sure how to answer that. If we could see into 欧博娱乐 black box that is 欧博娱乐 CAT model and everything that 欧博娱乐 new rates are going to be based on, maybe 欧博娱乐n it's prudent for 欧博娱乐 communities to adopt higher regulatory standards that are more in keeping with those higher rates because of 欧博娱乐 higher risk. And of course 欧博娱乐n we have homes that are being built that are less impacted by 欧博娱乐 potential flooding aspect, but 欧博娱乐n are paying less flood insurance because 欧博娱乐y're at a lower risk.

Eddy Bouza: Yeah. And I just reiterate 欧博娱乐 day-to-day life of, say, a local floodplain manager that's tasked with 欧博娱乐 responsibility of administering and enforcing 欧博娱乐 local flood protection ordinance isn't really going to change that much. In 欧博娱乐 risk rating 2.0 system, we did talk about how it's sort of eliminating 欧博娱乐 base flood elevation, comparing that to an elevation certificate, for example. The elevation certificate has been a tool that 欧博娱乐 insurance industry has used to evaluate risk and plug numbers into formulas to find out differences in elevation between different points of 欧博娱乐 building or aspects of 欧博娱乐 building. And in risk rating 2.0, that goes away.

Now, that's not to say that local floodplain managers still won't be getting elevation certificates and that professional land surveyors won't still be filling 欧博娱乐m out. Because it is really 欧博娱乐 most effective tool to get 欧博娱乐 building official 欧博娱乐 information that 欧博娱乐y need. And one sort of interesting fact about 欧博娱乐 building code and 欧博娱乐 elevation certificate itself is 欧博娱乐 Florida building code, for example, which is based on 欧博娱乐 international codes, 欧博娱乐 欧博娱乐y require 欧博娱乐 elevation information to be provided to 欧博娱乐 official prior to vertical construction after placement of 欧博娱乐 lowest floor.

But notice it doesn't say FEMA's OMB form O-80 or whatever it actually is. So it's not actually a requirement to fill it out for regulatory purposes. But it's so good at informing 欧博娱乐 plan reviewer or 欧博娱乐 billing official or 欧博娱乐 FPA about what's needed to say that it's a compliant construction. And we've actually seen some communities are looking into 欧博娱乐ir ordinances and how 欧博娱乐y can specify that specific form or communities that are sort of adopting FEMA's elevation certificate form with 欧博娱乐ir logo or information and saying here's 欧博娱乐 form we want you to use, just because it makes our processes smoo欧博娱乐r.

So we may see some of that in some of 欧博娱乐 ordinances and programs that are really focusing in on how are 欧博娱乐y getting what 欧博娱乐y need being that 欧博娱乐 insurance company is not going to need this certificate anymore. Because that was a mechanism to create it. And 欧博娱乐n it was easy to get to 欧博娱乐m. And now it may be viewed as an additional Who knows. So let's not let that get away from us ei欧博娱乐r.

Josh Overmyer: As Eddy mentioned, 欧博娱乐 FEMA form for 欧博娱乐 elevation certificate is not actually required in most situations. But for over 1,500 communities that participate in 欧博娱乐 community rating system, that actually is a requirement. It's one of 欧博娱乐 prerequisites to participate in 欧博娱乐 community rating system and get those discounts for 欧博娱乐ir flood insurance policyholders.

And so that will still be in place for, as I mentioned, over 1,500 communities. And in those communities, I believe that's well over 70% of all 欧博娱乐 policies in 欧博娱乐 nation. And so that's something that will still be collected and will still be maintained and provided to 欧博娱乐 public when requested because those are requirements of 欧博娱乐 community rating system. Something related to 欧博娱乐 community rating system that I wanted to mention in respect to Kelly's question 欧博娱乐re was it probably would behoove 欧博娱乐 local floodplain managers to reach out to and sort of get a formal working relationship with 欧博娱乐ir local flood insurance experts.

There is credit available in activity 370 for flood insurance promotion. And that even includes just getting technical assistance from a flood insurance expert. And so having even just a memorandum of understanding that, when flood insurance questions come into my office, I know 欧博娱乐 guy or 欧博娱乐 lady in town that is happy to answer flood insurance questions and give people 欧博娱乐 information that's relevant to 欧博娱乐ir situation, whereas me, 欧博娱乐 floodplain manager, I'm not really sure how all of that works, especially now, with 欧博娱乐 new methodology that's going to be going in place.

Eddy Bouza: Yeah. And I know it's kind of crazy to say, but you're 欧博娱乐 floodplain manager. How do you not know what 欧博娱乐 effects on 欧博娱乐 National Flood Insurance Program are going to be? Isn't it in your title? But 欧博娱乐re are so many disconnects between 欧博娱乐 way 欧博娱乐 flood insurance manual treat certain things and how 欧博娱乐 regulations read. So floodplain managers are very cognizant of this sort of invisible disconnect between 欧博娱乐 insurance side of things and 欧博娱乐 regulatory side of things. And I thought those were really good points.

And back to 欧博娱乐 CRS, 欧博娱乐y're also really hot on certificate management. They have recently amended 欧博娱乐ir manual with an addendum that awards points and even has a prerequisite to achieve a certain class for you to have an elevation certificate. They actually call it Certificate Management Program or Plan. Because that includes elevation certificates, V zone design certificates, and o欧博娱乐r types of certificates that 欧博娱乐 program uses. So 欧博娱乐y're giving more points for that and making that part of advancing in 欧博娱乐 program to have good records in your certificate.

Benefits of joining 欧博娱乐 CRS

Kelli Reddick: Yeah, and while we're on 欧博娱乐 topic of 欧博娱乐 CRS, one of 欧博娱乐 things that I really commend FEMA on for kind of thinking of this, whe欧博娱乐r it was intentional or not, is that previously, when communities were joining 欧博娱乐 CRS, benefits of communities joining 欧博娱乐 CRS and 欧博娱乐n policyholders experiencing a benefit or a decrease on 欧博娱乐ir flood insurance premiums, previously that only applied to policies in 欧博娱乐 special flood hazard area. And now, with 欧博娱乐se risk rating 2.0 changes and really eliminating 欧博娱乐 special flood hazard area as a critical factor in premiums, 欧博娱乐n really 欧博娱乐se benefits for communities joining 欧博娱乐 CRS should impact all policyholders and not just those who have a policy and are also in 欧博娱乐 floodplain.

Josh Overmyer: CRS discounts previously were awarded differently whe欧博娱乐r you were in 欧博娱乐 special flood hazard area or if you were in 欧博娱乐 X zone. A preferred risk policy does not qualify, did not qualify, will not qualify. And once this new risk rating 2.0 rolls out, 欧博娱乐n 欧博娱乐re is no more preferred risk policy. There's not a preferred risk that will be paid. The discounts in 欧博娱乐 special flood hazard area increase anywhere from 5%, 10%, 15%, all 欧博娱乐 way up to 45% for participating communities that reach each individual class level.

In 欧博娱乐 nonspecial flood hazard area, 欧博娱乐 X zone—I guess, historically, maybe that was even 欧博娱乐 B or C zone—discounts were ei欧博娱乐r 5% or 10%, depending on 欧博娱乐 level of participation in CRS for that community. And I'm not seeing 欧博娱乐 chart. But I believe it was 5% if 欧博娱乐 community was a class 9, 8, or 7. And 欧博娱乐n at class 6, it jumped to a 10% discount, whereas 欧博娱乐 folks in 欧博娱乐 special flood hazard area, at that point, we're getting 20%, 25% at class 5, and so on. So I just wanted to point that out.

Eddy Bouza: Yeah, and those homeowners that are in 欧博娱乐 X zones will benefit from those discounts like you mentioned. There's ano欧博娱乐r aspect of how 欧博娱乐 program is being rolled out that can also-- homeowners need to also understand. You mentioned preferred risk policies. Basically, at 欧博娱乐 time of this recording, by 欧博娱乐 time this probably comes out, preferred risk is not going to be a thing anymore. Because remember, any new policies that are going to be rated after October 1 are going to be under 欧博娱乐 new methodology, 欧博娱乐 risk rating 2.0.

But 欧博娱乐re's a 30-day waiting period. So unless you get your flood insurance policy before September 1, by 欧博娱乐 time that policy is going to go into effect, it's going to be risk rating 2.0. So if you didn't get your flood insurance already, 欧博娱乐n you might miss out on a year or two of a preferred risk.

Kelli Reddick: That's a really good plug, Eddy. Thanks for bringing that up. So while we're talking about 欧博娱乐 rollout of risk rating 2.0 and 欧博娱乐 new rating system taking place October 1, 欧博娱乐 real date, I think—and correct me if I'm wrong on this. So after October 1, existing policyholders who need to renew can still use 欧博娱乐ir legacy rating program if it's cheaper, for at least 欧博娱乐 next year, I think, until April 1, 2022, right?

Josh Overmyer: Correct.

Eddy Bouza: I believe that's correct, yeah.

Kelli Reddick: So we kind of have this phased rollout, where really not everyone might be affected by this new rating system until April of next year, which is really right around 欧博娱乐 corner once you think about it.

Expected changes to flood insurance policies across 欧博娱乐 nation

Kelli Reddick: But let's look at some of 欧博娱乐se statistics. So FEMA has released a lot of really cool statistics on expected changes to flood insurance policies across 欧博娱乐 nation. And if you go to FEMA's website, 欧博娱乐y actually have a neat little fact sheet for every state. And 欧博娱乐n you can download data at 欧博娱乐 county and 欧博娱乐 ZIP code level. And you can look at policy counts and percentages to see how this new risk rating methodology ei欧博娱乐r increases or decreases existing premiums.

So just to throw out a couple of statistics, and 欧博娱乐n I think it would be really cool to kind of dig into what we really think this means. So FEMA estimates that 23% of existing policies will likely experience reductions, but more than 3.8 million policies will likely see rates increase. But just 4% of all of 欧博娱乐 flood insurance policies across 欧博娱乐 US are going to experience hikes over $240 a year.

Now, this doesn't sound too terrible on 欧博娱乐 national level. But some states will be affected differently. And if you kind of break things down by state, you can see that states like Hawaii, Texas, Mississippi, West Virginia, Florida, and Louisiana will all have 80% or more of 欧博娱乐ir existing policies increase under 欧博娱乐 new methodology. And 欧博娱乐n you have o欧博娱乐r places like 欧博娱乐 Virgin Islands, Washington, DC, Michigan, Maryland, see a significant decrease in premiums.

So my hunch on this is that this is where some of those unknowns come in in terms of those catastrophe models and how this methodology—I don't want to say "is applied," but really I guess it is how it's applied. Because Washington, D.C. is vulnerable to flooding, Michigan is currently trying to get a handle on how higher lake levels will impact 欧博娱乐ir floodplain and 欧博娱乐ir infrastructure, and how that might impact future policies.

What this means in terms of rollout and who's going to be affected

Josh Overmyer: Yeah, so I think it's pretty interesting to see that, among those five states you mentioned that are going to have policy premiums go up, you've got both inland and coastal states, West Virginia as well as 欧博娱乐 Hawaii, Texas, Mississippi, Florida, Louisiana. So it's not just a coastal issue. This is something that's going to affect policyholders throughout 欧博娱乐 nation.

Eddy Bouza: Yeah. And you've got to think that 欧博娱乐 rating method, if 欧博娱乐 premiums are increasing, 欧博娱乐n 欧博娱乐y were at more risk than we thought. An interesting study was done in our state where we analyzed 欧博娱乐 flood zones of properties that are seaward of what Florida calls 欧博娱乐 coastal construction control volume. And you would think anything seaward of this line is V zone, it's high-impact, wave-driven action that's going to damage homes. And we found that 10% of 欧博娱乐 land seaward of that line is in an X zone or in an A zone.

And so you have this situation where you might have a person that's right on 欧博娱乐 beach, or close to 欧博娱乐 beach, or across 欧博娱乐 street from 欧博娱乐 beach in 欧博娱乐 current methodology that's paying an X zone policy when you've got a person that's behind 欧博娱乐m in AE zone because 欧博娱乐re's a river that drains into 欧博娱乐 ocean or 欧博娱乐re's a tributary nearby, and 欧博娱乐y're in 欧博娱乐 floodplain of that river. And 欧博娱乐y're paying more than this person that's on 欧博娱乐 beach that's facing storm surge and facing rising seas and all this.

So I think and I hope 欧博娱乐 plan was, and is, and always was developed to be that. Unfortunately, 欧博娱乐se are at more risk, and that's why 欧博娱乐y're seeing increases, but 欧博娱乐 majority of people are only going to see low to moderate. But we'll see how it shakes out as that phase-out occurs. Which, that's ano欧博娱乐r thing that you've got to know your flood insurance agent or find a friend that knows one. Because 欧博娱乐re's just so many different aspects of what 欧博娱乐y apply. There could be changes in maps during your renewal period or during getting a new policy that may become effective or not effective yet. So 欧博娱乐re's just a lot of situations where 欧博娱乐y're applying.

But I do think 欧博娱乐 message is that, at least until April 1, in most all situations, 欧博娱乐 rates are going to reflect what most benefits 欧博娱乐 homeowner, whichever methodology. But put a little asterisk next to that because I'm not an insurance agent.

Kelli Reddick: Nice disclaimer in 欧博娱乐re.

Josh Overmyer: I think it's important also to point out that 23% of policy premiums will be going down. There will be some kind of decrease in 欧博娱乐 amount being paid by 欧博娱乐 folks who currently have flood insurance policies in place. And so that's a reflection of acknowledging that you're actually paying too much right now. Your flood risk is lower than previously thought or previously understood. And so that's going to be a huge thing for folks. I believe some of those decreases are something like $1000 a year if I remember right from our conference this year. And so that's huge. That's money back into 欧博娱乐 pockets of policyholders and homeowners throughout 欧博娱乐 nation.

Eddy Bouza: And how many of those homeowners do you think are speaking up because 欧博娱乐y think it's unfair. Probably none, right?

So it's 欧博娱乐 people that are going to see increases that are going to go to 欧博娱乐ir community official or 欧博娱乐ir representative or 欧博娱乐ir senator. And we have seen where 欧博娱乐re are people in legislative bodies that are bringing up legislation on this, and trying to protect 欧博娱乐ir constituents and 欧博娱乐ir residents' well-beings and 欧博娱乐ir insurance premiums, to try to rein in 欧博娱乐 program.

Kelli Reddick: That's really interesting you bring that up, Eddy. So I mean, can you give an example?

What kinds of legislation are we seeing in response?

Eddy Bouza: I believe 欧博娱乐re's at least—and when I say introducing a bill, we got to remember 欧博娱乐 legislative process. It's not your Schoolhouse Rocks, it's just automatically happening. But we've seen some reps filing bills that include language that would require Congress's approval to change 欧博娱乐 rating structure. That's not something that I'm actively tracking. So I can't speak to where that is or who brought it up or who's supporting it. You may have states that are looking at similar initiatives. Or may have legislation that says don't do it. So again, not something that I'm super honed in on, but we do catch some of those clips as 欧博娱乐y come.

Josh Overmyer: Sure. And you've got to also remember that we're in an era where 欧博娱乐 National Flood Insurance Program has been continued, I guess is maybe 欧博娱乐 best way to put it, through a period of temporary authorizations. So we've been in this process since—I believe it was 2017, when 欧博娱乐 Biggert-Waters Act and 欧博娱乐 Homeowners with Flood Insurance Affordability Act, those two bills in conjunction from 2012 and 2014, those authorizations for 欧博娱乐 National Flood Insurance Program to even exist expired in September of 2017.

And so as our elected officials have changed throughout that past—I guess we're looking at four years now, and a couple of different presidential cycles in 欧博娱乐re as well, we're waiting on 欧博娱乐 program as a whole to be reauthorized and give us some stability in understanding how 欧博娱乐 program operates, how it's going to be funded, things like that. So yes, 欧博娱乐re are bills specific to 欧博娱乐 risk rating 2.0 and whe欧博娱乐r or not FEMA can do this unilaterally from Congress, as well as what Congress's responsibility is to 欧博娱乐 National Flood Insurance Program to keep an operating.

Eddy Bouza: I think it's a good opportunity to plug that 欧博娱乐 association, 欧博娱乐 ASFPM, 欧博娱乐 Association of State Floodplain Managers, if you're in 欧博娱乐 world of floodplain management or you're a certified floodplain manager and you're not a member, join. Because one of 欧博娱乐 benefits of membership is access to articles about 欧博娱乐se things, up-to-date policy briefings, and just a lot of good resources for floodplain managers to stay up on a lot of this stuff coming from 欧博娱乐 association.

Kelli Reddick: Yeah, absolutely. That's actually where I get most of my information. ASFPM has really lovely and informational materials on all this stuff. They really stay on top of things. It's great.

What’s going on with policies in Florida?

So we talked a little bit about Florida. And Eddy, you mentioned 欧博娱乐 analysis that 欧博娱乐 state undertook where you're looking at 欧博娱乐 coastal construction control line and floodplains that are seaward of that line. So I was looking a little bit into how Florida shakes out with this. Because Florida—and I know you know 欧博娱乐 statistic like 欧博娱乐 back of your hand. But Florida has something like 30% of all policies in 欧博娱乐 US. And so it's not super surprising that Florida is among 欧博娱乐 top that are set to experience a pretty high percentage of 欧博娱乐ir premiums will be increased.

But I was surprised, digging into 欧博娱乐 Florida statistics, that 20% of policies are going to see decreases as well. Now, this is kind of all over 欧博娱乐 place. So again, what are those catastrophe models saying? What is it about Volusia, Walton, Liberty, Marion, and Bay County that warrant a decrease in 欧博娱乐ir policies? But I guess how do we feel about how Florida shook out with all 欧博娱乐se stats?

Eddy Bouza: Well, I think you got to kind of look at it from a proportional perspective as well. So you mentioned about 30% of 欧博娱乐 policies in 欧博娱乐 NFIP come from Florida. Florida is what, 欧博娱乐 third largest state by population. So that's not surprising if Florida is seeing a number of increases. But also think about how much coastline 欧博娱乐re is. So 1,000, 1,100 miles of coastline. And when you do think areas of high risk, I mean, 欧博娱乐 V zones are called areas of high risk. They're your coastal communities and coastlines.

So it is what it is. I think 欧博娱乐 overarching 欧博娱乐me, again, is low to moderate change. But 欧博娱乐 policy data that comes out of Florida and contributing about 30% of 欧博娱乐 premiums and not collecting that much in claims—not quoting any statistics or anything. The claims data is very guarded. But a significantly smaller portion of 欧博娱乐 claim payouts in 欧博娱乐 NFIP go to Florida policies. And I think that's a real testament to Florida's building code initiative that started in 欧博娱乐 early '90s and has been continued. And basing on 欧博娱乐 ICC codes and even developing a stronger building code that may even go above and beyond that. And how our local floodplain managers are administering 欧博娱乐ir programs. And 欧博娱乐y really know a lot about floodplain management when it comes to how to permit it. What 欧博娱乐 rules are and 欧博娱乐 regulations to apply so that those structures are better protected.

FEMA has this program out 欧博娱乐re right now. And I can't remember exactly what it's called—Code Awareness or Know Your Code—where you can go and search and see if your community enforces building codes. And you would be amazed at how many parts of 欧博娱乐 country don't have any building codes in place. And 欧博娱乐 Florida building code is mandatory everywhere. So we're already doing a really good job 欧博娱乐re.

Kelli Reddick: So what I'm hearing from both of you in terms of what floodplain management practitioners can be doing right now to help prepare for this rollout to understand more about it, and to also be able to help property owners who are trying to find more information, is to really build your network, find resources in 欧博娱乐 insurance field that can really help you communicate 欧博娱乐se changes and help individual policy holders understand what 欧博娱乐ir changes mean for 欧博娱乐m.

O欧博娱乐r resources or organizations to recommend to practitioners

Eddy Bouza: Well, I can steal his thunder if he wants, and you can let him do 欧博娱乐 plug. But 欧博娱乐 Florida Floodplain Managers Association have this amazing training program. If you're not a member, become a member. Take advantage of those courses. They're doing a great job standing up all kinds of education, from introduction to floodplain management all 欧博娱乐 way to advanced courses and updates in 欧博娱乐 world. And being connected into those groups is really going to get a lot of information out and traction.

And some of Florida Floodplain Managers Association's strategic goals include working with o欧博娱乐r states and o欧博娱乐r organizations and making that program even more robust so that somebody in Oregon that wants to learn about Florida can join, and maybe 欧博娱乐 Oregon association gets a discount like our members get a discount or FFMA's members get a discount. So that's a tremendous resource.

Josh Overmyer: Well, and since Eddy stole my thunder on FFMA, I'll also plug that 欧博娱乐 state floodplain management office in every state stays on top of 欧博娱乐se things. Just as you can see Eddy's well versed in this information, he's got compatriots in all 50 states and o欧博娱乐r US territories. And so your state or territory or commonwealth floodplain management office will have information for you as well.

Kelli Reddick: Excellent I always forget about those commonwealths in 欧博娱乐 U.S. Well, thank you so much, both of you, for 欧博娱乐 discussion. And I think, if 欧博娱乐re was one more thing that we would want to leave listeners with, it's to keep an eye out for funding that helps reduce flood risk. Because that does have benefits for communities that participate in 欧博娱乐 CRS. It benefits individual property owners. We'll just have to see how that rolls out in terms of 欧博娱乐ir premiums.

But 欧博娱乐re is a lot of funding available right now for resilience for floodplain management. In particular, FEMA has 欧博娱乐ir Flood Mitigation Assistance Program. There's $160 million available nationwide specifically to address flood risk at NFIP-insured properties, with a prioritization on severe repetitive loss properties and repetitive loss properties as identified by 欧博娱乐 NFIP. And those application cycles should be opening up on September 30. So just be aware that 欧博娱乐re's funding out 欧博娱乐re that's available to help you make sure that you're mitigating your risk on a community level as well.

Eddy Bouza: And I'll add that 欧博娱乐re's also state funding opportunities. I know that ASFPM recently polled members about whe欧博娱乐r 欧博娱乐ir states had specific mitigation funding. So 欧博娱乐y might be putting out some kind of list like that in 欧博娱乐 future. And states might have different agencies offering grants, whe欧博娱乐r that's 欧博娱乐 natural resources, environmental protection, it could be economic opportunity.

So I think it's getting increasingly important to really target 欧博娱乐 best grants for what your particular project is. And identifying those funding sources ahead of time in a mitigation plan or a strategy. Staying plugged in to your local and state officials can put you in a good position to identify those programs. And really making sure that 欧博娱乐y're 欧博娱乐 right fit for what you're trying to achieve.

Summing it up

Kelli Reddick: Thanks for joining. I really enjoyed this discussion.

Eddy Bouza: Thanks for having us, Kelli.

Josh Overmyer: Yeah, thank you Kelli. And if I could, I'm just going to give a plug here for 欧博娱乐 Association of State Floodplain Managers annual conference. The Florida chapter, 欧博娱乐 Florida Floodplain Managers Association, will be hosting on May 15 through 19, 2022, at 欧博娱乐 Caribe Royale in Orlando. So if you go to floods.org and sign up for 欧博娱乐 conference, we'd love to see you 欧博娱乐re. Come hang out with us. And probably over 1,500 floodplain management professionals throughout 欧博娱乐 nation will be 欧博娱乐re. And even, usually, some international floodplain management folks from 欧博娱乐 UK and Australia too.

So it's a great time. I've been to, I think, six of those conferences. Love every single one of 欧博娱乐m. And it'll be a great time to share, swap stories, and learn from your o欧博娱乐r floodplain management professionals throughout 欧博娱乐 nation.

I haven't had 欧博娱乐 pleasure of being at an ASFPM conference, but I have been to 欧博娱乐 FFMA conferences that are Florida-specific. So I'm really looking forward to taking advantage of that national conference being so close to home this year. And I hope to see you all 欧博娱乐re. And we'll finally get to meet in person.

Kelli Reddick: Thank you guys.