National Flood Insurance Program Glossary of Terms

A

acronyms

Please refer to Addendum I on NFIP commonly used acronyms.

acre-foot

A measurement of reservoir water storage. An acre-foot covers an acre one foot deep and contains 325,900 gallons.

act

Means the National Flood Insurance Act of 1968 as well as any and all changes to the Act made since its introduction.

actual cash value

This term refers to the full replacement cost of an item, minus the amount of physical depreciation at the time a covered loss (flood) occurs.

alluvial fan

A fan-shaped deposit of sand, mud or other materials.

alluvium

Sand, mud and other materials that are deposited by flowing water.

application

Means the written statement the insured person completed and signed for the purpose of getting a flood policy and which FEMA relied upon to issue the coverage. The application must be signed by either the insured or by an agent. IMPORTANT: The application is considered part of the policy; so any inaccurate statements may, if discovered, either alter the premium or, more seriously, void coverage.

ASFPM

See Association of State Flood Plain Managers.

association

Refers to the persons (unit owners) who manage the condominium building occupied by a covered condominium unit owner.

Association of State Flood Plain Managers

This is an organization of specialists with expertise in the flood peril. This group focuses upon mitigating flood losses, managing flood plains, the National Flood Insurance Program, and flood preparedness, warning and recovery.

B

base flood

For any given community or area, the flood that becomes the standard of measurement of a covered occurrence. Specifically, the flood that has a probability of one percent of being either equaled or exceeded.

basement

Refers to ANY area of a covered building which has a floor that is below ground level (subgrade) on all sides.

(Editorís note: It is important to understand that absolutely any area that is subgrade on all sides is, by policy definition, a basement; this applies even if the area is a sunken portion of a ground level floor or even if the area is completely "finished.")

boil

A danger point on the landward side of a levee where water is seeping under; threatening to breach.

building

This definition includes a defined term, "walled and roofed structure." As far as the flood policy is concerned, a building may include:

* walled and roofed structures (as defined) which are primarily above the ground and are permanently attached to the ground

* manufactured homes on a permanent foundation

* mobile homes on a permanent foundation

* walled and roofed building that is being built, altered or repaired.

bypass

An area of low-lying ground, commonly farmland, that carries floodwater downstream when rivers reach their flow capacities.

C

cancellation

Refers to coverage that terminates before the policy's ending date.

Coastal Barrier Resources Act. The

The Coastal Barrier Resources Act of 1982 prohibits the use of federal development assistance, including federal flood insurance, on property included in the System. While the act does not prevent property in coastal barriers from being developed, it helps to slow or discourage development by prohibiting the use of federal funds, including insurance and loans, from being used to build new property or replace or repair damaged property.

Coastal Barrier Resources System

The Coastal Barrier Resources System consists of coastal barrier units delineated on maps adopted by Congress and, originally, created by the Coastal Barrier Resources Act of 1982.

coastal barriers

Landscape features such as fringing mangroves, tombolos, barrier islands, barrier spits, and bay barriers that protect the mainland, lagoons, wetlands and salt marshes from the damaging effects of full force wind, wave and tidal energy. These areas frequently attract land development for resort and recreational use because of their climate and natural beauty.

coastal high hazard area

If there is any area that is prone to experience dangerous waters such as tsunamis (tidal waves) or hurricane-stirred waters it qualifies as coastal high hazard.

Community Rating System

This is a rating plan that recognizes a community's voluntary efforts to manage their exposure to being flooded. Communities that are active in activities such as mapping and regulations, flood damage reduction, flood preparedness or public awareness "receive" reductions in their flood insurance premiums. The CRS uses discounts that run in five percent increments, from five percent to 45 percent. Similar to a fire protection class plan, CRS class ratings range from Ten to One (all communities start out as a "Ten") and the higher a community's flood protection activity, the lower its class rating.

Community Status Book

Each state and U.S. territory has a status book that identifies which communities are participants in the NFIP, including whether the community is in the regular or emergency program.

condominium

Refers to any multiunit residential structures where the single units are individually owned and the group of owners share equal interest in the buildings outer structure and any common property areas.

condominium association policy

Means a valid National Flood Insurance Policy that is sold to cover a group of owners who belong to a condominium association.

Cover America

Is the name of a nationwide marketing and advertising campaign. It was begun by the FIA in 1995 with the intent to increase participation in the flood program for both insurance companies and consumers by creating greater awareness of the flood program.

cubic feet per second

A common way to measure water flows. A cubic foot of water is 7.48 gallons. One cubic foot per second is 450 gallons per minute and accumulates 1.98 acre-feet per day.

D

danger stage

In reference to rivers with levees, this occurs when the river is one foot above flood stage. There is danger to life and property in the event of a levee failure.

declarations page

The policy coverage page that summarizes the coverage provided by the policy and includes the identifying information on the insured and the covered property as supplied by the policy application. Note that the definition says that the declarations must be computer-generated, which must mean that handwritten or typed declarations would not qualify as declaration pages.

direct physical loss by or from flood

Any direct physical damage to covered property that is caused by flooding.

dwelling

Includes residences designed for up to four families and single condo-units.

E

elevated building

Any building with its lowest floor existing above the ground. The lowest floor may be supported by walls (foundation or shear) posts, piers or similar items.

elevation certificate

An elevation certificate is a document provided by a certified Surveyor showing actual elevation measurements taken on site. This document is a requirement when applying for a LOMA or LOMR.

emergency program community

Any community that has limited flood coverage available as prescribed by a Flood Hazard Boundary Map.

expense constant

The policy expense fee portion of the flood insurance premium. The fee covers the government's cost of writing and issuing flood policies.

expiration date

The ending date of a flood policy's term of coverage.

F

federal policy fee

A fixed amount that is charged each policy term to pay for government flood program costs that are NOT covered by the expense constant. Further, this charge is not considered when determining commissions, expense allowance or state/local taxes.

FEMA

Acronym for Federal Emergency Management Agency, a federal agency which oversees the National Flood Insurance Program.

FEMA Standard Form

A standard form created by FEMA upon which all flood zone determination reports must be submitted.

FIA

Federal Insurance Administration is the government entity which operates the National Flood Insurance Program, including coordinating the participation of member and inquiring communities.

flash flood warning

A flood warning issued for life and/or property threatening flooding that will occur within six hours. It could be issued for rural or urban areas as well as for areas along the major rivers. Very heavy rain in a short period of time can lead to flash flooding, depending on local terrain, ground cover, degree of urbanization, amount of man-made changes to the natural river banks, and initial ground or river condition. Dam breaks or ice jams can also create flash flooding.

flood

Refers to normally dry areas which have temporarily been covered in whole or in part by overflowing inland or tidal waters, rapid run-off of surface waters (such as heavy rains), mud (flows or slides) or waters present due to the collapse or subsidence of shores However, the collapse or subsidence must be due to the action of water, such as erosion.

flood fringe areas

The remaining portion of the one hundred (100) year floodplain in those areas identified as an AE Zone in the FEMA Flood Insurance Study.

Flood Hazard Boundary Map

Official map of a community which identifies the boundaries of the flood, mudslide, mudflow, and related erosion areas having special hazards.

Flood Insurance Rate Map (FIRM)

A map that is first developed for a community that has chosen to participate in the NFIP. The FIRM establishes the community's various flood zones, applicable base flood elevations, and the insurance rates which apply to homes within the community. The FIRM shows areas within the 100-year flood boundary, which are termed "Special Flood Hazard Areas (SFHAs)." A "100-year flood" does not refer to a flood that occurs every 100 years, but refers to a flood level with a one percent or greater chance of being equaled or exceeded in any given year. Areas between the 100-year and 500-year flood boundaries are termed "moderate flood hazard areas." The remaining areas are above the 500-year flood level and are termed "minimal flood hazard areas."

floodplain area

A relatively flat or low land area which is subject to partial or complete inundation from an adjoining or nearby stream, river or watercourse; and/or any area subject to the unusual and rapid accumulation of surface waters from any source.

floodproofing

Any combination of structural and nonstructural additions, changes or ad-justments to structures which reduce or eliminate flood damage to real estate or improved real property, water and sanitary facilities, structures and their contents.

flood stage:

In reference to rivers with levees, when flows reach maximum design capacity, with a minimum of three feet to the top of levees.

flood warning

A warning that gives the expected severity of flooding (minor, moderate or major) and may include information on when and where flooding will begin.

flood watch

Indicates that widespread flooding is a possibility in or close to the watch area. These watches are issued for flooding that is expected to occur 6 to 12 hours after the heavy rains have ended.

flood way area

Actual stream or drainage channel subject to periodic inundation by water and identified as an AE ZONE in the FEMA Flood Insurance Study.

flood zone determination companies

Literally, businesses which, for a fee, assist interested parties in determining a property's applicable flood zone.

flood zones

Areas with distinct characteristics regarding their exposure to flood losses. The zones are:
AA1-30A99
AEAHAO
ARAR/AAR/A1-30
AR/AEAR/AHAR/AO
EMV
V1-30VEVO

FMSIS

Flood Map Status Information System. A software package that is available from FEMA. The system encourages the use of updated flood map panels and monitors community status.

FPI

Force placed insurance.

FZD

flood zone determination

G, H

No entries.

I

improvements

Includes any additional structural features that are part of either a building or a single condo unit.

J

JFR

The Joint Final Rule is intended to make uniform all regulations and guidelines for implementing the statutory requirements of the National Flood Insurance Reform (or 1994) Act. This Rule was required by statute and establishes:

* new escrow requirements for flood insurance premiums

* requirements for lenders and servicers to "force place" coverage

* updated requirements for notices to borrowers, servicers, and insurance providers

* new authority for Lenders to charge fees for flood zone determinations

* miscellaneous provisions necessary to implement the 1994 Act.

K

No entries.

L

levee

An embankment of earth along a riverbank designed to protect low-lying land from flooding.

Life of Loan Report

A determination which is tracked for future map panel revisions. Changes that occur after the initial document are automatically reported.

LOMA

Letter Of Map Amendment. Describes FEMA's reviewing the accuracy of a current effective panel to determine if a structure was incorrectly placed within a SFHA. A LOMA amends the current effective FEMA map and establishes that the property is not in a SFHA.

LOMR

A LOMR is an official revision to the current effective FEMA map. It is used to change flood zones, floodplain and floodway delineations, flood elevations, and other features. A LOMR is usually followed by a physical map revision.

M

manufactured home

Means either a mobile home attached to a permanent foundation or a residence that is built at a remote location and then transported and permanently installed at its current site.

mobile home

Is defined to be a "manufactured home."

N

National Flood Insurance Program

Means the flood coverage and land management program originally authorized and subsequently amended as the National Flood Insurance Act of 1968.

NN

A community which is NOT participating in the NFIP and has no published flood hazard map panel.

NSFHA

No special flood hazard areas

O

No entries.

P

partial determination

A flood zone determination which cannot be accurately completed until a Survey or Site plan is forwarded.

policy

Refers to the set of documents including the actual flood policy, declarations page and application; as well as any coverage supplements (endorsements) and renewal certificates.

post-FIRM building

Any building started, built, or experiencing substantial improvement after either 12/1/74 or the date that its community's initial FIRM (Flood Insurance Rate Map) became effective.

pre-FIRM rated building

Any building started, built, or experiencing substantial improvement before either 12/1/74 or before the date that its community's initial FIRM (Flood Insurance Rate Map) became effective.

probation additional premium

Refers to an additional, flat charge that's made for every term for a policy covering a property located in a community that has been placed under probation. In essence, a premium surcharge that results from any deficiency that created the probation action.

project impact

This project focuses on preventing flood damage by building stronger, safer communities before disaster strikes and encouraging the involvement of citizens, community organizations, business and industry, all levels of government, and the media.

Q

No entries.

R

regular program community

Any community that has a FIRM and has full flood coverage available at regular premiums.

repetitive loss structure

Any eligible building covered by a flood policy under the Act's provisions for property that has suffered more than one flood loss and the loss amount was more than 25% of the property's market value. The special coverage lasts for 10 years after the occurrence to the second flood loss.

residential condominium building

Refers to a building that belongs to a condominium association if at least 75% of the building's floor area is residential.

S

sloughing

An area of levee that sustains loss of material from its top or side.

special hazard area

An area that is particularly vulnerable to flood damages and which is designated with a special zoning code on either a FHBM or a FIRM.

T

No entries.

U

unit

A single dwelling unit that is part of a condominium building that is individually owned by a flood policyholder.

V

valued policy

This term refers to a flood policy that has a limit of insurance that was determined as a mutually agreed-upon amount to be paid if the insured suffers a total flood loss.

W

walled and roofed

Refers to a building that is anchored in order to withstand pressures against floating, lateral movement and collapse, and which has at least a roof and two rigid, exterior walls.

warning stage

In reference to rivers with levees, when patrol of levees is mandatory, or when river flows are diverted through weirs into bypass areas.

weir

A gate on the bank that allows floodwater into a bypass.

WYO

See Write Your Own.

Write Your Own

Program under which policyholders get their insurance directly from private insurance companies rather than going directly to NFIP. Write Your Own companies write and service about 90 percent of flood insurance policies for NFIP. You pay the same amount whether you buy it from the government or a company.

X, Y, Z

No entries.