Flood Insurance Information
I received a letter from my mortgage company requiring me to buy flood insurance….Now What??? The following answers are from the FEMA publication Answers to Questions About the NFIP. 

Is the purchase of flood insurance mandatory?
The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 mandate that federally regulated, supervised, or insured financial institutions and Federal Agency lenders require flood insurance for buildings located in a participating NFIP community and in an SFHA. Some financial institutions may require flood insurance for properties outside the SFHA as part of their own risk management process.

Why is my lender requiring the purchase of flood insurance? 
Lenders are mandated under the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 to require the purchase of flood insurance by property owners who acquire loans from federally regulated, supervised, or insured financial institutions for the acquisition or improvement of land, facilities, or structures located within or to be located within an SFHA.

The lender reviews the current NFIP maps for the community in which the property is located to determine its location relative to the published SFHA and completes the Standard Flood Hazard Determination Form (SFHDF). If the lender determines that the structure is indeed located within the SFHA and the community is participating in the NFIP, the borrower is then notified that flood insurance will be required as a condition of receiving the loan. A similar review and notification are completed whenever a loan is sold on the secondary loan market or perhaps when the lender completes a routine review of its mortgage portfolio.

How does the NFIP benefit property owners? Taxpayers? Communities? 
Through the NFIP, property owners in participating communities are able to insure against flood losses. (Flood losses are not covered by regular homeowners insurance)By employing wise floodplain management, a participating community can reduce risk and protect its citizens and the community against much of the devastating financial losses resulting from flood disasters. Careful local management of development in the floodplains results in construction practices that can reduce flood losses and the high costs associated with flood disasters to all levels of government.

What is a Letter of Map Amendment (LOMA)? 
A LOMA is a letter that officially revises an effective FEMA NFIP map. A LOMA results from an administrative procedure involving the review of scientific or technical data submitted by the owner or lessee of property who believes the property has incorrectly been included in a designated SFHA or has been incorrectly identified in the wrong SFHA. A LOMA amends the currently effective FEMA map and establishes that a specific property is not located in the SFHA or is located within the correct SFHA.

How long does it take to process a LOMA? 
60-90 days

What does the Zone A designation mean? 
Areas subject to inundation by the 1-percent-annual-chance flood event. Because detailed hydraulic analyses have not been performed, no BFEs or flood depths are shown. Mandatory flood insurance purchase requirements apply.

What to do next…. Flood maps are available for review at the Township office or online at the Long Lake Township website.

If you believe that your structure is not located within the flood elevation then you will need to contact a surveyor to determine the elevation of the structure and complete the LOMA application.

FEMA has proposed new draft flood maps that have more information and are clearer to see where the flood line is located.  These maps are not currently adopted and cannot be used in determining if you are located in a flood area.  The anticipated date of adoption for these maps is Fall 2013.

More Information…..
        
Overview and process
More information for homeowners, That received a letter
Flood map-Current
Flood Map-Proposed (Proposed maps cannot be used in determining flood insurance requirements)
Flood Map-Proposed with Aerial (Proposed maps cannot be used in determining flood insurance requirements)
Answers to Questions About the NFIP-FEMA document
FEMA website Additional information can be found here.