Are Your Adjusters Flood Certified?

The recent changes in the National Flood Insurance Program (NFIP) concerning adjuster certification may have caused some concern for adjusters desiring to maintain their flood certification, upgrade their qualification, or obtain flood certification for the first time.

The Bureau and Statistical Agent Contract, previously held by Computer Science Corporation (CSC) for over 20 years, was awarded to several new vendors. The adjuster certification process was changed as a result of this.

During the vendor transition period, BinTech Partners was asked to assist in making the required presentations to adjusters in order for them to maintain, upgrade, or obtain flood certification. BinTech has assisted in making over 11 presentations, both those required by the NFIP and by special requests from several adjusting firms. These presentations explained adjuster participation in the program and coverage issues, with emphasis on the Federal Emergency Management Agency’s (FEMA) interpretation of the Standard Flood Insurance Policies, Dwelling, General Property, and the Residential Condominium Building Policy.

BinTech continues to assist in the preparation and presentation of the mandatory annual NFIP presentations for adjusters.

BinTech also maintains a close working relationship with the NFIP, FEMA, agents, and adjusters and brings their expert knowledge of flood and claims handling to the program.

If you have any questions regarding flood training and certification for adjusters, please give us a call.

NFIP Flood Program Changes

The NFIP is making some important changes to the Flood program effective October 1, 2009. These changes affect you, so please make a note of the items we listed below. It’s our goal to help keep you informed.

Rate changes

1. Premiums will increase an average of 8% for policies written or renewed beginning October 1, 2009.

Deductible Changes

1. Post-Firm standard deductibles increasing from $500 to 1,000.

2. Pre-Firm standard deductibles increasing from $1,000 to $2,000.

3. Preferred Risk policies standard deductible increasing from $500 to $1,000.

4. An important notice explaining the deductible changes will be included in the renewal or rollover billing.

Building Basic Limit Changes - The basic limit for buildings has changed. 

1. Single family/2-4 family has changed from $50,000 to $60,000.

2. Other residential/non-residential has changed from $150,000 to $175,000.

Contents Basic Limit Changes

1. Residential contents has changed from $20,000 to $25,000.

2. Non-residential contents has changed from $130,000 to $150,000. 

Unnumbered A zones

1. If beneficial to the consumer, Pre-Firm unnumbered A zones can use the Post-Firm rates.

New Building Types -  Two new building types have been added.

1. Elevated on crawlspace

2. Non-elevated with sub-grade crawlspace

Grandfathering

1. You will be prompted to enter either “grandfathering built-to-code” or “grandfathering continuous coverage” when attempting to send in grandfathering information. Remember, you cannot grandfather a preferred risk policy or a mortgage portfolio protection program policy.  

Condominium Form of Ownership

1. If the risk is a condominium unit, a new question will appear asking, “Property owned as a condominium?” 

Building Over Water

1. If building is elevated, a new question will appear, “Building over Water Type.”  Agent must advise if building not over water, partially over water or entirely over water. 

BinTech Partners provides unparalleled outsourcing opportunities for property and casualty insurers and financial institutions nationwide. Basic to full services include policy and claim administration, document packaging, cash processing, marketing and training. 877 239 8899.