Message from Jim

Over the past month, we have been asked to review a handful of flood zone determinations on behalf of potential clients. In each case, an out-of-state Flood Determination Company had placed the improvements to be used as loan collateral into a Special Flood Hazard Area (SFHA). This is a horizontal determination which does not use elevations, and requires the loan applicant to purchase mandatory flood insurance. This is an important process within the flood program when performed correctly, but unfortunately, it appears that many Flood Determination Companies are using the flood overlay available online through a municipal Geographic Information System (GIS). Having utilized GIS often, it is not uncommon to identify the shaded SFHA running parallel and, in some cases, a noticeable distance from the actual watercourse. This is not an approved method recognized by the program.

This is a concern for several reasons. The first pertains to the public perception of the program. This incorrect determination adds fuel to the fire that the program is not run well and the maps are deficient. Secondly, the Flood Determination Company is unwilling to change its determination even when provided with supporting data from a professional consultant. Third, the insurance agent does not question the determination and requests an Elevation Certificate for proper rating. As a result, a homeowner ends up paying mandatory flood insurance which should not be required, or the real estate transaction dies due to the applicant’s inability to qualify for the loan because of this unexpected expense. A process to remove the mandatory flood insurance does exist, but at the expense of the applicant. Emotionally, anyone involved in this process will, at a minimum, distrust the program a bit more.

As I have mentioned in previous messages, opportunities await the land surveyor, engineer, Realtor, insurance agent, lender, or other real estate professional who desires to provide guidance to the homeowner. Perception is important for the program and poor flood determinations inhibit the program from being recognized as a very important component of our national lending process. Creating a standard set of questions to evaluate current circumstances when a client is placed into a SFHA will be very beneficial to you and your clients. A business model based on a sincere passion to help others will aid greatly in building reputation and becoming a successful consultant.

~ Jim

Resources

FEMA Digital Flood Insurance Map Schedule (Maine)

Counties with current DFIRMs already in effect: Androscoggin, Kennebec, and Oxford.

Counties with preliminary maps in progress:
Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, York, and Town of Fort Kent.

Washington County is expected to be released in August 2014. Final effective dates for the above counties, with the exception of Hancock and Washington, are currently listed as July 2015.

The following counties are still waiting on funding: Aroostook, Franklin, Penobscot, Piscataquis, and Somerset.

We will keep you posted with updates as the DFIRM schedule progresses.

Click here to access the Maine Floodplain Management Program's Mapping Resources web page.

To view more information on effective and future Flood Insurance Rate Maps nationwide, click here.

Per a Recent Notification from the Maine Floodplain Management Program:

The start of the municipal appeal period for the FEMA Preliminary Maps in York and Cumberland County has been delayed. According to Robert Gerber, Senior Engineer/Geologist for Ransom Consulting, Inc., there is currently no indication of how long the delay will last, as it is pending further review of the methodology used to calculate "wave setup" by a 3rd party Scientific Resolution Panel, an independent panel of experts managed by the National Institute of Building Sciences.