How to Avoid Flood Insurance Requirement for Your Property

The Federal Emergency Management Agency publishes flood maps, which are called Flood Insurance Rate Maps. The purpose of these maps is to show areas that are within the floodplain, also called Special Flood Hazard Areas, that may be subject to flooding.

Structures located in these areas may require flood insurance especially if you have a federally backed mortgage. The FIRMs have limitations regarding their accuracy and as a result include areas and properties that have been incorrectly included in the floodplain. If you know or believe your property should not be in the floodplain FEMA has procedures established to remove your property from the FIRMs.

There are two basic forms that are used to apply for removal from the floodplain. The MT-EZ Form is used for what is called the Letter of Map Amendment (LOMA) for requests involving single residential lots or structures. Another form is the MT-1 that is used for multiple residential lots or structures and for all Letters of Map Revision, based on fill, (LOMR-F) requests.

FEMA has a great web site that includes a tutorial for completing each of these application forms. The web address is: www.fema.gov/media/fhm/lomrf/ot_loma.html

Here are some basic things that you need to be aware of before you go thru the process of completing the application.

There is a section in both forms that requires a Licensed Land Surveyor or Registered Professional Engineer to prepare. In most cases the licensed professional will also need to prepare an elevation certificate for the property. They will need to certify the property's current elevation and its relation to the 100-year floodplain. The 100-year floodplain is the area of the 1-percent -annual-chance flood as shown on the FIRM map; also known as the Base Flood Elevation (BFE).

Depending on where you live some local government jurisdictions have additional criteria beyond the minimum required by FEMA. As an example your city or county may require that the property or structure be one additional foot above the 100-year elevation established by FEMA in order to be considered out of the floodplain. Be sure to check with your local government floodplain coordinator.

The LOMA application requires no fee; however, the LOMR-F requires a fee of $425 for single lots and $800 for multiple lots.

You will need a copy of the recorded deed or recorded plat showing the legal description for your property.

If the SFHA on the FIRM for your area does not have an elevation identified, you may be able to get the flood elevation from your local floodplain coordinator.

For the LOMA, try to find a local surveyor who is familiar with the FEMA process and reporting requirements. Depending on the completeness of the application it will take FEMA approximately two months to process and approve the application.

The LOMR-F is more complicated and for multiple lot subdivisions may require the services of both a surveyor and professional engineer.

Once you receive an approved LOMA for your property you should contact your mortgage and/or insurance agent to notify them of your properties change in status. The ultimate decision to remove the requirement for flood insurance is with the mortgage company so you may want to check with them first.