Though no policy rate changes are taking place, some of the updates to FEMA's Flood Insurance Manual will be of interest to you and your clients:

New section-Severe Repetitive Loss Properties guidance. FEMA has added an entire section dedicated to the NFIP's program to reduce the financial strain caused by properties that suffer repeated flood losses.

New elevation certificate photograph requirement. Beginning January 1, 2007, all new elevation certificates must include a photo.

Clarification of Preferred Risk Policy eligibility regarding disaster relief payments. Federal disaster relief payments are considered as part of the loss history only if the building suffered flood damage. Also, if a federal disaster assistance payment and a flood claim payment are made on the same loss, then it only counts as a single payment for loss history purposes.

Clarification of Cancellation reason related to foreclosure or to a damaged building considered a total loss. If a property is foreclosed on or is damaged beyond the building's replacement value, then a flood insurance policy can be cancelled. The policy holder will be eligible for a prorated refund.

Revised Lowest Floor Guide (LFG). The LFG, which explains how to determine a structure's lowest floor for rating purposes, now matches the elevation references on the new elevation certificate.

The next scheduled revision of the Flood Insurance Manual is May 1, 2007.