On February 2nd, the MCC celebrated 10 years of operation. From our grassroots beginnings in Marshfield, MA as the Marshfield Citizens Coastal Coalition, to today’s statewide scope as the Massachusetts Coastal Coalition. At the MCC, our mission has always been clear: educate, advocate, and inform on flood hazards. In reflecting on 10 years of service to our communities, we wanted to highlight some of our benchmark accomplishments:
2013 flood insurance rally in Scituate
2016 flood insurance summit
2017 five-year celebration and name change
2018 501c3 status
2018 state-wide storm outreach and response
2019 CRS Symposium
2020 CRS class 7 for Marshfield, MA
2021 Webinar series during COVID-19
And we are nothing without the hard work of our Board of Directors. Thank you to those who serve now and have in the past:
John Cusick, founding member: 2012 – 2015
Claudette Casey, founding member: 2012-2015
Jack Sullivan: 2015-2017
Gail Kubik: 2018-2020
Sue Sullivan: 2017-2020
Doris Crary, founding member: 2013 – present
Tim Carty: 2014 – present
Tim Williams: 2015 – present
Steve Amico: 2017 – present
Nate Dill: 2018 – present
Tim van der Veen: 2019 – present
Kevin Harris: 2021 – present
Joe Rossi: 2012 – present
In 2022, we are already preparing for a lot of exiting events and activities. Look for more information on our 10-year celebration later in 2022!
Risk Rating 2.0 is Fully Implemented
Starting April 1st, Risk Rating 2.0 is now being fully implemented. This is for all new business and now all renewals on or after April 1st, 2022.
Because risk and premium is specific to a particular building under Risk Rating 2.0, please talk to your insurance agent to find out what your exact premium is.
The MCC has a Risk Rating 2.0 page with helpful news and resources. In just the last few weeks, FEMA and other stakeholders have released a series of helpful resources that are now on the MCC 2.0 page. They are:
On April 1st, Risk Rating 2.0 began its full implementation. As more National Flood Insurance Program (NFIP) policies are written and renewed into the new rating system, it is apparent that Risk Rating 2.0 is meeting its goal of communicating a building’s unique flood risk, and by reflecting that risk in a building’s premium. While some may be skeptical, there can be no doubt about the effectiveness of Risk Rating 2.0 in measuring risk, especially in instances where it has been proven correct by mother nature herself. In one specific example, what may not have appeared like a logical premium adjustment under Risk Rating 2.0, made sense after a major flood.
In the town of Marshfield, Massachusetts, there are dozens of inlets buffered by the marshes the town is named after. Marshfield is a town with two major tidal rivers and over five miles of Atlantic Ocean waterfront. Year after year, the nation watches on primetime news as Marshfield receives damaging Nor’easters, with waves going over homes, coastal erosion, and flooded marshlands. In one of the inlets in the north part of town, there is a ridge roughly 800 feet long that is protected by uplands and marsh on one side and a tidal river on the other side. At the end of the ridge is a peninsula that juts out towards the mouth of another tidal river.
NFIP Coordinator Flood Tips
The MCC includes a flood tip in each newsletter from Massachusetts NFIP Coordinator, Joy Duperault. These tips are great flood reminders no matter where you live!
Greetings, fellow floodies! It’s June and time again to consider the possible impacts of hurricanes and summer storms. NOAA has issued their numbers for the 2022 Atlantic hurricane season: 14 to 21 named storms; 6 to 10 hurricanes; and 3 to 6 of these could be Category 3 (winds of 111 to 126 mph) or higher. The first 5 hurricane names are Alex, Bonnie, Colin, Danielle and Earl.
And this year is the third year in a row for the La Nina effect, a rare “triple-dip” occurrence. This means more rain along the eastern seaboard and less rain in the SW USA. So possible extreme flooding and drought in the same year, different parts of the country. Yikes! All it takes is one bad storm to bring misery and loss to thousands.
And as always, contact our office for your questions about floodplain management, National Flood Insurance Program (NFIP) regulations, FEMA flood maps and NFIP flood insurance: DCR Flood Hazard Management Program.
Joy Duperault, CFM
Massachusetts NFIP Coordinator
Reinsurance FEMA continues to engage reinsurance markets to help strengthen the financial framework of the National Flood Insurance Program and promote private sector participation in flood-risk management.
On Feb. 22, FEMA entered into a three-year reinsurance agreement with Hannover Re (Ireland) Designated Activity Company. In turn, Hannover transferred $450 million of the program’s financial flood risk to qualified investors of capital markets by sponsoring catastrophe bonds.
These capital market placements complement existing traditional reinsurance coverage. This allows FEMA to grow the reinsurance program, which protects against future flood losses. As part of the agreement, FEMA will pay a premium of $61.23 million for the first year of reinsurance coverage.
When this premium is combined with other outstanding bonds and the January 2022 traditional reinsurance placement, FEMA has transferred $2.664 billion of the program’s flood risk to the private sector ahead of the 2022 hurricane season.
An in-depth summary of the agreement, including what it is structured to cover reinsurance placement amounts, is available on FEMA.gov.
National Risk Index
FEMA has now fully implemented the National Risk Index.
This online mapping application provides a holistic view of community risk by providing baseline relative risk scores. It measures a community’s risk for 18 natural hazards, in addition to resilience, social vulnerability and expected annual loss.
The Index helps users understand natural hazard risk and to support informed risk reduction decisions for mitigation planning and emergency management. By providing standardized risk data and an overview of multiple risk factors, this interactive mapping and analysis tool can help communities, especially those with limited flood mapping and risk assessment capabilities, prepare for natural hazards.
The tool is free and easy to use, and data from the site can be downloaded. Visit FEMA’s National Risk Index webpage to learn more about the data and the natural hazards that may affect your community.
FEMA Strategic Plan FEMA Administrator Deanne Criswell has released FEMA’s “2022-2026 FEMA Strategic Plan,” which outlines the vision and goals designed to address key challenges the agency faces during a pivotal moment in the field of emergency management.
The plan was developed with input from more than 1,000 FEMA employees and over 400 external partners, including 50 tribal nations, who provided their perspectives to help shape FEMA and guide engagements with our partners as we drive towards a more equitable, resilient, and sustainable future for our workforce and nation. The Strategic Plan puts people first — both those who work at the agency and those we serve – to ensure the agency is meeting the needs of communities and our nation.
Below are the plan’s three overarching goals that FEMA will pursue over the next few years:
Goal 1: Instill Equity as a Foundation of Emergency Management
Goal 2: Lead Whole of Community in Climate Resilience
Goal 3: Promote and Sustain a Ready FEMA and Prepared Nation
Technical Bulletin 7 (TB 7) provides guidance on the NFIP floodplain management requirements for the design and construction of wet floodproofed buildings and structures in Special Flood Hazard Areas.
TB 7 discusses limitations on the use of wet floodproofing and how to evaluate the feasibility of using wet floodproofing measures for historic structures, agricultural structures and functionally dependent uses.
TB 7 also discusses NFIP regulations and how building design criteria apply to new construction, substantial improvement and substantial damage.
Being flooded out of your home and experiencing an actual flood claim and recovery is not something we like to consider. But facing flood damage and a new living situation also carry another possible ‘surprise.’ A surprise that most of us tend to overlook when writing a flood policy… and a surprise that cannot be avoided on an NFIP policy.
The surprise I am referring to is facing additional living expenses, beyond repair/recovery work. You will need funds for your temporary housing (rent) as well funds to remain current on existing obligations (i.e., your mortgage.) This situation often stretches people to their financial limits with living expenses essentially doubling.
Additional Living Expense (ALE) coverage provides a specified dollar amount to be used toward the cost of temporary housing. This is standard coverage on a homeowner policy, but is coverage not offered on an NFIP-backed policy, and homeowners’ coverage cannot be directly extended to a flood claim.
Many private flood policies offer ALE coverage, but my experience shows few takers. Private policies typically come with a base amount of $5,000 in ALE coverage: helpful, but not a balance that will go far in an extended home absence. My suggestion is to select a figure to consider of 6 or 12 months of anticipated rent.
We all know flood insurance can be expensive, but smarter coverage might be had for a small amount more. Considering private flood insurance should prompt questions about the cost and availability of ALE coverage.
None of us like the surprise of a flooded home, but if you are truly concerned about being protected from flooding, a little ALE might go a long way to eliminate the additional surprise of paying double living expenses while recovering from flood damage.
Note from the Executive Director
Risk Rating 2.0 has begun its full implementation as of April 1st. So far, there has not been significant feedback from policyholders, but we are also in the inception of the renewal process. As we track the Risk Rating implementation, we have seen successes and concerns as is often the case with new implementation.
We see keeping you informed as our most important job. This dual quarter newsletter has many resources and ways to help guide you through the changes. But the most important message is talk to your insurance agent. Only your insurance agent can accurately calculate your flood premium, and if your agent does need assistance, we can certainly point them in the right direction. Continue to keep in touch with us as your renewal comes in under Risk Rating 2.0 and watch for our 10-year anniversary event details, coming soon, where we will have additional Risk Rating information for you.
Joe Rossi
Executive Director
Massachusetts Coastal Coalition
