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What are some terms I should be aware of when dealing with flood insurance?

It is an excellent idea to review the terminology that you will face before making any final decisions. The terminology can confuse many consumers and prevent them from making the correct choices when it comes to purchasing flood insurance. The terminology that insurers use is so commonly misunderstood that consumers are trying to avoid purchasing flood insurance policies at all. Here are some of the terminology that confuses consumers:


ACV - actual cash value - the value of property as figured by determining the cost to replace the damaged or destroyed property; replacement cost minus depreciation.

BFD - Base Flood Depth

BFE - Base Flood Elevation

CBRA - Coastal Barrier Resources Act of 1982

CBIA - Coastal Barrier Improvement Act of 1990

CBRS - Coastal Barrier Resources System

COLMA - Conditional Letter of Map Amendment

COLMR - Conditional Letter of Map Revision

CRS - Community Rating System

DFIRM - Digital Flood Insurance Rate Map

FEMA - Federal Emergency Management Agency

FHBM - Flood Hazard Boundary Map

FIRM - Flood Insurance Rate Map

FIS - Flood Insurance Study

ICC - Increased Cost of Compliance

LFE - Lowest Floor Elevation

LODR - Letter of Determination Review

LOMA - Letter of Map Amendment

LMOR - Letter of Map Revision

MPPP - Mortgage Portfolio Protection Program

NFIP - National Flood Insurance Program

NFIRA - National Flood Insurance Reform Act

OPA - Otherwise Protection Areas

PRP - Preferred Risk Police

RCBAP - Residential Condominium Building Association Policy

RCV - Replacement Cost Value

SDF - Special Direct Facility

SFHA - Special Flood Hazard Data

SFIP - Standard Flood Insurance Policy

WYO - Write Your Own Program

By: www.2insure4less.com

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