Report Outline - Project Management at the University Of Maryland

xiio FEMA claims data also suggests that there is considerable property at risk outsidethe 1 percent zone. About one-third of claims and losses accrue from propertiesother than those in the 1 percent zone. 3o HAZUS model runs indicate that the risk to property outside the 1 percent zone issubstantial. 4 Damages in from the 0.2 percent flood are estimated to be 1½ timeslarger than those in the 1 percent event.• NFIP claims data through 2004 suggests that in flood-prone areas the Nation is buildingto near a 1 percent standard. Since initiation of the NFIP and the issuance of flood maps,the rate of claims per policy on new construction (post-Flood Insurance Rate Map(FIRM)) and dollar loss per insured value are lower than 1 percent for those who areinsured within the 1 percent flood zone indicating the relative effectiveness of some landuse regulation and building codes in Special Flood Hazard Areas (SFHA).• Flood threats differ by State and region, and NFIP claims and losses are concentrated in afew States. This represents a combination of the greater risk that exists in some Statesand the level of effectiveness of the floodplain management programs of the States. Overthe full history of the NFIP, losses due to both riverine floods and hurricane events havebeen concentrated in Texas, Florida, and Louisiana, whereas non-hurricane losses havebeen concentrated in Texas and Louisiana. Repetitive losses are also concentrated in afew States.• Physical conditions in floodplains differ from one location to another across the expanseof this Nation. Some floodplains are subject to flash floods or fast rising floodwaters.Others face floods that arrive slowly and can be forecast days or even weeks beforehand.In some areas, the difference between the 1 percent flood and the 0.2 percent flood is amatter of inches and the areal extent of the 0.2 percent floodplain is only slightly largerthan the 1 percent floodplain. In other cases, the vertical difference may be a matter offeet and the areal difference very large.• When a normally flood-prone area is protected by a levee that is designed to successfullypass the 1 percent or larger flood, under the NFIP the areas behind the levee may beremoved from the Special Flood Hazard Area (SFHA) designation, land use regulation,and the requirement for mandatory purchase of insurance. As result it became fiscallyadvantageous, but not necessarily safe, for communities in the NFIP with large areas infloodplains to build levees with at least 1 percent protection. As far back as 1980, FEMAindicated that “the use of a 100 year standard was encouraging construction of levees tothe 100 year design level for the sole purpose of removing an area from the special floodhazard designation.”• As illustrated by Hurricane Katrina’s impact on New Orleans, the consequences of leveeovertopping or levee failure can be catastrophic. The residual risk that exists for those3 Some properties, previously mapped outside the 1 percent zone and insured as outside the zone, have been laterremapped into the 1 percent zone but retain their non-1 percent insurance policy rating.4 HAZUS is FEMA’s multi-hazard risk estimating software for earthquake, hurricane, and flood losses.Evaluation of the National Flood Insurance ProgramAssessing the Adequacy of the National Flood Insurance Program's 1 Percent Flood Standard