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<br />Nationall1.ood Insurance Program: <br />Rules, Building and Insurance Rate Information <br /> <br />The National Flood Insurance Program (NFIP) is the <br />principal administrative mechanism for reducing flood <br />damage, providing an incentive to local governments to <br />implement sound floodplain management controls. <br />Using the limited availability of flood insurance as <br />leverage, the NFIP has established requirements and <br />guidelines for development in flood-prone areas. The <br />rate structure of insurance premiums reinforces the <br />intent of these regulations by charging higher insurance <br />rates for buildings subject to greater hazard. Insurance <br />rates are set on the basis of designated hazard zones and <br />the elevation of the building or structure in relation to <br />the Base Flood Elevation (BFE) in that particular zone. <br />The effect of this differential rate structure is to provide <br />an incentive to increase the safety of buildings beyond <br />the minimum standards by giving significant financial <br />benefits to buildings at higher elevations and in less <br />hazardous zones, Insurance rates are an important <br />element in analysis of life-cycle costs and can be the <br />designer's best argument for proper siting and design of <br />a proposed project. <br />It is thus vital that designers, before approaching any <br />design, familiarize themselves with the nature and extent <br />of the NFIP. This should specifically include those com- <br />ponents of the NFIP rules and building and insurance <br />rate information that can directly influence building de- <br />sign. This information can be obtained from local insur- <br />ance agents, public officials and FEMA regional offices. <br /> <br />97 <br />