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P <br /> r � <br /> . � <br /> r <br /> 2 - <br /> If a flood insurance policy has been issued under the NFIP covering the <br /> . building on the aforementioned property and that policy was required by the <br /> mortgage eompany in conjunction with Federal flood insurance requirements, <br /> then flood insurance coverage is no longer required under those Federal . <br /> ' ' : requirements. ' � � � ' . , � � • � ' . . . � � . <br /> ` Accordingly, if a lender imposed the flood insurance requirement, that lender <br /> /� ' <br /> will have to determine whether or not to continue that requirement. The <br /> lender may determine, as a business decision, that it wishes to continue the <br /> flood insurance requirement in order to protect its collateral security on the <br /> loan. . <br /> If the lender decides to release the borrower from the flood insurance <br /> requirement, and the insured decides to cancel the policy and seek a refund, <br /> then the NFIP will refund the premium paid for the current policy year, . <br /> providing that no claim is pending or has been paid on the policy during the . <br /> current policy year. The insured must obtain a written waiver of the flood <br /> insurance requirement from the lender to provide to their property ii�surance <br /> agent or company that is servicing their policy. The agent or company will <br /> then process the refund request for the insured. <br /> Even though the residential structure is not Iocated in an SFHA, as mentioned <br /> above, it could be flooded by a flooding' event of greater magnitude than a l;G <br /> annual chance flood. In fact,� more than twenty-five percent of all losses in <br /> � ..the�NFIP occur to buil'dings located outside �th�e SFHA .in•Zone B, C, or� X. More . <br /> � than one fourth of all �policies purchased under the NFIP protect �builclings <br /> located in these zones. That risk is ,just not as great as the flood risk to � <br /> buildings located in SFHAs. In order to offer flood insurance protection to <br /> owners of such buildings, the NFIP offers two types of flood insurance <br /> policies: the Standard Policy and a policy for flood insurance at low rates. . <br /> The low-rate policy is available for buildings located outside the SFHA with <br /> little or no loss history. The Standard Policy is available for all other <br /> buildings. Individual flood risk situations and insurance needs should be <br /> discussed with an insurance agent or company before making a final decision <br /> regarding flood insurance coverage. <br /> A copy of this Letter .of Map Amendment is being sent to your community's <br /> of_ficial NFIP map.repository where, ir. 3ccordance k*ith regulations adopt�d by <br /> the community�when it made application to join the NFIP, it will be attached� . <br /> to_the community's .official record copy o€. the NFIP map whi�ch is available for <br /> ' public inspection. � � , � � � . . • • • <br /> This response to your request is based on minimum criteria established by the <br /> NFIP. State and community officials, based on knowledge of local conditions <br /> and in the interest of. safety, may set higher standards for construction in <br /> the floodplain. If the State of Minnesota or the City of Orono has adopted <br /> more restrictive and comprehensive floodplain management criteria, these <br /> criteria take precedence over the minimum Federal criteria. <br />