American Property & Casualty Association Issues Public Comment on FEMA Notice

WASHINGTON, May 16 -- Mike Richmond-Crum, manager for personal lines and counsel at the American Property and Casualty Association, Chicago, Illinois, has issued a public comment on the Federal Emergency Management Agency's notice entitled "Hazard Mitigation Assistance: Building Resilient Infrastructure and Communities". The comment was written on May 11, 2020, and posted on May 13, 2020:

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Representing nearly 60 percent of the U.S. property casualty insurance market, the American Property Casualty Insurance Association (APCIA) promotes and protects the viability of private competition for the benefit of consumers and insurers. APCIA represents the broadest cross-section of home, auto, and business insurers of any national trade association. APCIA members represent all sizes, structures, and regions, protecting families, communities, and businesses in the U.S. and across the globe.

APCIA wishes to express its support of FEMA's adoption of principles of the Building Resilient Infrastructure and Communities (BRIC) Program directed towards supporting state and local governments in funding mitigation projects, encouraging innovation, promoting partnerships, reducing future loss, and promoting the adoption and enforcement of strong building codes.

The Importance of Stakeholders and Participant Education.

As FEMA moves forward with its rollout and training phase of the BRIC program, APCIA wishes to restate its belief that "the most foundational component of disaster mitigation is education of individuals and community leaders," as we expressed in our July 2019 formal comments submitted in response to FEMA's request for input. While the current circumstances place substantial restrictions on communication and educational efforts, it is our belief that early educational/training efforts directed towards both policy makers and individual decision makers is an essential component of an effective resiliency and mitigation program.

We are impressed by the demonstration of FEMA's resolve to remain on schedule. That resolve is evidenced by the timely release of the current proposed policy document. We encourage FEMA to make every effort to continue with the program's timely development in such a manner that protects the safety of FEMA staff as well as the public.

The Importance of Code Standard Adoption and Enforcement

The proposed policy's incorporation of language under Requirements (C)(2) to "establish, adopt, and enforce codes and standards consistent with statute" as well as the (D)(3)(b) eligibility requirement to "be in conformance with the latest published editions of relevant consensus-based codes, specifications, and standards that incorporate the latest hazard-resistant designs" marks an important threshold criteria for the BRIC Program.

The BRIC program represents a significant opportunity to advance the adoption and enforcement of improved building codes to meet higher design and stability standards all-across the country. We are encouraged that FEMA has incorporated these requirements and support their implementation.

Beyond the importance of adoption and enforcement of building codes, we also wish to express the importance of adoption of modern, up-to-date building codes, and their ability to improve resilience in post-catastrophic circumstances. The BRIC programs creation reflects the importance of not repeating mistakes in type and placement of construction. It would be as significant loss of opportunity, and contrary to the mandate given to the program by Congress, to not rebuild or retrofit property using improved materials and construction methods. Further, the use of resilient materials and construction methods will serve to lower long-term costs by reducing maintenance and replacement costs. The enforcement of these standards will likewise produce long-term economic efficiencies which further FEMA's directive from Congress in implementing the BRIC Program.

Eligibility Requirements Related to Special Flood Hazard Zones and NFIP Participation.

Following a review of the proposed policy we wish to comment specifically on Requirements(D)(3)(f) which requires projects to be in conformance with flood insurance requirements, and in cases where the project is located in Special Flood Hazard Areas, the project must be in a jurisdiction participating in the NFIP, and property owners must obtain and maintain flood insurance for the life of applicable structures.

Insurance is an essential component of creating a resilient infrastructure framework throughout the country and particularly in areas that have a high risk of flooding. APCIA appreciates that conformity with NFIP standards of coverage offers a ready built coverage standard available for project planning and implementation. We also recognize that the primary objective of the BRIC program is to mitigate loss of life and property damage that result from natural catastrophes, and to maximize opportunities to advance projects which will accomplish those goals.

We also want to reinforce the importance of resiliency and mitigation efforts at the individual property owner level. It is vital to a broad national effort to improve resiliency through better building standards of homes and smaller private buildings to ensure that future risk is reduced.

In Goal 1 of the National Mitigation Investment Strategy (2019), The Department of Homeland Security articulated the importance of individual property by stating "[t]he whole community will build a shared understanding of mitigation investment and its value. Specifically, the whole community will understand how effective mitigation investments can protect people, homes, neighborhoods, cultural and historic resources, ecosystems, and lifelines... ."/1

(Emphasis added.) We a support wholistic approach to constructing resiliency and mitigation which includes support for individual/home property owners to ensure that communities are protected at the most impactful level to the people who live in them.

FEMA should clarify its intention regarding the requirement outlined in (D)(3)(f) and how the agency intends to address the practical implications, particularly for those entities that may not be subject to current flood insurance requirements.

Continue to Develop a Broad Range of Partnerships --Including Insurers.

The inclusion of the principle to "Promote partnerships and enable high-impact investments to reduce risk from natural hazards with a focus on critical services and facilities, large-scale public infrastructure, public safety, public health, and communities" is an essential component to the BRIC programs development towards achieving the goal of effectively deploying resources to support impactful projects.

At this juncture, APCIA would like to reiterate another recommendation we made in our July 2019 program input response. We recommend that FEMA leverage the available partnerships with private parties -- particularly insurers. Because insurers utilize risk assessment at the core of their business practices, they are a capable resource for providing insight and analysis in the development of risk assessment tools employed by the BRIC Program. An effective risk assessment framework will be a vital resource needed to prioritize projects and produce expenditure efficiencies.

Thank you for considering our feedback and comments. APCIA will be an active participant in future discussions and efforts to strengthen the nation's resiliency and implement effective mitigation projects.

Sincerely,

Mike Richmond-Crum

Manager, Personal Lines & Counsel

American Property and Casualty Association

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Footnote:

1/ Executive Summary, National Mitigation Investment Strategy (Aug. 2019).

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The notice can be viewed at: https://www.regulations.gov/document?D=FEMA-2019-0018-0001

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