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