NFIP Mandatory Insurance Reductions

As required by law, when appropriate, FEMA Project Worksheets include funding reductions for Mandatory Insurance Coverage requirements. (Also known as “penalty”).

However, with complicated sets of Federal regulations, it is critical to ensure an accurate application of insurance reductions.

As detailed in the belowground equipment description, here too the mandatory reduction was reversed after the application of all the proper guidelines.

Here the square footage of the grates that cover the facility’s ground floor and support the pumps above ground totaled more than 50% of the entire ground floor. This fact made the above ground level space “basement” by definition, exempted from the requirement to purchase flood insurance and exempted from the mandatory reductions.