U.S. Department of Homeland Security
500 C Street, SW
Washington, DC 20472

W-11016a 
   
March 18, 2011

 
MEMORANDUM TO: Write Your Own (WYO) Principal Coordinators and the National Flood Insurance Program (NFIP) Servicing Agent Ed Connor Electronic Signature.eps
 
FROM:  Edward L. Connor Acting Federal Insurance and Mitigation Administrator 
     
SUBJECT: Policy Issuance: Notice of FEMA’s Adjusted Position Regarding NFIP Insured Buildings in Eligible Communities Subject to Continuous Lake Flooding Caused by the Closed Basin Lake, Devil’s Lake, North Dakota  
 
The only Closed Basin Lake recognized by FEMA is Devil’s Lake, North Dakota. A recent official National Weather Service (NWS) still-water lake level forecast has compelled FEMA to offer further guidance regarding NFIP 
flood insurance coverage at Devil’s Lake. 

NFIP flood insurance coverage for Continuous Lake Flooding caused by the Closed Basin Lake is prescribed in the Standard Flood Insurance Policy (SFIP) at Section VII T. 2. (T. 2.) in
both the Dwelling Form and the General Property Form and at Section VIII T. 2. in the Residential Condominium Building Association Policy.  

Subject to all other provisions of T. 2. and of the SFIP, if the insured building is subject to continuous lake flooding caused by the closed basin lake, Devil’s Lake, ND, the following requirements must be met to be eligible for
coverage under the terms of T. 2. in all policy forms:  

• The building must be located in a participating community eligible for T. 2. coverage, and  

• The subject building must have had NFIP flood insurance coverage continuously beginning  on November 30, 1999, and  a subsequent owner on or after November 30, 1999, must have  an NFIP policy in effect within 60 
  days of the transfer of title (see: T. 2. g.), and      

• The policyholder must grant a conservation easement (see: T. 2. b. (2), and  

• The community must have adopted a permanent land-use ordinance on or before July 15,  2001, (see: T. 2. e. (1), (2), and (3).  

Please Note: FEMA will not recognize any increases in coverage limits with effective dates on or after November 30, 1999 (see: T. 2. g.), except when offered by the insurer as a routine inflation-guard increase and purchased 
by the policyholder. Insured buildings not eligible for the provisions of T. 2., described above, but damaged by continuous lake flooding will be eligible for those provisions described at T. 1. of the SFIP, subject to the terms and 
conditions of the T. 1. and the SFIP.  

Page 2  

Official National Weather Service (NWS) forecasts of Devil's Lake still-water levels have been the coverage marker in the past. The Policy Issuance dated November 19, 1999, applied only to buildings with basements and their 
relationship to other buildings described in FEMA’s August 2, 1999, interim final rule that provided a closed basin lake endorsement to each of the three SFIP forms.  

Buildings in eligible communities subject to damage from the effects of the Closed Basin Lake, Devil's Lake, ND, may now file claims if any portion of the insured building, as defined in the SFIP, is at the still-water level of 1455.0 MSL. 

We ask for your full support. Any questions or comments regarding this guidance should be directed to James A. Sadler, CPCU, AIC, Director of Claims, National Flood Insurance Program. Mr. Sadler may be reached by email 
at James.Sadler@dhs.gov.  

 
cc: Vendors, IBHS, FIPNC, Government Technical Representative  

Required Routing: Claims, Underwriting