For insurance agents

No. A LOMA removes the FEMA basis for mandatory purchase on federally backed loans, but carriers and lenders retain their own underwriting authority. An insurance agent should explain this distinction clearly so clients understand what the determination does and does not change.

Under Risk Rating 2.0, FEMA prices policies based on property-specific risk factors rather than zone labels alone. A LOMA that moves a property out of the SFHA may qualify it for significantly lower premiums or Preferred Risk Policy rates if the policyholder chooses to maintain voluntary coverage.

NFIP policies may allow a prorated refund when a LOMA removes the mandatory purchase requirement during the policy term. The refund calculation and eligibility depend on carrier rules and timing. Contact the Write Your Own carrier or NFIP Direct for the specific refund process.

Many agents recommend maintaining voluntary coverage at lower Preferred Risk rates because flooding can occur outside the mapped SFHA. A LOMA changes the regulatory designation, not the physical risk. Voluntary coverage is often inexpensive and provides meaningful protection.

Frame it simply: a LOMA means the property was always above the flood level on natural ground and should not have been in the zone. A LOMR-F means fill was added to raise the property. The distinction matters because it changes the submission path and the evidence required.

Agents can identify clients who may benefit from a LOMA review, explain the potential insurance implications, provide existing policy documents that support the case, and refer clients to a qualified LOMA review service. The agent is not the submitter but is often the first person to recognize the opportunity.