South Bethany Beach Receives Flood Insurance Discount 

Release Date: March 27, 2008
Release Number: R3-08-043

PHILADELPHIA, Pa. -- Residents of South Bethany Beach, Delaware, have received a 10 percent reduction in their flood insurance premiums, effective October 1, 2007, because their community now participates in floodplain management measures encouraged by the National Flood Insurance Program (NFIP).

The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) oversees the NFIP, which administers a program called the Community Rating System (CRS). The CRS is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed minimum NFIP requirements. Premium discounts resulting from CRS activities are offered in five-percent increments, from Class 9 (five percent) to Class 1 (45 percent).

South Bethany Beach, a new CRS participant, received a rating that places them in Class 8, making flood insurance policyholders eligible for a 10 percent reduction in premiums.

"A study by the National Institute of Building Sciences shows that every $1 spent in mitigation efforts saves $4 in disaster-related losses," said Jonathan Sarubbi, Regional Administrator for FEMA Region III. "South Bethany Beach is proactively preparing for the future."

Under the CRS, local officials are asked to meet three goals: (1) reduce flood losses; (2) facilitate an accurate insurance rating; and (3) promote the awareness of flood insurance. As in South Bethany, many localities may already be involved in activities that qualify for CRS credits, including:

Communities can earn a CRS rating by submitting an application explaining the projects they have in place or development. Once the information is verified and approved, FEMA provides flood insurance premium discounts through the NFIP. The amount of a property owner's policy discount is based on the community’s CRS rating. Activities that are eligible for credit must be continued and recertified annually.

More than 24,000 flood insurance policies are in force in more than 40 participating communities in Delaware, representing more than $5.2 million in coverage. Federally backed flood insurance is available under the NFIP to homeowners, renters and business owners in communities that adopt and enforce local ordinances that reduce future flood losses.

For information about flood insurance, property owners should contact their insurance agent, visit www.floodsmart.gov, or call the NFIP's toll-free information line at 1-800-427-4661. Flood insurance information is also available on FEMA's website, www.fema.gov/nfip/.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Modified: Friday, 28-Mar-2008 14:13:52