Reduced Flood Risk Equals Lower Insurance Costs
Release Date: December 20, 2004
Release Number: 1539-321
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ORLANDO, Fla. -- More than 1.8 million flood insurance policyholders in Florida’s 216 participating communities had their premiums reduced by $180 million last year, an average savings of $98, according to new data provided by the National Flood Insurance Program (NFIP), a program administered by the Department of Homeland Security’s Federal Emergency Management Agency (FEMA).
The Community Rating System (CRS) rewards communities that take measures to lessen or eliminate flood exposure with lower premiums and significant cost savings for its flood insurance policyholders.
Under the CRS, communities are rated on a scale of 1 to 10, depending on the extra measures taken by the community to provide protection from flooding. The community is assigned points, based on the number and type of activities completed. The better the flood risk management, the lower the rating score, and the lower the insurance premiums. Any NFIP participating community can elect to take part in the program.
“The CRS program can bring considerable benefits to the residents of participating communities,” said Bill Carwile, federal coordinating officer for FEMA. “Not only can they look forward to a greatly reduced risk of flooding in the years ahead, they will also pay less to insure against that threat.”
The menu of flood reduction activities communities may choose to implement include initiating flood warning programs, upgrading drainage system maintenance, developing a citizen outreach strategy, requiring open space preservation, and/or legislating tougher regulatory standards. In addition to lower flood insurance premiums, CRS participation brings other benefits to the community such as:
- Enhanced public safety;
- Reduced damage to property and public infrastructure;
- A better-protected environment;
- Technical assistance in developing and implementing the chosen activities;
- The ability to evaluate a community program against a nationally recognized benchmark;
- An incentive to maintain strong flood control ordinances that make favorable ratings possible.
Nearly three million policyholders in 1,001 communities around the country benefit from the CRS. To find out if your community is a member, go to the CRS community list at www.fema.gov/nfip/crs.shtm. The list shows member communities, their rating, and the percentage of discount available on flood insurance, if any.
Information on the CRS program as well as general information about flood insurance is available at www.FloodSmart.gov. Flood insurance is available to residents of any NFIP-participating community. For information, property owners should contact their insurance agent or call the NFIP at 1-800-427-4661.
FEMA prepares the nation for all hazards and effectively manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Monday, 20-Dec-2004 15:20:32