Mitigating Flood Risk Reduces Insurance Premiums
Release Date: March 14, 2005
Release Number: 1539-401
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ORLANDO, Fla. -- Many homeowners are required to carry flood insurance by their mortgage company if the house is located in a floodplain, or Special Flood Hazard Area (SFHA). Even if they live in the floodplain, homeowners can take steps to lower the risk of future flooding, and that can reduce flood insurance premiums, suggest disaster recovery officials from the Department of Homeland Security's Federal Emergency Management Agency (FEMA) and State Emergency Response Team (SERT).
A homeowner in Treasure Island, Fla., did just that and her insurance premiums dropped from $1,200 to $365 per year. Carol Kitts had her home elevated after flooding from Hurricane Josephine in 1996 caused more than $30,000 worth of damage to her home. Last August when several homes nearby were flooded from Hurricane Charley, her elevated home was high and dry.
Homeowners who are still in the rebuilding and repair phase after suffering damages from the hurricanes last fall, or who simply want to take steps to avoid flood damage, should consider some practices that will reduce the risk of flooding and provide more affordable flood insurance rates. First, those interested should check with their local building official about building codes, zoning ordinances and flood risk. Then check with a local insurance agent on possible savings on flood insurance premiums.
Elevating a Home
Mitigation means taking steps to reduce damage from future hazards, like flooding. Elevating a house above the base flood elevation (BFE) is a proven mitigation technique. The BFE is the elevation of the 100-year flood, which means the elevation at which there's a one-percent probability of flooding in any given year. Elevating the structure above the BFE lessens the flood risk, and reduces the insurance premium.
Kitts did not want to experience flooding again, but did not want to leave her home. She decided to have her home elevated above the reach of floodwaters. She worked with the city's building department to determine the level at which the lowest floor would be above the BFE. Then, at their suggestion, it was raised higher so that the space below the house could be used as a parking area, allowing an additional savings on her flood insurance premium.
The total cost of the elevation project was $37,000. She had received some monies from federal disaster assistance for flood damages and a claim on her flood insurance, which was applied to the cost of the project. Since completing the project, Kitts has not experienced flooding that has occurred and damaged her neighbors' homes. It is estimated that Kitts has avoided losses that would have totaled $45,000. And every year she saves $800 on lower insurance premiums.
Other mitigation strategies that could lower the flood risk, and thus the insurance premium, include relocating the house to an area on the property that is above the BFE or to another lot outside of the floodplain; raise utilities, such as a furnace, air conditioning unit and/or water heater, above the BFE; create flood openings on the home's foundation so floodwaters can flow through; or fill in sub-grade crawlspaces to the same height or higher than the exterior finished grade.
FEMA and other federal agencies have a variety of financial assistance programs to help states, communities and individuals implement measures that reduce damage from future floods and other hazards. Homeowners interested in rebuilding in a safer way should contact the local mitigation strategies coordinator or Emergency Management Office for their county, city or town.
For more information on flood insurance and flood risk, visit www.FloodSmart.gov. To protect property with a flood insurance policy from the National Flood Insurance Program, call a local insurance agent or call 1-800-427-2419 to find an agent.
More information about mitigation strategies to reduce flood risk can be found at www.fema.gov.
The State Emergency Response Team (SERT) is a collaboration of Florida's state agencies led by the state coordinating officer. SERT's mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impacts. Visit www.floridadisaster.org for the latest information on the hurricane relief efforts.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, 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, 14-Mar-2005 14:57:34