Mississippi Communities Saving More Than $1 Million Per Year In Flood Insurance Premiums 

Release Date: March 17, 2009
Release Number: 1604-705

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BILOXI, Miss. -- Communities throughout the state of Mississippi are saving a combined $1.2 million in flood insurance each year by participating in the National Flood Insurance Program’s (NFIP) Community Rating System (CRS).

CRS is an incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements. As a result, flood insurance premiums are discounted to reflect the reduced flood risk resulting from the community actions meeting the three goals of the CRS:  reducing flood loss, facilitating accurate insurance ratings and promoting public awareness of flood insurance. Participation in the program is voluntary and separate from participation in the NFIP.

“The idea behind both the NFIP and CRS is to limit the amount of damage incurred,” said NFIP Floodplain Management Specialist Amber Lockwood. “If we mitigate damage, we protect the citizens from the financial hit that can occur due to flooding.”

While CRS is a voluntary program, communities are encouraged to take the steps necessary to recognize the many benefits available to them.

“We want citizens to know about the program so they can encourage their local leaders to participate,” said Lockwood.

There is no fee charged for a community to apply for participation in the CRS. In fact, the only costs incurred are those associated with implementing creditable floodplain management activities and the staff time needed to prepare the application.

Reduced flood insurance premiums are just one of the many rewards of participating. CRS floodplain activities provide enhanced public safety, a reduction in damage to property and public infrastructure, a reduction of economic loss and protection of the environment.

Communities can evaluate the effectiveness of their program against a nationally recognized benchmark. Technical assistance is available through CRS at no charge. And, implementing some of the CRS activities, such as floodplain management planning, can help a community qualify for other federal assistance programs.

“It’s a win – win situation,” said Richard Stickler, floodplain administrator for the City of Biloxi. “Here in Biloxi, we’re already getting a 15 percent discount on our premiums for properties that are located in Special Flood Hazard Areas (SFHA). We hope to receive additional credits during recertification later this spring, which may increase our discount to 20 percent.”

Currently, 11 of 14 NFIP communities in Harrison, Hancock and Jackson counties are CRS participants. Residents of those areas are getting anywhere from five to 25 percent discounts on their flood insurance premiums, depending on the location of their property.
“Many communities are already implementing creditable activities,” said Lockwood. “They’re just not getting the discounts because they haven’t joined the CRS program.”

Discounts are based on a grading scale from one to ten, CRS Class 1 being the best, receiving a 45 percent premium discount and CRS 10 the least, receiving no premium discount. A community not participating in the program is rated a CRS Class 10. They receive no discount. As communities earn credits, they move up the scale based on 500-point increments. Each new class rating adds an across-the-board, five percent discount on flood insurance policies for insured buildings in the SFHA within that community.

The city of Waveland has the highest CRS rating and, therefore, the highest discount on flood insurance premiums in Mississippi. Statewide, CRS communities are saving an average of 10 percent through premium discounts. FEMA and MEMA are currently working closely with Jackson and Hancock counties to encourage their participation in the program. 

To find out if your community is participating in the CRS, contact your local floodplain administrator
or insurance agent.

Communities participating in CRS in the three coastal counties of Mississippi :

Community Rating SFHA Discount 
Bay St. Louis 7 15 percent 
Biloxi  7 15 percent 
D’Iberville  7 15 percent 
Gautier  8 10 percent 
Gulfport  8 10 percent 
Harrison County  8 10 percent 
Long Beach  7 15 percent 
Ocean Springs  7 15 percent 
Pascagoula  7 15 percent 
Pass Christian  6 20 percent 
Waveland  5 25 percent 
Mississippi Average  8 10 percent 
National Average  8 10 percent 

To learn more about flood insurance, visit www.msema.org or www.floodsmart.gov.

FEMA leads and supports the nation in a risk-based, comprehensive emergency management system of preparedness, protection, response, recovery, and mitigation, to reduce the loss of life and property and protect the nation from all hazards including natural disasters, acts of terrorism, and other man-made disasters.

Last Modified: Wednesday, 18-Mar-2009 10:53:08