Ocean City recently announced a new rating in the National Flood Insurance Program that will bring savings to any NFIP policy holder in Ocean City.
As a “Class 5” participant in the NFIP’s Community Rating System (CRS) program, which rewards flood mitigation and awareness activities, Ocean City now is able to offer its residents a 25 percent discount on their premiums overall.
Ocean City had been rated “Class 6” with a 20 percent discount.
With more than 16,800 policies in force and a combined collection of more than $14.5 million in total premiums, the additional discount will translates into more than $725,000 in combined savings for homeowners.
Contributing factors in its Class 5 rating featured several new categories of point-generating activities, including “Flood Protection Assistance,” which rewards municipalities for providing citizens with direction on how to obtain financial assistance for flood mitigation projects. Ocean City earned points every time a home that has flooded repetitively was replaced or elevated above BFE.
Ocean City earned the most points for “Outreach Projects,” including the development of a “Program for Public Information” (PPI) initiative.
As Ocean City fulfills various CRS requirements, it can request a review at any time with a CRS specialist who can, in turn, order a change in Ocean City’s class rating. Those changes are processed twice yearly — in May and October. In this case, homeowners will see savings after May 1.
Flood insurance premiums have been a hot topic in Ocean City since a reform act was passed to make the federally subsidized NFIP program self-sufficient. The reform dramatically increases premiums, particularly for properties built below a “base flood elevation.” (Read more.)