New Rating Will Bring Flood Insurance Savings to O.C. Homeowners

New Rating Will Bring Flood Insurance Savings to O.C. Homeowners

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A home at the corner of Sixth Street and Central Avenue was recently elevated above “base flood elevation” (BFE). Structures that remain below BFE face the steepest flood insurance premium increases.

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.)