Improved Rating To Bring Additional Flood Insurance Premium Discounts

Improved Rating To Bring Additional Flood Insurance Premium Discounts

Improved Rating To Bring Additional Flood Insurance Premium Discounts Featured

By / Local News / Tuesday, 13 March 2018 03:26

By WILLARD KILLOUGH III
Managing Editor

CAROLINA BEACH - Carolina Beach residents will experience increased savings on flood insurance premiums following an announcement last week by the Town of Carolina Beach.

According to Jeremy Hardison - Town Senior Planner - the Town is audited under the Community Rating System (CRS) by the Insurance Services Office (ISO). The most recent audit lowered the CRS rating from a Class 7 to a Class 6. Under the Class 7 rating, flood policies received a 15% discount. The lower rating of Class 6 will increase that discount to 20%.

On March 9th, Town Manager Michael Cramer issued a release announcing the lower rating. He explained, "Each year, the Town of Carolina Beach is audited for the Community Rating System (CRS) by the Insurance Services Office (ISO). The CRS evaluates all ordinances, policies and operational responsibilities that the Town performs in relation to managing and implementing a flood protection program, then assigns a score of 1 to 10. A lower score helps provide our citizens with a reduction in the cost of their flood insurance premiums."

Hardison explained Friday March 9th, "There are currently 3,576 flood policies in Carolina Beach.  With our current class 7 rating (15% discount) Carolina Beach policy holders are saving a total of $522,814.00 on flood insurance premiums.  Moving to a class 6 rating (20% discount) results to a $703,604.00 savings."

According to Cramer, "Jeremy Hardison, the Town’s Senior Planner, is the person responsible for managing the CRS system in Carolina Beach, and he has done a great job improving our rating and increasing the savings for our citizens by $180,790 dollars this year."

According to the Federal Emergency Management Agency (FEMA), the National Flood Insurance Program's (NFIP) Community Rating System (CRS) is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements.

As a result, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community actions meeting the three goals of the CRS:
- Reduce flood damage to insurable property;
- Strengthen and support the insurance aspects of the NFIP, and
- Encourage a comprehensive approach to floodplain management.

Nearly 3.6 million policyholders in 1,444 communities participate in the CRS by implementing local mitigation, floodplain management, and outreach activities that exceed the minimum National Flood Insurance Program (NFIP) requirements.

Under the CRS, flood insurance premium rates are discounted to reward community actions that meet the three goals of the CRS, which are: (1) reduce flood damage to insurable property; (2) strengthen and support the insurance aspects of the NFIP; and (3) encourage a comprehensive approach to floodplain management.
Although CRS communities represent only 5 percent of the over 22,000 communities participating in the NFIP, more than 69 percent of all flood insurance policies are written in CRS communities.

If you have questions regarding the CRS information, please contact Jeremy Hardison at (910) 458-2991 or This email address is being protected from spambots. You need JavaScript enabled to view it.


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