Submitted by Faith Ross
December 12, 2016 12:27 p.m
A few months ago my general homeowners’ insurance premium was lowered almost $1,000 by a company who verified hurricane improvements that were made to my home years earlier. Premiums drop when homeowners and businesses are willing to invest in their properties to meet specific hurricane standards. At the time my house was renovated, Florida’s building code was requiring that structures be built to Miami-Dade standards which were very high. A few years later those standards were lowered due to cost.
Not everyone can afford the substantial costs involved in making a home or business hurricane proof. For condo associations, businesses, older homes, and those not willing to invest, a far more efficient and effective way to lower your flood insurance premiums without spending money on property improvements is available. FEMA offers municipalities and local governments a discount program. As a business or a homeowner, you don’t have to do anything except pick up the phone and call your local government (City and County Commissioners) to say that you want CRS Discounts to lower your flood insurance premiums. Or send them an email titled, “I Support the CRS Discounts”. (See contact information below.)
Presently Fernandina Beach participates in the CRS program at a lower level which presently gives all City businesses and homeowners a 20% discount on flood insurance premiums. This is a far cry from communities who have found ways to receive 35 to 45% discounts for homeowners and businesses. These discounts are crucial to maintaining your property values. High flood insurance premiums cause lower resale and property values. Presently, some properties are experiencing 18% increases in their premiums each year. With more losses with recent hurricanes, there will be higher premiums in the future.
What is the CRS? It is a National Flood Insurance Program called the Community Rating System. It allows your local government to lower your flood insurance costs as much as 45% in addition to any discounts received from improvements made to the property. This program also lowers the insurance costs of local government properties by lowering City and County government premiums.
The Community Rating System allows local governments to choose various “activities” to accumulate points which are exchanged for “discounts”. Some very simple examples are putting “markers” at various flood tide heights, giving out brochures on flood prevention, etc. Others garnering larger points and discounts are activities such as removing failing structures from flood prone areas or requiring developers to place low lying portions of properties into “deeded preservation” banks for which they can receive tax reductions through permanent Federal tax incentives. Communities can also invent or create new activities for CRS point accumulation approval. To assist with these activities, FEMA offers monies. Monies are available for tearing down and removing failing structures in flood prone areas along with funding for a host of other activities.
Not only does the CRS program save businesses or a homeowner money on their flood insurance premiums, but it also lowers our Federal tax burden. FEMA, the FEDERAL Emergency Management Agency, uses our tax dollars and flood insurance premiums to fund the nation’s disaster relief fund.
On December 14th, our City Commissioners are meeting for their annual “visioning” session. Could one of their goals be a 30 to 40% reduction in our flood insurance premiums? They truly do have the power to make this goal a reality. In October of 2017 Fernandina Beach will receive an in-depth evaluation of their present flood rating. Now is the time to be proactive for an increased discount!
I hope all of us can take the time to let all of our local representatives know that we want our flood insurance premiums lowered by substantially along with lowering our future federal taxes. Your phone call or email to your City or County Commissioner can be worth far more than a 20% discount to your present premium.
City Commissioner Contact Information: http://www.fbfl.us/index.aspx?nid=842
County Commissioner Contact Information: http://www.nassaucountyfl.com/index.aspx?nid=95
Information on the CRS – Community Rating System
https://www.fema.gov/national-flood-insurance-program-community-rating-system See the Section, How Are Flood Insurance Premium Discounts Calculated?
Community Class Ratings – https://www.fema.gov/media-library/assets/documents/15846
Editor’s Note: As an educator and reading specialist, Faith Ross has taught in Massachusetts, Maryland, and Pennsylvania. She and her husband Chip purchased their home in Fernandina 6 years ago and are now residents. Faith enjoys reading, walks on the beach, and dining at the many downtown restaurants that are within walking distance from her home. She also enjoy telling her frequent visitors and friends from out of town that Fernandina is an amazing place to live!