NFIP Flood Insurance Community Rating Discounts Update

Those people that have flood insurance, specifically in South Carolina, know that when they look at their flood policy they will find some discounts.  So what are these discounts?  Well, communities (counties, cities, towns) can apply for various discounts with FEMA if they meet certain guidelines.  All NFIP flood policy holders will get the associated discount applied to their NFIP flood policy.  For some, this can be hundreds of dollars of savings a year.

The updated community discounts are available and are below.  The one I want to point out is that which affects Hanahan, South Carolina.  Why is this important?  Because Hanahan has never been given a discount.  Now that discount is 15% for A and V flood zone (5% for X zones).  This can be huge some many homeowners to put money back in their pockets.

Below you will find out more of the details as it relates to all the communities both positively and negatively affected by the new community rating system updates.

Please reach out to our office should you have any questions and you can do so very easily by completing the form at the end of this post.  Answer a few questions and we can make sure that FEMA (or the private flood insurance market) is the best flood insurance option for you.

THE SKINNY
		The National Flood Insurance Program (NFIP) has released an entirely restructured manual reflecting the rule changes previously announced in agency bulletin 18-H-26 and updates to the list of communities participating in the Community Rating System (CRS) program.  For those not familiar with the CRS program, communities can qualify their residents and business owners for discounted flood insurance premiums if they adopt building code, flood hazard mitigation, record retention and communication standards exceeding those required for participation in the NFIP.
		Please route this bulletin to anyone in your office who works with Flood insurance.
NFIP MANUAL RESTRUCTURING
		The NFIP Manual has been completely restructured to make it easier to find information. Please note, however, that in addition to incorporating the previously announced program changes effective October 1, 2018, inadvertent changes were made to some the NFIP manual rules.  These inadvertent changes are being identified and addressed with the NFIP.  At the present time, whenever a rule description in the October 1, 2018 version of the manual differs from the corresponding rule description provided in the April 1, 2018 manual, and that rule was not specifically addressed in NFIP Bulletin W-18008, the April 1, 2018 rule is to be used.
COMMUNITY RATING SYSTEM UPDATES
	The listing of qualifying communities and earned discounts has been updated.  The Auto-Owners Flood system will apply the updated discounts automatically to premium quotes, issued policies and renewals.  We offer them here to help identify changes that might impact your flood insurance clients.
	Communities qualifying for a new or increased discount are listed in the following chart.
	State		Communities with Increasing Discounts	Previous Discount % A or V Zones / B, C or X Zones	New Discount % A or V Zones / B, C or X Zones
	AZ		Town of Patagonia	0 / 0	5 / 5
	AZ		City of Phoenix	20 / 10	25 / 10
	AR		City of Arkadelphia	5 / 5	10 / 5
	AR		City of Fayetteville	5 / 5	10 / 5
	AR		City of Springdale	0 / 0	10 / 5
	CO		Eagle County	10 / 5	15 / 5
	CO		City of Littlejohn	15 / 5	25 / 10
	FL		City of Daytona Beach Shores	20 / 10	25 / 10
	FL		Jackson County	10 / 5	15 / 5
	FL		City of Lake Alfred	0 / 0	15 / 5
	FL		City of Lake Mary	15 / 5	20 / 10
	FL		City of Palmetto	10 / 5	15 / 5
	FL		Town of Pembroke Park	0 / 0	5 / 5
	FL		Village of Royal Palm Beach	0 / 0	20 / 10
	FL		City of South Daytona	15 / 5	20 / 10
	FL		City of West Palm Beach	20 / 10	25 / 10
	GA		City of Augusta – Richmond County	0 / 0	15 / 5
	GA		City of Hinesville	15 / 5	20 / 10
	IL		Village of Bartlett	15 / 5	20 / 10
	IL		DuPage County	0 / 0	20 / 10
	IN		City of Columbus	10 / 5	15 / 5
	IA		Charles City	0 / 0	5 / 5
	KS		City of Riley	0 / 0	5 / 5
	KY		City of Augusta	0 / 0	5 / 5
	KY		City of Richmond	5 / 5	10 / 5
	KY		City of Salt Lick	5 / 5	10 / 5
	MI		City of Ann Arbor	15 / 5	20 / 10
	MO		City of Blue Springs	0 / 0	5 / 5
	NE		City of Scottsbluff	0 / 0	5 / 5
	NC		Town of Carolina Beach	15 / 5	20 / 10
	NC		Town of Caswell Beach	15 / 5	20 / 10
	NC		City of Gastonia	0 / 0	5 / 5
	NC		Guilford County	10 / 5	15 / 5
	NC		Morehead City	10 / 5	15 / 5
	NC		New Hanover County	10 / 5	15 / 5
	NC		Town of Oak Island	10 / 5	15 / 5
	NC		Pitt County	10 / 5	15 / 5
	SC		City of Hanahan	0 / 0	15 / 5
	TN		City of Franklin	5 / 5	10 / 5
	UT		City of Santa Clara	5 / 5	10 / 5
	The Community Rating System discounts have been reduced or eliminated in the communities listed in the chart below.  As a result, flood insurance premiums for policies issued within these communities will experience increases exceeding the annual increases adopted by the NFIP.
	State		Communities with Increasing Discounts	Previous Discount % A or V Zones / B, C or X Zones	New Discount % A or V Zones / B, C or X Zones
	FL		City of Anna Maria	25 / 10	15 / 5
	FL		City of Apopka	15 / 5	10 / 5
	FL		Town of Hastings	10 / 5	0 / 0
	GA		Coweta County	10 / 5	5 / 5
	ID		City of Hailey	15 / 5	10 / 5
	ID		Shoshone County	15 / 5	0 / 0
	IL		City of Crystal Lake	20 / 10	15 / 5
	KS		Harvey County	5 / 5	0 / 0
	NC		Town of Cedar Point	10 / 5	5 / 5
	NC		Wayne County	20 / 10	10 / 5
	UT		City of Centerville	15 / 5	0 / 0
EFFECTIVE DATE
	The above revisions apply to new business and renewals effective October 1, 2018 and after.

Make sure that the NFIP flood program is right for you OR if you should be in the private flood insurance market by answering a few simple questions!  Start saving as soon as tomorrow!