Residents could save on flood-insurance policies | iSearch ...

The Community Rating system, used by the National Flood Insurance Program, provides flood insurance discounts to communities that pass building codes and enforce regulations aimed at reducing risk.

Discounts are based on a scale of 1 to 10, with 1 being the best and receiving a 45 percent discount. a 10 is the worst, resulting in no discount. a community not participating in the program is rated 10. Participation is free and voluntary.

Terrebonne currently has a 7 rating, giving residents a 15 percent discount on flood insurance. the parish has received unofficial notice from FEMA that its rating will be change to a 6 beginning in October, lowering the cost of flood insurance for residents by 20 percent, Parish Planning and Zoning Director Pat Gordon

Lafourche Parish does not participate and receives no flood-insurance discounts.

FEMA inspects communities every five years to make sure they comply with National Flood Insurance Program regulations. the federal agency looks to see if buildings are properly elevated, the necessary permits were secured and all building rules followed, said Michael Hunnicutt, deputy section chief for FEMA?s hazard-mitigation office. the Community Resiliancy Program rewards parishes that go above and beyond those standards.

?it helps save money, lowers flood-insurance costs, encourages safe building, smarter construction and mitigates against future risk,? Hunnicutt said.

The lower rating is due to the parish?s work educating locals about flood-risk management, aggressively pursuing elevation grant money and performing regular maintenance of levees and drainage. the parish also tracks flood damage to properties, requiring those with repeated damage to elevate or sell and move to higher ground.

Properties bought by the parish are converted to green space so no others build on high-risk land, Gordon said.

Terrebonne Parish President Michel Claudet said his administration has worked hard to improve the parish?s rating. it was an 8 when he entered office, and it dropped to a 7 in 2009.

?a two-point drop in these years is a great accomplishment,? he said.

Gordon said Terrebonne?s participation in the Community Rating system program has helped curb the parish?s flood risk. And discounts on flood insurance encourage locals to purchase flood insurance.

?We?re not going to stop there,? Gordon said. ?we have plans to go further, hopefully getting our rating to a 5, or a 4.?

The National Flood Insurance Program is the only local source of flood insurance. the program is set to expire on Sept. 30, after a temporary extension lapses. that short-term extension was passed last year to allow lawmakers time to reform the program, which has accumulated massive debt in the wake of Hurricane Katrina and other disasters.

A flood-insurance reform bill already passed the House, but a second remains stalled in the Senate.

Officials believe those reforms will not pass Senate muster before the flood-insurance program expires. a temporary extension will likely be passed this week as part of a short-term spending bill, said Luke Bolar, a spokesman for U.S. Sen. David Vitter, R-La.

That will extend the program through Nov. 18, allowing the Senate more time to pass the reform bill, he said.

The flood-insurance program was allowed to lapse several times last year as lawmakers passed repeated short-term extensions.

While short lapses don?t affect current policy holders, they prevent prospective buyers from closing on new homes because banks and other mortgage lenders require owners to have flood insurance.

The National Flood Insurance Program?s rates are currently considered by many to be too low for the risk they cover.

A reform bill that could allow flood-insurance rates to rise as much as 20 percent a year passed the House in July. currently rates may only rise by 10 percent per year. a bill introduced in the Senate would allow premiums to rise as much as 15 percent.

The reform bills would renew the National Flood Insurance Program for the next five years.

Staff Writer Nikki Buskey can be reached at 857-2205 or nicole.buskey@houmatoday.com.

Residents could save on flood-insurance policies

Source: http://isearchinsurance.com/residents-could-save-on-flood-insurance-policies/

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