FEMA’s change in rating may save Cape policy holders nearly $6 million on Flood Insurance premiums
The Federal Emergency Management Agency has notified the City of Cape Coral that the community has received an increase in their flood insurance rating, which will save policy holders nearly $6 million on their flood insurance policies.
FEMA is awarding Cape Coral a Class 5 rating in the National Flood Insurance Program’s Community Rating System, which is one step better than the city’s previous Class 6 rating.
“This is very good news for our residents who live in the Special Flood Hazard Area as they now will receive a 25 percent discount on their flood insurance premiums,” said City Manager Gary King in a prepared statement issued Monday. “Cape residents who live outside this area also receive a 10 percent discount on their flood insurance costs.”
Participation in the National Flood Insurance Program’s Community Rating System is voluntary and rewards communities who implement programs and policies that exceed the minimum NFIP requirements. Class ratings are issued on a scale of 1 to 9 – the lower the number, the better the rating. Each rating class provides for a 5 percent discount, and with the previous Class 6 rating, policy holders in the Special Flood Hazard Area received a 20 percent discount.
For the past few years, the city staff has worked on various projects and strategies to improve Cape Coral’s class rating and increase the premium discounts for the citizens, officials said. The city is allotted points for floodplain management activities that exceed the NFIP requirements in four categories: Public Information, Mapping and Regulations, Flood Damage Reduction and Flood Preparedness. These activities benefit public safety, provide property protection and protect the natural function of floodplains.
The new discount will be applied to NFIP policies issued or renewed on or after May 1, 2010. Policy holders should contact their insurance agent to confirm their flood zone designation.
The City of Cape Coral had 30,210 flood insurance policies in effect at the end of August 2009.
Source: City of Cape Coral