MAYOR WHITE HAILS UPGRADE IN CITY'S FLOOD INSURANCE RATING, SAVINGS FOR PROPERTY OWNERS
May 19, 2006 -- Mayor Bill White today hailed the upgrade of Houston's Community Rating in the National Flood Insurance Program, a move that will reduce the rates property owners pay for flood insurance. The rating has been upgraded to a "Class 7" from a "Class 8" in the program's Community Rating System, which should result in a 5 percent savings, totaling almost $1 million, for property owners who are in the floodplain and purchase federally backed flood insurance.
"We've worked very hard to meet and surpass the rating criteria and it is paying off for Houston property owners in their pocketbooks," said Mayor Bill White, who also encouraged Houstonians to sign up for federal flood insurance through their insurance agents prior to the upcoming hurricane season. (There is a 30-day waiting period after the time of purchase before flood insurance takes effect.)
The CRS program grades participant communities for 18 creditable activities, organized under four categories: Public Information; Mapping & Regulations; Flood Damage Reduction; and Flood Preparedness.
Houston earned extra points for its public outreach and information efforts and for stricter building code standards, Mayor White pointed out.
"That, coupled with our having made a priority out of storm drainage improvements throughout the city mean Houston is doing a much better job combating flooding in our neighborhoods. The insurance break is a real-world result," said Mayor White.
There are more than 109,000 flood insurance policy holders in the city. Annual savings through the premium reduction could total nearly $1 million for those policy holders. The reduction in insurance premiums will be provided to each policy holder when they renew their flood insurance policy.
Houston's Class 7 rating is superior to approximately 98 percent of the 20,000 communities in the National Flood Insurance Program. There are 1,038 CRS communities in the nation; 70% are rated Class 9 or 8. Only 20% of the communities have been awarded a Class 7. Houston, Dallas and Los Angeles are large cities which have attained that rating.
Below are some examples of how the CRS program and premium reductions benefit Houston property owners. The examples are based on coverage for a $50,000 building and $20,000 contents, with a $500 deductible.
Single Family Residential
Single story house built before December 11, 1979 , located within the Special Flood Hazard Area (the 100-year flood plain) carries:
Without CRS participation, annual rate would be $659
With Class 8 CRS rating, annual premium would be $596
With Class 7 CRS rating, annual premium would be $565
Single Family Residential
Single story house built after December 11, 1979 , located within the Special Flood Hazard Area (the 100-year flood plain):
Without CRS participation, annual premium would be $435
With Class 8 CRS rating, annual premium would be $395
With Class 7 CRS rating, annual premium would be $374
Flooding can happen anywhere in Houston, even for property outside of the 100-year flood plain. Approximately two-thirds of all flood losses during Tropical Storm Allison in 2001 occurred outside of the mapped 100-year flood plain.
The City of Houston has a comprehensive plan to systematically replace undersized and aging storm sewer pipes and systems to help reduce the extent and duration of localized flooding. Information about planned drainage improvements and project progress can be found at www.swmp.org For information about the Federal Flood Insurance program, see www.floodsmart.gov.
