MAYOR WHITE HAILS UPGRADE IN CITY'S FLOOD INSURANCE RATING, SAVING MILLIONS FOR PROPERTY OWNERS
January 29, 2008 -- 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 6" from a "Class 7" in the program's Community Rating System, providing an additional 5% reduction to policy holders both inside and outside the 100-year floodplain. The City's achievement of a Class 6 CRS rating provides an overall 20 percent savings, totaling more than $5 million, for property owners who are in the 100-year floodplain and purchase federally backed flood insurance. Property owners outside the floodplain could see savings of up to 10 percent on their annual premiums.
Jack Graham, Natural Hazards Program Specialist with FEMA's Region VI Community Mitigation Branch, presented a certificate marking Houston's upgrade to the Mayor during today's Houston City Council meeting. Houston is the largest U.S. city to attain this rating and is among only 11 percent of the almost 1,200 communities in the system across the country to earn the Class 6 rating.
"We've worked very hard to meet and surpass the rating criteria and have a long-term plan to better control flooding. We made storm drainage a priority and it is paying off with real-world savings for Houston property owners," said Mayor Bill White. The mayor recently announced his intention to invest another $250 million in drainage improvements citywide, in addition to the $250 million in projects completed or under way since he took office.
The CRS program grades participant communities for 18 creditable activities, organized under four categories: Public Information; Mapping & Regulations; Flood Damage Reduction; and Flood Preparedness.
There are more than 140,000 flood insurance policy holders in the city. Annual savings through the premium reduction could total more than $5 million for those policy holders. The reduction in insurance premiums will be provided to each policy holder when they renew their flood insurance policy.
Below are some examples of how the CRS program and premium reductions benefit Houston property owners. The examples are based on coverage for a $100,000 building and $30,000 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):
Without CRS participation, annual rate would be $990.
With Class 6 CRS rating, annual premium would be $798.
Single Family Residential
Single story house built after December 11, 1979, located within the Special Flood Hazard Area (the 100-year flood plain) and finished floor elevation one foot above the Base Flood Elevation:
Without CRS participation, annual premium would be $525.
With Class 6 CRS rating, annual premium would be $426.
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.
