COMMUNITY RATING SYSTEM FLORIDA RESPONSE TO BW-12. Bryan W. Koon Director Division of Emergency Management

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1 COMMUNITY RATING SYSTEM FLORIDA RESPONSE TO BW-12 Bryan W. Koon Director Division of Emergency Management 2014

2 Biggert-Waters Reform Act 2012 Signed into law on July 6, 2012, reauthorizing the program for five (5) years Brought sweeping changes to the insurance portion of the NFIP program including the establishment of a NFIP Disaster Fund As flood risks continue, the costs and consequences of flooding increases. Artificially low rates and discounts are no longer sustainable. 2014

3 NFIP CHANGES DUE TO BW-12 Policy subsidies are being phased out: o Non-Primary Residence o Non-Residential Property o Severe Repetitive Loss Property (1-4 residences) o Properties where claim payments exceed fair market value Rates will continue to increase 25% per year until rates reflect full-risk rate Changes were affective January 2, 2013 at policy renewal October

4 NFIP CHANGES DUE TO BW-12 Policies to be issued a new full-risk rates: o After the sale/purchase of a property o After a lapse in insurance coverage o After substantial damage/improvements o Properties uninsured as of BW-12 enactment Grandfathered rates planned to be phased out over five (5) years beginning October Grandfathered accounts will increase by 20% per year. October

5 FLORIDA IMPACT OF BW-12 NFIP and Florida o 87% of NFIP policyholders in Florida (1,789,559) are not subsidized and will not be affected. o 2% (50,496)of Florida NFIP policyholders, which are subsidized, will see immediate 25% increase beginning January 1, Currently 5% (103,258) primary residences will remain subsidized until one of the following occurs: o Property is sold (new rates accessed to new owner) o Policy lapses o Property suffers severe, repeated flood losses o A new policy is purchased October

6 UP CLOSE AND PERSONAL October

7 The Florida Division of Emergency Management 2014

8 FLORIDA CRS PARTICIPATION The Florida Division of Emergency Management 2014

9 COMMUNITY RATING SYSTEM Community rating system recognizes community efforts beyond those minimum standards by reducing flood insurance premiums for the community s property owners. CRS discounts on flood insurance premiums range from 5% up to 45%. Discounts provide an incentive for new flood protection activities. October

10 COMMUNITY RATING SYSTEM Communities can participate in some or all of the 18 public information and floodplain management activities. In order for community to be eligible for CRS discount, it must participate in Elevation Certificate activity. **Information on the Community Rating System is found in National Flood Insurance Program Community Rating System a Local Official s Guide to Saving Lives, Preventing Property Damage, Reducing the Cost of Flood Insurance. FEMA 573** 2014

11 COMMUNITY RATING SYSTEM In Florida, 47% of NFIP communities participate in the CRS program. Florida s savings on insurance premiums is more than $191.6 million annually. Nationally 11% of NFIP communities participate in the CRS program October

12 COMMUNITY RATING SYSTEM EXAMPLES OF COMMUNITY RATING SYSTEM ACTIVITIES Series Public Information Maximum Points Maximum Savings This series credits programs that advise people about the flood hazard, flood insurance, and ways to reduce flood damage. The activities also provide data that insurance agents need for accurate flood insurance rating. 310 Elevation Certificates: Maintain FEMA elevation certificates for new construction in the floodplain. 320 Map Information Service: Provide flood insurance rate map (FIRM) information to people who inquire, and publicize his service. 330 Outreach Projects: send information about the flood hazard, flood insurance, flood protection measures, and/or the natural and beneficial functions of floodplains to flood-prone residents or all residents of a community. 340 Hazard Disclosure: real estate agents advise potential purchasers of floodprone property about flood hazard. Regulations require notice of the hazard. 350 Flood Protection Information: the public library and/or community s website maintains references on flood insurance and flood protection. 360 Flood Protection Assistance: give inquiring property owners technical advice on how to protect their buildings from flooding, and publicize this service. 162 $19,440, $16,800, $45,600, $9,720, $12,240, $8,520,000 Series 300 TOTAL 936 $112,320,000 The Florida Division of Emergency Management 2014

13 PINELLAS COUNTY CRS Community Current Class Current Score Pts Needed New Class Total Pts Needed CITY OF BELLEAIR BEACH CITY OF CLEARWATER CITY OF DUNEDIN CITY OF GULFPORT CITY OF INDIAN ROCKS BEACH TOWN OF INDIAN SHORES TOWN OF KENNETH CITY CITY OF LARGO CITY OF MADEIRA BEACH TOWN OF NORTH REDINGTON BEACH CITY OF OLDSMAR PINELLAS COUNTY * CITY OF PINELLAS PARK TOWN OF REDINGTON BEACH TOWN OF REDINGTON SHORES CITY OF SAFETY HARBOR CITY OF SOUTH PASADENA CITY OF ST. PETE BEACH CITY OF ST. PETERSBURG CITY OF TARPON SPRINGS CITY OF TREASURE ISLAND The Florida Division of Emergency Management 2014

14 HOW YOU CAN MAKE A DIFFERENCE Advise prospective floodplain occupants about flood hazard and flood insurance requirements (80 points = $9,600,000) Disclosure of Flood Hazard (35 points = $4,200,000) Distribute Real Estate Agent s Brochure to all clients looking into purchasing a property (12 points = $1,440,000) The Florida Division of Emergency Management October

15 REFERENCE INFORMATION FEMA's BW-12 site: ASFPM's BW-12 site that includes links to an Interactive Map of Subsidized Policies and spreadsheet breakdown of policies by community: (link at bottom of home page) Region VI Audio Presentation (PPT): Flood Insurance Resources: NFIP Bulletins: October

16 State Floodplain Management Office (850) October