Handlin: Towns can lower flood insurance costs
Preparedness equals points in FEMA rating system
BY JAMIE ROMM Staff Writer

Amy Handlin

Coastal municipalities can help residents avoid paying higher flood insurance premiums by having flood mitigation measures in place, according to Assemblywoman Amy Handlin (R-13th District).

A little-known Community Rating System used by the Federal Emergency Management Agency (FEMA) offers an "incentive where towns earn points for certain actions that reduce flooding and consider a township's preparedness," Handlin said.

"The points mean that a township is prepared across the board. It's an opportunity for towns to deliver very significant cuts in flood premiums," Handlin told those who attended a meeting on flood insurance convened by the legislator.

Handlin and representatives from FEMA held a roundtable meeting with municipalities on Oct. 22 to explore ways to reduce flood insurance premiums for residents.

Handlin has been a strong advocate for Bayshore municipalities and their residents who are affected by FEMA's revised flood plain zone maps, which added thousands of coastal properties to the flood zone, making owners liable for flood insurance premiums that could cost as much as $5,000 a year.

"We called the meeting to make sure towns affected by the FEMA mandate were made aware of a program that is hidden in the fine print," Handlin said. "It is very low profile and there is a lack of awareness."

She said that officials from Hazlet, Middletown, Matawan, Aberdeen and Union Beach attended the roundtable discussion held at the Middletown Arts Center.

"It's an opportunity for towns to deliver very significant cuts in flood premiums," Handlin said. "It is not tied to current changes in flood maps. When a town participates and earns points, premiums are cut right away."

Handlin said that Union Beach seemed to be the most prepared of all of the municipalities, because they have been working with the program previously.

She also noted that Hazlet officials seemed to have a prior knowledge of the program, but even that was limited.

"Hazlet Committeeman Scott Aagre told me that Hazlet has taken the initial steps for the program," Handlin said. "But even he said that he felt he needed to do a lot more."

She also said that while Middletown was not in the program, they were eager to learn more.

"The meeting was well worth the effort," Handlin said. "Towns are now willing to check into what they have to do to be eligible for this and other programs."

FEMA's Web site has educational information about programs such as the Community Rating System.

According to FEMA's Web site, "Recognizing that the adoption of new flood maps is the responsibility of the community, FEMA encourages communities to participate in the Community Rating System (CRS). Through voluntary community education and flood mitigation activities, community-wide discounts on flood insurance may be earned from 5 to 45 percent. When a community is approved to participate in the CRS, property owners receive at least a 5 percent reduction in flood insurance rates."

The National Flood Insurance Program's (NFIP) Community Rating System was implemented in 1990 as a program for recognizing and encouraging community floodplain management activities that exceed the minimum NFIP standards.

The National Flood Insurance Reform Act of 1994 codified the Community Rating System in the NFIP. Under the CRS, flood insurance premium rates are adjusted to reflect the reduced flood risk resulting from community activities that meet the three goals of the CRS:

1. Reduce flood losses

2. Facilitate accurate insurance rating

3. Promote the awareness of flood insurance.

One specific action a township can take is a flood-warning program.

According to FEMA's Web site, the municipality must have a flood threat recognition system in place that identifies an impending flood in order to receive credit toward the community rating.

"Additional credit is provided for disseminating a warning to the general public, carrying out appropriate flood response tasks, and coordinating the flood response plan with operators of critical facilities," the Web site states. Handlin said that it is important for municipalities to educate themselves about the rating system in order to save taxpayers money.

"In light of FEMA's plan to raise insurance rates for thousands in the Bayshore, we need to take action to reduce these burdensome charges," Handlin said. "There are opportunities in the marketplace to collectively lower each town's premiums; this meeting is a golden opportunity for our municipalities to learn how to maximize those opportunities."

She said that it is up to the elected officials to help residents.

"FEMA is trying to force new costs on our residents, and it is up to us to take advantage of every cost-saving mechanism they built into their program," Handlin said.

Contact Jamie Romm at jromm@gmnews.com.