Key West Readmitted To Flood Insurance Discount Program

Key West Readmitted To Flood Insurance Discount Program

By Pru Sowers

Konk Life Staff Writer

After more than five years of banging on the Federal Emergency Management Agency’s door, Key West has overcome a major hurdle in securing lower insurance rates for local property owners that could cut their premiums up to ten percent.

Key West was readmitted to FEMA’s national Community Rating System (CRS) on Feb. 1 after being kicked out of the flood program several years ago because of its “lackluster enforcement of floodplain requirements,” according to Scott Fraser, Key West FEMA coordinator and the city’s floodplain administrator. The CRS program gives points to communities that actively work towards reducing flood risks for property owners. Those points are used to lower insurance premiums for all local property owners insured through the federal National Flood Insurance Program, a FEMA-offered property insurance plan.

In 2010 city officials began asking how Key West could be readmitted to the CRS program, which required approval to even submit an application to CRS officials. FEMA’s response, Fraser said, was not encouraging.

“The most difficult part to obtaining this citywide discount is qualifying to submit the application. That hurdle took five times longer and was ten times more difficult than it will be to obtain the actual discount,” he said.

To qualify for the CRS program, Key West completely revamped the building permit process used by its building department. Code enforcement and compliance was also changed to comply with the National Flood Insurance Program, and voters in November 2014 approved a referendum allowing buildings to be raised up to four feet above base flood levels.

The next step, Fraser said, will be for CRS evaluators to visit Key West in March to help with the discount program application. A new rating should be approved in October, with insurance savings expected to range from $78 to $233 per policy, totaling approximately $1.5 million annually. Key West property owners currently pay $10.8 million each year for insurance through the FEMA program.

“It will be just as important to maintain the program or we’ll lose the discount just like the city did during the late 1990s,” Fraser said. “FEMA is only willing to offer the discount if our community is willing to remain diligent with its flood damage prevention measures. The minute we slack-off we can kiss that discount good-bye, along with the $1.5 million savings that goes with it each year.”

 

 

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