A vast number of flood insurance policyholders are unaware of the discount Community Rating System (CRS) offered through the National Flood Insurance Program (NFIP) by FEMA; specifically, created to give participating communities direct discounts on policyholder's premiums.
One designation of the FEMA created CRS was to be used as an incentive program for communities around the nation to participate with the NFIP in order to take a more proactive stance against potential flooding within certain flood zones, as well as, an over all aggressive approach to floodplain management.
There are full compliance eligibility requirements for communities to be accepted and verified as a participant and which are regulated by FEMA.
The CRS is based upon a credit and classification system. There are 10 different classifications and every community starts with a Class 10 rating. From there, the community begins to gain credit points based on 18 different activities.
These 18 activities are divided into four main categories: Public Information, Mapping and Regulation, Flood Damage Reduction, and Flood Preparedness. FEMA sets the CRS classification based upon the credit points of each community.
This classification determines the premium discounts policyholders are entitled to. The premium discounts which should be applied to every policyholder's premiums range from 5 percent to 45 percent as recognition of the proactive floodplain management.
Hint: Over 80% of all property owners overpay for Flood Insurance!
During this economic crisis, which everyone is experiencing a budget crunch; it would be prudent of each flood insurance policyholder to request from their local agent a detail analysis of their premium calculation. Once received, the policyholder can inform their agent about the FEMA mandated discount structure and request a discount.
This is just one avenue to investigate to make sure that you the consumers are getting the best from the NFIP.
The 4 Simple Steps to follow to save on your insurance rates:
1. Request from your insurance agent a detail analysis of your premium calculation. Hint: Don't tell your agent why you want it!
2. Once you have your premium calculation in hand inform your agent of the FEMA mandated discount structure and request he/she look up the appropriate FEMA insurance discount so you can compare it to what you are actually paying.
3. Since you now know what you should be paying and if you are paying too much inform your insurance carrier (agent) and request the premium be lowered.
4. BIG HINT: You can also request a refund from your insurance carrier for overpayment.
You too can reduce your flood insurance costs, just take the time to follow these simple steps and enjoy!
Bet you never thought it possible to reduce, let alone Eliminate your expensive requirement for Flood Insurance. Did you?
Keep an eye open in upcoming articles as I will be explaining in a 2 part series or more in detail "How to Eliminate Your Flood Insurance Requirement". Just as a little teaser so you will stay up nights waiting for my upcoming lessons on Flood Insurance let me tell you I am batting 100%. That's Right! 100% of the time I have been able to Reduce or Eliminate your insurance requirement.
So...... if you want to Save Big on your Flood Insurance just watch for more "Ways to Save on Your Flood Insurance" and "How to Eliminate your Flood Insurance Requirement".
Coming Soon to an Article, Ezine Directory or Ebook provider near you!
