Alabama Community Recognized For Reducing Flood Risks

Birmingham, Ala. earns Discount on Flood Insurance Premiums

Release Date: July 11, 2012

Release Number: R4-12-017

ATLANTA, Ga. -- On July 10, 2012, Birmingham, Ala. was recognized at its city council meeting for its active participation in the National Flood Insurance Program's (NFIP) Community Rating System (CRS).

The CRS rewards communities that voluntarily take steps to reduce flood risks beyond the minimum requirements of the NFIP. These steps, which include increasing flood protection and implementing preparedness and mitigation activities, lead to safer communities and ultimately help saves lives and property. As a result, property owners and renters in CRS-participating communities enjoy a reduction in flood insurance premiums.

Policyholders in Birmingham first began receiving flood insurance discounts under the CRS program in 1994. As a result of additional steps the community has recently taken, the community moved from a CRS Class 8 to a CRS Class 6 effective May 1, 2012, earning an additional ten percent savings on flood insurance.

There are more than 1,050 flood insurance policies in force in Birmingham, representing more than $175 million in flood insurance coverage. Policyholders located in the high risk areas of flooding, or Special Flood Hazard Areas, can now receive a 20 percent discount on their policy premium, which is an average savings of $247 per policy. Some policyholders in the lower risk areas are eligible for a 10 percent discount. In total, policyholders realize an annual savings of more than $262,000 because of the community's participation in the CRS program.

CRS is a voluntary program for NFIP-participating communities. The intended goals of the program are to reduce flood losses, facilitate accurate insurance ratings and to promote the awareness of flood insurance. For more information on the NFIP's CRS program visit www.fema.gov/business/nfip/crs.shtm. For more information about the NFIP, a program administered by the Federal Emergency Management Agency (FEMA), visit www.floodsmart.gov.

FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.