Most flood insurance premiums dip 5 percent after city education effort

Dec. 05--Some Aberdeen residents who have flood insurance policies should have noticed a rate reduction in recent months.

City officials applied to be included in a Community Rating System through the National Flood Insurance Program. Public Works Director Robin Bobzien said enrollment meant having city officials take a look at things such as:

--How the city notifies property owners who live near a floodplain.

--How the city enforces floodplain regulations.

--And mitigation efforts by the city to reduce repeated flood claims.

"Once in the system, then you accumulate points and that will determine whether or not people pay full flood insurance or start getting discounts," Bobzien said.

Aberdeen officials heard last week that the city is now rated as Class 9, which means a 5 percent decrease in premiums for those who have flood insurance. On the scale, Class 1 is the best and Class 10 is a community without a rating, Bobzien said.

"The hope is we continue to make progress on that and continue to pick up a few more points," Bobzien said.

Each classification jump makes flood insurance policyholders eligible for another 5 percent discount.

According to a letter to the city from the Federal Emergency Management Agency, the first discount should have been applied on policies that issued or renewed since last October.

The letter also notes that preferred risk policies in certain flood zones are not eligible for the discount. Bobzien said those policies are for properties outside the floodplain.

As a National Flood Insurance Program community, all Aberdeen properties are eligible for flood insurance whether they are in the floodplain or not. Those that aren't already receive a discounted insurance rate, he said.

Bobzien said he hopes the city can continue to improve its rating.

Since serious flooding after heavy rains in spring 1997, city officials have completed flood mitigation projects like construction of a 2 1/2-mile-long and 3 1/2-foot-high levee that removed approximately 1,200 residents from the floodplain. But Bobzien said the rating system doesn't look at mitigation efforts like the levee construction.

"This is the educational component," he said.

For example, the city has made a few more documents available about floodplain management and sent letters to property owners about flood insurance availability, Bobzien said.

"We've got plenty of areas to grow in to," he said.

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