The value of municipal FEMA flood-insurance ratings is rising with the sea

The slow, relentless rising of the ocean and sinking of coastal land have made flooding a constant concern of the Jersey Shore. That will remain true for the rest of this century and probably beyond.

The state Department of Environmental Protection may impose heavy burdens on existing coastal residences and buildings, and make further development all but prohibitively expensive. The U.S. Army Corps of Engineers and the DEP are considering storm-surge barriers, engineered natural shorelines and increased property buyouts to counter flooding.

However these issues play out and are decided, the cost of flood insurance will continue to weigh on coastal dwellers for the foreseeable future.

The National Flood Insurance Program rolled out new premium pricing under the Federal Emergency Management Agency's "Risk Rating 2.0" system in 2021-22. That charged most properties an average of $120 a year more for coverage. One in 20 saw increases of more than $240 per year, especially in the most flood-prone shore areas. Nationwide, the average flood insurance premium is $700 per year, according to FEMA.

The increases have made the discounts that communities can earn on flood policies in town more valuable. For some, the discount may even be necessary to afford the insurance.

The discounts are available to municipalities participating in FEMA's Community Rating System. They earn rating credits through 19 activities to improve their flood-management plans, often working with the New Jersey Coastal Coalition. Residents and businesses can help work on improvements too.

In 2021, for example, Avalon earned enough credits for its watershed and flood-plain management plans to move up two places to Class 3 on FEMA's 10-class community rating scale. That gave it the highest rating in New Jersey, qualifying properties in the borough for 35% discounts and saving $1.6 million on flood-insurance premiums.

Many towns on the barrier islands have worked their way up to Class 5, getting residents a 25% flood insurance discount. That's pretty good. Class 10, which provides no discount, indicates a town that is not participating or is not in full compliance with the minimum requirements of the National Flood Insurance Program.

This year, Pleasantville celebrated the first fruits of its effort under the Community Rating System. As of April 1, the city qualified for Class 6 with its 20% premium discount.

Towns can also see their rating lowered, or "retrograded" in FEMA speak, as a result of FEMA's annual review of flooding-related activities. Sea Isle City, which had shared the state's top rating with Avalon, this year was dropped to Class 4 — still great, with a 30% discount.

That's also Ocean City's class and premium discount level. Atlantic City, in Class 5, has room for improvement. Lacey Township, Tuckerton and West Wildwood are in Class 10, with nowhere to go but up.

Egg Harbor Township has had a typical good rating of Class 5 — until this year. In FEMA's ratings that will take effect in October, the township is retrograded to Class 10. Presumably this is due to a change that reduced its compliance with the minimum requirements. The township's website says, "FEMA has undertaken a new flood insurance study to determine whether there should be changes in flood zones. The preliminary results for this study have been published but have not yet been declared effective." That may be a factor.

Big steps will be needed to maintain the quality of life at the Jersey Shore in the face of more frequent and more damaging flooding. FEMA's Community Rating System encourages smaller steps that help reduce flood damage now and save significant money on insurance.