FEMA's individualized approach to risk assessment is built on years of investment in flood hazard information, and one of the tools they provide for homeowners is their Flood Insurance Mitigation Discount tool online at https://www.floodsmart.gov/flood-insurance-mitigation-discount-tool.
By using current data, flood models, and technology, FEMA considers many risk factors for individual properties, including frequency of flooding, multiple flood types, distance to a flooding source, and property characteristics such as elevation and the cost to rebuild. You can visit their website and enter answers to questions on your:
foundation;
first floor height;
mitigation discounts for machinery/equipment (M&E) and number of flood openings
Once you answer these questions online, the estimator tool determines what percentage discount you are entitled to on your national flood insurance that are generally applied to the building and contents premium. Mitigation efforts, community programs, and other discounts can help reduce flood damage and, potentially, the cost of flood insurance.
Elevation certificates help inform mitigation actions that will lower flood risk, but they are no longer required to purchase coverage under NFIP's pricing approach, Risk Rating 2.0. Instead, FEMA uses its tools and resources to determine the first-floor height of a building as one of the factors used when calculating rates. However, a property owner may choose to provide an EC and submit it to their agent to determine if it will lower their cost of insurance.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
