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12/19/2022 02:22 PMAs a result of diligent work by the planning department, residents with mandatory federal flood insurance will see a 10 percent drop in their rates, according to town officials. Though rising insurance rates may not ultimately reflect that decrease, implementation and accounting of numerous projects have earned the town credits that have moved the town’s rating up one level, translating into a rate decrease.
According to Town Planner Janice Plaziak, Guilford use a community rating system (CRS) process that is overseen by the Department of Homeland Security (DHS) and the Federal Emergency Management Association (FEMA) that incorporate the findings of third-party insurance services to calculate flood insurance rates for a given municipality. When participating towns initiate changes and projects that help mitigate flooding, their respective liabilities decrease, which in turn lowers the mandated insurance costs, Plaziak said.
“We are part of the CRS program, which is part of FEMA and that gives us the ability to gain credit for our flood plain management activities that they consider important in order to see if we qualify to a level that will allow us discounts on the flood insurance premiums,” said Plaziak. “When I first got here, I hadn’t realized the prior engineering department had done the work to get us enrolled in the program at a Level 9, which is a five percent discount on the flood insurance premiums. We have been continuing that work and every five years, FEMA does what is called a mandated 'cycle visit,' which is where they ask towns to reaffirm their details as far as mitigation and they give you points for those efforts."
Plaziak said the town recently completed its first post-enrollment "cycle visit," and following the review, officials received word that residents were eligible for a larger discount.
"We were hoping to achieve, at the least, what we had before and maintain our Class 9 rating," Plaziak said. "After they completed their review, we were notified that we had accumulated enough points in order to be upgraded to the Class 8 level and receive the 10 percent discount.”
The discount is only applicable for flood insurance premiums for property owners in the special flood hazard area who are required to have flood insurance by their mortgage holder and not for those who have chosen to enroll in non-required coverage, Plaziak explained.
"Properties that may choose to enroll in the flood insurance program that are not in the special flood hazard area get a very low-cost policy anyhow and those will see not any kind of discounts on those policies, but all the folks who are actually in the special hazard area will see some discount," said Plaziak. "Keep in mind that if their premiums go up due to other circumstances, even with the 10 percent discount, folks may see a rise in their rates.”
According to Plaziak, there are a number of areas in town that are within this special hazard area, specifically along the shore, but the zone also encompasses large tracts along Guilford’s two main rivers and areas around Lake Quonnipaug.
First Selectman Matt Hoey, said he was impressed by the department's efforts to collate and disseminate all of the information required by the federal overseers. Hoey said the amount of work required to jump a level in the program is not easy and that Plaziak and the Department should be commended for their diligence.
“This ten percent discount goes directly in the pockets of those who are paying federal flood insurance. We are thrilled with the change in the discount rate. This really is the work of Janice Plaziak and her team,” Hoey said. “In working with the flood plain management programs to ensure we have done as much as we can to mitigate flood damage, they have performed a critical service for residents. It is yet another great piece of work by Janice and her team.”
This program and the decrease will only affect those who have mandated federal flood insurance. Officials cautioned residents that though their overall rate will fall by ten percent, overall rising insurance rates may not necessarily reflect an actual ten percent drop in their ultimate insurance premiums.