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<br />building constructed or substantially improved <br />after the date of the most current FIRM - such <br />as one built or substantially improved in 2008, <br />is subject to rates based on actual risk. <br /> <br />Table 3-2 shows the rates for a policy with <br />$150,000 coverage on the building. For <br />example, a house built in 1975 that meets the <br />BFE with a $150,000 building/$60,000 contents <br />policy will cost the homeowner approximately <br />$1100 annually to insure. If a pre-FIRM house <br />in the AE zone is elevated to 1 foot above the <br />BFE, the owner will be able to take advantage <br />of the much lower post-FIRM rates, <br />approximately $600 annually. <br /> <br />It should be noted that almost all of the <br />buildings in the Brookglen study area are <br />eligible for the X zone rates. <br /> <br />Table 3-2: Example NFIP Flood <br />Insurance Premiums <br />Policy/Building <br />Exposure Premium <br />Pre-FIRM ("subsidized") $1,605 <br />rate (AE zone) Post-FIRM (actuarial) rates (AE zone) <br />2 feet above BFE $425 <br />1 foot above BFE $601 <br />At BFE $1083 <br />1 foot below BFE $3,877 <br />X Zone $931 <br />Annual premium is for $150,000 in <br />building coverage and $60,000 in <br />contents coverage for a one-story <br />house with no basement and a $500 <br />deductible. <br />May 1, 2007, Flood Insurance Agent's <br />Manual <br /> <br />Community Rating System (CRS): The Community Rating System is a "voluntary incentive <br />program that recognizes and encourages community floodplain activities that exceed the <br />minimum National Flood Insurance Program (NFIP) requirements." (www.FEMA.gov) <br />Participating communities are rewarded with reduced insurance premiums. The City of La Porte <br />participates in the CRS and is currently rated as a Class 7, which means that properties in the AE <br />zone receive a 15% reduction in their insurance premiums. Properties in the X zone receive a <br />5% premium rate reduction. These reductions are not reflected in the example premiums in the <br />table. If the community pursues additional floodplain management activities that exceed the <br />requirements of the NFIP, such as adopting stricter local development regulations, all La Porte <br />homeowners could be eligible for even further decreased flood insurance rates. <br /> <br />See the Table 3-3 for a summary of the mitigation measures presented in this report. <br /> <br />Brookglen Area Analysis - DRAFT <br /> <br />9/8/2008 <br /> <br />25 <br />