Flood prevention efforts reduce insurance costs  for property owners

Scottsdale property owners will save more on their flood insurance thanks to the flood prevention and management efforts of the city.

Scottsdale recently scored tops in the state during a federal audit of flood plain management, ranking in the top 5 percent of all U.S. cities and counties.

As a result, Scottsdale’s rating from the National Flood Insurance Program increased from 7 to 6 — a change that will collectively save flood insurance policyholders nearly $200,000 a year. That breaks down to an additional $23 per year for each of the 8,386 policyholders in the city.

Policyholders in designated special flood hazard areas will see flood insurance premiums, previously discounted by 15 percent, now reduced by 20 percent as a result of the city’s flood plain management. Policyholders outside the special hazard areas will see their premiums reduced by 10 percent, rather than the previous 5 percent discount.

Overall, Scottsdale property owners will now save more than $700,000 annually on their flood insurance premiums because of the adjusted rates.

The new rates went into effect on Oct. 1, 2007.

In its audit, FEMA’s Insurance Services Office stated Scottsdale excelled in several flood control and management areas, including:

• Maintaining flood-prone areas as open space (About 5 square miles of Scottsdale’s Special Flood Hazard Area are preserved as open space)
• Adopting and enforcing higher regulatory standards than those required by FEMA
• Inspecting and maintaining watercourses south of the Central Arizona Project canal
• Providing flood zone information to the public

In all, the Insurance Services Office graded Scottsdale in 18 areas of flood control and management. A fact sheet on the community ratings system is available at:

Flood insurance community rating system (pdf/18kb/1p)

Because severe weather and flooding can be unpredictable, especially in a desert environment, Scottsdale urges all residents to consider carrying flood insurance. More information on the programs available can be found at: http://www.fema.gov/hazard/flood/index.shtm