Ocean City Qualifies For Reduced Flood Insurance Costs

OCEAN CITY, NJ — Local property owners will have the opportunity to save on flood insurance soon. Ocean City achieved Class 4 designation in the National Flood Insurance Program’s Community Rating System.

That means all NFIP policy holders with compliant homes in Ocean City will receive a 30 percent discount on flood insurance, compared to communities that don't participate in the CRS. Any policy that renews after May 1 will see the savings.

Ocean City’s 16,729 policy holders will collectively save $3,292,113 every year — an average savings of $192 per participating home, according to city officials.

The CRS program is designed to incentivize building regulations, flood protection measures, educational efforts and other activities to reduce the potential risk of flood damage. Ocean City owners pay a total of $10,973,710 in insurance premiums for more than $4 billion worth of property, the City says.

The NFIP scores participating communities based on public information, mapping and regulations, flood damage reduction and flood preparedness. The organization rates communities on a scale of 1-10 — the lower the rating, the better the discount.

Class 1 areas get a 45 percent premium reduction, whereas Class 10 communities — areas not participating in the optional program — don't get a discount. Here's more info on the Community Rating System.

Suzanne Hornick — founder and chair of civilian group Ocean City, NJ Flooding Committee — said the committee applauds the City's effort to receive the Class 4 designation. But she also noted areas she believed could improve, such as citizen inclusion in Ocean City's green team.

"We (OCFC) would also like to see more 'green' infrastructure projects used here on the island such as living shore lines, using mature trees as wind and flood barriers, rain gardens and reducing the allowance for impervious surface per lot," Hornick said.

Only three New Jersey communities have achieved Class 4 designation or better. The City said it's working toward reaching a Class 3 rating.

Stop FEMA Now — a concerned-citizens organization which advocates for flood-insurance affordability — praised Ocean City for achieving the rating.

"Congratulations to the elected officials for achieving the 30% discount and striving to obtain a higher discount," the organization said.

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