Federal Program May Provide Flood Insurance Discount in Westwood

A federal program could save Westwood residents 10 percent on their flood insurance rates, Councilman Ray Arroyo said Tuesday night.

The National Flood Insurance Program's (NFIP) Community Rating System offers a point system similar to that used by Sustainable Jersey, but with flood mitigation, according to Arroyo. The benefits of the program are reduced flood insurance rates for property owners in flood plains while simultaneously taking some action to better prepare for floods, he said.

"It's all geared toward better management of the flood plain," Arroyo said.

Depending on how many points a town earns by participating in various flood plain-related programs, they can earn a discount of between 5 and 45 percent on residents' flood insurance rates, Arroyo said. An expert on the program said Westwood could likely score an 8 on the 10-point scale, earning a 10 percent discount, according to Arroyo.

There are 355 flood insurance policies in Westwood for a total of about $406,000 in premiums, Arroyo said.

The discount could also help counter an expected rise in flood insurance rates as FEMA begins cutting back on subsidies it pays for premiums.

Participating in the NFIP program would only require minimal staff time and cost about $8,000, unlike the time-consuming flood-prone home buyouts the borough has also participated in, according to Arroyo. They would also only be obligated to pay the cost if they do score an 8 or better, he said.

Officials said they planned to vote on a resolution affirming their participation in the program at their next meeting on April 16.

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