Hot Springs residents eligible for flood insurance

Hot Springs is one of fifteen cities in Arkansas that participate in the Federal Insurance Administration's Community Rating System (CRS) as part of the National Flood Insurance Program (NFIP). In those communities that participate in the NFIP, flood insurance is available to protect homes and businesses as well as their contents.

The CRS reduces flood insurance premiums to reflect what a community does above and beyond the NFIP’s minimum standards for floodplain regulation. The objective of the CRS is to reward communities for what they are doing, as well as to provide an incentive for new flood protection activities. The City of Hot Springs has reached Class 8 status. There are currently only 6 Arkansas cities that are rated Class 8, and two are rated a Class 7. Hot Springs’ CRS rating means that NFIP policies issued will receive a ten percent premium discount. Communities are rated from a scale of 1-10, with 10 being the lowest rating. The lower the class number, the higher the insurance premium discount. Citizens realize a 5% insurance rate reduction for each level attained.

This CRS rating and increased premium discount was based on the city’s annual report. The increased savings are a tangible result of the voluntary activities the city has implemented.

Provided there are no NFIP compliance actions, the rating will be automatically renewed each year. This renewal will occur as long as the city continues implementing the activities that are submitted in the annual verification report. The city continues to undertake additional flood damage reduction projects, including various drainage improvements and upgrades within the city.

Flood Facts

Floods and flash floods are the leading weather-related killers in the United States.

A flood watch means flooding is possible. A flood warning means that flooding is imminent.

General river flooding occurs after long-term heavy rain, snow melt, or a combination of the two. It usually occurs slowly, allowing more time to move people and property to safety.

Flash flooding is always life-threatening and occurs very quickly. Flash flooding typically occurs in hilly or mountainous areas, but can occur anywhere when heavy rains fall in a short amount of time.

Urban and small stream flooding is a more subtle flood threat. It can occur when heavy rain falls in an urban or rural area, resulting in flooding streets, underpasses, or drainage ditches in an urban area, or creeks in rural areas. It is not normally a threat unless motorists drive through the flooded road.

About 40% of flood deaths occur in motor vehicles.

During the course of a traditional 30-year mortgage, there is a 26% chance that the building will be flooded -- against a 9% chance that it will be damaged by fire.

A person is eligible to purchase flood insurance as long as his/her community participates in the National Flood Insurance Program.

It takes 30 days after purchase for a policy to take effect, so it’s important to buy insurance before the floodwaters start to rise.

Most citizens do not realize that they don’t need to live near water to be flooded. Floods can be caused by storms, melting snow, hurricanes and water backup due to blocked or overloaded drainage systems. Flood damage is not covered under the regular homeowner’s policy. Not only are high-risk areas flooded. Roughly 25 percent of flood insurance claims come from medium- or low-risk areas; 30% of residential flooding occurs in areas outside of the SFHA (special flood hazard area).

The average flood insurance policy costs a little more than $500 per year for $100,000 in coverage. A low-cost preferred risk policy is available and ideal for homes and businesses in low-to moderate-risk areas and costs as little as $112 per year. Business owners can insure building and contents for as little as $500 per year. Residential renters can insure contents for as little as $39 per year.

The NFIP's integrated advertising campaign, "FloodSmart," was developed in 2004 to increase policy growth. Its Web site, www.FloodSmart.gov, provides information on preparing homes for flooding, tools for assessing one's risk of flooding, estimating the cost of flood insurance premiums, and listings of local insurance agents. This site also contains links to other community-based information, or a representative can be reached toll-free at 888-379-9531.

FEMA has converted the current paper FIRM maps into "Map Mod" which are in digital form and were delivered in Geographic Information System (GIS) format, which the City of Hot Springs already is utilizing. These maps became effective January 20, 2010 and are available for public viewing on the city’s Web site, www.cityhs.net , under the title “About Hot Springs” and click on “City Maps.” Then click “CityGIS” and select the “Flood Zone” tab, then zoom into the area you are interested in seeing.

Flood hazard conditions are dynamic, and many current maps may not reflect recent development and/or natural changes in the community and surrounding environment. The benefits of these new maps to the community are:

1. Citizens will have improved access to flood hazard data through the Web.

2. Builders and developers have faster, more detailed information for making decisions on where to build and how construction can affect flood zones.

3. Insurance agents, companies and lending institutions will have one-stop access to flood map updates and upcoming changes.

4. Home and business owners will be able to make more informed decisions about their current flood risk.

Note: Denny McPhate, CFM, is a Certified Floodplain Manager for the City of Hot Springs. Floodplain information, letter of map revisions (LOMR) forms, elevation certificate forms and copies of FEMA maps are available by contacting McPhate in the Public Works Office located at the City Hall Annex, 111 Opera Street, 321-6866.