Three years ago, FEMA introduced its new pricing approach (Risk Rating 2.0) to the National Flood Insurance Program (NFIP). The change revolutionized the 50+ years of the NFIP policy premium pricing.
In the former “legacy” approach, structures mapped in “X” zones and “shaded X” zones (leveed areas) were offered preferred rate policies, basically every house paid the same price. Under RR 2.0, each structure reflects its own unique risk factor which determines the premium for each individual property.
FEMA has a program called the CRS (Community Rating System) which allows communities to work towards a class rating that can result in premiums discounts. Under the former “legacy” approach, anyone with a preferred rate policy could not take advantage of a CRS discount. Now, every structure can. The City of Sugar Land has a Class 6 rating (20% discount) and Missouri City has a Class 7 rating (15% discount).
After two years, FCLID has successfully worked with both cities and FEMA to be recognized for inclusion in these discounts. See the letters here for Sugar Land and Missouri City.
Policyholders need to ensure that upon renewal, or initial taking, of a NFIP policy the Community Identification Number (CID) on the policy is either Sugar Land (#480234) or Missouri City (#480304) and NOT FCLID (#481583).