Residents to Save Over $700,000 on Flood Insurance Premiums

AVALON – The borough recently learned that residents will be saving over $700,000 in flood insurance premiums thanks to the community’s high “Class 6” rating provided by the Federal Emergency Management Agency (FEMA). Avalon is one of a few communities along the East Coast that has earned the rating, officials said.
“We met with FEMA April 4 and learned residents will be saving $718,295,” Sal DeSimone, Avalon’s certified flood plain manager said. “This is a direct result of the leadership of Mayor Marty Pagliughi and the Avalon Borough Council for taking numerous proactive measures to prevent flooding in the community.
DeSimone said the hard work and attention to detail resulted in insurance savings that most coastal communities do not enjoy.
FEMA officials said Avalon experienced a big two-year jump in savings on flood insurance policies. Two years ago, residents enjoyed a savings of approximately $544,000. That figure has increased by $174,000 over a two-year period. The borough of Avalon currently receives a 20 percent reduction in flood insurance premiums for its residents thanks to its ambitious flood prevention program, they said.
“More Avalon residents have taken out flood insurance on their properties,” added DeSimone. “An increased number of policies results in increased savings for the community. On average, every Avalon resident saves $136 per year on flood insurance thanks to the efforts of mayor and council.”
FEMA reported that Avalon currently has 5,287 policies in the National Flood Insurance program. The annual premium for the borough is $3,107,794. The reduction in premiums for 2010 totals $718,295. Avalon ranks fifth in the entire state in total savings. The four communities ahead of Avalon have much higher populations and more properties in the program. Flood policies are required in Avalon for any property that carries a mortgage.
On behalf of the borough, DeSimone holds various classes throughout the year as part of an outreach program designed to educate taxpayers, realtors, builders and architects on how the National Flood Insurance program works. During a recent meeting in northern New Jersey, federal officials specifically recognized Avalon for its proactive outreach efforts, officials said.
The borough will continue to strive for an even higher designation that may result in 25 percent savings for residents on their flood insurance premiums, according to local officials. The borough continues work on a model “Flood Plain Building Permit” that would better regulate new construction.