Residents and business owners in unincorporated areas McHenry County will see their flood insurance premiums drop 20% from standard rates, the county said, crediting its floodplain management efforts.
The Federal Emergency Management Agency has raised McHenry County’s rating in the National Flood Insurance Program Community Rating System to Class 6, according to a news release. The increase, which took effect Oct. 1, translates to a significant reduction in most flood insurance premiums, the county said.
McHenry County’s floodplain management initiatives allow it to participate in the National Flood Insurance Program, which qualifies property owners to obtain flood insurance.
Most homeowners insurance policies do not cover flood damage, so flood insurance is vital for homeowners in flood-prone areas, the county said. Flood insurance can be purchased by anyone, not just those who live in a flood-prone area or in a FEMA-mapped flood zone.
The 20% discount that just went into effect equates to nearly $120,000 in savings across all policies, according to the press release. The greater a government’s investment in flood risk reduction, the greater the insurance savings.