Insurance Rates & How Can They Be Lowered

The Town of Hilton Head Island participates in three programs that can lower your flood insurance premium or your homeowner/business insurance premium:

• Community Rating System (CRS)
• Building Code Effectiveness Grading Schedule (BCEGS)
• Public Protection Classification (PPC)

What is a Community Rating System (CRS)?

The CRS is an incentive program that recognizes communities for implementing floodplain management practices that exceed the minimum requirements of the National Flood Insurance Program. Participation in the CRS program provides:

• A safer community,
• Reduced flood losses, and
• Lower flood insurance premiums.

Community Rating System Facts

• 1,502 communities participate nationwide.
• Hilton Head Island is 1 of 137 communities to achieve a Class 5.
• Class 5 Qualifying structures receive a 25% discount on flood insurance premiums.

How does CRS affect flood insurance rates?

Premiums are based on:

• Date structure was constructed,
• Date of the Flood Insurance Rate Map (FIRM) in effect at the start of construction,
• Base flood elevation at the start of construction, and
• Lowest floor elevation on the structure's Elevation Certificate

What is a Building Code Effectiveness Grading Schedule (BCEGS)?

BCEGS assesses the building codes in effect in a particular community and how the community enforces its building codes, with special emphasis on mitigation of losses from natural hazards.

Building Code Effectiveness Grading Schedule Facts

• 262 communities in South Carolina
• Hilton Head Island is 1 of 23 to achieve a Classification 3

How does BCEGS affect insurance rates?

• Administered by the Insurance Sales Office, Inc. (ISO), which provides advisory insurance underwriting and rating to insurers
• Voluntary application for BCEGS credit required by insurer
• Insurers with ISO authorization apply credits to individual policies for construction issued a Certificate of Occupancy from 1997 forward

The Town of Hilton Head Island is ranked as follows:

From August 19, 2014 to present

• Classification 3 for 1 and 2 family dwellings
• Classification 3 for commercial and industrial

Public Protection Classification (PPC)

The PPC program evaluates municipal fire-protection efforts in communities.

Public Protection Classification Facts

• 639 communities in South Carolina
• Hilton Head Island is 1 of 113 to achieve a Classification 3

How does PPC affect insurance rates?

• Administered by the Insurance Sales Office, Inc. (ISO), which provides advisory insurance underwriting and rating to insurers
• Voluntary application for BCEGS credit required by insurer

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