What is the subsidized rate?

Most homeowners in the Lansing's floodplain right now are paying a subsidized rate for their flood insurance. Rates are moving toward being risk-based, which means that insurance rates for homes that are on higher ground will be less than for homes that are on lower ground. The subsidized rate is the same, no matter where your house is located.

As of April 1, 2017, the subsidized rate for a single-family, owner-occupied home with a basement is $1.05 per hundred dollars of coverage up to $60,000, and $1.33 for every hundred dollars worth of coverage after that. That's for structural coverage. For contents coverage, the rate is $1.24 per $100 of coverage for the first $60,000, and $1.37 for every $100 of coverage after that.

How does that compare to the actuarial rate?

  • For a home where the basement floor is 6 feet below the base flood elevation, structural coverage would cost $4.21 per $100 of coverage up to $60,000, and $0.51 per $100 after that.
  • A home with a basement floor that is 12 feet below the BFE the costs would $8.20 for each $100 of structural coverage up to $60,000, and $1.00 per hundred after that.

The subsidized rate is still the best rate available if you have a basement, and probably will be for several years. However, if your basement floor is less than six feet below the base flood elevation, you may not be in the floodplain (even if the map shows you in). If your lowest adjacent grade (ground level adjacent to your home) is above the base flood elevation, you are considered out, even if you have a basement.

How soon homeowners will get to risk-based rates depends on several things. FEMA can raise the subsidized rate by as little as 5% and as much as 18% each year. Since everyone increases by the same amount, properties that are higher in the floodplain will reach their risk-based rate faster (and then stop increasing) than a property that is lower in the floodplain. All properties will likely be there within the next 30 years.

If you have questions about flood insurance, contact the Lansing Office of Emergency Management or talk to your insurance agent.

Subsidized rates can be found in the Flood Insurance Manual, Section 5 - Table 2A, and Risk Based Rates are in the Specific Rating Guidelines on page 1-2. These tables are for base rates, and don't include fees or adjustments. Talk to your flood insurance agent for more specific numbers.