How much cost savings can be achieved on flood insurance if the lowest floor of a Post-FIRM building is 1 foot above the BFE?

Choosing the appropriate elevation for a building in flood-prone areas significantly impacts flood insurance premiums. Buildings constructed after the implementation of floodplain management regulations (Post-FIRM) that are elevated above the Base Flood Elevation (BFE) can receive benefits in the form of lower insurance premiums.

When the lowest floor of a Post-FIRM building is maintained at least 1 foot above the BFE, insurance premiums can be reduced substantially. This reduction is related to the decreased risk of flood damage associated with the higher elevation, which lowers the insurance company's exposure to potential claims.

The correct answer reflects a typical scenario where elevating the structure above the BFE contributes to an approximate 40% reduction in flood insurance costs. This significant saving incentivizes proper construction practices in flood-prone areas and aligns with FEMA's goals of reducing flood risk and encouraging community compliance with floodplain regulations.

Other options provide lower percentages, which do not fully capture the level of savings achievable through proactive floodplain management and elevation practices mandated by the NFIP.