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Analysis of Insurance Premiums Given that Jersey Shore is in the Regular Program of the National Flood Insurance Program, it was assumed that each building would be insured against flood losses at actuarial rates, In addition it was assumed that each building would be insured to the maximum value allowed under the rules and regulations of the National Flood Insurance Program, i,e" $200,000 for the structure and $200,000 for the contents," The rates used were those for a two-story non-residen- tial structure with no basement and were taken from rate tables included in the Flood Insurance Manual pub- lished by the National Flood Insurers Association." The rates are correlated to the elevation of the flood proofed level of each building, The rates for the basic building and the wet flood proofed building, both at grade, were taken for the -6 foot elevation, those for the building partially raised on fill and equipped for watertight closure were taken for the base flood (0) elevation, those forthe building raised on fill were taken for the + 1 foot eleva- tion, and those for the building elevated on columns were taken for the +6 foot elevation, The rate tables used are included in Appendix A, In accordance with the policies of the National Flood Insurers Association, an administrative fee of $15 was added to the first layer premium because actuarial rates were used in determining the premium.13 Both the Pennsylvania servicing company14 for the flood insur- ance program and the assistant director of community operations at the National Flood Insurers Association were contacted to corroborate the correct interpretation of the instructions contained in the Flood Insurance Manual, Calculating a reduction in flood insurance premiums was considered one way of estimati ng the benefit of flood proofing, A benefit/cost ratio for each building type other than the basic building was determined by dividing the present value of the reduction in annual insurance pre- miums by the increase in building costs of each flood proofed building, Analysis of Flood Loss Potential Expected flood losses were calculated on an average annual basis, The methodology followed was that used by the U,S, Army Corps of Engineers (Corps) in the cal- culation of stage damage potential." Base data were taken from Corps stage damage calculations for Jersey Shore, which were derived from 1963 flood stage records at the Lock Haven Dam upstream of Jersey Shore and damages incurred with the 1972 Tropical Storm Agnes disaster.'. The Corps data were adjusted to conform with the frequency flood elevations published by the Federal Insurance Administration." All applica' tions of Corps data and other assumptions were con- firmed through contact with Corps staff, Average Annual Flood Damage. The methodology for calculating flood damage potential to structure and con, tents from the Corps data is included in Appendix B, The following is the underlying conceptual basis of the method empioyed, First, the expected damages asso- ciated with all floods, from the 1 'year to the SOO'year or greater flood, are calculated, Then the damages from each are multiplied by the probability of the given flood being exceeded in any given year, The probable damages are then summed for all floods to obtain an average annuai damage figure, 9