What is CRS? 

The NFIP’s Community Rating System is a voluntary incentive program that recognizes communities for implementing floodplain management practices that exceed the minimum requirements of the NFIP to reduce the risk from flooding. 

CRS provides both incentives and tools to further the NFIP’s goals to provide insurance to property owners, to encourage flood loss reduction activities by communities, and to save taxpayers’ money. In exchange for a community’s proactive efforts to reduce flood risk, policyholders can receive reduced flood insurance premiums for buildings in the community. These reduced premiums reflect the reduced flood risk resulting from community efforts toward achieving three CRS goals: 

• Goal 1: Reduce and avoid flood damage to insurable property. 

• Goal 2: Strengthen and support the insurance aspects of the NFIP. 

• Goal 3: Encourage comprehensive floodplain and stormwater management.   

Of the 106 NFIP communities, 27 participate in the CRS and residents of these communities receive NFIP flood insurance premium discounts ranging from 5% to 40% percent.    

Participation in the CRS is voluntary. By participating, communities earn credit points that determine classifications. There are 10 CRS Classes: Class 1 requires the most credit points and provides the largest flood insurance premium reduction for policyholders located within the Special Flood Hazard Area (45%), while Class 10 means the community does not participate in the CRS or has not earned the minimum required credit points, and residents receive no premium reduction. https://public.tableau.com/shared/CRWX2FH23?:display_count=y&:origin=viz_share_link&:embed=y

Points/Policyholder Premium Discount 

Preferred Risk Policies are not eligible for CRS premium discounts because they already have premiums lower than other policies. Preferred Risk Policies are available only in B, C, and X Zones for properties that are shown to have a minimal risk of flood damage. 

How much work is CRS? 

No fee is charged for a community to apply for participation in the CRS. The only costs the community incurs are those of implementing creditable floodplain management activities and the staff time needed to document those activities and prepare for and participate in the recertification process and verification visits.  

Communities should prepare and implement those activities which best deal with their local problems, whether or not they are creditable under the CRS. Few, if any, of the CRS activities will produce premium reductions equal to or greater than the cost of their implementation. In considering whether to undertake a new floodplain management activity, a community must consider all of the benefits the activity will provide (not just insurance premium reductions) to determine whether it is worth implementing. 

The CRS includes an ongoing verification and recertification process. After joining the CRS, the following timeline as depicted on the graphic can be expected: 

• Year 1 – Initial Verification visit from ISO Representative 

• Year 2 – Annual Recertification – this is a self-certification that the community is still implementing the programs that led to the current Class rating 

• Year 3 – Annual Recertification (For Class 6 and below. Once Class 5 or above are attained, Year 3 is a Cycle Verification visit) 

• Year 4 – Annual Recertification 

• Year 5 – Cycle Verification – a verification visit from ISO to confirm that the community is still implementing the programs the led to the current Class rating, also typically taken as an opportunity to submit for additional activities to attain a higher Class rating. 

• Year 6 – Annual Recertification. 

What are the benefits? 

In addition to the monetary benefit of reduced flood insurance premiums for residents of the community, benefits of the CRS include: 

• Safer, more resilient communities 

• Enhanced public safety 

• Protect the environment 

• Money stays in the community 

• Reduced flood losses 

• Avoid economic disruption 

For more information on the benefits and responsibilities of participating in the CRS program, see https://www.fema.gov/floodplain-management/community-rating-system or contact Floodplain Management.