As a part of the National Flood Insurance Program (NFIP), the Community Rating System is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum program requirements.
As a result, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community actions meeting the three goals of the Community Rating System:
- Reduce flood damage to insurable property
- Strengthen and support the insurance aspects of the National Flood Insurance Program
- Encourage a comprehensive approach to floodplain management
For more information about the flood insurance program, visit FloodSmart.gov.
The brochure, The Local Official's Guide to Saving Lives, Preventing Property Damage and Reducing the Cost of Flood Insurance introduces the Community Rating System as a way of promoting the awareness of flood insurance.
How are Flood Insurance Premium Discounts Calculated?
For National Flood Insurance Program Community Rating System participating communities, flood insurance premium rates are discounted in increments of 5 percent. A Class 10 is not participating in the Community Rating System and receives no discount. A Class 9 community would receive a 5 percent discount to a Class 1 community which would receive a 45 percent premium discount.
The Community Rating System classes for local communities are based on 18 creditable activities, organized under four categories:
- Public Information
- Mapping and Regulations
- Flood Damage Reduction
- Flood Preparedness
The table below shows the credit points earned, classification awarded and premium reductions given for communities in the National Flood Insurance Program Community Rating System.
|Credit Points||Class|| Premium Reduction|
SFHA* by percent (%)
Non-SFHA** by percent (%)
|4,000 – 4,499||2||40||10|
|3,500 – 3,999||3||35||10|
|3,000 – 3,499||4||30||10|
|2,500 – 2,999||5||25||10|
|2,000 – 2,499||6||20||10|
|1,500 – 1,999||7||15||5|
|1,000 – 1,499||8||10||5|
|500 – 999||9||5||5|
|0 – 499||10||0||0|
*Special Flood Hazard Area
**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. The Preferred Risk Policy does not receive premium rate credits under the Community Rating System because it already has a lower premium than other policies. The Community Rating System credit for AR and A99 Zones are based on non-Special Flood Hazard Areas (non-SFHAs) (B, C and X Zones).
- Classes 1-6: 10 percent
- Classes 7-9: 5 percent
- Premium reductions are subject to change