NFIP Discounts: Difference between revisions

Latest revision as of 13:58, 18 February 2025

The NFIP offers three categories of premium discounts that have been created to encourage participation, reduce risk, and promote resilience: statutory, mitigation, and CRS.

Statutory Discounts

Federal law provides general guidelines about how the NFIP develops rates and does not specify all the details contained in the Flood Insurance Manual. However, a handful of policy premium requirements are given direct mandates by the US Code.

Although the discounts are identified separately throughout the Code, they are grouped together in the FIM as Statutory discounts. They exist to encourage a property owner's participation in the NFIP.

Statutory discounts are given for the following circumstances.

Pre-FIRM buildings
Buildings that were Newly Mapped into a Special Flood Hazard Area
Emergency Program properties
Properties in areas undergoing the restoration of flood protection systems

Find more details on the Statutory Discounts page.

Mitigation Discounts

The NFIP offers incentives to policyholders who implement flood risk-reduction measures known as Mitigation Discounts. These building improvements reduce flood damage before it happens, which helps policyholders protect their investment and make recovery easier.

Although mitigation is done as a preventative approach for individuals, it strengthens communities by ensuring more buildings are resilient.

Mitigation discounts are given under the following circumstances.

Elevating machinery and equipment above the building's first floor
Installing proper flood openings in enclosures
Floodproofing

Find more details on the NFIP Mitigation Discounts page.

Community Rating System Discounts

Community Rating System (CRS) Discounts apply at the community level, not to individual buildings. Communities that go beyond NFIP minimum requirements—by improving floodplain management, maintaining drainage systems, or providing public flood awareness programs—earn a CRS Class ranking. All NFIP policyholders in that community then receive a discount, regardless of whether they’ve made individual mitigation efforts.

These discounts encourage long-term mitigation, compliance, and community participation, making flood insurance more affordable while promoting risk-reduction strategies.

This page contains information about the NFIP. Find more NFIP Resources.

@@ Line 11: / Line 11: @@
 Statutory discounts are given for the following circumstances.
 * [[FIRM Date#Pre-FIRM|Pre-FIRM buildings]]
-* Buildings that were [[Newly Mapped]] into a [[Special Flood Hazard Area]]
+* Buildings that were [[NFIP Newly Mapped Eligibility|Newly Mapped]] into a [[Special Flood Hazard Area]]
 * [[Community Participation#Emergency Program|Emergency Program properties]]
 * Properties in areas undergoing the restoration of flood protection systems
@@ Line 23: / Line 23: @@
 == Mitigation Discounts ==
-[[Mitigation discounts]] are incentives for policyholders who implement flood risk-reduction measures. These building improvements reduce flood damage before it happens, which helps policyholders protect their investment and make recovery easier. Although mitigation is done as a preventative approach for individuals, it strengthens communities by ensuring more buildings are resilient.
+The NFIP offers incentives to policyholders who implement flood risk-reduction measures known as '''Mitigation Discounts'''. These building improvements reduce flood damage before it happens, which helps policyholders protect their investment and make recovery easier.
+Although mitigation is done as a preventative approach for individuals, it strengthens communities by ensuring more buildings are resilient.
 Mitigation discounts are given under the following circumstances.
-* [[Machinery and Equipment|Elevating machinery and equipment]] (e.g., furnaces, HVAC systems) above the building's first floor.
+* [[Machinery and Equipment|Elevating machinery and equipment]] above the building's first floor
-* Installing [[NFIP Proper Openings|proper flood openings]] (vents) in enclosures to minimize hydrostatic pressure and reduce damage.
+* Installing [[NFIP Proper Openings|proper flood openings]] in enclosures
 * [[Floodproofing]]
 {{feedback
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-| attn = ''Find more details on the '''[[NFIP Mitigation discounts]]''' page.''
+| attn = ''Find more details on the '''[[NFIP Mitigation Discounts]]''' page.''
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-==  Community Rating System (CRS) Discounts ==
+==  Community Rating System Discounts ==
-'''What They Are''': [[Community Rating System|CRS Discounts]] are offered to policyholders in communities that exceed minimum floodplain management standards.
+[[Community Rating System|Community Rating System (CRS) Discounts]] apply at the community level, not to individual buildings. Communities that go beyond NFIP minimum requirements—by improving floodplain management, maintaining drainage systems, or providing public flood awareness programs—earn a CRS Class ranking. All NFIP policyholders in that community then receive a discount, regardless of whether they’ve made individual mitigation efforts.
-'''How It Works''':
+These discounts encourage long-term mitigation, compliance, and community participation, making flood insurance more affordable while promoting risk-reduction strategies.
-* Communities earn credit points for activities such as public education, flood mapping, and preparedness efforts.
-* These points determine the community's CRS class (1–10), with Class 1 providing the highest discount (up to 45%).
-'''Eligibility''':
-* Applies uniformly across eligible properties within the community.
-* Ineligible for properties with significant floodplain violations or non-compliance with community regulations.
-These discounts encourage long-term mitigation, compliance, and community participation, making flood insurance more affordable while promoting risk-reduction strategies.
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