NFIP Discounts: Difference between revisions
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== NFIP Discount Types == | === NFIP Discount Types === | ||
The NFIP offers three main types of premium discounts to encourage participation in flood insurance and promote mitigation efforts: | The NFIP offers three main types of premium discounts to encourage participation in flood insurance and promote mitigation efforts: | ||
== Statutory Discounts == | |||
* '''What They Are''': Mandated by law to encourage community and property owner participation in the NFIP. | * '''What They Are''': Mandated by law to encourage community and property owner participation in the NFIP. | ||
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** Only the most beneficial statutory discount applies if multiple are available. | ** Only the most beneficial statutory discount applies if multiple are available. | ||
== Mitigation Discounts == | |||
* '''What They Are''': Incentives for policyholders who implement flood risk-reduction measures. | * '''What They Are''': Incentives for policyholders who implement flood risk-reduction measures. | ||
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* '''How They Apply''': Discounts are granted based on specific mitigation measures, verified through documentation such as elevation certificates or photos. | * '''How They Apply''': Discounts are granted based on specific mitigation measures, verified through documentation such as elevation certificates or photos. | ||
== Community Rating System (CRS) Discounts == | |||
* '''What They Are''': Offered to policyholders in communities that exceed minimum floodplain management standards. | * '''What They Are''': Offered to policyholders in communities that exceed minimum floodplain management standards. | ||
Revision as of 15:36, 21 November 2024
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This page is a placeholder. More information will be added soon. |
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This page contains details about the NFIP Application and is written for insurance agents. |
NFIP Discount Types
The NFIP offers three main types of premium discounts to encourage participation in flood insurance and promote mitigation efforts:
Statutory Discounts
- What They Are: Mandated by law to encourage community and property owner participation in the NFIP.
- Eligible Properties:
- Pre-FIRM buildings (constructed before the community's initial Flood Insurance Rate Map).
- Buildings located in certain zones with specific characteristics (e.g., AR or A99 zones).
- Emergency Program properties.
- Phasing Out: These discounts gradually reduce through annual caps on premium increases until the policy reaches its full-risk rate.
- Important Notes:
- A lapse in coverage may result in the loss of eligibility.
- Only the most beneficial statutory discount applies if multiple are available.
Mitigation Discounts
- What They Are: Incentives for policyholders who implement flood risk-reduction measures.
- Examples of Mitigation Actions:
- Elevating machinery and equipment (e.g., furnaces, HVAC systems) above the base flood elevation.
- Installing proper flood openings (vents) in enclosures to minimize hydrostatic pressure and reduce damage.
- How They Apply: Discounts are granted based on specific mitigation measures, verified through documentation such as elevation certificates or photos.
Community Rating System (CRS) Discounts
- What They Are: Offered to policyholders in communities that exceed minimum floodplain management standards.
- How It Works:
- 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.