NFIP Discounts

Policy Guide

Standard Flood Insurance Policy

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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 (e.g., furnaces, HVAC systems) above the building's first floor.
• Installing proper flood openings (vents) in enclosures to minimize hydrostatic pressure and reduce damage.
• Floodproofing

Find more details on the NFIP Mitigation Discounts page.

Community Rating System (CRS) Discounts

What They Are: CRS Discounts 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.

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