NFIP Discounts

Policy Guide

Standard Flood Insurance Policy

Applications

Equinox Procedure
Waiting Periods : Occupancy Foundations : Discounts

New Business

Elevation Certificates
Primary Residence
BRCV : Venting : Condos

Renewals

Equinox Procedure
Billing Changes

Changes

Equinox Procedures
Mortgagee : Insured
Transfer of Ownership
Coverage Limits

Cancellations

Equinox Procedure
Request Forms : Signatures
Reasons : Documents

The NFIP offers three main types of premium discounts to encourage participation in flood insurance and promote mitigation efforts: statutory, mitigation, and CRS.

Statutory Discounts

What They Are: Statutory discounts 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 that were Newly Mapped into a Special Flood Hazard Area from a Non-Special Flood Hazard Area.
• Emergency Program properties.

Phasing Out/Glide Path: These discounts gradually reduce through annual caps on premium increases until the policy reaches its full-risk rate.

• 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: Mitigation discounts are incentives for policyholders who implement flood risk-reduction measures, recorded on the application or applied through policy changes.

NFIP Mitigation Actions:

• 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

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.

This page may need to be edited based on suggestions or concerns. Read more in the Discussion page.

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