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

Statutory Discounts

Find more details on the Statutory Discounts page.

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 classified together in the FIM as Statutory discounts. They exist to encourage a property owner's participation in the NFIP.

Eligible Properties

Most statutory discounts are not granted immediately or automatically. A property is associated with available discounts based on the details recorded on an NFIP application, but the discounts are subject to eligibility rules.

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

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 contains information about the NFIP. Find more NFIP Resources.