Lower the Cost of Flood Insurance

Just because your home or building is in the floodplain does not mean that you can’t reduce your ­ flood insurance premiums. In fact, your building may have been built in a way that increases the cost of your annual premiums.

Your insurance premiums can be reduced by:

  • Elevating utilities to the flood protection elevation
  • Installing flood openings
  • Elevating the structure to the flood protection elevation
  • Relocating your home outside the regulatory floodplain

FEMA has prepared a brochure to explain these options:
Cheaper Flood Insurance: 5 Ways to Lower the Cost of Your Flood Insurance Premium

What is the Community Rating System?

The National Flood Insurance Program's (NFIP) Community Rating System (CRS) is a voluntary incentive program that recognizes and encourages community floodplain management activities that exceed the minimum NFIP requirements. As a result, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community actions meeting the three goals of the CRS:

  1. Reduce flood damage to insurable property;
  2. Strengthen and support the insurance aspects of the NFIP, and
  3. Encourage a comprehensive approach to floodplain management.

The CRS classes for local communities are based on 18 creditable activities, organized under four categories:

  • Public Information;
  • Mapping and Regulations;
  • Flood Damage Reduction; and
  • Flood Preparedness.

The table (left) shows the credit points earned, classification awarded and premium reductions given for communities in the NFIP CRS.

Learn more about the Community Rating System:

National Flood Insurance Program Community Rating System A Local Official’s Guide to Saving Lives, Preventing Property Damage, and Reducing the Cost of Flood Insurance

FEMA Fact Sheet: Community Rating System