The Community Rating System (CRS) and Risk Rating 2.0: Equity in Action

FEMA’s Community Rating System (CRS) is a voluntary incentive program that recognizes and encourages community floodplain management practices that exceed the National Flood Insurance Program’s minimum requirements. More than 1,500 communities participate nationwide.  

Under Risk Rating 2.0: Equity in Action, CRS discounts for flood insurance premiums, ranging from 5% to 45%, are applied consistently. The community’s CRS premium discount for properties inside the Special Flood Hazard Area (SFHA) has now been extended to all NFIP policies, regardless of their flood zone.  

In CRS communities, flood insurance rates are discounted to reflect the reduced flood risk resulting from community efforts that address the three goals of the program: 

1. Reduce and avoid flood damage to insurable property 
2. Strengthen and support the insurance aspects of the NFIP 
3. Foster comprehensive floodplain management 

Lower flood insurance rates are only one of the rewards a community receives from participating in the CRS program. Here are some other benefits: 

• Citizens and property owners in CRS communities have increased opportunities to learn about risk, evaluate their individual vulnerabilities, and take action to protect themselves, as well as their homes and businesses. 
• CRS floodplain management activities enhance public safety, reduce damage to property and public infrastructure, and avoid economic disruption and loss. 
• Communities can evaluate their flood programs against a nationally recognized benchmark. 
• The program provides community officials technical assistance for carrying out some activities at no charge. 
• CRS communities have incentives to maintain and improve their flood programs over time. 

There are many nuances in how the CRS discounts are applied to policies, based on policy type. For more information and resources, visit Agents.Floodsmart.gov.

Sources:  

CRS landing page

CRS Fact Sheet