National Flood Insurance - Community Rating System

Mr. Van Troost, CFM and ISO specialist is conducting a CRS Verification Visit with the City of Waveland. The visit is conducted to determine the classification the community receives for its flood-prevention activities.

What is CRS all about?

In 1968, congress created the National Flood Insurance Program (NFIP) in response to the rising cost of taxpayer funded disaster relief for flood victims and the increasing amount of damage caused by floods.

The NFIP makes Federally-backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. National Flood Insurance is available in more than 19,000 communities across the United States and it's territories.

The National Flood Insurance Program’s (NFIP) Community Rating System (CRS) was implemented in 1990 as a program to recognize and encourage community floodplain management activities that exceed minimum NFIP standards.

The National Flood Insurance Reform Act of 1994 codified the Community Rating System in the NFIP. Under the CRS, flood insurance premium rates are adjusted to reflect the reduced flood risk resulting from community activities that meet the three goals of the CRS: (1) reduce flood losses; (2) facilitate accurate insurance rating; and (3) promote the awareness of flood insurance.

The City of Waveland joined the CRS in October of 1993 and is a Class 5 community. Our participation in the NFIP CRS translates to better insurance rates for our community.

There are ten CRS classes: Class 1 requires the most credit points and gives the largest premium reduction; Class 10 receives no premium reduction. Waveland has a NFIP CRS rating of 5

The CRS recognizes 18 creditable activities organized under four categories:

	Public Information (Series 300) - This series credits programs that advise people about the flood hazard, flood insurance, and ways to reduce flood damage. These activities also provide data needed by insurance agents for accurate flood insurance rating. They generally serve all members of the community and work toward all three goals of the CRS.
	Mapping and Regulations (Series 400) - This series credits programs that provide increased protection to new development. These activities include mapping areas not shown on the FIRM, preserving open space, enforcing higher regulatory standards, and managing storm water. The credit is increased for growing communities. These activities work toward the first and second goals of the CRS, damage reduction and accurate insurance rating.
	Flood Damage Reduction (Series 500) - This series credits programs for areas in which existing development is at risk. Credit is provided for a comprehensive floodplain management plan, relocating or retrofitting floodprone structures, and maintaining drainage systems. These activities work toward the first goal of the CRS, damage reduction.
	Flood Preparedness (Series 600) - This series credits flood warning, levee safety, and dam safety programs. These activities work toward the first and third goals of the CRS, damage reduction and hazard awareness.

There are now over 900 communities, including Waveland, that receive flood insurance premium discounts based on their implementation of local mitigation, outreach and educational activities that go well beyond minimum NFIP requirements. While premium discounts are one of the benefits of participation in CRS, it is more important that these communities are carrying out activities that save lives and reduce property damage.

The following table lists the number of CRS communities by class. The shaded bar indicates the Waveland class.

		Premium Reduction
Credit Points	Class	SFHA*	Non-SFHA**
4,500+	1	45%	5%
4,000 – 4,499	2	40%	5%
3,500 – 3,999	3	35%	5%
3,000 – 3,499	4	30%	5%
2,500 – 2,999	5	25%	5%
2,000 – 2,499	6	20%	5%
1,500 – 1,999	7	15%	5%
1,000 – 1,499	8	10%	5%
500 – 999	9	5%	5%
0 – 499	10	0	0
Special Flood Hazard Area *Preferred Risk Policies are available only in B, C, and X Zones for properties that are shown to have a minimal risk of flood damage. The Preferred Risk Policy does not receive premium rate credits under the CRS because it already has a lower premium than other policies. Although they are in SFHAs, Zones AR and A99 are limited to a 5% discount. Premium reductions are subject to change.