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National Flood Insurance Program and the Community Rating System
National Flood Insurance Program
The Federal Emergency Management Agency (FEMA), manages the National Flood Insurance Program. The three components of the National Flood Insurance Program (NFIP) are:
  • Flood Insurance
  • Floodplain Management
  • Flood Hazard Mapping
  • Nearly 20,000 communities across the United States and its territories participate in the NFIP by adopting and enforcing floodplain management ordinances to reduce future flood damage. In exchange, the NFIP makes Federally backed flood insurance available to homeowners, renters, and business owners in these communities. Community participation in the NFIP is voluntary.

    Flood insurance is designed to provide an alternative to disaster assistance to reduce the escalating costs of repairing damage to buildings and their contents caused by floods. Flood damage is reduced by nearly $1 billion a year through communities implementing sound floodplain management requirements and property owners purchasing of flood insurance. Additionally, buildings constructed in compliance with NFIP building standards suffer approximately 80 percent less damage annually than those not built in compliance. And, every $3 paid in flood insurance claims saves $1 in disaster assistance payments.

    In addition to providing flood insurance and reducing flood damages through floodplain management regulations, the NFIP identifies and maps the Nation's floodplains. Mapping flood hazards creates broad-based awareness of the flood hazards and provides the data needed for floodplain management programs and to actuarially rate new construction for flood insurance.

    For more information on the National Flood Insurance Program visit either the
    FEMA NFIP website or Floodsmart.gov.

    Community Rating System

    The National Flood Insurance Program (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 losses; (2) facilitate accurate insurance rating; and (3) promote the awareness of flood insurance. 

    For CRS participating communities, flood insurance premium rates are discounted in increments of 5%.  A Class 1 community would receive a 45% premium discount, while a Class 9 community would receive a 5% discount.  A Class 10 is not participating in the CRS and receives no discount. The CRS classes for local communities are based on 18 creditable activities, organized under four categories: 

    • Public Information. Credit for advising the public about flood hazard, flood insurance, and ways to reduce flood damage as well as outreach to the public.
    • Mapping and Regulations. Credit for regulations that provide increased protection to new developments, mapping areas not shown on the FIRM, preserving open space, enforcing higher regulatory standards, and managing stormwater, among other activities.
    • Flood Damage Reduction. Credit for providing a comprehensive floodplain management plan, relocating or retrofitting floodprone structures, and maintaining drainage systems.
    • Flood Preparedness. Credit for flood warning, levee safety, and dam safety programs.

    The City of Jackson is among over 1,000 communities nationally that receive flood insurance premium discounts based on their implementation of local mitigation, outreach, and educational activities that go beyond the minimum NFIP requirements. The City of Jackson joined the CRS in October 1991 and enjoys a class 8 rating, translating to a 10% reduction in premiums for properties in Special Flood Hazard Areas. While premium discounts are one of the benefits of participation in CRS, it is more important that we carrying out activities that save lives and reduce property damage.