Have you ever wondered why your neighbor’s flood insurance is cheaper—even though you live in the same area?
What if your entire community could unlock insurance savings and become more flood-resilient?
In this article, you'll learn how the Community Rating System (CRS) helps towns and cities reduce flood insurance premiums—sometimes by up to 45%—while making neighborhoods safer and stronger.
We’ll break down:
What CRS is and how it works
How it affects your insurance premiums
What kinds of community actions earn CRS points
Why CRS matters beyond just financial savings
What steps you can take today
The Community Rating System is a voluntary program managed by FEMA through the National Flood Insurance Program (NFIP). It rewards communities that implement floodplain management practices that exceed minimum NFIP requirements.
Instead of simply doing the bare minimum, communities that join CRS commit to proactive steps—like improved flood mapping, public education, and open space preservation—that help reduce the risk of flood damage.
CRS is like extra credit for cities—and that extra credit pays off in real dollars.
CRS uses a point-based system. Communities earn points by engaging in activities that lower flood risk. The more points earned, the higher the community’s CRS class—and the bigger the discount for residents.
Homeowners can save anywhere from 5% to 45% on flood insurance, depending on their community’s CRS class.
Even modest improvements can lead to noticeable savings. On the flip side, if a community fails to maintain its CRS activities, it can drop to a lower class, resulting in smaller discounts.
CRS rewards a wide variety of flood risk reduction efforts. Here are some of the most common ways communities can rack up CRS points:
Elevating homes above the Base Flood Elevation (BFE)
Preserving open space in flood-prone areas
Educating the public about flood risks and insurance options
Updating floodplain maps and managing new development wisely
Improving stormwater systems and local drainage infrastructure
Each of these actions not only earns points—they also make the community safer during extreme weather events.
While saving money is a big benefit, the CRS program delivers much more than just lower premiums:
Fewer flood-related damages to homes and businesses
Increased public safety and emergency readiness
Protection of natural resources, like wetlands and floodplains
Greater resilience against climate-related risks
In short: CRS builds stronger communities from the ground up.
CRS is not a “set-it-and-forget-it” program. Communities must continually maintain and document their efforts to retain their current rating.
For example:
A town might qualify for a 25% discount one year…
...but fall to a 10% discount the next if they let CRS activities lapse.
The reverse is also true—doubling down on flood mitigation strategies can move a community up the rating scale.
Consistency is key. That’s why committed local leadership and ongoing investment in mitigation are essential.
Want to know if your community participates in CRS—or confirm the discount on your policy? Start with these steps:
Contact your local floodplain administrator or planning department to ask about your community's CRS class.
Reach out to your flood insurance agent to ensure your policy reflects the correct discount.
Talk to a flood mitigation expert who can help you evaluate risks and next steps.
Still unsure about how CRS affects you? We’re here to help.
Visit us at www.floodinsuranceguru.com, call us at 205-451-4294, or check out our educational videos and tips on YouTube, Facebook, and TikTok.
At the end of the day, flood protection isn’t just about saving money—it’s about saving lives, homes, and communities.
The Community Rating System gives towns and cities a proven, structured path to:
Reduce risk
Enhance resilience
And deliver real financial relief to property owners
If you’re ready to find out your community’s CRS score or want guidance on flood insurance savings and mitigation, don’t wait.
Because when it comes to protecting your home and your wallet, CRS is a game-changer.