Community Rating System

Community Rating System - a voluntary incentive program that recognizes and rewards communities for exceeding minimum National Flood Insurance Program floodplain management requirements. Communities that participate in CRS implement additional flood mitigation activities and receive discounted flood insurance rates for their residents. CRS classes range from 10 (no discount) to 1 (45% discount), with each class improvement providing a 5% premium reduction in Special Flood Hazard Areas and 10% in preferred risk areas. Activities that earn CRS credit include enhanced mapping, public information programs, drainage system maintenance, and higher regulatory standards. Over 1,500 communities participate in CRS, providing millions of dollars in annual premium savings.

The National Flood Insurance Program is a federal program created by Congress in 1968 to provide flood insurance to property owners, renters, and businesses. Managed by FEMA, the NFIP makes flood insurance available in communities that adopt and enforce floodplain management regulations to reduce future flood damage. Standard homeowners insurance does not cover flood damage, making NFIP policies essential for properties in flood-prone areas. The program offers up to $250,000 in building coverage and $100,000 in contents coverage.

Insurance coverage that protects against losses from flooding, which is specifically excluded from standard homeowners and renters insurance policies. Flood insurance covers direct physical losses caused by flooding, including overflow of inland or tidal waters, unusual accumulation of surface water, mudflow, and collapse of land along a body of water. Available primarily through the National Flood Insurance Program (NFIP) or private insurers, with a typical 30-day waiting period before coverage takes effect. Essential for properties in flood zones but recommended for all properties since 25% of flood claims come from low-risk areas.

High-risk flood zones designated by FEMA where there is at least a 1% chance of flooding in any given year (also known as the 100-year floodplain). Properties located in SFHAs and secured by federally backed mortgages are required by law to carry flood insurance. These areas are shown on Flood Insurance Rate Maps (FIRMs) and include Zone A (riverine flooding) and Zone V (coastal flooding with wave action). Buildings in SFHAs face significantly higher flood insurance premiums than those in moderate or low-risk zones.

The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.

The decrease in value of property over time due to wear, tear, age, or obsolescence.

The cost to replace damaged or destroyed property with new property of similar kind and quality, without deduction for depreciation.

Insurance coverage that protects your home and personal property against damage, theft, and liability claims.