NFIP Discounts

Policy Guide

Standard Flood Insurance Policy

Applications

Equinox Procedure
Waiting Periods : Occupancy Foundations : Discounts

New Business

Elevation Certificates
Primary Residence
BRCV : Venting : Condos

Renewals

Equinox Procedure
Billing Changes

Changes

Equinox Procedures
Mortgagee : Insured
Transfer of Ownership
Coverage Limits

Cancellations

Equinox Procedure
Request Forms : Signatures
Reasons : Documents

NFIP Discount Types

The NFIP offers three main types of premium discounts to encourage participation in flood insurance and promote mitigation efforts:

Statutory Discounts

What They Are: Mandated by law to encourage community and property owner participation in the NFIP.

Eligible Properties:

• Pre-FIRM buildings (constructed before the community's initial Flood Insurance Rate Map).
• Buildings located in certain zones with specific characteristics (e.g., AR or A99 zones).
• Emergency Program properties.

Phasing Out/Glide Path: These discounts gradually reduce through annual caps on premium increases until the policy reaches its full-risk rate.

• A lapse in coverage may result in the loss of eligibility.
• Only the most beneficial statutory discount applies if multiple are available.

Mitigation Discounts

What They Are: Incentives for policyholders who implement flood risk-reduction measures, recorded on the application or applied through policy changes.

Examples of Mitigation Actions:

• Elevating machinery and equipment (e.g., furnaces, HVAC systems) above the base flood elevation.
• Installing proper flood openings (vents) in enclosures to minimize hydrostatic pressure and reduce damage.

Community Rating System (CRS) Discounts

What They Are: Offered to policyholders in communities that exceed minimum floodplain management standards.

How It Works:

• Communities earn credit points for activities such as public education, flood mapping, and preparedness efforts.
• These points determine the community's CRS class (1–10), with Class 1 providing the highest discount (up to 45%).

Eligibility:

• Applies uniformly across eligible properties within the community.
• Ineligible for properties with significant floodplain violations or non-compliance with community regulations.

These discounts encourage long-term mitigation, compliance, and community participation, making flood insurance more affordable while promoting risk-reduction strategies.

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