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

The NFIP offers three categories of premium discounts that have been created to encourage participation, reduce risk, and promote resilience: statutory, mitigation, and CRS.

Statutory Discounts

Find more details on the Statutory Discounts page.

Statutory discounts 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 that were Newly Mapped into a Special Flood Hazard Area from a Non-Special Flood Hazard Area.
• 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: Mitigation discounts are incentives for policyholders who implement flood risk-reduction measures, recorded on the application or applied through policy changes.

NFIP Mitigation Actions:

• Elevating machinery and equipment (e.g., furnaces, HVAC systems) above the building's first floor.
• Installing proper flood openings (vents) in enclosures to minimize hydrostatic pressure and reduce damage.
• Floodproofing

Community Rating System (CRS) Discounts

What They Are: CRS Discounts 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.

This page contains information about the NFIP. Find more NFIP Resources.