The Borough has achieved a rating of Class 3 under the CRS, resulting in a total premium reduction of 35% for policyholders within the Borough. Please provide the document “COMMUNITY RATING SYSTEM ELIGIBLE COMMUNITIES” Class 3 from FEMA.gov, dated October 2021, as support of the Borough’s CRS Classification when reviewing flood insurance policies with your insurance agent/adjuster.
Communities that regulate new development in their floodplains are able to join the National Flood Insurance Program (NFIP), which in turn, provides federally backed flood insurance for properties in participating communities. To qualify for the NFIP, a community adopts and enforces a floodplain management ordinance to regulate development in flood hazard areas. The objective of the ordinance is to minimize the potential for flood damage to future development. Communities can be rewarded for doing more than simply regulating construction of new buildings to the minimum national standards required by the NFIP through was is called the Community Rating System (CRS).
The CRS is a part of the NFIP and reduces flood insurance premiums to reflect what a community does above and beyond the NFIP’s minimum standards for floodplain regulation. The objective of the CRS is to reward communities for what they are doing, as well as to provide an incentive for new flood protection activities. The benefits of CRS participation go well beyond the award of flood insurance premium discounts to policy holders in return for the implementation of specific floodplain management activities. The CRS is also a catalyst to the integration of a wide range of disaster resistance programs, improved knowledge of flood risk, and skills development. The CRS drives greater coordination among mitigation programs and enhanced awareness of the many actions communities can pursue to reduce losses and protect floodplain functions.
The reduction in flood insurance premium rates is provided according to a community’s CRS classification. Based upon the total score for the credited activities it conducts, a community receives a CRS classification. There are 10 CRS classes: Class 1 requires the most credit points and gives the largest premium reduction (up to 45%); policy holders in a Class 9 community receive the smallest reduction (5%).