Community Rating System

community rating system letters with a truck driving over a flooded road

What is the Community Rating System?

The Community Rating System is a part of the National Flood Insurance Program (NFIP). It provides reductions to flood insurance premiums in participating communities. The reductions are based on community floodplain management programs, including public information activities. To keep those discounts, communities must continue to implement their programs and provide status reports to the NFIP each year.   Over 1,500 communities participate nationwide. 

In CRS communities, flood insurance premium rates are discounted to reflect the reduced flood risk resulting from the community’s efforts that address the three goals of the program:

  • Reduce and avoid flood damage to insurable property
  • Strengthen and support the insurance aspects of the National Flood Insurance Program
  • Foster comprehensive floodplain management

The Village of Palmetto Bay has been an active participant of the CRS since 2017 entering the program as a Class 8 community, rewarding residents with a 10% premium discount on their flood insurance. The Village is currently rated as a Class 7, which rewards policy holders with a 15% reduction in their flood insurance premiums within the Special Flood Hazard Area (SFHA).   Non-SFHA policies (Standard X Zone policies) receive a ten percent (10%) discount, and preferred risk policies receive a five percent (5%) discount.  

Palmetto Bay continues to explore new ways to implement policies that will further reduce its CRS rating and increase the percent reduction to the residents' insurance premiums.

For those who need information in acquiring flood insurance, please visit www.floodsmart.gov .

Calculating Discounts on Flood Insurance Premiums for CRS Communities

Flood insurance premium rates in Community Rating System communities are discounted in increments of 5%. A Class 10 community is not participating in the CRS and receives no discount. A Class 9 community receives a 5% discount for all policies in its Special Flood Hazard Areas, a Class 8 community receives a 10% discount, all the way to a Class 1 community, which receives a 45% premium discount. 

Classifications are based on 19 creditable activities, organized in four categories:

  • Public Information
  • Mapping and Regulations
  • Flood Damage Reduction
  • Warning and Response

The Village of Palmetto Bay participates in the CRS program and, until recently, the Village was rated a Class 8 community.  This rating translated into a 10% premium reduction for Village residents.  Palmetto Bay is now rated a Class 7 community which carries a 15% premium reduction for residents.  The Village will continue to implement new strategies to further reduce the community rating to achieve a higher discount eligibility.