Community Rating System (CRS)

The Community Rating System (CRS) is a voluntary incentive program that recognizes and encourages community floodplain management practices that exceed the minimum requirements of the National Flood Insurance Program (NFIP). 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:

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

The brochure, Community Rating System: The Local Official's Guide to Saving Lives, Preventing Property Damage and Reducing the Cost of Flood Insurance introduces the Community Rating System as a way of promoting awareness of flood insurance.

How are Flood Insurance Premium Discounts for CRS Communities Calculated?

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 table below shows the credit points earned, classification awarded and premium reductions.

CRS Credit Points, Classes and Premium Discounts

Credit PointsClassPremium Reduction (SFHA)*Premium Reduction (non-SFHA)*
4,000 – 4,499240%10%
3,500 – 3,999335%10%
3,000 – 3,499430%10%
2,500 – 2,999525%10%
2,000 – 2,499620%10%
1,500 – 1,999715%5%
1,000 – 1,4998^10%5%
500 – 99995%5%
0 – 4991000

^Montpelier is currently a Class 8

*Special Flood Hazard Area

**Preferred Risk Policies are available only in B, C and X Zones for properties that are shown to have a minimal risk of flood damage. The Preferred Risk Policy does not receive premium rate credits under the Community Rating System because it already has a lower premium than other policies. The Community Rating System credit for AR and A99 Zones are based on non-Special Flood Hazard Areas (non-SFHAs) (B, C and X Zones).

Credits include Classes 1 – 6 at 10%. Classes 7 – 9 at 5%. Premium reductions are subject to change.

Montpelier has participated in the Community Rating System since 1997 and maintained a Class 9.  In March of 2019 the City achieved a Class 8 for the first time.

Every year we do annual recertification and every 5 years we do Cycle Verification.