Community Rating System (CRS)

CRS Summary and Explanation (created by NDNR)

What is it?
The CRS is a program within the National Flood Insurance Program (NFIP) which creates a financial incentive for communities to lower NFIP flood insurance premiums by "going above and beyond" the minimum requirements for NFIP eligibility. The CRS is a "win-win" program because it reduces a community's vulnerability to floods while reducing the cost of flood insurance premiums for all policy holders in that jurisdiction. The CRS is similar to community fire insurance ratings and is administered by the same risk management corporation, Insurance Services Office, Inc.

Who is eligible?
Any community which has been in the Regular Phase of the NFIP for at least one year and is in good-standing may apply.

How much reduction will I get?
Every community in the NFIP is automatically enrolled in the CRS with a rating of "10". There is an established number of "points" for activities which are determined to reduce flood damages and increase education. For every 500 points earned, the CRS number for that jurisdiction drops by one. For each one-point drop in the CRS number, the cost of the flood insurance premium for each property owner in the floodplain in that community drops by 5%. For homeowners who own property outside of the floodplain but still maintain a flood insurance premium, the CRS reduction is more modest since their risk is already lower. At any rate, aggressive community leaders who wish to reduce the cost of flood insurance premiums for his/her community's NFIP policy holders can do so through the CRS, potentially up to 45% with a "1" ranking. The potential for savings is greatest in communities which have a large number of NFIP premiums and have a comprehensive floodplain management program.

Tell me more about the points.
In general, points are accrued according to the three primary goals of the CRS: to reduce flood losses, to facilitate accurate insurance ratings, and to promote the awareness of flood insurance. More specifically, points may be awarded for four major categories, or "Series." Within each series there are several general "Activities" which each community may undertake. When it comes to explicit activities the community must undertake for CRS points, those are listed as "Elements" of each activity. There is a maximum number of points for each element and activity. Due to the way points are calculated, it is common for a community to qualify for only a portion of the total possible points. The series and activities are listed as follows:
Series 300 - Public Information
Activity 310 - Elevation Certificates (Required)
Activity 320 - Map Information
Activity 330 - Outreach Projects
Activity 340 - Hazard Disclosure
Activity 350 - Flood Protection Library
Activity 360 - Flood Protection Assistance

Series 400 - Mapping and Regulations
Activity 410 - Additional Flood Data
Activity 420 - Open Space Preservation
Activity 430 - Higher Regulatory Standards
Activity 440 - Flood Data Maintenance
Activity 450 - Stormwater Management

Series 500 - Flood Damage Reduction
Activity 500 - Repetitive Loss Strategy (Required)
Activity 510 - Floodplain Management Planning
Activity 520 - Acquisition and Relocation
Activity 530 - Retrofitting
Activity 540 - Drainage System Maintenance

Series 600 - Flood Preparedness
Activity 610 - Flood Warning Program
Activity 620 - Levee Safety
Activity 630 - Dam Safety

The "CRS Summary, Explanation, and Local CRS Coordinator Checklist" was developed by the DNR so you would be able to note which specific activities your community may qualify for and to see what sort of documentation is needed for each. (This Checklist paraphrases the FEMA's "CRS Coordinators Manual," which every community interested in applying for CRS credit should have. See the contact information at the bottom of this page for instructions on how to receive this document free-of-charge.) Naturally, before FEMA agrees to reduce the flood insurance rates in a community, they would want to see proof that a community is really performing the creditable services it claims to be doing. Each community administers their floodplain management program differently, so an item-by-item analysis will be necessary.

What if our conditions change?
A community can apply for a lower (better) rating at any time. For example, if a new, creditable floodplain ordinance is passed after its initial application, the community can apply for a lower rating if they think it is attainable. However, one thing should made clear: if a community is found to be in violation of basic floodplain management requirements or if they are no longer performing an activity for which they have previously received credit, their CRS rating may automatically revert to a "10" (no reduction) or be increased (less of a premium reduction). Therefore, if a community is being progressive in trying to reduce their flood vulnerabilities, the CRS Program creates a financial disincentive for future elected officials to revert back to old habits which cause future flood problems.

Are any Nebraska communities in the CRS?
Currently there are only two communities in Nebraska which are taking advantage of the CRS: Lincoln with an "8" and Fremont with a "9". However, several communities have expressed interest and are formulating applications. In addition, the CRS has been more aggressively publicized by the Nebraska Department of Natural Resources and we anticipate the number of CRS-participating communities to increase substantially in the next decade, especially as the cost of flood insurance premiums continues to rise.

Tell me about the application process.
To get the ball rolling, send a letter on community stationery to the Nebraska Department of Natural Resources (address given below), stating your interest in applying for CRS credit. The NDNR is the State administrating agency for the National Flood Insurance Program and also directs other flood mitigation and flood planning programs. The NDNR will contact you and may setup a face-to-face meeting to discuss the CRS and other floodplain management information. The purpose of this meeting is to look at documentation and brainstorm about whether or not your community would earn CRS points for flood-related activities you may already be performing.

The NDNR representative will also take care of forwarding your letter of interest to the FEMA Regional Office in Kansas City. FEMA's responsibility will be to send you information which will be used in your official CRS application. FEMA may also need arrange a Community Assistance Visit, or CAV, in order to assess whether or not your community is in good-standing in the NFIP. Once the CAV is completed and any identified problems are rectified, FEMA will send a letter to the community, stating that they are in full-compliance with the NFIP. This letter must be submitted with the CRS application.

The next step is to complete the application and to send it to the Insurance Services Office Community Rating System (ISO/CRS) Specialist for Nebraska. The ISO/CRS Specialist will be your main point-of-contact for questions regarding the eligibility of activities which may receive CRS credit. Upon receipt of the application, the ISO/CRS Specialist and the FEMA Regional Office will need approximately one month to review it for completeness and eligibility. If the application confirms that a community should have at least 500 points, the ISO/CRS Specialist will schedule a verification visit. This visit must be held within six months of receipt of the complete application. After the verification visit is complete and all needed documentation is received, FEMA and ISO need another three months to review, double check, and confirm the Specialist's verification report. Once FEMA confirms the community's classification, it sends notice to the Chief Elected Official of the community and to the insurance companies. Therefore, it takes 5-9 months for FEMA and ISO to confirm the application and advise the insurance companies of the new classification. Furthermore, it may take an additional 3 months to advise their insurance agents. In addition, a community's CRS classification will take effect on the April 1 or October 1 of that year; thus, a CRS rating may start to take effect 8-12 months after the application is submitted.

What about administration of the CRS at our level?
The biggest complaint about the CRS is the amount of documentation and paperwork needed to apply. With 18 different categories and many more sub-elements for eligible credit, the need for concise documentation should be evident. Realize that the ISO/CRS Specialist will not be familiar with your floodplain activities, so all he/she will have to use is what you provide with your application. If you submit an application and receive a CRS rating of "9" or lower, a short reapplication must be sent by the community's CRS Coordinator by October 1 of every year. The ISO/CRS Specialist will also conduct reverification visits every five years after the original application date.

Is there anything else I should know?
Yes! Without having to lift a finger, your community automatically qualifies for the following CRS credits: