US National Flood Insurance Program’s (NFIP) Community Rating System (CRS)

FEMA’s Community Rating System (CRS) is a voluntary incentive programme that recognises and rewards community floodplain management practices exceeding the minimum requirements of the National Flood Insurance Program (NFIP). Over 1,500 communities participate nationwide, earning flood insurance premium discounts of 5% to 45% based on credit points for activities across four categories: public information, mapping and regulations, flood damage reduction, and flood preparedness.

Critically, the CRS awards substantial credit points for open space preservation (Activity 420), where communities preserve floodplains as natural areas free from development. Preserving floodplain open space allows ecosystems to perform natural functions including storing floodwaters, providing habitat, and reducing flood risk. Communities can earn up to nearly 2,000 points for open space preservation alone, with additional credits for deed-restricted parcels, natural shoreline protection, wetland habitat preservation, and low-density zoning in floodplains. This creates a direct financial incentive linking nature-based solutions to reduced insurance costs for property owners.