CRS Updates – 2021 and 2022

What’s Changed in Risk Rating 2.0 and CRS

May 2022

Risk Rating 2.0 (RR 2.0) rating methodology now incorporates a wide range of rating variables; however, two major ones that are no longer used are Base Flood Elevations and flood zones.  In the old methodology (RR 1.0), properties in moderate-low risk zones (e.g., B, C, X) with minimal losses could qualify for a lower-cost Preferred Risk Policy (PRP); however, they did not receive a CRS discount.  If they did not qualify for the PRP, they could be written as a standard-rated Zone X policy and receive 5% or 10% discount depending upon the CRS Class.  Buildings in Zone A would get the full discount.

In RR 2.0, because the flood zone is no longer a rating variable, the discount that had applied to just Zone A policies now applies to all policies.  So, a policy in Zone X receives the same discount.  While there are numerous variations and nuances.

Link to the two-page Fact SheetRR+2.0 Fact Sheet and CRS

Effective January 2021

FEMA Releases Addendum for the Community Rating System Manual

January 2021

FEMA recently released the Community Rating System 2021 Addendum, a companion guide for the current Coordinator’s Manual. Together, these documents establish and explain various elements of the Community Rating System program including an official description, how the program operates, and how class ratings (Class 10 to Class 1) are determined.  The documents will remain effective until a fully revised edition of the Coordinator’s Manual is issued in the future.

The program provides incentives to encourage local jurisdictions to implement floodplain management best practices that exceed the minimum community-based floodplain management requirements of the National Flood Insurance Program.  In return, NFIP flood insurance policy holders can receive reductions in their flood insurance premium.

With the 2021 Addendum, FEMA incorporates three new opportunities for communities to earn credit for a reduction in NFIP policy premiums.  These include:

  • Protecting threatened and endangered species.
  • Mitigating substantial damage.
  • Promoting flood insurance.

In addition, new prerequisites allow for both new credit opportunities and simplification for communities.  These prerequisites include:

  • A plan for managing floodplain-related construction certificates (including elevation certificates) to reach Class 9.
  • The implementation of 1-foot of freeboard to reach Class 8. 

Link to the 2021 Addendum – fema_community-rating-system_coordinator-manual_addendum-2021

For more information, view the info on the FEMA website



Frequently Asked Questions about the 2021 Addendum

The Addendum is effective Jan. 1, 2021 and will be used in conjunction with the 2017 edition of the Coordinator’s Manual.  The expiration date noted on the 2017 Coordinator’s Manual is no longer applicable.  Both documents will be in force at a community’s next cycle verification after Jan. 1, 2021 and continue until the next full update of the FEMA CRS Coordinator’s Manual Addendum – 2017 Edition.

Communities may take advantage of the new credit opportunities presented in the Addendum at any time and need not wait until a scheduled verification visit.

Link to the FAQsfema_community-rating-system_coordinator-manual_addendum-2021_FAQs



CRS Update Resources

Class 9 Prerequisite

The CRS program has always required communities to collect and maintain Elevation Certificates for communities to be a CRS Class 9.  Details of what must be correct on them and information about other required construction certificates has traditionally been included under Activity 310.  The CRS program required a 90% accuracy for all Elevation Certificates collected by a community.

In 2021, the CRS will be issuing an addendum to the 2017 Manual that clarifies the Activity 310 requirements.  This addendum will become effective January 1, 2021 meaning all elevation certificates collected beyond then will be held to this new standard

CRS Resources and Training Video

Link to a 25 minute webinarCRS Resources Training & Video; search for “CRS Activity 310 Changes for 2021

Class 8 Prerequisite

Previously, there was no prerequisite requirements for communities to become a CRS Class 8.  In 2021, the CRS will be issuing an addendum to the 2017 Manual that will implement a new Class 8 prerequisite for freeboard for all new and currently participating CRS communities. 

The Class 8 freeboard prerequisite affects Class 5 through Class 8 communities.  Communities in Classes 1 through 4 already meet the new freeboard prerequisite and Class 9 communities will not be affected. 

Read the CRS Class 8 Freeboard Prerequisite FAQ to learn more.

New Process for Repetitive Loss Data

FEMA is making changes to their Repetitive Loss data protocols.

ISO will no longer distribute NFIP repetitive loss data to CRS communities.  All communities must request repetitive loss data (repetitive loss lists) directly from the FEMA Regional Office.  Communities in a verification cycle visit sill requires a current repetitive loss property list, and new communities applying for CRS entry also will need a current list.

Before repetitive loss data can be provided by the FEMA Regional 4 or DOW, communities must have an Information Sharing and Access Agreement (ISAA) in place with FEMA. 

The ISAA is a written form that must be fully executed before FEMA may release any NFIP data to the community.