FEMA Program Participation Provides Discounted Flood Insurance Rates
Published on January 10, 2024
The City of Sioux Falls participates in the National Flood Insurance Program’s Community Rating System. This program is offered through FEMA and enables Sioux Falls property owners to receive lower flood insurance premiums for their homes or businesses based on the City’s efforts to reduce flood risk and increase community awareness of flooding.
For communities participating in the Community Rating System, flood insurance premium rates are discounted based on a city’s efforts to reduce flood damage, foster comprehensive floodplain management, and help build a more flood-resilient community.
Flood insurance premium rates in Community Rating System communities are discounted in increments of 5 percent, ranging from a Class 1 to a Class 10. A Class 10 community is not participating in the CRS and receives no discount; a Class 1 community receives a 45 percent premium discount.
Cities can earn discounts by focusing actions on creditable activities, organized into four categories:
- Public Information
- Mapping and Regulations
- Flood Damage Reduction
- Warning and Response
Based on ongoing local efforts in the above categories, the City of Sioux Falls is designated a Class 7 community, with Sioux Falls residents receiving a 15 percent discount on flood insurance premium rates as compared to other communities not participating in the program.
On January 9, 2024, the City Council approved a resolution accepting Sioux Falls’ annual reports on its Community Rating System participation, which is required for recertification of the program and enables property owners to continue receiving discounted flood insurance rates. Recertification is underway and is anticipated to be approved this summer. Residents can find the annual reports on the City’s website at www.siouxfalls.gov/floodplain
Sioux Falls has been participating in the Community Rating System since it was designated as a Class 8 community on April 1, 2021. On October 1, 2023, Sioux Falls was redesignated a Class 7 community. Opportunities to improve the community’s ranking will continue to be evaluated as opportunities become available through notifications, plans, and other means. The City of Sioux Falls intends on actively pursuing to become a Class 6 community potentially as soon as 2026. When accomplished, this would increase insurance discounts in the city to 20 percent.
For more information on the National Flood Insurance Program Community Rating System, visit www.fema.gov/floodplain-management/community-rating-system.