PHILADELPHIA'S ACCEPTANCE INTO FEMA COMMUNITY RATING SYSTEM OPENS DOORS FOR DISCOUNTS ON FLOOD INSURANCE POLICIES

The following information was released by the office of the Mayor of Philadelphia:

Participation will secure a 15 percent discount on National Flood Insurance Program policies, saving over $424,000 for businesses and residents

Mayor Cherelle L. Parker announced today that the City of Philadelphia will officially enter the Federal Emergency Management Agency (FEMA) Community Rating System (CRS) in April 2026 as a Class 7 community. The new designation will now provide a 15 percent discount on all eligible National Flood Insurance Program (NFIP) policies throughout the city. This achievement is expected to save Philadelphia property owners, renters and businesses a combined $424,000 annually in flood insurance premiums.

The Community Rating System is a voluntary FEMA program that recognizes and rewards communities that take action to reduce flood risk and strengthen floodplain management beyond federal minimum standards. CRS class ratings range from Class 9 to Class 1, with each class providing increasingly larger premium reductions. Class 9 communities receive a 5 percent discount, while Class 1 communities receive up to a 45 percent discount on NFIP flood insurance premiums.

Philadelphia is the 4th largest city in the U.S to join CRS. Its classification as Class 7 is based on existing flood resilience efforts, and the City will continue to explore how it can implement additional measures that could further improve its classification. Every 5 years, CRS communities reinitiate the verification process and can apply for additional points based on new measures taken.

Philadelphia's application was managed through the City's Flood Risk Management Task Force, comprising representatives from 15 City departments including Licenses and Inspections, the Philadelphia Water Department, Parks and Recreation, Planning and Development, the Office of Emergency Management, and the Law Department, led by the Climate Resilience Division of the Office of Sustainability.

Philadelphia's entry into CRS is an excellent example of our One Philly approach," said Mayor Cherelle L. Parker. "After years of cross-department collaboration through the Flood Risk Management Task Force, we are not only delivering meaningful savings to residents and businesses, but we're also taking continued action to build resilience in our neighborhoods.

To achieve CRS recognition, communities undergo an extensive review and verification process led by FEMA and CRS program staff. During this review, FEMA evaluates work across four major credit categories: public information, mapping and regulations, flood damage reduction, and flood preparedness and emergency response. Within these categories, communities may earn credit across more than 90 individual elements, reflecting the breadth of work required to reduce flood risk, strengthen resilience, and protect residents.

"Our acceptance into this program demonstrates the City's long-term, inter-departmental commitment to climate resilience, stormwater management, and improved protection for residents and businesses in flood-prone neighborhoods," said Elizabeth Lankenau, Director of Sustainability. "With the Mayor's goal to achieve a safer, cleaner and greener Philadelphia, we will continue to collaborate to pursue actions and programs that build resilience as Philadelphia's climate continues to become hotter and wetter."

Acceptance into the CRS program is the culmination of many years of strategic intergovernmental work to pursue hazard mitigation activities. It recognizes the City's enduring commitment to long-term risk reduction, said Dominick Mireles, Deputy Managing Director for Community Safety. The flood insurance savings and the programs that helped to qualify are examples of Mayor Parker's charge to deliver a government that you can see, touch, and feel. From Eastwick to Manayunk, the Navy Yard to Morrell Park, and Logan Square and beyond, all Philadelphians with flood risk can benefit from this program. Learn more and get insured today.

Flood mapping updated by the Water Department, expert code and zoning enforcement by the Department of Licenses and Inspections, public alert and warning through ReadyPhiladelphia, and public education by the Office of Sustainability and Office of Emergency Management are ways the City has demonstrated a commitment to helping Philadelphians understand and reduce their flood risk.

Automatic Savings for Policyholders

The 15 percent discount will automatically apply to new and renewed NFIP policies written on or after April 1, 2026, with no additional action required from policyholders. Currently, NFIP policyholders in Philadelphia collectively pay approximately $2.8 million per year in flood insurance premiums.

Importantly, the discount applies to all eligible NFIP policies throughout the city, including properties located outside the FEMA-mapped floodplain. Discounts apply only to NFIP policies, not private flood insurance. Residents should consult their insurance agent for individual policy details, and some exceptions may apply for NFIP policies.

Supporting Long-Term Climate Resilience and Affordability

Philadelphia's participation in CRS supports the City's long-term climate resilience goals by encouraging stronger development standards, preserving natural floodplains, improving stormwater management, and increasing public access to flood risk information. The program also advances affordability by making flood insurance more accessible and helping residents and businesses financially protect themselves in the event of a flood.

Strengthening Disaster Risk Reduction and Improving Recovery Efforts

Flooding is the number one natural hazard in Pennsylvania and the City of Philadelphia. It has caused billions of dollars in damage, which is why the Flood Risk Management Task Force promotes the critical importance of flood insurance.

Disaster risk reduction and recovery will be bolstered by the City's entrance into the CRS program. As more residents and businesses become insured, the city is better positioned to recover quickly from flood events, reducing the financial strain on individuals, small businesses, and municipal resources. The Philadelphia Office of Emergency Management is currently updating the city's Hazard Mitigation Plan which identifies and looks for ways to reduce risks in Philadelphia.

For more information about Philadelphia's CRS participation and flood insurance resources, please visit the Flood Management Program website.

For more information about the CRS program and NFIP policies, please visit the FEMA CRS program page.

Flood Insurance Facts

Anyone in Philadelphia can purchase flood insurance through the National Flood Insurance Program, including properties outside the FEMA-mapped floodplain. Homeowners in the FEMA-mapped floodplain with a federally backed mortgage are required to carry flood insurance.

Standard homeowners' or renters' insurance does not cover flood damages; a separate flood insurance policy is required. For more information on types of flood insurance coverage, visit Floodsmart.gov.

Approximately 25-30% of flood insurance claims come from properties outside the mapped floodplain.

Just one inch of water can cause up to $25,000 in damages to a property.

For more information about NFIP insurance, visit Floodsmart.gov.

About the Flood Risk Management Task Force

Comprised of representatives from 15 departments and led by the Office of Sustainability, the Flood Risk Management Task Force brings together City agencies to advance climate adaptation through collaborative, resident-centered flood risk management. The task force works to ensure that flood strategies are grounded in climate science, align with City priorities, and leverage smart infrastructure investments while partnering with impacted communities and state and federal agencies. By coordinating across departments and supporting community-led solutions, the task force develops recommendations to integrate flood risk management into City regulations, standards, and development practices while preparing Philadelphia for a hotter and wetter future.