Flood insurance, available under the National Flood Insurance Program (NFIP), which was created by the National Flood Insurance Act of 1968, can be costly. For example, an average of $800 per residential property has been seen in communities in Northwest Arkansas that have relatively minor flooding.

The Federal Emergency Management Agency (FEMA), which oversees the flood insurance program, recognizes the high cost for insurance. For this reason FEMA developed the Community Rating System (CRS), a voluntary program through which a community can take a proactive approach toward reducing insurance rates.

FEMA’s Coordinator’s Manual for the CRS includes the following: “The goals of the CRS are to recognize, encourage, and reward, by the use of flood insurance premium adjustments, community and state activities beyond the minimum required by the NFIP that: