City Participation in FEMA Program Provides Residents with Discounted Flood Insurance Rates

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 efforts the City is making at reducing flood risk and increasing community awareness of flooding.

For communities that participate 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 in 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 8 community, with Sioux Falls residents receiving a 10 percent discount on flood insurance premium rates as compared to other communities not participating in the program.

On January 10, 2023, 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.

Direct Link:

Sioux Falls has been participating in the Community Rating System since 2021. 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 is actively pursuing becoming a Class 7 community potentially as soon as October 1, 2023. When accomplished, this would increase insurance discounts in the city to 15 percent.

For more information on the National Flood Insurance Program Community Rating System, visit:

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