Participation and non-participation in FEMA's Community Rating System (CRS) program: Insights from CRS coordinators and floodplain managers

Abstract

Given that floods cause the greatest economic impact and affect more communities annually than any other natural hazard, there is a compelling need to better understand how communities can enhance their resilience to future flood disasters. One mechanism for enhancing communities' resilience to future flood disasters is through participation in the Federal Emergency Management Agency's (FEMA) Community Rating System (CRS). The CRS is a federal voluntary program that incentivizes communities in the United States to implement floodplain management activities that exceed those required under the National Flood Insurance Program (NFIP). In exchange for engaging in additional floodplain management activities, policyholders residing in CRS-participating communities receive discounts in their flood insurance premiums. To better understand the factors driving CRS participation, this study uses propensity score matching to match 100 randomly selected CRS participating communities with 100 non-CRS participating communities. Data gathered from CRS coordinators and floodplain managers indicate several factors are responsible for why communities participate, continue to participate, or do not participate the CRS. The main reason for participating in the CRS and continuing to participate is the reduction in flood insurance premiums, while the main reason for not joining the CRS is lack of resources (staff, funding, and time).