Discount Explanation Guide 

Risk Rating 2.0: Equity in Action is FEMA’s individualized approach to risk assessment, 

built on years of investment in food hazard information. 

By using current data, food models, and technology, FEMA considers many risk factors for individual properties, 

including frequency of fooding, multiple food types, distance to a fooding source, and property characteristics such 

as elevation and the cost to rebuild. 

Mitigation efforts, community programs, and other discounts can help reduce food damage and, potentially, the cost 

of food insurance. This guide provides discount information on certain rating variables that are generally applied to 

the building and contents premium. 

Foundation Type 

Below are the six Foundation Types, which provide important insight as to where the food risk is likely to begin. 

Buildings Elevated with Enclosure Not on Posts, Piles, or Piers will have a higher premium than buildings Elevated 

without Enclosure on Posts, Piles, Piers, if all rating variables are the same. 

Slab on Grade Basement 

Crawlspace 

(including Subgrade 

Crawlspace) 

Elevated with 

Enclosure Not on 

Posts, Piles, or Piers 

Elevated with 

Enclosure on Posts, 

Piles, or Piers 

Elevated without 

Enclosure on Posts, 

Piles, or Piers 

First Floor Height 

The First Floor Height (FFH), or the height of the building’s frst lowest foor above the adjacent grade, is another rating 

variable critical to understanding the food risk. Generally, buildings that are higher off the ground have lower risk. The 

following chart shows the discount percentage based on the foundation type and FFH, which is included in the amount 

charged for building and contents coverage. For example, a building with a crawlspace foundation and FFH of 3 feet 

above adjacent grade corresponds to a 22.1% discount compared to the same building having a FFH of 0. Between 

whole numbers, the discount for FFH is continuously provided (interpolated). For example, a building with a slab-ongrade foundation and FFH of 1.25 feet will receive a discount of -9.85%, which is a quarter of the way between the 

discount for 1 foot and 2 feet. 

First Floor 

Height* 

(In Feet) 

Slab on Grade Basement 

Crawlspace 

(including Subgrade 

Crawlspace) 

Elevated with 

Enclosure Not on 

Posts, Piles, or Piers 

Elevated with 

Enclosure on Posts, 

Piles, or Piers 

Elevated without 

Enclosure on Posts, 

Piles, or Piers 

0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

1 -8.0% -8.0% -8.0% -8.0% -9.0% -10.0% 

2 -15.4% -15.4% -15.4% -15.4% -17.2% -19.0% 

3 -22.1% -22.1% -22.1% -22.1% -24.6% -27.1% 

4 -28.4% -28.4% -28.4% -28.4% -31.4% -34.4% 

5 -34.1% -34.1% -34.1% -34.1% -37.6% -41.0% 

6 -36.7% -36.7% -36.7% -36.7% -43.2% -46.9% 

7 -39.3% -39.3% -39.3% -39.3% -48.3% -52.2% 

8 -41.7% -41.7% -41.7% -41.7% -53.0% -57.0% 

9 -44.0% -44.0% -44.0% -44.0% -57.2% -61.3% 

10 - 14 -46.3% to -54.4% -46.3% to -54.4% -46.3% to -54.4% -46.3% to -54.4% -61.1% to -73.3% -65.1% to -77.1% 

15 - 25 -56.2% to -70.9% -56.2% to -70.9% -56.2% to -70.9% -56.2% to -70.9% -75.7% to -86.6% -79.4% to -88.9% 

*Although the chart shows FFHs up to 25 feet, we recognize it is rare that the FFH will reach those measurements for most foundation types. 

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Discount Explanation Guide

 

Flood Openings 

Policyholders may receive a mitigation discount if the building’s enclosure or crawlspace is constructed with proper food 

openings or engineered openings with documentation. Flood openings can lower a building’s food risk as they allow 

foodwaters to fow through a building’s enclosure or crawlspace. The following chart shows the discount percentages 

based on eligible foundation types and FFH. For example, a building Elevated with Enclosure Not on Posts, Piles, or Piers 

with a FFH measurement of 9 feet above the adjacent grade corresponds to a 11.8% mitigation discount, compared 

to the same building without proper food openings, which would receive no food openings discount. Between whole 

numbers, the discount for Flood Openings is continuously provided (interpolated). For example, a building with a 

crawlspace foundation and a FFH of 4.25 feet will receive a discount of -2.225%, which is a quarter of the way between 

the discount for 4 feet and 5 feet. 

First Floor Height* 

(In Feet) 

Crawlspace 

(including Subgrade Crawlspace) 

Elevated with Enclosure Not on Posts, 

Piles, or Piers 

Elevated with Enclosure on Posts,

Piles, or Piers 

1 -0.5% -0.5% -0.5% 

2 -1.1% -1.1% -1.1% 

3 -1.7% -1.7% -1.7% 

4 -2.1% -2.1% -2.2% 

5 -2.6% -2.6% -2.7% 

6 -5.2% -5.2% -3.2% 

7 -7.4% -7.4% -3.7% 

8 -9.6% -9.6% -4.3% 

9 -11.8% -11.8% -4.7% 

10 - 14 -13.8% to -20.6% -13.8% to -20.6% -5.1% to -7.1% 

15 - 25 -22.1% to -27.1% -22.1% to -27.1% -7.8% to -9.0% 

*Although the chart shows FFHs up to 25 feet, we recognize it is rare that the FFH will reach those measurements for most foundation types. 

Machinery & Equipment 

Policyholders may receive a 5% mitigation discount if certain covered Machinery and Equipment (M&E) and 

appliances servicing the building, whether inside or outside the building, are elevated to at least the elevation of 

the foor above the building’s frst foor. 

Floor of Interest: Number of Floors in Building 

The building’s number of foors above the ground (excluding enclosures, on grade or subgrade crawlspaces, basements, 

and attics used only for storage) may result in reduced insurance rates. For example, a building with three foors may 

receive a greater discount for this rating variable than if that same building had only one foor. The table below shows 

discounts based on the number of foors in the building and occupancy type. This rating variable does not apply to 

residential or non-residential units. 

Number of Floors 

in Building Single Family Home Building Occupancy All Other Building Occupancies 

(Excluding Residential Unit and Non-Residential Unit) 

1 0.0% 0.0% 

2 -10.0% -10.0% 

3 -30.0% -30.0% 

4 _ -37.3% 

5 _ -42.3% 

6 _ -45.9% 

7 _ -48.8% 

8-100 _ -51% to -69% 

Learn more at fema.gov/flood-insurance/risk-rating
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Discount Explanation Guide

 

Floor of Interest: Floor of Unit 

For a residential or non-residential unit inside a multi-foor building, the foor where the unit is located may impact the 

premium. Units above the frst foor receive a higher discount as shown in the table below. 

The Floor Where the Unit Is Located Residential/Non-Residential Unit Building Occupancy 

1 0.0% 

2 -71.8% 

3 -88.4% 

4+ -88.9% 

Statutory Discounts 

FEMA provides statutory discounts on the first 

$35,000 of coverage for buildings and $10,000 

of contents coverage for pre-Flood Insurance Rate 

Map (FIRM) primary residences and newly mapped 

properties, as well as those in the Emergency Program 

or located in the AR or A99 food zone. 

The table below shows the discount percentage that 

applies to the policy’s frst term of eligibility for the 

statutory discount. For subsequent renewal terms, the 

statutory annual increase cap applies. 

CRS Discount 

Under Risk Rating 2.0: Equity in Action, Community 

Rating System (CRS) discounts ranging from 5% to 45% 

are applied uniformly. The community’s CRS discount 

applies to all CRS eligible NFIP policies in the community 

regardless of food zone. 

Statutory Discount Discount Percentage 

Newly Mapped 70% 

Pre-FIRM Discount 60% 

Emergency Program 60% 

AR Zone 60% 

Note: A loss and expense constant is applied to the full risk premium separate from any of the discounts 

mentioned above. As a result, the difference in full risk premium between any two quotes will not exactly match 

the percentages listed. Additionally, certain discounts may not apply to the coastal erosion portion of the premium, 

if applicable. Policies may also be subject to minimum or maximum rates by peril and coverage, which may impact 

how discounts are applied and the specifc amount of premium savings. 

Learn more at fema.gov/flood-insurance/risk-rating