Massachusetts Municipalities Missing Flood Insurance Savings Due to Non-Participation in FEMA Program

In Massachusetts, many residents in flood-prone areas are incurring high costs for flood insurance due to their municipalities not participating in the Federal Emergency Management Agency's Community Rating System (CRS).

This program provides discounts on National Flood Insurance Program (NFIP) premiums for communities that adopt and enforce floodplain management practices exceeding national standards. While certain Massachusetts towns like Quincy, Worcester, and Provincetown participate in CRS and offer residents discounts as high as 20%, over 300 communities, including Boston, have not applied for or maintained CRS certification, largely due to the program's administrative demands.

Boston, with over 5,700 NFIP policyholders, missed its 2021 goal to join CRS and has likely caused residents to collectively pay $785,000 more than necessary over four years. City officials cite challenges such as the city's extensive coastline, aging infrastructure, and the need to build internal capacity to fulfill FEMA's rigorous application criteria as reasons for the delay. Nationwide, only 1,700 of 22,600 eligible municipalities participate in CRS, indicating the complexity and resource intensity of enrollment.

The CRS assigns communities ratings from Class 1 to 9, with each class conferring a 5% discount in flood insurance premiums; the highest class offers up to 45% savings. Participating communities undertake floodplain management activities, including maintaining construction certificates for floodplain buildings and adopting stricter building codes, which can reduce flood risk and insurance claims. Despite local resilience initiatives in Boston, such as waterfront green space projects aimed at flood mitigation, residents do not benefit from CRS discounts, limiting financial relief amid increasing flood insurance rates driven by recent federal pricing reforms. Similarly, other Massachusetts municipalities have cited limited staff capacity and evolving FEMA documentation requirements as barriers to application.

Experts emphasize that the CRS requires focused municipal intention and resources but can lead to substantial savings for residents. With increasing NFIP policy growth and premium hikes observed in Massachusetts, expanding CRS participation could offer municipalities a mechanism to alleviate the financial burden on flood-exposed homeowners and businesses while encouraging rigorous floodplain management practices.