Philadelphia residents now receive a 15% discount on eligible flood insurance policies issued through the National Flood Insurance Program. The discount took effect in April 2026 and applies automatically to qualifying policies across the city.
The reduced NFIP rates are expected to save Philadelphia homeowners, renters and business owners about $424,000 each year. Lower premiums also reduce the cost barrier for residents seeking protection against flood-related property losses.
Flooding isn’t limited to properties near rivers or designated high-risk zones. Heavy rainfall also creates flood exposure in neighborhoods located far from major bodies of water. Most standard homeowners and renters insurance policies exclude flood damage. Property owners and tenants generally need separate flood insurance if they want coverage for losses caused by flooding.
Philadelphia’s 15% NFIP discount applies only to eligible policies issued through the federal program. Private flood insurance policies don’t qualify for the reduction.
Policies must be written on or after April 1, 2026 and cover properties located in Philadelphia. Certain exceptions apply depending on individual policy circumstances, so residents should review eligibility with their insurance agent.
Flood insurance remains available to Philadelphia residents outside high-risk flood zones. FEMA’s flood maps identify areas with greater exposure, though location outside those zones doesn’t eliminate flood risk.
Philadelphia has participated in the National Flood Insurance Program since 1979. The federal program provides flood insurance in communities meeting FEMA floodplain management requirements.
Additional discounts are available through FEMA’s Community Rating System, or CRS. The program rewards communities that adopt flood-risk measures exceeding minimum federal standards.
Philadelphia joined the CRS program in April 2026 after work led by the city’s Flood Risk Management Task Force. The group includes representatives from 15 municipal departments involved in planning, water management, emergency management and other flood-related functions.
Participating departments include Licenses and Inspections, the Philadelphia Water Department and Parks and Recreation. Planning and Development, the Office of Emergency Management and the Law Department also participate, with the Office of Sustainability leading the task force.
Philadelphia received a Class 7 CRS designation for its flood-management efforts. That classification qualified residents for the current 15% reduction on eligible NFIP premiums.
The city receives another opportunity every five years to seek a better CRS classification. A higher rating would qualify Philadelphia policyholders for larger NFIP discounts if FEMA approves additional flood-management measures.
