The agency's National Flood Insurance Program granted the city of Sunnyvale a Class Seven community rating. The new rating enables residents and business owners to obtain a 15 percent discount on their flood insurance premiums in high-risk zones.

The city has participated in the agency's community rating system since 1988, and for the past five years, Sunnyvale has maintained a rating that provided a 10 percent discount on premiums.

More than 850 flood insurance policies are in effect in the city, and the new discount is expected to save property owners an estimated $75,000 annually in premium reductions.

The National Flood Insurance Program provides federally backed flood insurance that encourages cities to enact and enforce floodplain regulations.

"As a property owner, if you have insurance on your property, it normally does not cover floods, defined as rising water," said John Pilger, communications officer for the city.

The city had to earn this discount by participating in outreach programs to educate residents about the need for flood insurance. In addition, the Santa Clara Valley Water District has increased community outreach and public education, which has increased Sunnyvale's overall rating.

The highest possible rating is 1, though no city has ever earned that rating.

The 15 percent discount will apply to premiums in flood zone areas, said Jack Eldridge, chief of the flood program for the Bay Area. "In special flood hazard areas, lenders require flood insurance. But in non-flood zone areas, property owners will receive a 5 percent discount," Eldridge said.

The program's statistics show that 30 percent of its flood insurance claims come from buildings outside of flood zones. Therefore, having flood insurance even when a property owner does not live in a high-risk area is important, said Eldridge.

Property owners can determine if they live in a flood zone by going to the One-Stop Center at city hall to view a flood zone map or by visiting www.ci.sunnyvale.ca.us/flood-zone.