TWO-YEAR PREFERRED RISK POLICY EXTENSION TAKES EFFECT JANUARY 1, 2011

When buildings are newly mapped into a high-risk area (known as the Special Flood Hazard Area or SFHA), property owners have had the money-saving option of purchasing a lower-cost Preferred Risk Policy before the new map becomes effective and therefore grandfathering in the previous lower risk (and rated) flood zone for future rating. However, upon renewal, it would have to be re-rated using standard rates. While grandfathering is often cheaper than using the new map’s high-risk flood zone, it still is a significant jump in premium. Recognizing the financial burden this places on the property owner, FEMA is extending the eligibility of writing the lower-cost PRP for two years after a revised flood map’s effective date…and allowing it to be applied to properties affected since October 1, 2008!

Eligibility for the PRP Two Year Extension

Buildings that have been newly mapped into an SFHA due to a map revision on or after October 1, 2008, and before January 1, 2011, are eligible for a PRP for two policy years effective between January 1, 2011 and December 31, 2012. So, policies issued as standard-rated policies or converted to standard-rated policies following a map change on or after October 1, 2008, could be converted to the lower-cost PRP for two years beginning on the first renewal effective on or after January 1, 2011. Buildings meeting these same conditions that were not previously insured may be issued a new PRP on or after January 1, 2011, during this same eligibility period. There are 118 counties in Georgia where buildings may be eligible for the 2-year PRP extension. 

See below for a complete listing of those counties.

Buildings that are newly mapped into a high-risk flood zone due to a map revision on or after January 1, 2011, are eligible for a lower-cost PRP for two policy years from the map revision date. Note that after the two-year extension of the PRP expires, grandfathering rating can then be an option. More PRP information and fact sheets are available at Floodsmart.gov and FEMA.gov.