Public Fact Sheet: Preferred Risk Policy Eligibility Extension: A New Low-Cost Flood Insurance Option for You [open pdf - 228KB]
"Upon a request from the President, Congress appropriated funds in 2003 and directed the Federal Emergency Management Agency (FEMA) to update the nation's flood hazard maps. This effort (known as Flood Map Modernization) used the latest data and technology to identify communities' current flood risks nationwide. As a result, many property owners have found that their risk of flooding has changed. If a building in a moderate-to-low risk flood zone was newly mapped into a high-risk Special Flood Hazard Area (SFHA), most lenders would require flood insurance. While most property owners would be able to buy a lower cost Preferred Risk Policy (PRP) before the new flood maps became effective, the policy would have to then be converted to a more expensive standard-rated policy at subsequent renewals. Recognizing the financial burden this places on affected property owners, the Federal Emergency Management Agency is extending the eligibility of writing the lower-cost PRP for two years after a revised flood map's effective date. This extension also provides you with additional time to save and prepare for paying for the increase in premium in two years, as well as more time for your community to upgrade or improve any flood control structures to meet Federal Emergency Management Agency standards and reduce the flood risk. Sound floodplain management will help reduce the financial impact on you in the long term while making your community safer to live and work in."
Federal Emergency Management Agency: http://www.fema.gov/