PRP Questions

17. If the building is not eligible for a PRP policy, can a contents PRP only policy be written?
18. No, the building must be eligible for a PRP.

17. Can a PRP be written building coverage only?
18. Yes.

17. Can the PRP Contents only be written for an enclosure and/or a basement?
18. For an enclosure, coverage is afforded and a contents only policy may be written. However, for a basement contents only, a policy may NOT be written.

17. Can a PRP policy be cancelled mid-term and rewritten to obtain the new PRP higher limits?
18. No. The higher limits are only available for new or renewal business with an effective date on or after May 1, 2008.

17. Can contents (PRP or SFIP) located above ground level more than one floor be used for single family?
18. No, this was intended for 2 to 4 family, other residential and non-residential buildings only where contents could be located above ground more than one floor.

Elevated Buildings

17. If a structure is demolished and built on the same slab or at the same address, is a new elevation certificate required?
18. Yes.

17. What are engineered vents?
18. They are an alternative to the proper venting requirements of 1 square inch for 1 square foot of enclosure. A registered professional engineer or architect may certify that the openings are designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. FEMA Technical Bulletin 1-93, "Openings in Foundation Walls" has acceptable certifications.

Cancellations

17. What documentation is required for cancellation "Building Sold"?
18. Any documentation that provides proof that the building is no longer owned by the insured. This includes a copy of the Homeowners Policy request for cancellation due to the building being sold.

17. Can cancellation reason code 8 be used to cancel a policy even if it was written in a non-SFHA?
18. Yes, if the lender had determined that the structure was in a SFHA and later determined that it was not.

Miscellaneous

17. What documentation is required for a transfer of business from one WYO to another WYO?
18. The WYO must collect all required information to enable them to write the policy correctly. Normally a declaration page is not going to provide all the needed underwriting information. A PRP must have a new application so that the eligibility questions are answered and the documentation for the zone or documentation of eligibility. . An RCBAP requires a new application and photos and a replacement cost value of the building (documentation such as a recent property inspection report). The company may use the elevation information on the declarations page issued by a WYO company except in the following two instances:

17. Mandatory purchase requirements for buildings in the course of construction.
18. The mandatory purchase guidelines state, "When a structure is to be built in a SFHA that, when completed, will be a walled and roofed building that will be eligible for coverage, flood insurance must be purchased to provide coverage during the construction period. Therefore, when a development or interim loan is made to construct insurable improvement on land, flood insurance must be purchased."
    
    There has been some question about requiring flood insurance when there appears to be nothing to insure. However, according to the policy (POL 5 in the Flood Insurance Manual) there is coverage to a building under construction, alteration, or repair at the described location...(a) if the structure is not yet walled or roofed as described in the definition for building, then coverage applies: only while such work is in progress, or if such work is halted, only for a period of up to 90 continuous days thereafter EXCEPT if the lowest floor (including the basement floor, of a non-elevated building or the lowest elevated floor of an elevated building) is below the base flood elevation in SFHAs.

17. What deductibles do tentative rated policies use?
18. The application comes in with a deductible amount selected so it should be issued with that requested amount. Tentative rates are applied when underwriting information is lacking which should have no bearing on the deductible shown on the application.