FEMA National Flood Insurance Program 
Talking Points: Preferred Risk Policy Eligibility Extension 

The talking points below were developed for you to use and refer to when discussing the 
Federal Emergency Management Agency’s (FEMA’s) Preferred Risk Policy (PRP) Eligibility 
Extension. The extension offers a new National Flood Insurance Program (NFIP) flood 
insurance option to property owners to provide temporary financial relief as a result of 
recent map changes. The messages specifically address the tough questions you may receive 
from property owners in your community about their eligibility for the lower-cost policy as well 
as background on the process and what led to the extension. For additional information, go to 
www.FloodSmart.gov/PRPExtension. 

What led to the extension? 

. 
Before 2003, more than 70 percent of the flood maps were at least 10 years old. These 
maps were developed using what is now outdated technology, and more importantly, many 
maps no longer accurately reflected the current flood hazards. 

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Upon a request from the President in 2003, Congress appropriated funds and directed FEMA 
to create the Flood Map Modernization program, which used the latest data and technology 
to update the maps. 

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Aging flood control infrastructure, including levees, dams, and other structures, have also 
put a large number of residents at a higher flood risk and resulted in many buildings being 
mapped into a Special Flood Hazard Area (SFHA). 

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The flood risk is real and many property owners now find themselves in high-risk areas, 
areas where they are required by lenders to purchase flood insurance. 

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While map changes more accurately reflect a community’s flood risk, FEMA recognizes the 
financial hardship that SFHA designation may place on individuals in newly identified high 
flood risk zones; consequently, FEMA is extending eligibility for low-cost PRP’s starting 
January 1, 2011. 

What does the extension mean? 

. 
If a building in a moderate-to-low-risk flood zone has been mapped into a high-risk flood 
zone and was secured with a federally regulated or insured loan, lenders may require that 
flood insurance be purchased. 

. 
Owners of buildings newly mapped into an SFHA due to a map revision effective on or after 
October 1, 2008, and before January 1, 2011, are eligible to receive a reduced premium for 
up to two policy years beginning January 1, 2011 through December 31, 2012. 

. 
Owners of buildings that will be mapped into an SFHA because of a map revision on or after 
January 1, 2011, are eligible to receive up to two policy years of reduced premiums after a 
map revision. 

. 
A PRP premium for a residential building and contents ranges from as low as $129 – for 
$20,000 in building and $8,000 in contents coverage – to as high as $405 - for the maximum 
$250,000 building and $100,000 contents coverage. A residential tenant can get coverage for 
as low as $49 for $8,000 in contents coverage (all premium calculations as of January 1, 
2011). 

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In order to receive reduced premiums, the property must meet PRP eligibility requirements 
related to claims and disaster aid. 

. 
There are additional rating options offered through the NFIP, which may result in additional 
savings (e.g. grandfathering, elevation rating, and higher deductibles). 

. 
Previous and current flood zone documentation will be required to validate PRP extension 
eligibility. For example, you may use a copy of the previous flood map and current flood 
map showing where the building is located. 

OCTOBER 2010 



FEMA National Flood Insurance Program 
Talking Points: Preferred Risk Policy Eligibility Extension 

What are the benefits? 

. 
In these particularly tough economic times, the PRP eligibility extension provides temporary 
financial relief. The reduced cost provides additional time to save and prepare for paying 
the premium based on standard rates after two years. 

. 
A policy for a home without a basement is $343 for $200,000 in building and $80,000 in 
contents coverage for a PRP versus more than $1,400 for a standard-rated policy in an X 
zone, and even more if rated in a high-risk flood zone (i.e., A zone)…a savings of more than 
$1,000+ a year. 

. 
This two-year extension provides more time for the communities to upgrade or mitigate 
flood control structures to meet FEMA standards and reduce the flood risk. This reduces the 
financial impact on residents and businesses in the long term while making their community 
safer to live and work in. 

What to do 

If your county/community has received updated maps since October 1, 2008: 
. 
Contact your insurance agent to see if you qualify. 
. 
Visit FloodSmart.gov or www.FloodSmart.gov/PRPExtension for more information. 
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Call the NFIP Help Center at 1-800-427-4661 with questions. 


OCTOBER 2010