What You Need to Know About Your NFIP Preferred Risk Policy (PRP)?

All Preferred Risk Policy customers are transitioning to the National Flood Insurance Program’s (NFIP’s) new pricing methodology, Risk Rating 2.0: Equity in Action, and are now able to personalize their flood insurance coverage.

Here are 7 things you should know:

  1. You can now choose your building and contents policy limits and deductibles.
  2. Your insurance rate is based on your property’s unique flood risk.
  3. Your insurance rate now incorporates more flood risk variables, rather than just your property’s flood zone.
  4. You will see claims history considered in the premium if the property has two or more flood losses, with one loss under the new pricing methodology.
  5. You may be eligible for a Community Rating System (CRS) discount if you live in a participating community, regardless of flood zone.*
  6. You may be able to take advantage of mitigation discounts, such as elevating machinery and equipment, or installing proper flood openings.
  7. Your renewal premium may be lower, remain the same, or increase. Premium increases will be gradual and subject to the rate caps imposed by Congress, most within the 18% annual cap.

Visit fema.gov/flood-insurance/risk-rating or contact your flood insurance provider to learn how this new pricing system helps you protect the life you’ve built.

Download flyer: agents.floodsmart.gov/sites/default/files/fema_Risk-Rating2.0-PRP-Infographic.pdf

* In participating CRS communities, full risk premiums are discounted to reflect the reduced flood risk resulting from the community’s mitigation efforts that exceed the minimum requirements of the NFIP.

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