Two-Year Preferred Risk Policy (PRP) Eligibility Extension

A National Flood Insurance Program Self-Study Learning Module for

Community Officials

Lesson OneThe Basics

• PRP Background– A Low Risk Rating Structure– -Moderate-Low Risk Flood Zones• B, C, D and X Zones

– Standard Flood Insurance Policy• Dwelling Form

– Favorable Loss History

The PRP Eligibility Extension• Expanding the PRP– Eligibility Criteria– Risk• Likelihood of Loss

– Special Flood Hazard Area – Map Changes– Insurance Concept• The lower the risk, the lower the insurance premium.

Expanding the PRP, continued• Reasons for Expanding the PRP Eligibility

Criteria– Cost Savings• Transitioning to Standard Rating

– Mandatory Purchase• Regulatory Mandate

– Buying Time• Time to Make Changes

Expanding the PRP, continued

• How the Process Works– Notify– Validate– Offer– Prepare

Property OwnerProperty Owner

Expanding the PRP, continued

• Why Maps Change– Aging Infrastructure– Development– Changes to Topography– Historical Data and New Technology

Expanding the PRP, continued• The Impact Revised Flood Maps Have on NFIP

Flood Insurance– Newly Designated Flood Zones– High-Risk Property– Grandfathering– Positive of Negative?– Be A Hero

Lesson TwoTwo-Year PRP Eligibility Extension Period

• How the Two-Year Extension is Determined– Primary Responsibility• Insurance Agent

– Teamwork• Floodplain Manager• Insurance Agents

Eligibility Period, continued• How the Two-Year Extension Period is

Determined– Either January 1, 2011 or the effective date of the

map revision, whichever is later– Map revision is between October 1, 2008 and

December 3, 2010– Map revision on or after January 1, 2011– New policy, second year of extension

Lesson Three – Notification and Documentation• Who Notifies– Write-Your-Own– Direct Side

• Documentation– LOMA– LOMR– LODR– Recent Map– Current and Previous Map– Letter– Elevation Certificate– Flood Zone Determination

New2-Year PRP EligibilityExtension

New2-Year PRP EligibilityExtension

Lesson Four - Benefits• Cost Savings• Buys Time– Community and Insured

• Education– Risk– Property owners

• Prepare and Protect

Module Summary

• The Basics• What You Need to Know• Acceptable Documentation

Congratulations!

You’ve completed the module!