Required Notification
PRP Eligibility for Certain Cancellation Reasons
Special Flood Hazard Area
An area having special flood, mudflow or flood-related erosion hazards and shown on a Flood Hazard Boundary Map (FHBM) or a Flood Insurance Rate Map (FIRM) Zone A, AO, A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE or V. For the purpose of determining Community Rating System (CRS) premium discounts, all AR and A99 zones are treated as non-SFHAs.
  • If a policyholder opts for an eligible policy to be cancelled/rewritten to a PRP, insurers must follow the current cancel/rewrite procedures outlined in Cancellation Reason Codes 22 or 24, as appropriate
  • The Flood Insurance Processing Center requires an Agent affirmation stating that the Agent has advised the policyholder of their potential PRP eligibility. If the cancellation request is submitted via fax/email/mail and all other required cancellation documents are received, The Flood Insurance Processing Center will send a cancellation/nullification letter. If this letter is not returned/received within 10 days the policy will be canceled as requested.
Effective October 1, 2018, NFIP insurers must inform eligible policyholders with standard-rated policies for property in a non-SFHA of their option to convert to the Preferred Risk Policy (PRP). Policyholders must be informed of this option before processing cancellations for the following Cancellation Reason Codes:
Insurance no longer required by mortgagee because the property is no longer located in a Special Flood Hazard Area (SFHA) because of a physical Map Revision or Letter of Map Revision (LOMR)
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Policy is not required by mortgagee
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Insurance is no longer required based on FEMA review of the Lender’s SFHA Determination
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Insurance is no longer required by mortgagee because the building has been removed from SFHA by means of a Letter of Map Amendment (LOMA)
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Map Revision
A change in the Flood Hazard Boundary Map (FHBM) or Flood Insurance Rate Map (FIRM) for a community which reflects revised zone, base flood or other information.
Letter of Map Revision
An official amendment to the currently effective FEMA map. It is issued by FEMA and changes flood zones, delineations and elevations.
Letter of Map Amendment
An amendment to the currently effective FEMA map which establishes that a property is not located in a Special Flood Hazard Area (SFHA). A LOMA is issued only by FEMA.
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