Required Notification
PRP Eligibility for Certain Cancellation Reasons
  • 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 authorization letter. This letter informs a policyholder of the option to have a policy rewritten to a lower-cost Preferred Risk Policy (PRP). If this letter is not returned/received within 10 days the policy will be canceled as requested.
Note: An agent may submit the required affirmation via the flood processing platform at the time of a cancellation submission.
Effective October 1, 2018: NFIP insurers must inform eligible policyholders, who have a standard-rated policy for property in a non-Special Flood Hazard Area (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)
Policy is not required by mortgagee
Insurance is no longer required based on FEMA review of the Lender’s SFHA Determination
Insurance is no longer required by mortgagee because the building has been removed from SFHA by means of a Letter of Map Amendment (LOMA)
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.
Special Flood Hazard Area (SFHA)
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.