Newly Mapped Procedures for Property Owners
The Newly Mapped procedure offers a cost saving option for property owners when a new Flood Insurance Rate Map (FIRM) shows that their risk has increased, placing them in a high‐risk area, also called a Special Flood Hazard Area (SFHA).
As of April 1, 2015, following a map revision, a property owner newly mapped into the SFHA will be rated according to a new procedure for newly mapped properties. This rate will be equal to the lower–cost Preferred Risk Policy (PRP) rate for the first 12 months following the map revision, but with a higher Reserve Fund Assessment and Federal Policy Fee. After the introductory year, the rate will begin its transition to a full‐risk rate with annual rate increases of no more than 18 percent each year. Full‐risk rate is defined here as either the Standard Zone X rate or rating using the new (or subsequent) FIRM.
Property owners without flood insurance who are newly mapped into the SFHA are encouraged to purchase a PRP and have it effective before the new Flood Insurance Rate Maps (FIRMs) become effective to realize additional savings. Property owners should consider that not only is their actual risk higher than they thought (and any potential flooding will not wait until the new maps become effective), but they also are able to renew their policies at lower‐cost PRP rates during the first 12 months after the new map becomes effective. In other words, they will gain almost an extra year at PRP rates. It is important that coverage is continuously renewed to maintain this rating option. Starting April 1, 2016, if the policyholder experiences a lapse in coverage (other than due to no longer lender‐required or community suspension) and is rated using this rating option, they will be rewritten using the current effective FIRM.
Note that the same eligibility requirements that apply for PRPs also apply for the Newly Mapped procedure. A property that falls outside this category might be eligible for grandfathering using the standard Zone X rating. As always, the agent should compare these premiums with those calculated using the new effective maps.
Current effective, preliminary and historical maps can be viewed online at ,