Preferred Risk Flood Insurance-A Smart Buy

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Release date: 
November 3, 2008
Release Number: 

SEATTLE, Wash. -- Many Pacific Northwest residents remain without flood insurance because their home or business hasn't been flooded-yet. However, according to Acting Regional Administrator Dennis Hunsinger, you don't need to live in a mapped floodplain, to need flood insurance.

"National Flood Insurance rates in mapped floodplains are already extremely affordable, but our Preferred Risk rates can be a real bargain-annual premiums start at $119 for building and contents coverage," said Hunsinger.? "And statistics show that over one quarter of all claims paid by the NFIP are for policies in low- or moderate-risk communities."

A home can be covered up to $250,000 for the dwelling and $100,000 for contents.  Replacement cost coverage is available for single-family, primary residences. Renters can purchase insurance for contents only. Business owners are also eligible for Preferred Risk Flood Insurance. Commercial premiums start at $550 per year for the building or $145 per year for contents only. Non-residential coverage can be purchased for up to $500,000 for the dwelling and $500,000 for the contents.

The Preferred Risk Policy will not be issued if a property owner has received:

  • Two flood loss payments of more than $1,000 each;
  • Three or more loss payments of any amount;
  • Two federal disaster relief payments of more than $1,000 each;
  • Three federal disaster relief payments of any amount; or
  • One flood insurance claim payment and one disaster relief payment of more than $1,000 each including loans and grants.

For more information, call 1-800-427-4661, or visit: At the Web site you can enter your home or business address to view your flood-risk level and find an insurance agent near you who sells NFIP policies.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Updated: 
July 19, 2012 - 23:02
State/Tribal Government or Region: 
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