PREFERRED RISK POLICY 


I. GENERAL DESCRIPTION 
The Preferred Risk Policy (PRP) is a lower-cost 
Standard Flood Insurance Policy (SFIP), written under 
the Dwelling Form or General Property Form. It offers 
fixed combinations of building/contents coverage limits 
or contents-only coverage. The PRP is available for 
property located in B, C, and X Zones in Regular Program 
communities that meets eligibility requirements based 
on the property’s flood loss history. It is also available 
for buildings that are eligible for the PRP Eligibility 
Extension. (See eligibility requirements below.) 

For residential properties, the maximum coverage 
combination is $250,000 building and $100,000 
contents. Up to $100,000 contents-only coverage 
is available. 

For non-residential properties, the maximum 
coverage combination is $500,000 building and 
$500,000 contents. Up to $500,000 contents-only 
coverage is available. 

Only 1 building can be insured per policy, and only 1 
policy can be written on each building. 

II. ELIGIBILITY REQUIREMENTS 
A. Flood Zone 
To be eligible for coverage under the PRP, the building 
must be in a B, C, or X Zone on the effective date of 
the policy, except for those buildings that were newly 
mapped within a Special Flood Hazard Area (SFHA) 
due to a map revision effective on or after October 
1, 2008. These policies remain eligible for a PRP 
through the PRP Eligibility Extension if they meet the 
PRP loss history requirements. This does not apply to 
communities newly entering the Regular Program. 

The PRP Eligibility Extension also includes buildings 
previously in D Zones that have been newly mapped 
into an SFHA due to a map revision. 

For the purpose of determining the flood zone, the 
agent/producer may use the Flood Insurance Rate 
Map (FIRM) in effect at the time of application and 
presentment of premium, except when the building is 

eligible for the PRP under the PRP Eligibility Extension. 
The flood map available at the time of the renewal offer 
determines a building’s continued eligibility for the PRP. 
NFIP grandfather rules do not apply to the PRP. 

B. Occupancy 
Combined building/contents amounts of insurance 
are available for owners of all eligible occupancy 
types — 1–4 family properties (including individual 
condominium units in condominium buildings), other 
residential properties, and non-residential properties. 

Contents-only coverage is available for tenants and 
owners of all eligible occupancies, except when 
contents are located entirely in a basement. 

C. LossHistory 
A building’s eligibility for the PRP is based on the 
preceding requirements and on the building’s flood 
loss history. If any of the following conditions exists 
within any 10-year period, regardless of any change(s) 
in ownership of the building, then the building is not 
eligible for the PRP: 

•2 flood insurance claim payments for separate 
losses, each more than $1,000; or 
•3 or more flood insurance claim payments for 
separate losses, regardless of amount; or 
•2 Federal flood disaster relief payments (including 
loans and grants) for separate occurrences, each 
more than $1,000; or 
•3 Federal flood disaster relief payments (including 
loans and grants) for separate occurrences, 
regardless of amount; or 
•1 flood insurance claim payment and 1 Federal 
flood disaster relief payment (including loans and 
grants), each for separate losses and each more 
than $1,000. 
In determining a building’s flood loss history for PRP 
eligibility, Federal flood disaster relief payments 
(including loans and grants) are considered only if the 
building sustained flood damage. 

THEPRPATAGLANCE 


COVEraGE TyPE 
MAXIMUMLIMITSBYOCCUPANCYTYPE 
1–4 Family OThEr rEsidEnTial nOn-rEsidEnTial 
Combined Building/ 
Contents 
$250,000/ 
$100,000 
$250,000/ 
$100,000 
$500,000/ 
$500,000 
Contents Only $100,000 $100,000 $500,000 

PRP1 January 1, 2013 


III. INELIGIBILITY 
For help in determining eligibility/ineligibility of 
various condominium risks, use the PRP 
Condominium Rating Chart in this section. 

•Buildings and/or contents in Emergency Program 
communities are not eligible for the PRP. 
•Buildings and/or contents in SFHAs are not 
eligible for the PRP, unless eligible under the PRP 
Eligibility Extension. 
•Multi-unit residential condominium buildings 
eligible under the Residential Condominium 
Building Association Policy (RCBAP) are not eligible 
for the PRP. 
•Individual residential condominium units in nonresidential 
condominium buildings are not eligible for 
building coverage. 
•Individual non-residential condominium units are not 
eligible for building coverage. 
•Contents located entirely in a basement are not 
eligible for contents-only coverage. However, 
contents located entirely in an enclosure are eligible. 
•Condominium units are not eligible for Increased 
Cost of Compliance (ICC) coverage. 
•Buildings on Leased Federal Property determined by 
the Administrator to be located on the river-facing 
side of any dike, levee, or other riverine flood-control 
structure, or seaward of any seawall or other coastal 
flood-control structure are not eligible for the PRP. 
IV. DOCUMENTATION 
All PRP new business applications must include 
current documentation of eligibility for the PRP. Such 
applications must be accompanied by 1 of the following: 

•A Letter of Map Amendment (LOMA); 
•A Letter of Map Revision (LOMR); 
•A Letter of Determination Review (LODR); 
•A letter indicating the property address and flood 
zone of the building, and signed and dated by a local 
community official; 
•An Elevation Certificate indicating the exact location 
and flood zone of the building, signed and dated 
by a surveyor, an engineer, an architect, or a local 
community official; 
•A flood zone determination certification that 
guarantees the accuracy of the information; or 
•A copy of the most recent flood map marked to 
show the exact location and flood zone of the 
building is also acceptable, though additional 
documentation may be required if the building is 
close to the zone boundary. 
If issuing coverage under the PRP Eligibility Extension, 
the previous and current zones must each be 
documented with 1 of the items from the list above. 

An agent/producer writing through a Write Your 
Own (WYO) Company should contact that company 
for guidance. 

V. RENEWAL 
Aneligibleriskrenewsautomaticallywithoutsubmission 
of a new application. If, during a policy term, the risk 
fails to meet the eligibility requirements, it cannot be 
renewed as a PRP. It must be nonrenewed or rewritten 
as a standard-rated policy. 

Effective May 1, 2008, if there has been a map change 
during the policy term that may affect the insured 
property, proof of the building’s continued eligibility 
for the PRP must be provided for the policy to be 
renewed. In addition, effective January 1, 2011, PRPs 
renewed under the PRP Eligibility Extension must have 
the current and previous flood maps to document the 
building’s eligibility. 

VI. COVERAGELIMITATIONS 
The elevated building coverage limitation provisions 
do not apply to the PRP; however, basement coverage 
limitations do apply. 

VII.REPLACEMENTCOSTCOVERAGE 
Replacement cost coverage is provided only under 
the Dwelling Form when the building is the principal 
residence of the insured and the building coverage 
limits are at least 80% of the replacement cost of the 
building at the time of the loss, or the maximum limits 
available under the NFIP. 

VIII. DISCOUNTS/FEES/ICCPREMIUM 
•Community Rating System (CRS) discounts are not 
available for the PRP. 
•The $50 Community Probation Surcharge is added, 
when applicable. 
•The Federal Policy Fee of $20 is included in the 
premium and is not subject to commission. 
•The ICC Premium of $5 is included in the premium. 
Deduct this amount if the risk is a condominium unit. 
PRP2 January 1, 2013 


IX. DEDUCTIBLES 
The standard deductible for PRPs is $1,000 each for 
building and contents, applied separately. Optional 
deductibles are not available for PRPs. 

X. ENDORSEMENTS 
The PRP may be endorsed to: 

•Increase coverage mid-term, subject to the coverage 
limits in effect when the policy was issued or 
renewed. See the General Change Endorsement 
section in this manual for an example. 
•Correct misratings, such as those due to an incorrect 
building description or community number. 
XI. CONVERSIONOFASTANDARD-RATEDPOLICY 
TOAPRPDUETOMISRATING 
A policy written as a standard-rated B, C, or X Zone 
policy and later found to be eligible for a PRP may be 
endorsed or canceled and rewritten as a PRP for only 
the current policy term. 

When a risk has been misrated with other than B, C, 
or X Zone rates at the time of application but is later 
found to be in a B, C, or X Zone and eligible for a PRP, 
the insurer will be allowed to endorse or cancel/rewrite 
up to 6 years. 

The policy may be canceled/rewritten using 
Cancellation Reason 22 if both of the following 
conditions are met: 

•The request to endorse or cancel/rewrite the policy 
is received during the current policy term; and 
•No claim has been paid or is pending on the policy 
term being canceled. 
The building and/or contents coverage on the new 
PRP must be equal either to the building limit and/or 
contents limit issued under the standard-rated policy, 
or to the next-higher limit available under the PRP if 
there is no PRP option equal to the standard-rated 
policy building and/or contents limit. 

For a standard-rated contents-only policy, the contents 
coverage will be equal to the limit issued under the 
standard-rated policy or the next-higher limit. If building 
coverage is desired, the policy should be endorsed for 
building and contents coverage with a 30-day waiting 
period applied. 

XII. CONVERSIONOFASTANDARD-RATEDPOLICY 
TO A PRP DUE TO A MAP REVISION, LOMA, 
ORLOMR 
A standard-rated policy may be endorsed or canceled 
and rewritten as a PRP as a result of a map revision, 
LOMA, or LOMR only for the current policy term. 

Thepolicymay becanceled/rewrittenusingCancellation 
Reason 24 under the following conditions: 

•The request to cancel/rewrite the standard-rated 
policy must be received during the policy term or 
within 6 months of the policy expiration date. 
•No claim has been paid or is pending on the standard-
rated policy terms being canceled. 
•The property meets all other PRP eligibility 
requirements. 
The building and/or contents coverage on the new 
PRP must be equal either to the building limit and/or 
contents limit issued under the standard-rated policy, 
or to the next-higher limit available under the PRP if 
there is no PRP option equal to the standard-rated 
policy building and/or contents limit. 

XIII.CONVERSION OF A PRP TO A STANDARDRATEDPOLICY 
A PRP must be canceled and rewritten as a standard-
rated policy if the risk does not meet the PRP 
requirements on the policy effective date. (See the 
Eligibility Requirements subsection in this section.) 

When converting a PRP to a standard-rated B, C, 
or X Zone policy, all underwriting information must 
be obtained at the time of conversion, unless the 
information is contained in the underwriting file. 
The building and/or contents coverage on the new 
standard-rated policy cannot exceed the building limit 
and/or contents limit issued under the PRP. 

The policyholder will have 30 days from notification 
to pay the additional premium due, or 60 days 
from notification to obtain additional information if 
needed to rate the policy, and then 30 days to pay 
the additional premium due. The premium due will be 
calculated from the beginning of the policy term to 
restore the originally requested limits without a waiting 
period. The policyholder has the option to reduce or 
delete coverage in order to wholly or partially reduce 
the underpayment amount. 

If increased coverage limits are desired, the new 
standard-rated policy must be endorsed; the 30-day 
waiting period will apply. 

PRP3 January 1, 2013 


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PRP4 January 1, 2013 


PREFERREDRISKPOLICYCONDOMINIUMRATINGCHART 

RESIDENTIALSINGLE-UNITBUILDINGOR 
TOWNHOUSE-/ROWHOUSE-TYPEBUILDINGWITHSEPARATEENTRANCEFOREACHUNIT 

PURCHASER OF 
POLICY 
BUILdIng 
OCCUPAnCY1 
COndO UnIt 
IndICAtOR1 
PRP 
ELIgIBILItY RAtE tABLE POLICY FORm 
UNIT OWNER Single family Yes Yes 1–4 Family residential Dwelling 
ASSOCIATION 
(ASSOCIATION-OWNED 
SINGLE UNIT ONLY) 
Single family Yes Yes 1–4 Family residential Dwelling 
ASSOCIATION 
(ENTIRE BUILDING) N/A N/A No N/A N/A 

MULTI-UNITRESIDENTIALBUILDING–2TO4UNITSPERBUILDING 


PURCHASER OF 
POLICY 
BUILdIng 
OCCUPAnCY1 
COndO UnIt 
IndICAtOR1 
PRP 
ELIgIBILItY RAtE tABLE POLICY FORm 
UNIT OWNER 2–4 Yes Yes 1–4 Family residential Dwelling 
ASSOCIATION 
(ASSOCIATION-OWNED 
SINGLE UNIT ONLY) 
2–4 Yes Yes 1–4 Family residential Dwelling 
ASSOCIATION 
(ENTIRE BUILDING) N/A N/A No N/A N/A 
OWNER OF NONRESIDENTIAL 
CONTENTS Non-residential 
Yes 
(Building coverage 
not available) 
Yes 
Non-residential 
contents-only General Property 

MULTI-UNITRESIDENTIALBUILDING–5ORMOREUNITSPERBUILDING 


PURCHASER OF 
POLICY 
BUILdIng 
OCCUPAnCY1 
COndO UnIt 
IndICAtOR1 
PRP 
ELIgIBILItY RAtE tABLE POLICY FORm 
UNIT OWNER Other residential Yes Yes Other residential Dwelling 
ASSOCIATION 
(ASSOCIATION-OWNED 
SINGLE UNIT ONLY) 
Other residential Yes Yes Other residential Dwelling 
ASSOCIATION 
(ENTIRE BUILDING) N/A N/A No N/A N/A 
OWNER OF NONRESIDENTIAL 
CONTENTS Non-residential 
Yes 
(Building coverage 
not available) 
Yes 
Non-residential 
contents-only General Property 

NON-RESIDENTIALBUILDING 


PURCHASER OF 
POLICY 
BUILdIng 
OCCUPAnCY1 
COndO UnIt 
IndICAtOR1 
PRP 
ELIgIBILItY RAtE tABLE POLICY FORm 
OWNER OF NONRESIDENTIAL 
CONTENTS Non-residential 
Yes 
(Building coverage 
not available) 
Yes Non-residential 
contents-only General Property 
OWNER OF RESIDENTIAL 
CONTENTS Single family 
Yes 
(Building coverage 
not available) 
Yes Residential 
contents-only Dwelling 
ASSOCIATION 
(ENTIRE BUILDING) Non-residential N/A Yes Non-residential building 
and contents General Property 

1 When there is a mixture of residential and commercial usage within a single building, refer to the General Rules section of this manual. 

PRP5 OCTObEr 1, 2012 


PRPCOVERAGELIMITSAVAILABLEEFFECTIVEJANUARY1,2013 
1–4FAMILYRESIDENTIALBUILDINGANDCONTENTSCOVERAGECOMBINATIONS1,2,3 

WItH BASEmEnt OR EnCLOSURE4 WItHOUt BASEmEnt OR EnCLOSURE5 
Building 
Contents 
Premium 
Building 
Contents 
Premium 
$ 20,000 $ 8,000 $174 $ 20,000 $ 8,000 $129 
$ 30,000 $ 12,000 $209 $ 30,000 $ 12,000 $181 
$ 50,000 $ 20,000 $267 $ 50,000 $ 20,000 $238 
$ 75,000 $ 30,000 $313 $ 75,000 $ 30,000 $279 
$100,000 $ 40,000 $344 $100,000 $ 40,000 $310 
$125,000 $ 50,000 $366 $125,000 $ 50,000 $332 
$150,000 $ 60,000 $388 $150,000 $ 60,000 $354 
$200,000 $ 80,000 $427 $200,000 $ 80,000 $388 
$250,000 $100,000 $458 $250,000 $100,000 $412 

RESIDENTIALCONTENTS-ONLYCOVERAGE1,2,6 

COntEntS ABOvE gROUnd LEvEL mORE tHAn 1 FLOOR ALL OtHER LOCAtIOnS (BASEmEnt-OnLY nOt ELIgIBLE) 
Contents 
Premium 
Contents 
Premium 
$ 8,000 $55 $ 8,000 $77 
$ 12,000 $73 $ 12,000 $104 
$ 20,000 $108 $ 20,000 $145 
$ 30,000 $124 $ 30,000 $166 
$ 40,000 $138 $ 40,000 $185 
$ 50,000 $151 $ 50,000 $205 
$ 60,000 $165 $ 60,000 $224 
$ 80,000 $192 $ 80,000 $246 
$100,000 $219 $100,000 $269 

OTHERRESIDENTIALBUILDINGANDCONTENTSCOVERAGECOMBINATIONS1,2,3 

With Basement or Enclosure4 

COntEntS COvERAgE $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 
BUILdIng COvERAgE 
$ 20,000 $190 $206 $220 $235 $249 $261 $273 $285 $296 
$ 30,000 $206 $221 $236 $251 $264 $277 $289 $301 $312 
$ 50,000 $244 $260 $275 $289 $303 $315 $328 $339 $350 
$ 75,000 $262 $278 $293 $307 $321 $333 $346 $357 $368 
$100,000 $287 $303 $318 $332 $346 $358 $371 $382 $393 
$125,000 $295 $311 $325 $340 $354 $366 $379 $390 $401 
$150,000 $301 $316 $331 $346 $359 $372 $384 $396 $407 
$200,000 $336 $351 $366 $381 $394 $407 $419 $431 $442 
$250,000 $355 $371 $385 $400 $414 $426 $438 $450 $461 

OTHERRESIDENTIALBUILDINGANDCONTENTSCOVERAGECOMBINATIONS1,2,3 

Without Basement or Enclosure5 

COntEntS COvERAgE $8,000 $12,000 $20,000 $30,000 $40,000 $50,000 $60,000 $80,000 $100,000 
BUILdIng COvERAgE 
$ 20,000 $158 $172 $184 $197 $208 $219 $229 $240 $249 
$ 30,000 $179 $191 $203 $216 $227 $238 $249 $259 $268 
$ 50,000 $218 $231 $243 $255 $267 $278 $288 $298 $307 
$ 75,000 $241 $253 $266 $277 $288 $299 $310 $320 $329 
$100,000 $261 $273 $286 $297 $308 $320 $330 $340 $349 
$125,000 $271 $284 $296 $307 $319 $329 $339 $349 $358 
$150,000 $279 $292 $304 $315 $327 $337 $347 $357 $366 
$200,000 $311 $323 $336 $347 $358 $368 $379 $388 $397 
$250,000 $328 $340 $353 $364 $375 $385 $396 $405 $414 

1 Add the $50 Probation Surcharge, if applicable. 

2 Premium includes Federal Policy Fee of $20. 

3 Premium includes ICC Premium of $5. Deduct this amount if the risk is a condominium unit. 

4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces; see footnote 5. Use this section of the 
table if a building elevated on a crawlspace has an attached garage without openings. 

5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 

6 Use this “All Residential Contents-Only Coverage” premium table for individual residential condominium unit contents-only policies. 

PRP6 January 1, 2013 


PRPCOVERAGELIMITSAVAILABLEEFFECTIVEJANUARY1,2013(continued) 
NON-RESIDENTIALBUILDINGANDCONTENTSCOVERAGECOMBINATIONS1,2,3 


With Basement or Enclosure4 

COntEntS COvERAgE $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 
BUILdIng COvERAgE 
$ 50,000 $1,014 $1,306 $1,587 $1,853 $2,107 $2,349 $2,579 $2,794 $2,998 $3,189 
$100,000 $1,436 $1,729 $2,008 $2,275 $2,529 $2,771 $3,000 $3,216 $3,419 $3,610 
$150,000 $1,747 $2,040 $2,319 $2,585 $2,840 $3,082 $3,311 $3,527 $3,730 $3,921 
$200,000 $1,915 $2,208 $2,487 $2,754 $3,008 $3,250 $3,479 $3,695 $3,899 $4,089 
$250,000 $2,034 $2,327 $2,606 $2,872 $3,127 $3,369 $3,598 $3,814 $4,017 $4,208 
$300,000 $2,165 $2,458 $2,737 $3,004 $3,258 $3,500 $3,729 $3,945 $4,148 $4,339 
$350,000 $2,310 $2,602 $2,882 $3,148 $3,402 $3,644 $3,873 $4,088 $4,292 $4,483 
$400,000 $2,405 $2,697 $2,976 $3,243 $3,497 $3,739 $3,967 $4,183 $4,387 $4,578 
$450,000 $2,513 $2,806 $3,085 $3,352 $3,606 $3,848 $4,076 $4,292 $4,495 $4,686 
$500,000 $2,632 $2,924 $3,204 $3,470 $3,724 $3,966 $4,195 $4,410 $4,614 $4,805 

NON-RESIDENTIALBUILDINGANDCONTENTSCOVERAGECOMBINATIONS1,2,3 

Without Basement or Enclosure5 

COntEntS COvERAgE $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 
BUILdIng COvERAgE 
$ 50,000 $641 $797 $946 $1,088 $1,224 $1,353 $1,475 $1,590 $1,698 $1,800 
$100,000 $858 $1,014 $1,163 $1,305 $1,441 $1,570 $1,692 $1,807 $1,915 $2,017 
$150,000 $1,019 $1,175 $1,324 $1,467 $1,602 $1,731 $1,853 $1,968 $2,077 $2,179 
$200,000 $1,188 $1,344 $1,493 $1,635 $1,771 $1,900 $2,022 $2,137 $2,245 $2,347 
$250,000 $1,301 $1,457 $1,606 $1,748 $1,884 $2,013 $2,135 $2,250 $2,358 $2,460 
$300,000 $1,420 $1,576 $1,726 $1,868 $2,003 $2,132 $2,254 $2,370 $2,478 $2,580 
$350,000 $1,485 $1,641 $1,790 $1,932 $2,068 $2,197 $2,319 $2,434 $2,543 $2,644 
$400,000 $1,556 $1,712 $1,861 $2,003 $2,139 $2,268 $2,390 $2,505 $2,614 $2,715 
$450,000 $1,634 $1,790 $1,939 $2,081 $2,217 $2,346 $2,468 $2,583 $2,692 $2,793 
$500,000 $1,719 $1,875 $2,024 $2,166 $2,302 $2,431 $2,553 $2,668 $2,776 $2,878 

NON-RESIDENTIALCONTENTS-ONLYCOVERAGE1,2

Contents Above Ground Level More Than 1 Floor 
ALL OTHER LOCATIONS (Basement-Only Not Eligible) 
Contents 
Premium 
Contents 
Premium 
$ 50,000 $183 $ 50,000 $392 
$100,000 $268 $100,000 $584 
$150,000 $353 $150,000 $776 
$200,000 $437 $200,000 $968 
$250,000 $522 $250,000 $1,161 
$300,000 $607 $300,000 $1,353 
$350,000 $692 $350,000 $1,545 
$400,000 $776 $400,000 $1,737 
$450,000 $861 $450,000 $1,929 
$500,000 $946 $500,000 $2,121 

1 Add the $50 Probation Surcharge, if applicable. 
2 Premium includes Federal Policy Fee of $20. 
3 Premium includes ICC Premium of $5. 
4 Do not use this section of the table for buildings with crawlspaces or subgrade crawlspaces. See footnote 5. 
5 Use this section of the table for buildings with crawlspaces or subgrade crawlspaces. 


PRP7 January 1, 2013 


XIV.COMPLETING THE FLOOD INSURANCE 
PREFERREDRISKPOLICYAPPLICATION 
A. PolicyStatus 
In the upper right corner of the form, check the 
appropriate box to indicate if the application is for a 
NEW policy or RENEWAL of an existing policy. If the 
application is for a renewal, enter the current 10-digit 
policy number. 

B. PolicyTerm 
Check the appropriate box to indicate who should 
receive the renewal bill. If BILL FIRST MORTGAGEE is 
checked, complete the “First Mortgagee” section. If 
BILL SECOND MORTGAGEE, BILL LOSS PAYEE, or BILL 
OTHER is checked, complete the “Second Mortgagee 
or Other” section. 


Enter the policy effective date and policy expiration 
date (month/day/year). The effective date of the 
policy is determined by adding the appropriate waiting 
period, if applicable, to the date of application listed in 
the “Signature” section. The standard waiting period 
is 30 days. 

NOTE:Refer to the General Rules section of this manual 
for exceptions to the standard waiting period. 

C. AgentInformation 
Enter the agent’s/producer’s name, agency name 
and number, address, city, state, ZIP Code, telephone 
number, and fax number. Enter the agent’s/producer’s 
Tax I.D. Number. 


D. InsuredMailingAddress 
Enter the name, mailing address, city, state, ZIP Code, 
and telephone number of the insured. If the insured’s 
mailing address is a post office box or a rural route 
number, or if the address of the property to be insured 
is different from the mailing address, the “Property 
Location” section of the application must be completed. 
If there is more than 1 building at the property location, 
see “H. Property Location” for further instructions. 

E. DisasterAssistance 
Check YES if flood insurance is being required for 
disaster assistance. Identify the Government (disaster) 
agency and enter the insured’s case file number. 

If NO is checked, no further information is required. 

F. FirstMortgagee 
Enter the name, mailing address, city, state, ZIP 
Code, telephone number, and fax number of the 
first mortgagee. Enter the loan number. If any of this 
information is not available at the time of application, 
add it to the policy by submitting a change request. 

G. SecondMortgagee/Other 
Identify the second mortgagee or the loss payee by 
checking the appropriate box and entering the loan 
number, the mortgagee’s name, mailing address, 
telephone number, and fax number. 


PRP8 OCTObEr 1, 2012 


If more than 1 additional mortgagee or disaster 
assistance agency exists, provide the requested 
information on the insurance agency’s letterhead and 
attach the letterhead to the application form. 

H. PropertyLocation 
Check YES if the location of the property being insured 
is the same as the insured’s mailing address entered 
in the “Insured Mailing Address” section. Leave the 
rest of the section blank unless there is more than 1 
building at the property location. 

If NO is checked, provide the address or location of the 
property to be insured. 

If the insured’s mailing address is a post office box 
or rural route number, give the street address, legal 
description, or geographic location of the property. 

Only 1 building can be insured per policy, and only 1 
policy can be written on each building. 

If there is more than 1 building with the same address 
at the location of the property to be insured, clearly 
identify the specific building in this section. Attach a 
sketch if needed for clarity. 

I. Community 
Enter the name of the county or parish where the 
property is located. (Not all communities that 
have been assigned NFIP community numbers are 
participating in the NFIP. Policies may not be written in 
non-participating communities.) 

Enter the community identification number, map panel 
number, and revision suffix of the map that will be 
used for rating for the community where the building 
is located. When there is only 1 panel (i.e., a flat map), 
the community number will consist of only 6 digits. 

NOTE: The postal address of the insured building 
may not reflect the community where the property 
is located. Therefore, do not rely on the postal 
address when determining community status and 
identification. 

In addition, because of possible changes in the 
FIRM, do not rely on information from a prior 
policy as accurately reflecting the current FIRM 
information. 

Obtain the community information from the FIRM 
currently in effect and that has been published at the 
time of presentment of premium and completion of 
the application. However, if applying for the PRP under 
the Eligibility Extension following a map revision, enter 
the community number, panel number, and panel 
suffix from the FIRM in effect immediately prior to the 
current FIRM. 

The current community number may also be obtained 
from a flood zone determination or by checking the 
NFIP Community Status Book online (http://www. 
fema.gov/fema/csb.shtm) or contacting the insurer or 
a local community official. 

Enter the FIRM zone in the space provided and identify 
the information source. 

If applying for the PRP under the Eligibility Extension 
following a map revision, enter the FIRM zone from 
the FIRM in effect immediately prior to the current 
FIRM. If the previous FIRM zone was Zone D, indicate 
FIRM Zone X on the application form. Submit 
documentation of both the previous and current zones 
with the application. 

Check YES if the building is located on Federal land; 
otherwise, check NO. 

NOTE:If the property is located on Federal Land, refer 
to the Leased Federal Property section for guidance. 

J. Building 
Complete all required information in this section. 

•building Occupancy 
Check the type of occupancy for the building 
(i.e., SINGLE FAMILY, 2–4 FAMILY, OTHER 
RESIDENTIAL, or NON-RESIDENTIAL). 

o 
single Family – This is a residential single-family 
building, or a single-family dwelling unit in a 
condominium building; incidental occupancies 
are permitted if limited to less than 50% of the 
building’s total floor area. 
NOTE: Incidental occupancies are offices, private 
schools, studios, or small service operations 
within a residential building. 

PRP9 January 1, 2013 


o 
2–4 Family – This is a residential building that 
contains 2–4 units. This category includes 
apartment buildings and condominium buildings. 
Incidental occupancies (see note above) are 
permitted if the total area of such occupancies 
is limited to less than 25% of the total floor area 
within the building. This excludes hotels and motels 
with normal room rentals for less than 6 months. 
o 
Other residential – This is a residential building 
that contains more than 4 apartments/units. This 
category includes condominium and apartment 
buildings as well as hotels, motels, tourist 
homes, and rooming houses where the normal 
occupancy of a guest is 6 months or more. These 
buildings are permitted incidental occupancies 
(see note above). The total area of incidental 
occupancy is limited to less than 25% of the total 
floor area within the building. Examples of Other 
Residential buildings include dormitories and 
assisted-living facilities. 
o 
non-residential (including hotel/motel) – This 
is a commercial or non-habitational building, or 
a mixed-use building that does not qualify as a 
residential building. This category includes, but 
is not limited to, small businesses, churches, 
schools, farm buildings (including grain bins 
and silos), garages, poolhouses, clubhouses, 
recreational buildings, mercantile buildings, 
agricultural buildings, industrial buildings, 
warehouses, nursing homes, licensed bed-andbreakfasts, 
and hotels and motels with normal 
room rentals for less than 6 months. 
•Construction date 
Check 1 of the 5 boxes in the first part of this section. 
Enter the appropriate date in the space provided. 

o 
Building Permit Date 
Select this box if construction began within 180 
days of the building permit date and enter the 
building permit date. 

o 
Date of Construction 
Select this box if construction began more than 
180 days after the building permit date and enter 
the date of the start of construction. 

o 
Substantial Improvement Date 
Select this box if the building has been substantially 
improved or damaged. If the building has been 
substantially improved, enter the date that 
substantial improvement started or the building 
permit date. If the building has been substantially 

damaged, enter the date that substantial 
damage occurred. 

Substantial improvement is any reconstruction, 
rehabilitation, addition, or other improvement of a 
building, the cost of which equals or exceeds 50% 
of the market value of the building before the start 
of construction of the improvement. 

Substantial damage is damage of any origin 
sustained by a building whereby the cost of restoring 
the building to its before-damaged condition would 
equal or exceed 50% of the market value of the 
building before the damage occurred. 

Do not select this box for substantial improvement 
to a Pre-FIRM building where the improvement is 
an addition next to and in contact with the existing 
building and the lowest floor elevation of the 
addition is at or above BFE. Select the Building 
Permit Date box or the Date of Construction box as 
applicable and enter the appropriate date. 

Do not select this box if the building qualifies as 
a historic building; see the Definitions section for 
more information. 

o 
Manufactured (Mobile) Homes/Travel Trailers 
Located in a Mobile Home Park or Subdivision 
Select this box if the manufactured (mobile) home 
or travel trailer is located inside a mobile home park 
or subdivision, and enter the construction date of 
the mobile home park or subdivision facilities. 

o 
Manufactured (Mobile) Homes/Travel Trailers 
Located Outside a Mobile Home Park or Subdivision 
Select this box if the manufactured (mobile) 
home or travel trailer is located outside a mobile 
home park or subdivision, and enter the date of 
permanent placement. 

•make, model, and serial number 
Enter make, model, and serial number of 
manufactured (mobile) home/travel trailer. 

•insured’s Principal/Primary residence 
Check YES if the building is the policyholder’s 
principal/primary residence; otherwise, check NO. 

•building Type 
Check the number of floors in the entire building, 
including the basement/enclosed area if applicable, 
in the appropriate space. 

PRP10 OCTObEr 1, 2012 


If the building’s enclosure or crawlspace is eligible 
for exclusion from rating, do not count the enclosed 
area as a floor. If a building elevated on a crawlspace 
has an attached garage without openings, it must 
be rated using the With Basement or Enclosure rate 
table; see the Lowest Floor Determination subsection 
in the Lowest Floor Guide section of this manual. 

o 
1 Floor – excludes unfinished attic; 
o 
2 Floors – includes basement, enclosure, 
crawlspace, and subgrade crawlspace; 
o 
3 or More Floors – includes basement, enclosure, 
crawlspace, and subgrade crawlspace; 
o 
Split Level – A foundation with a vertical offset in 
the floor framing on either side of a common wall; 
o 
Manufactured (Mobile) Home or Travel Trailer – 
Must be built on a permanent chassis and affixed 
to a permanent foundation, regardless of size. 
•Condo Form of Ownership 
Check YES if the building is under a condominium 
form of ownership; otherwise, check NO. (A 
homeowners association [HOA] may or may not be 
in a condominium form of ownership.) Refer to the 
Condominiums section for rating guidelines. 

Check YES if the coverage is for a condominium unit; 
otherwise, check NO. 

Check YES if the coverage is for a townhouse/ 
rowhouse condo unit; otherwise, check NO. 

•Contents 
Check the box that describes the location of the 
contents to be insured. 

•Estimated replacement Cost 
Using normal company practice, estimate the 
Replacement Cost Value (RCV) and enter it in the 
space provided. Include the cost of the building 
foundation when determining the RCV. 

•building use 
Check the box that indicates the insured building’s 
use. If OTHER, describe the building use. 

•basement/Enclosure/Crawlspace/subgrade 
Crawlspace 
Check whether the building contains: 

o 
basement – Any area of the building, including any 
sunken room or sunken portion of a room, having 
its floor below ground level (subgrade) on all sides. 
o 
Enclosure – That portion of an elevated building 
below the lowest elevated floor that is either 
partially or fully shut in by rigid walls. A garage 
below or attached to an elevated building is 
considered an enclosure. 
NOTE: A finished (habitable) area is an enclosed 
area that has more than 20 linear feet of 
interior finished walls (paneling, etc.). 

An unfinished area is an enclosed area that is 
used only for the parking of vehicles, building 
access, or storage purposes and that does 
not meet the definition of a finished 
(habitable) area. 

o 
Crawlspace – In an elevated building, an under-
floor space that has its interior floor area (finished 
or not) no more than 5 feet below the top of the 
next-higher floor. 
o 
subgrade Crawlspace – A crawlspace foundation 
where the subgrade under-floor area is no more 
than 5 feet below the top of the next-higher floor 
and no more than 2 feet below the lowest adjacent 
grade on all sides. (A building with a subgrade 
crawlspace is not an elevated building.) 
NOTE: For buildings insured under the PRP that 
have crawlspaces or subgrade crawlspaces, 
use the Without Basement or Enclosure 
section of the rate table. 

PRP11 OCTObEr 1, 2012 


K. Notice–BuildingEligibility 
Check YES if the building is located in an SFHA; 
otherwise, check NO. 


Check YES for any of the conditions above that apply; 
otherwise, check NO. 

NOTE:If the answer to either question A or question B 
is YES, this risk is not eligible for the PRP, except for 
buildings eligible under the PRP Eligibility Extension. 

L. Premium 
1. 
Enter the coverage selected, and the premium, 
from the appropriate PRP premium tables in 
this section. 
2. 
Add the $50 Probation Surcharge, if applicable. 
Deduct$5ifthisisanapplicationforacondominium 
unit. 
M. Signature 
The agent/producer must sign and date the PRP 
application and is responsible for the completeness 
and accuracy of the information provided on it. 

NOTE:The waiting period, if applicable, is added to this 

date to determine the policy effective date entered 

in the Policy Term section of the application. 

Electronic transactions are permitted if the business 
process includes authentication of signatures and 
dates of receipt of premium. WYO Companies are 
responsible for determining the business practices and 
transaction authentication methods they will use to 
ensure the security and integrity of such transactions. 

A credit card payment by VISA, MasterCard, Discover, or 
American Express will also be acceptable if a disclaimer 
form, signed by the insured, is submitted with the PRP 
application. The disclaimer will state that cancellation 
of a policy due to a billing dispute will be permitted only 
for a billing error or fraud. If the credit card information 
is taken over the telephone, the agent/producer may 
sign the authorization form on behalf of the payor only 
after having read the disclaimer to the payor. 

PRP12 January 1, 2013 


PRP13 May 1, 2011 


PRP14 May 1, 2011