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Nuts & Bolts: The National Flood Insurance Program (NFIP) is offering new preferred risk policy products for both the commercial market and renters markets. NFIP says these policies were created in response to consumer demand for lower-cost flood insurance options, and should help the insurance industry reach new customers, offer more options to existing customers, and protect agents against errors and omissions exposure. Changes are effective May 1, 2004 and insurance agents can start marketing new PRP products now. The preferred risk policy is an easy-to-write, low-cost flood insurance policy for properties in low-to-moderate risk zones, where one in four NFIP flood insurance claims occur. Devastating storms such as Tropical Storm Allison and Hurricane Floyd caused widespread flooding and property damage in these areas. To educate themselves and their clients, WYO companies and agents can visit the FEMA Web site at www.fema.gov/nfip for the latest information on these new, low cost flood insurance products.

Dollars: Limits up to $500,000 in building and $500,000 in contents coverage. Premiums for these policies are at least 30 percent less expensive than the standard flood insurance policy premium. For business owners that do not own their buildings, “contents-only” coverage is available up to $500,000. The new PRP product is a low-cost “contents-only” policy available for renters of apartments or homes with limits up to $100,000. In addition to these new products, homeowners who currently have Preferred Risk Policies can now get higher limits of contents coverage at minimal additional cost.

States Available: All states.

Contact: www.fema.gov/nfip

Topics Flood