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Flood maps for my community have changed and my home is now located in a Special Flood Hazard Area (SFHA). I am now required by my lender to have flood insurance. I read that I may be eligible for a lower rate on my flood insurance policy, is that true?

Yes. If your property was newly mapped into an SFHA, you may be eligible for a lower rate through FEMA's Newly Mapped Procedure. In the first year after a map revision, this option provides the lower-cost Preferred Risk Policy (PRP) rate before fees and surcharges. Every year after, rate increases of up to 18 percent will be applied until the premium rates reflect full-risk rates. You must maintain coverage continuously to keep your lower rate.

Properties newly mapped into an SFHA are eligible for the Newly Mapped rating procedure if:

  • The policy effective date is within 12 months of the effective Flood Insurance Rate Map (FIRM) revision date; or
  • The insured applied for the policy within 45 days of initial lender notification if the notification occurred within 24 months of the effective FIRM revision date.

A policy under the Newly Mapped procedure will stay with the building even if there is a change in ownership as long as federal flood insurance coverage is continuous. Therefore, if the building is sold, your policy can be transferred to the new owners, allowing them to keep the lower-cost rating option.

Contact your insurance agent for more information on program specific requirements.

Last Reviewed: October 2020

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.

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