Converting to Lower-Cost Preferred Risk Policies
A client’s property’s flood risk is changing from a high-risk area (Zone A or V) to a moderate- to low-risk area (Zone B, C, or X).
What this means for existing clients
For many property owners experiencing a decrease in their flood risk, they have the option to convert their high-risk policy to a PRP, resulting in a lower premium.
This is based on the existing policy’s current effective date and needs to be submitted with a PRP application and insurer-signed conversion form. Your WYO company may automatically convert client’s policies during a map update, so check in with your carrier. The NFIP does allow agents to keep both policy’s commissions.