GLEN ALLEN, Va. — If you own property that was damaged during Tropical Depression Ernesto, and the property is
located in an area considered low- to moderate-risk for flooding, signing up for a Preferred Risk Policy flood
insurance policy under the National Flood Insurance Program is the thing to do now.
 The PRP offers the same coverage as a standard flood insurance policy but has lower premiums.
Officials of the Federal Emergency Management Agency, which administers the PRP, say residents and business owners
should be made aware that a structure's flood loss history is considered in deciding who is eligible for the policy. If
any of the following conditions exist, a PRP cannot be written:
- Two flood loss payments of more than $1000 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 $1000 each (including loans and
grants).
Homeowners can purchase a minimum of $20,000 building and $8,000 contents coverage for just $112 a year ($25 more if
there is a basement). Renters pay as little as $39 a year for $8,000 contents coverage. For only $500 a year business
owners can buy $50,000 building and $50,000 contents coverage per building. Business owners who lease space can
purchase $50,000 contents coverage for $112 per year.
"We encourage property owners to protect themselves
from unexpected flood losses," said Gracia Szczech, FEMA's federal coordinating officer for recovery operations in
Virginia. "The NFIP was established for the purpose of bringing flood insurance rates within reach of the average
home or business owner."
Floods cause more property damage than any other natural disaster; and when flooding occurs, there is no guarantee
that a federal disaster declaration will be requested or that the property owner will be eligible for assistance.
Disaster relief is often in the form of a low-interest loan that has to be repaid, and you may be required to buy a
flood insurance policy.
Considering the substantial costs involved in repairing a flood damaged home or business, and the loss of treasured
items or business income, your best financial protection is a NFIP policy. The Preferred Risk Policy with its
reasonable premiums should be seriously considered before another threat of heavy rains. For more information, call the
National Flood Insurance Program at 1-888-CALL-FLOOD, ext. 304, or ask your insurance agent about PRP.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation
activities; works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA
became part of the U.S. Department of Homeland Security on March 1, 2003.
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