What is a Preferred Risk?

A preferred risk flood insurance policy is a policy that is covering a home in a moderate to low risk area. There are many types of ratings used to describe the level of risk your home is in. The preferred risk homes will be located in an area that is rated B, C, or X. Generally, these types of ratings are used to describe an area that has less than a 1% chance of flooding. FEMA has launched a Flood Map Modernization Program. This program has redesigned the standards used to evaluate the level of flood protection provided by levees. Many areas are being changed from preferred zones to high risk zones with these new standards. It may be in your best interest to purchase a policy while you are in an area that is considered a low risk. If you carry continuous coverage on your policy and the area that you live is rezoned to a high risk area, then you will be provided a lower rate by maintaining a preferred risk policy. Your coverage will need to be continuous through the rate change in order to qualify. Get your quote online today or call 530.923.2930 License 0G13612.