[aschliebe]

Good Afternoon,
We have a few flood polices that are listed as “Newly Mapped to SFHA” on the flood policy. The policy Flood Risk/Rated Zone is “X” and the Current Zone is “AE” (matches our determination). External auditors told us this is incorrect because both sections of the policy don’t say “AE”. I can’t find anything that says how the Flood Policy Declarations should be completed. It make sense to me that the rated zone would say X since they are probably receiving a discount for being “Newly Mapped”. Any insight is greatly appreciated.

[rcooper]

Generally, the policy zone should match the determination. In this case the current zone does match the determination, but the rating zone is the previous zone due to this being a newly mapped property which qualifies for a preferred risk policy. So there is a rating zone and a current flood zone; both should be shown on the dec sheet for of a preferred risk policy. Here is a link to information from banking regulators on what should be included on the prp dec sheet: https://www.fema.gov/media-library/assets/documents/21039?id=4560.

In addition, FEMA’s Flood Insurance Manual has instructions for newly mapped prp applications. Under those instruction for completing the newly mapped prp policy application, it does ask for the risk zone (zone and map information from the FIRM most recently indicating that the building was outside the SFHA) and the current zone and supporting information for both. Here is a link to the policy application instructions: https://www.fema.gov/media-library-data/1478090950077-c38cb614e4a2f093d7656577c9ffb0fd/10_newly_mapped_508_oct2016.pdf. (See p. NM 12.)

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