With the Newly Mapped Procedure, the rate starts out at the Preferred Risk Policy (PRP) rate and then will increase each year no more than 18% (currently it has been at around 15% each year). It will stop increasing when it reaches one of two values:
- The standard Zone X rate or if the rate using the new zone (i.e, A or V) and an Elevation Certificate becomes cheaper (which the insurance agent will need to determine).
- A policy rated this way can be transferred to a new owner should the building be sold, so that they can continue with the benefits of this rating.
- If a policy is grandfathered (e.g, had too many losses to qualify for the Newly Mapped - went from Zone A to Zone V - or, increase in Base Flood Elevation (BFE)), it is recommended that a policy is in place before the maps change (that is a must if it is pre-FIRM) and then flood insurance must be maintained. This rating procedure will lock in the lower risk zone or BFE for future rating (it does not lock in the rate). A grandfather-rated policy can also be transferred to a new owner. The policy will be continued to be rated using that lower risk zone/BFE as long as the building is not substantially damaged/improved.