If you’ve been in the flood insurance business for a while chances are you have gotten a call from an insured wanting to know why they are in the NFIP’s Severe Repetitive Loss program and how to get out of it. Here are the basics of the SRL program:

• The definition of Severe Repetitive Loss as applied to this program was established in section 1361A of the National Flood Insurance Act, as amended (NFIA), 42 U.S.C. 4102a. A SRL property is defined as a residential property that is covered under an NFIP flood insurance policy and:
  1. Has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000.
  2. For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building.

For both (a) and (b) above, at least two of the referenced claims must have occurred within any ten-year period and must be greater than ten days apart.
SRL Program Purpose: To reduce or eliminate claims under the NFIP through project activities that will result in the greatest savings to the National Flood Insurance Fund (NFIF).

• Cost Share: 75% Federal Funds / 25% State or Local Share.

• 90% Federal Funds / 10% State or Local Funds with Repetitive Loss Strategy.

Does Aon Edge/EZ Flood insure SRL properties? No, Aon Edge does not have a program for Severe Repetitive Loss properties.

For additional information you can reference FEMA’s Guidance for Severe Repetitive Loss properties.