What is a Severe Repetitive Loss Property?

Congress recognized that Severe Repetitive Loss (SRL) properties represent the greatest risk of sustaining repeated flood losses and, through the Flood Insurance Reform Act of 2004, made it a top priority to reduce the number of SRL properties nationwide. Properties that are designated as SRL properties are a subset of repetitive loss structures.

A Severe Repetitive Loss (SRL) designation applies to any NFIP-insured property, regardless of ownership, meeting at least one of the following paid flood loss criteria since 1978:

That has incurred flood-related damage for which four or more separate claims payments have been made, with the amount of each claim (including building and contents payments) exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or
For which at least two separate claims payments (building payments only) have been made under such coverage, with the cumulative amount of such claims exceeding the market value of the building.

Chart illustrating example situations that meet the loss history criteria: A house is shown with four building and contents flood loss payments greater than $5000. Also shown is a building with a pre-flood value of $250,00 and two losses of $150,000 each.