The big difference between a preferred risk policy and a regular flood insurance policy is the price you pay for coverage. The coverage provided by the policy itself is the same. All things being equal, you will pay a lower premium for a preferred risk policy compared with a standard policy. This is because preferred-risk homes are located in areas that are less likely to experience a flood loss.
However, you must qualify for a preferred policy. To qualify, your home must be in the moderate-risk B, C, and X zones in the National Flood Insurance Program (NFIP) Regular Program communities. It cannot be in a Special Flood Hazard Area (SFHA).