Ehibit 2 Dear Policyholder - notice after expiration final.doc

IMPORTANT NOTICE

Dear Policyholder:

Your flood insurance renewal premium has not yet been received and your above listed policy expired …………Therefore, your home (business) is not protected against financial loss due to flooding! If you have not already done so, you are urged to immediately submit your flood insurance premium payment in order to restore your protection.

Here’s why it is important:

· If you do not pay your renewal premium your home (business) will not be protected against flood damage and you may also become ineligible for some forms of federal disaster assistance.

· If you pay your renewal premium, but your payment is not received within 30 days of your policy expiration date, a 30 day waiting period will apply before your renewal policy can become effective. This means, even if you’ve paid your renewal premium, your home (business) will not be protected against flood damage until the waiting period ends.

· The lapse in coverage, created by the waiting period, may prevent you from using your current premium classification should a future flood map identify a higher risk level at your location.

· If the purchase of flood insurance was required by your lender as a condition of granting your mortgage loan, please note that the flood insurance requirement applies during the entire term of your loan. Federally regulated lenders are required by law to force place flood insurance if a borrower allows his or her flood insurance policy to non-renew. Such force placed flood insurance that your lender will purchase on your behalf at your expense may only protect your lender’s financial interest and not your equity interests in your property. Additionally, the force placed flood insurance coverage can be significantly more costly than your own flood insurance (Example: If your renewal premium is $1,000; the lender forced-place policy may be $2,000 or higher). Lenders may force-place flood insurance, at your expense, during your 30-waiting period.

In order to avoid these problems, submit your renewal premium payment now.

Sincerely,