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Can You Get a Refund for Your Flood Insurance Policy?

April 27th, 2021 | 2 min read

By Chris Greene

The Flood Insurance Guru | YouTube | Are Flood Insurance Policies Refundable?

Flood policyholders may encounter situations where they no longer need flood insurance and might want to get a refund for the flood insurance payment they've already made. This might be because you bought a flood insurance policy for a house that wasn't closed and since everything's paid upfront, you're most likely to have sent the payment to the National Flood Insurance Program (NFIP).

Let's talk about how you can get refunded for your flood insurance policy.

There are certain terms on refunds, however. Some may get you completely refunded while some circumstances will only get you a prorated refund, so you want to make sure that you have your expectations set right on what type of refund you may qualify for.

First, we've mentioned a closing deal for a house that didn't go through. This is the only time that you may get a complete refund from your flood insurance provider. You can simply do this by giving them a document stating that the house closing didn't go through, why it didn't go through, and a signed cancellation letter.

The Flood Insurance Guru | YouTube | Are Flood Insurance Policies Refundable?

Another situation is if your flood zone changed and you've got an elevation certificate showing your mortgage company that you're no longer required to carry flood insurance with your property, then you may be refunded on a prorated basis when you canceled the policy.

Now, if you're mapped into a high-risk area, your home is most likely going to be under mandatory flood insurance. An elevation certificate can remove your property from a high-risk area if you can show that your building's lowest floor is above the base flood elevation. It's important to note that when you get the elevation certificate done, you may also choose to continue with the policy, but with a lower flood insurance premium for the listed building or house.

The Flood Insurance Guru | YouTube | Are Flood Insurance Policies Refundable?

Lastly, if you want to move into private flood insurance you may also get a refund for your NFIP flood insurance. However, it's important to note at the time of writing that this generally depends on your loan type and if the mortgage company will allow you to move in getting private flood insurance policies from private insurers. You can send FEMA a document or letter showing that your bank or mortgage approved your movement to purchase private insurance policies and they can prorate your refund as well.

The Flood Insurance Guru | YouTube | Are Flood Insurance Policies Refundable?

Since typically, flood insurance is non-refundable, insurance companies will have strict conditions and provisions in order to cancel and get a refund for a policy. If you have any questions on standard flood insurance options, flood insurance renewal, NFIP participating communities, or anything related to flood, reach out to us.

Remember, we have an educational background in flood mitigation and we want to share this knowledge with you, so you too can be prepared when crap happens. Click our links below to know more and get started today:

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Chris Greene