Chris Greene

Chris Greene

10/18/2018

How to Cancel NFIP Policy?

If you're looking to moving your flood insurance to the private market, let this be your guide.


Hello, there! It's important to know that you'll have options for your flood insurance and maybe the National Flood Insurance Program (NFIP) flood insurance policy doesn't cover what you really need for your residential or commercial property. That's fine as private flood may provide more coverage, but you have to know the steps in cancelling your NFIP policy.

Step 1: Sign a Cancellation Letter

Make sure that you secure this letter first with whoever has your flood policy, be it your local flood insurance agent or if it's the 1-800 number. This is the first document you'll need to secure and send over to FEMA or the NFIP. It's important to have this sent since your cancellation won't take effect immediately. With the NFIP, you must render the 30-day waiting period before your flood insurance policy can be cancelled. This also depends on when you can secure the supporting or additional documents. You're expected to send these additional documents within 60-calendar days from the receipt date of the cancellation letter. If you send it after the 60-day period, the receipt date will be adjusted to whatever date they received the additional documents.

Additional documents may include a declaration page for the private flood insurance policy that you're replacing the NFIP policy with.

image-png-Mar-31-2021-02-34-04-76-PM

Step 2: Letter from Mortgage Company

The second thing you want to make sure is that you get a green light from your mortgage company that they're allowing your move into private flood insurance. This is to show that they'll approve your decision in black-in-white. This will be part of your additional documents for the flood policy cancellation.

Mortgage loan can also impact your cancellation. This can be a reason for the cancellation request however there are some cases that these loans has to be paid off before you can get approval from them for the cancellation. In most cases, the cancellation request is expected to be sent 6 months within the date the mortgage was paid off.

If you're wondering why you have to go through this step is due to the fact that most mortgage companies are directly regulated by the government, and thus you need an approval from them to cancel your government-backed flood insurance policy to move to the private flood insurance market.

image-png-Mar-31-2021-02-34-34-21-PM

Step 3: Send to NFIP Processing Center

Lastly, you want to send these documents to the National Flood Insurance Program for processing of the cancellation, but if you know someone who can get you faster to the federal flood insurance processing center, you can also send it through them to help expedite the cancellation.

This third step can make or break your cancellation. If the cancellation wasn't processed quickly enough, the federal flood insurance may mark the cancellation as not eligible at all. Important thing to remember is to have your policy cancelled during the current year. Not the previous year. Not even for a future year.

undefined-1 
You also have to secure each of these documents if you have separate policies for different properties, structures, or buildings. According to FEMA, your cancellation of the policies may entitle you for a partial or full refund however be careful as there are cases where the cancellation request was approved, but you won't be eligible for a refund.

It's important that you provide the federal flood insurance basis to approve the cancellation of your current policy. Since flood insurance is required for high risk flood zones which is determined by FEMA by checking your community's floodplain situation and your property's flood elevation compared to the base flood elevation.

It's important to remember that you'd need to know the process as the cancellation of your current policy will determine the refund of premium. Note that these refunds will depend on certain circumstances and in some cases there might be problems in getting your refund.

So if you need help or want to know more on how to process NFIP policy cancellation quicker, easier, and more efficiently, if you want to avoid the high flood insurance premiums that hurt your wallet every year, and want to know if you qualify for private flood, contact us through the link below and watch more of our flood education videos over at our YouTube channel. Please do consider subscribing as well.

Remember, we have an educational background on flood mitigation. We'd like to give you assistance through flood education and awareness, so that you're prepared for when crap, like flooding and expensive flood insurance premiums, happen.

Get a quote from the Flood Insurance Guru!

The Flood Insurance Guru | Chris Greene | YouTube                The Flood Insurance Guru | 2054514294


0 Comments

  • There are no suggestions because the search field is empty.

CATEGORIES

See all

Related Posts