Should You Rollover Your NFIP Flood Insurance Policy? Here’s What You Need to Know
February 13th, 2022
3 min read
By Chris Greene
What is an NFIP Flood Insurance Policy Rollover & How Does It Work?
Introduction
🔹 Did your insurance company tell you they’re no longer handling NFIP policies?
🔹 Are you wondering if switching to a different flood insurance provider will change your rates or coverage?
If so, you may be eligible for a flood insurance policy rollover—but what does that mean for you?
At Flood Insurance Guru, we help homeowners and real estate investors navigate NFIP policy rollovers so they don’t experience gaps in coverage. In this guide, we’ll cover:
✔ What an NFIP flood insurance policy rollover is
✔ Why rollovers happen & when you should consider one
✔ The step-by-step process to ensure a seamless switch
✔ How rollovers differ from private flood insurance and policy assumptions
Let’s dive in.
What is an NFIP Flood Insurance Policy Rollover?
A flood insurance policy rollover occurs when an active NFIP (National Flood Insurance Program) policy is moved from one Write Your Own (WYO) carrier to another, without any changes to your coverage, rates, or terms.
Key Facts About NFIP Policy Rollovers
✅ Your rate stays the same – Since NFIP policies are federally backed, premiums do not change when switching carriers.
✅ Your coverage remains identical – Your policy limits, deductibles, and flood zone classification remain unchanged.
✅ There’s no lapse in coverage – A policy rollover ensures continuous protection without reapplying for a new policy.
✅ It’s NOT switching to private flood insurance – Unlike changing to a private insurer, this is simply transferring your NFIP policy to another WYO provider.
📌 Example Scenario:
Sarah’s home is covered by an NFIP flood insurance policy under Carrier A, but Carrier A has decided to stop offering flood insurance. Instead of losing coverage, Sarah rolled over her policy to Carrier B. Her premium and coverage remain the same, but now she has a new provider managing her policy.
📌 Related: NFIP vs. Private Flood Insurance—Which One is Right for You?
Why Would You Rollover Your NFIP Flood Insurance Policy?
Since NFIP rates and coverage are standardized, why would you need to switch carriers?
1. Your Current Carrier is No Longer Offering NFIP Policies
Some WYO carriers decide to stop writing NFIP flood insurance policies due to underwriting changes or corporate restructuring. If this happens, your policy must be rolled over to another provider to maintain coverage.
2. Your Lender Requires a Carrier Change
✔ If you have a mortgage, your lender may require an NFIP policy from a specific list of approved carriers.
3. Your Insurance Agent Recommends a Switch
✔ Some insurance agents work with multiple WYO carriers and may recommend rolling over your NFIP policy for better customer service, smoother claims processing, or a preferred provider relationship.
📌 External Source: FEMA’s NFIP Guide
How to Rollover Your NFIP Flood Insurance Policy
If you need to move your NFIP policy to a new carrier, follow these steps to ensure a smooth transition.
Step 1: Select Your New NFIP Carrier
✔ Not all insurance companies offer NFIP-backed flood insurance. Make sure the new carrier is an authorized WYO provider.
📌 Get a Free NFIP Carrier Comparison
Step 2: Notify Your Current Insurance Provider
✔ Inform your existing WYO carrier that you intend to roll over your policy to a new provider.
Step 3: Submit the Necessary Documents
✔ Work with your new NFIP carrier to transfer your policy details. They will handle the processing and ensure the transition is seamless.
Step 4: Confirm the Policy Rollover
✔ Double-check that the policy effective date remains the same to avoid any lapse in coverage.
🚨 Important: Since NFIP policies have fixed rates, rolling over your policy won’t affect your premium—it just changes the provider managing your coverage.
Policy Rollover vs. Policy Assumption: Key Differences
| Feature | Policy Rollover (NFIP to NFIP) | Policy Assumption |
|---|---|---|
| What it Does | Moves an active NFIP policy from one WYO carrier to another | Transfers an NFIP policy to a new homeowner |
| When it Happens | When you change NFIP carriers | When a home is sold and the policy stays with the property |
| Does Coverage Change? | No, the policy remains identical | No, but the new owner must maintain policy terms |
| Who Handles It? | The new insurance carrier | The buyer and their mortgage lender |
📌 Related: What is a Flood Insurance Policy Assumption?
Common NFIP Policy Rollover Mistakes
🚫 Canceling Your Existing Policy Before the Rollover is Finalized → Always confirm with both carriers before making changes.
🚫 Assuming Your Rates Will Change → NFIP rates are federally set, so your premium will stay the same.
🚫 Forgetting to Notify Your Lender → If your flood insurance is tied to your mortgage, ensure your lender gets updated policy details.
FAQs About NFIP Policy Rollovers
Yes but typically only at renewal as NFIP only allows midterm cancellation for a few reasons. These typically involve flood zone changes, a property sold, and a mortgage paid off.
📌 Need Help Deciding? Contact Our Experts Today
Conclusion
A flood insurance policy rollover ensures you stay with NFIP coverage while switching to a different provider.
✔ Your rate and coverage stay the same
✔ You may get better customer service
✔ There’s no gap in coverage
If you need to roll over your NFIP policy, we can help you navigate the process.
📌 Get Your Free Flood Insurance Consultation Now
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