Duplicate Flood Insurance for Condos: How to Cancel a Redundant Policy the Right Way
Are you paying for two flood insurance policies on your condo?
Did your lender require one, and now your HOA has another — and you’re stuck with the bill?
You’re not alone. This situation happens all the time, and at The Flood Insurance Guru, we’ve helped thousands of condo owners resolve it.
In this guide, you’ll learn:
- Why this happens (and why it’s more common than you think)
- What the NFIP Flood Insurance Manual really says about these “duplicate” policies
- How to cancel your individual flood policy — without jeopardizing your lender’s requirements or your coverage
Why It Feels Like Duplicate Coverage (Even If Technically It’s Not)
The truth is that “duplicate flood insurance” usually means overlapping building coverage — not identical policies.
Your individual flood policy covers contents and interior finishes, while the HOA’s RCBAP covers the structure and common areas. But NFIP rules prohibit both policies from insuring the building at the same time.
HOA RCBAP vs. Individual Flood Policy: What’s the Difference?
| Coverage Area | Individual Policy (Dwelling Form) | HOA Master Policy (RCBAP) |
|---|---|---|
| Named Insured | Unit Owner | HOA or Association |
| Covers | Interior walls, personal property, flooring | Building structure, shared walls, common areas |
| Contents Coverage | Yes | Rarely |
| Building Coverage | Yes (your unit’s portion) | Yes (entire building) |
| Still Needed? | Yes — for contents | Yes — for lender compliance |
NFIP Rules About Duplicate Policies
NFIP Manual, Section 6, Reason Code 04: “Only one flood policy may be active for different named insureds for the same building.”
This means you can cancel your policy — as long as the HOA’s RCBAP is active and your lender agrees it meets their requirements.
Why Some HOAs Don’t Have Enough Coverage
If the RCBAP doesn’t insure the building for at least $250,000 per unit, lenders may not accept it. In those cases, HOAs sometimes need to pass a bylaw to increase the coverage amount so units remain financeable.
3 Steps to Cancel Your Redundant Flood Policy
- Get the HOA’s RCBAP declarations page
- Ask your lender for a confirmation letter that the HOA policy satisfies their requirement
- Submit the NFIP cancellation request using Reason Code 04
Refunds: What You’re Owed
If approved, you’ll receive a pro-rata refund for the unused portion of the premium, minus fees. Act quickly — cancellations must be submitted within the same policy year.
3 Common Mistakes to Avoid
- Assuming your HOA policy covers your personal contents
- Trying to cancel without lender documentation
- Failing to verify that the HOA’s policy meets $250K/unit minimum
Cancellation Checklist
- HOA RCBAP declarations page
- Lender confirmation letter
- Your current flood insurance declarations page
- NFIP Cancellation/Nullification Form (Reason Code 04)
Still Need Help?
Schedule a Free Flood Policy Review or check out our guide on FEMA Flood Zone Changes.
For further reading, visit the FEMA Flood Insurance Manual or search your area on the FEMA Map Service Center.
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