Did you move, downsize, or experience a loss that left your property empty?
Are you trying to cancel your flood insurance now that there’s nothing left to insure?
This article explains FEMA Cancellation Reason 2—when contents are sold, destroyed, or removed. It outlines who qualifies, what documentation is required, how refunds are calculated, and the timelines that must be followed.
Covered in this article:
What FEMA Code 2 means
Who can use this cancellation reason
Required documentation
Refund timing and amount
Step-by-step process
Common issues and how to avoid them
FEMA Cancellation Reason 2, or Code 2, applies when there are no longer insurable contents at the insured property because they have been sold, destroyed, or removed. Without those contents, the insurable risk no longer exists, allowing the policy to be canceled under National Flood Insurance Program (NFIP) guidelines.
Code 2 is designed for policyholders who no longer have contents at the insured location. These include:
Renters who insured personal property but have moved
Business owners who insured inventory or equipment no longer at the site
Property owners who previously insured only contents and have since removed or lost them
Three key elements define eligibility under Code 2:
The contents must have been:
Sold
Destroyed
Removed from the insured premises
Proof is required. Acceptable documentation may include:
Bills of sale or transfer documents
Photos or videos of the empty property
Moving company or storage facility receipts
Salvage or disposal service invoices
Insurance claim documents
Police, fire, or other official loss reports
Before-and-after inventory lists
Signed statements from the policyholder (preferably notarized)
The more supporting evidence provided, the smoother the cancellation process.
Refunds under Code 2 are pro-rated for the unused portion of the policy period. However, the request must be submitted within one year of the contents being removed or destroyed to be eligible for a refund.
A tenant removes all household goods and relocates. Supporting documentation could include moving receipts, storage contracts, and photos of the empty space.
A company clears out its inventory or equipment from the insured location. Documentation might include bills of sale, disposal records, or inventory updates.
A fire or flood destroys the contents of a property. Supporting documents could include insurance claim reports, fire department reports, or contractor disposal receipts.
Collect documentation proving the sale, removal, or destruction of contents
Contact the insurance agent or NFIP administrator to request cancellation under Reason 2
Submit all required forms and evidence promptly
Confirm the effective date of cancellation and refund calculation
Retain copies of all communications and documents
Missing the One-Year Deadline
Requests received more than one year after removal or loss are not eligible for a refund.
Partial Removals
If only some contents are gone, the cancellation may not be approved. Discuss options with the insurance provider.
Lack of Documentation
Without receipts or visual proof, the process may be delayed or denied.
Overlap with Claims
When contents are destroyed and a claim has been filed, check how this impacts the ability to cancel and receive a refund.
FEMA Cancellation Reason 2 allows contents-only policies to be canceled when the insured items are no longer present due to sale, removal, or destruction. The key elements are:
A valid reason (sold, destroyed, or removed contents)
Strong supporting documentation
Cancellation request submitted within one year
Refunds calculated on a pro-rated basis