Homeowners Insurance Florida | You may have heard about the recent changes that FEMA has announced in regard to their National Flood Insurance Program (NFIP) cancellation policy. Here are some frequently asked questions about this important change:
Can I Cancel My NFIP Flood Insurance Policy?
Effective October 1, 2018, the National Flood Insurance Program will allow customers to cancel their flood policy mid-term, but only if a duplicate policy has been secured from another source. Examples of a duplicate policy include Private Flood Insurance. The secondary insurance policy must be for building coverage on the same building that is currently being insured by the NFIP flood policy.
How Is This Change Different from Before?
Most homeowners in the NFIP could not cancel a policy mid-term prior to this important change. Those that were identified as “preferred risk” may have been able to cancel their policy mid-term but wouldn’t get any refunds on premiums paid for the entire term of the policy. Now, customers can cancel mid-term as well as receive refunds on premiums paid for unused portions of the term.
How Do I Cancel My NFIP Policy?
Your cancellation request must be made within the current NFIP policy year. You’ll need to provide a copy of your non-NFIP flood policy declaration page as well as a statement from the mortgagee accepting the non-NFIP policy as the replacement policy.
How Do I Get My Premium Refund?
You will receive a pro-rated refund on any unused portion of the ICC premium, Reserve Fund Assessment, and HFIAA Surcharge. If applicable, you will not get a refund on the Federal Policy Fee and Probation Surcharge. Customers can only receive a refund for unused portions of their current NFIP policy and will not receive any refunds for past years that the policy was held.
Why Do I Even Need Flood Insurance?
Flooding is the most common natural disaster in the United States. Many standard home insurance policies don’t include flood insurance coverage. Most of the damage caused by recent hurricanes in was flood damage. Purchasing a flood endorsement for your homeowner’s insurance is a good way to protect your home from the possibility of a flood.
If you would like to know more about the NFIP cancellation policy, or adding a flood endorsement to your current homeowner policy, the professionals at American Integrity Insurance Group can help. Find out more about their insurance policy options and find an insurance agent near you at www.aiicfl.com.