Mid-Term Cancellations With The NFIP – How It Benefits You

Mid-Term Cancellations With The NFIP – How It Benefits You

  Imagine this scenario: you’re a homeowner located in Flood Zone A or V, which means your mortgage company requires you to have flood insurance. For years you’ve had your policy through The National Flood Insurance Program (NFIP) and paid your premiums through your monthly escrow payment. After your annual insurance review with your trusted insurance agent you receive a quote for a private market flood policy from TypTap. Not only is TypTap saving you money on your flood insurance, you also would get better coverage and would feel more secure knowing your policy is with a financially sound carrier. That sounds great, doesn’t it? Unfortunately, the NFIP has regulations in place that do not allow for the mid-term cancellation and refund of your flood policy. What does that mean for the homeowner in the situation above? It may look like this:

• Your NFIP policy effective date is January 1^st
• You received a TypTap flood quote on March 1^st and it is saving you $500 a year!
• Want to cancel your NFIP policy and replace it with your new TypTap quote? Unfortunately, you’re going to have to wait until the next January 1^st when your current policy renews to make the switch.

On top of that, the policyholder or agent must work in conjunction with the mortgage company to make sure they don’t mail your renewal premium check since sometimes they send them weeks in advance! This process is unnecessarily burdensome to policyholders, and luckily… this process is changing. Effective October 1, 2018 the NFIP will allow for mid-term cancellations of their policies. Let me repeat: FEMA Flood and the NFIP will let you cancel your policy when it is best for YOU. Here is the official NFIP bulletin language:

1. Cancellation Reason Code 26 for Duplicate Coverage under Non-NFIP Policy

Beginning October 2, 2018, FEMA will establish Cancellation Reason 26 to allow cancellation of an NFIP policy when a policyholder has obtained a duplicate policy from sources other than the NFIP. The non-NFIP insurance coverage must be for building coverage on the same building that is insured by the flood policy being canceled. This is big news. Private market flood insurance offers a solution to a long-standing problem that the NFIP has created. It offers a solid, trustworthy, and competitive product to policyholders that have been stuck in the NFIP’s flood monopoly for too long.  In lifting the burden of renewal cancellation for its customers, the NFIP is allowing freedom of choice to those that wish to protect themselves against the peril of flood on their own terms. Is your TypTap quote saving you money but you are midterm in your NFIP policy? Come October 1^st you no longer have to wait to start seeing money back in your pocket. Go to www.TypTap.com today to see how much TypTap can save you. You can quote and issue a TypTap policy with an effective date up to 150 days in advance if you are in an A or V Flood Zone. So, don’t hesitate- call your agent today and ask for a TypTap quote.