You are here:HomeIssuesFlood Insurance2013NFIP Bulletin: Clarification of Cancellation Reasons Due to Map Revision

NFIP Bulletin: Clarification of Cancellation Reasons Due to Map Revision

October 31, 2013

The National Flood Insurance Program (NFIP) has issued a bulletin addressing reasons for cancellation of a flood insurance policy that a lender originally required for a building that was in a Special Flood Hazard Area (SFHA) but is no longer there.

Changes in a community’s FEMA/NFIP mapping do not always mean an increase in exposure. Sometimes, the map moves a property out of the SFHA zone to one with less exposure. Also, an updated assessment of your property’s actual location might find that the building is more elevated than the “per se” Flood zone generally indicates. Last, a current property insured under the NFIP may have been totaled by recent storm events, and therefore, once the NFIP policy claims are settled, there may not be a building to reinsure going forward. These circumstances will change and, many times, improve the class rating/cost of a consumer’s current NFIP policy – or no longer mandate that an NFIP policy be retained. So the policyholder and/or the lender may wish to make a change by terminating the current NFIP policy.

W-13063Clarification of Cancellation Reasons due to Map Revision

Bulletin W-13064 explains NFIP policy and process for allowing some margin for contractors’ expense and profit margins, when charged for rebuilding and recovery services after a federal flood event. An earlier bulletin was issued expressly for Superstorm Sandy. That bulletin has now been converted into this general bulletin that will apply going forward to the entire program.

W-13064Allowance for Overhead and Profit (contractors)

Filed under: