Are you wondering how to cancel flood insurance? If storm and heavy rain are usual visitors in your area, flood insurance will help your property recover from the damages caused by the flood, and you and your family will also be safe and secured.
But there are times that you will need to cancel your insurance, and flood insurance can be terminated. Canceling the policy will depend on various reasons for doing this transaction. You can do this at any given time.
However, make sure that your reason is valid so that the insurance company will cancel your flood insurance. If the coverage has been successfully terminated, you will be entitled to a partial or full refund according to the rules and regulations applicable. But in some cases, you may not be illegible for a refund.
10 Reason Codes To Cancel Flood Insurance
How to cancel flood insurance? First, you will have to go to your insurance company and inform them that you want to terminate your flood insurance.
Then, present them with your documents and your reason why you need to withdraw your insurance. In this section, let us look at the common reasons for nullifying or canceling flood insurance policies.
Of course, you can use other reasons to submit a cancellation request form, but below are the common reason codes you can use if it applies to you.
#1. Building removed or sold
If the insured has transferred ownership or sold the insured property, he may cancel the insurance. The same is true if the developer or builder requested to cancel the insurance policy after a new association purchased a policy for the building or if the insured building is removed from its location.
You can also use this code after the foreclosure of the building or if it is regarded as a total loss since its damage is equal or even greater than the cost of replacing the building.
#2. Contents removed or sold
This reason code applies if the insured transferred ownership sold the property, or was obliterated from its locations. The insured does not have insurable interest over the property anymore.
The effective date to cancel the insurance is the particular date on which the insured stopped having insurable interest. It can also be the date on which the property has been removed from its described location.
#3. To rewrite or cancel the policy in establishing the same expiration date with other insurance
Reason 3; common expiration date. If your flood insurance has the same expiration date as other insurance, you can have your policy rewritten by the company for an equal or higher coverage amount. But take note that the waiting period will apply if it is to be rewritten for a higher coverage amount.
#4. Duplicate policies
If the issued policy is duplicated, only one should stay in effect, and you shall cancel the other. The insured will be given the choice of which policy to cancel. But this will not apply if there is a considered creation of the duplicate policies. In such a case, the policy with an earlier effective date will be the one to remain effective. The losses that will arise in that case shall be adjusted based on the conditions and terms of the policy.
#5. Non-payment
Non-payment is applicable if the client offered a premium payment to the agent and submitted an agency check with the application. The insurance company can nullify the flood insurance policy if the client’s check is returned due to insufficient funds. In such a case, the notice of the bank should be attached to the form.
#6. Ineligible risk for the coverage
This reason code is used to nullify an application you submitted after knowing the issued policy of a property is ineligible for the coverage. When submitting a cancellation request with this reason code, you should include a precise and clear explanation.
#7. Closing of the property does not take place
If a policy has been issued on property that is to be closed at the settlement, and the property transfer does not occur, you can use this reason code to cancel the flood insurance.
#8. The mortgagee does not require the policy
If the mortgagee initially requires flood insurance coverage, you can cancel the policy but later discover the property is not in a flood hazard zone. It means that the mortgagee does not need coverage.
When submitted a cancellation request form, you should attach the statement of the mortgagee. The effective date of cancellation is the date on which the writing company has received the cancellation request.
#9. The property is not located in a flood hazard area anymore due to the physical revision of the map
Perhaps, the lender or mortgagee initially requires a flood insurance policy because the property is located in a hazard zone. Still, later after the map physical revision, the property is identified to not belong in the hazard zone so that you can cancel the insurance policy.
It is applicable provided that the mortgage agreed to write a statement indicating that the policy is not required anymore. Without the mortgagee, the unit owner must engage in the written stipulation. If this requirement is not met, you cannot cancel the policy.
#10. Condominium policy
This reason code allows the insured to cancel their condominium policy because the RCBAP will be providing them with flood coverage. However, there will be a duplication of the coverage if the RCBAP limits and policy of the unit owner are greater than the unit cost.
Overall, you can cancel flood insurance as long as your reason is valid.
It’s A Wrap!
A flood insurance policy can be nullified or canceled as long as it belongs to the valid reasons for canceling a policy. Regarding the question on how to cancel flood insurance, submit a cancellation request to the writing company. In contrast, learning how to repair water-damaged popcorn ceilings might come in handy if your home experiences a flood.