NFIP Renewal Billing Changes
Renewal Billing Changes involve adjustments to the renewal bill for NFIP flood insurance policies to reflect updated coverage or rating information. While changes can be made after the Renewal Notice is issued, specific timing and compliance requirements apply.
An NFIP Renewal Notice is sent to the payor at least 45 days prior to the policy's expiration. [1]
The payor (policyholder, mortgagee, etc.) is shown in the Policy Record as Renewal Billing Instructions.
To update the billing instructions, use the procedure Submit Change to NFIP Billing Instructions.
Coverage changes made on an NFIP Renewal Notice must be made by Underwriting.
Key Points
Timing of Changes:
- Renewal bills can be updated after they are published, provided changes follow NFIP guidelines for increases above Option B (see below).
- Renewal billing cannot be amended on or after the policy expiration date.
Coverage Increases:
- Adjustments above Option B must be requested at least 30 days before the expiration date to avoid delays or waiting periods.
- Late requests for increases exceeding Option B are processed as endorsements after renewal and are subject to appropriate Waiting Periods.
Coverage Decreases:
- Coverage can be decreased or removed at any time during the billing period.
- Coverage decreases made on or after the expiration date will not produce a new renewal bill.
Grace Period Considerations:
- Adjusted billing amounts require payment by the policyholder before the Grace Period ends to avoid lapses in coverage.
- Additional payments resulting from updates must be received before the expiration date or within the 30-day grace period to ensure coverage continuity.
Best Practices
- Submit billing change requests early to ensure they are processed before policy expiration.
- Confirm Renewal Notices accurately reflect requested adjustments to avoid issues with effective dates.
- Communicate clearly with policyholders about payment deadlines and any changes to coverage or premium amounts.
By adhering to these guidelines, Renewal Billing Changes can be made efficiently while ensuring compliance with NFIP rules and avoiding lapses in coverage.
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This page contains details about NFIP Policy Renewal. |