NFIP Renewal Billing Changes: Difference between revisions
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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. | '''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. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=387]<br> | |||
The payor (policyholder, mortgagee, etc.) is shown in the [[Policy Record]] as '''Renewal Billing Instructions'''.<br> | |||
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 == | == Key Points == | ||
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'''Timing of Changes''': | '''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 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 | * Renewal billing '''cannot be amended''' on or after the policy expiration date. | ||
'''Coverage Increases''': | '''Coverage Increases''': | ||
* Adjustments above Option B must be requested '''at least 30 days before the expiration date''' to avoid delays or waiting periods. | * 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 | * Late requests for increases exceeding Option B are processed as endorsements after renewal and are subject to appropriate [[Waiting Periods]]. | ||
'''Coverage Decreases''': | '''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. | * 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 | * 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. | * Additional payments resulting from updates must be received before the expiration date or within the '''30-day grace period''' to ensure coverage continuity. | ||
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By adhering to these guidelines, Renewal Billing Changes can be made efficiently while ensuring compliance with NFIP rules and avoiding lapses in coverage. | 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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Latest revision as of 09:23, 4 March 2025
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. |