Submit Change to NFIP Coverage: Difference between revisions

Latest revision as of 15:34, 11 March 2025

This Equinox Procedure is for Agents. Find a complete list here.

This procedure explains how agents can submit requests to change coverage amounts on an NFIP policy. Coverage changes include increases or decreases to building and contents coverage, as well as deductible changes. Supporting documentation may be required depending on the type of change.

Policy Changes require specific actions to meet federal guidelines

Procedural Steps

1. Access Policy Record

An image showing the "Policy Changes" menu along the right side of the page. — Use the "Policy Changes" menu along the right side of the page.

Open the Policy Record to start

To quickly navigate to the Coverages and Deductibles section:

Find the Policy Actions block on the right
Choose Policy Changes
From the next menu, click the Coverages and Deductibles option

Otherwise, scroll down to the "Coverages, Deductibles and Discounts" section manually.

2. Edit Coverage

Use the Edit button (pencil icon) in the upper right of the Coverages and Deductibles section.

This will open the coverage fields for editing.

A large clock tower and other buildings line a great river. — Make adjustments to the coverage and deductibles as appropriate.

Make Changes to Coverage and Deductibles

Changes to coverage must follow NFIP guidelines for Effective Date calculation and documentation.

Refer to the boxes below to confirm proper calculation and required documents.

Coverage Change Rules

Coverage Increase

Coverage increases have a standard 30-day Waiting Period applied, unless they qualify for an exception.

Required Documentation: Premium Payment

NFIP Effective Date Calculation rules apply to coverage increases that can alter the requested effective date.

Coverage Decrease

Coverage decreases have no Waiting Period.

When coverage is reduced to zero, the corresponding deductible must be set to zero.

Coverage decreases can be made on upcoming renewals without the requirements needed for policy changes. [1]

Required Documentation: Building coverage: proof the building is over-insured, either through error or removal. [2]

Required Documentation: Duplicate RCBAP coverage: copy of the RCBAP declarations page.

Required Documentation: Contents coverage: proof the property was sold or removed. [3]

Required Documentation: Policyholder's signature [4]

If due to error, the decrease is effective at inception.
If due to damage or removal, it is effective the day after the event date. [5]
If due to duplicate RCBAP building coverage, it is effective the date the RCBAP coverage started. [6]

Deductible Increase

When coverage is increased from zero, any deductible may be chosen; however, deductible decreases have a 30-day waiting period.

Deductible increases have no Waiting Period.

Deductible Decrease

Deductible decreases have a standard 30-day Waiting Period applied, unless they qualify for an exception.

Required Documentation: A lender's letter that requires a lower deductible [7]

Required Documentation: Premium Payment

NFIP Effective Date Calculation rules apply to coverage increases that can alter the requested effective date.

Coverage Combinations

Use the table below to identify when coverage can be combined.

In general, increases and decreases are typically done in separate transactions with separate payments, but they can be combined.

	Coverage Increase	Coverage Decrease
Deductible Increase	30-day Wait + No Wait Separate or Combined	No Wait (both) Separate or Combined Cannot backdate deductibles
Deductible Decrease	30-day Wait (both) Combined	No Wait + 30-day Wait Separate Only

Coverage Increase + Deductible Increase: The deductible increase can coincide with the coverage increase, or it can be done separately
Coverage Increase + Deductible Decrease: The deductible decrease can coincide with the coverage increase (same rules apply)
Coverage Decrease + Deductible Increase: The deductible increase can coincide with a mid-term coverage decrease (no waiting period), or it can be done separately. Deductible increases cannot be backdated.
Coverage Decrease + Deductible Decrease: These must be done separately, as the rules are too restrictive to combine.

Example: Coverage Decrease & Deductible Decrease

A coverage decrease can only happen due to over-insurance, which is effective in the middle of the term (physical change) or at the inception (error). So today or a previous date.
A deductible decrease requires a 30-day wait, unless an exception is applied. So today or future date.

Once all details are entered, click the "Save" button (move to Step 3 below).

3. Choose Effective Date

Choose the Waiting Period and select the appropriate Policy Change Effective Date.

Scroll to the top of the page to enter the effective date.

Choose the Waiting Period based on the scenarios identified in Section 2.
Calculate and enter the appropriate date.

The Coverage Change cannot be completed without choosing an effective date.

4. Review and Submit

Review the changes for accuracy and completeness before finalizing.

Once the effective date is entered, the pro-rated premium amount will be displayed.

The "Abort" button will exit the process without saving any details.
The "Submit" button will create the policy change form and mark the policy with "Pending Change" and "Pending Payment" flags.

The system will not process the change immediately.

The Policy Record will show Pending Payment and Pending Change flags.

The policy in the Agency Workspace will show Pending Payment and Pending Change flags.

The agent can submit a payment on the Billing and Payment page.

This page contains details about NFIP Policy Changes.
Find more NFIP information in the How To Endorse section of the Flood Insurance Manual.