<big>'''Make Adjustments to Structural Variables'''</big><br>
<big>'''Make Adjustments to Structural Variables'''</big><br>
These fields describe the physical details of the building, which can be changed over time due to reconstruction or disrepair. They should be accurately represented on an NFIP policy; they can be corrected if they are not.
These fields describe the physical details of the building, which can be changed over time due to reconstruction or disrepair. They should be accurately represented on an NFIP policy; they can be corrected if they are not.
}}
{{Docs-req|'''Changes:''' proof of a change to the building, such as a photograph.}}
{{Docs-req|'''Changes:''' proof of a change to the building, such as a photograph.}}
{{Docs-req|'''Corrections:''' an agent statement that the item was incorrect on the original application.}}
{{Docs-req|'''Corrections:''' an agent statement that the item was incorrect on the original application.}}
{{attention|'''Changes:''' the effective date is '''the date the change occurred''' (the event date). <br>'''Corrections:''' the effective date is '''the policy inception date'''.}}
{{attention|'''Changes:''' the effective date is '''the date the change occurred''' (the event date). <br>'''Corrections:''' the effective date is '''the policy inception date'''.}}
}}
<big>'''Coverage Change Rules'''</big><br>
{{collapsible-details
|number = 21
|title = Coverage Increase
|content =
'''Coverage increases have a standard 30-day [[Waiting Period]] applied, unless they qualify for an exception.'''
{{Docs-req|1=[[Premium Payment]]}}
{{Attention|'''[[NFIP Effective Date Calculation]]''' rules apply to coverage increases that can alter the requested effective date.}}
}}
{{collapsible-details
|number = 22
|title = Coverage Decrease
|content =
'''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. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=148]
{{Docs-req|1='''Building coverage''': proof the building is over-insured, either through error or removal. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=145] }}
{{Docs-req|1='''Duplicate RCBAP coverage''': copy of the RCBAP declarations page. }}
{{Docs-req|1='''Contents coverage''': proof the property was sold or removed. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=145] }}
{{Attention|1=If due to error, the decrease is effective at inception. <br>If due to damage or removal, it is effective '''the day after''' the event date. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=145] <br>If due to duplicate RCBAP building coverage, it is effective the date the RCBAP coverage started. [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=146]}}
}}
{{collapsible-details
|number = 23
|title = Deductible Increase
|content =
When coverage is increased from zero, any deductible may be chosen; however, deductible decreases have a 30-day waiting period.
{{Attention|Deductible increases have no '''[[Waiting Period]]'''.}}
}}
{{collapsible-details
|number = 24
|title = Deductible Decrease
|content =
'''Deductible decreases have a standard 30-day [[Waiting Period]] applied, unless they qualify for an exception.'''
{{Docs-req|1=A '''lender's letter''' that requires a lower deductible [https://www.fema.gov/sites/default/files/documents/fema_nfip_flood-insurance-manual_042024.pdf#page=147] }}
{{Docs-req|1=[[Premium Payment]] }}
{{Attention|'''[[NFIP Effective Date Calculation]]''' rules apply to coverage increases that can alter the requested effective date.}}
}}
{{collapsible-details
|number = 25
|title = Coverage Combinations
|content =
Use the table below to identify when coverage can be combined. <br>
In general, increases and decreases are typically done in separate transactions with separate payments, but they can be combined.
* '''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.
|text = 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'''.'' <br>A deductible decrease requires a 30-day wait, unless an exception is applied. ''So today or '''future date'''.''
}}
}}
<div style="margin-top:10px;">'''Once all details are entered, click the "Save" button (move to Step 3 below).'''</div>
<div style="margin-top:10px;">'''Once all details are entered, click the "Save" button (move to Step 3 below).'''</div>
This procedure explains how agents can submit requests to change or correct the building details on an NFIP policy. Most structural variables determine policy rating, so premium may be impacted. Supporting documentation may be required.
Scroll down to the "Risk Characteristics" section manually.
There is no navigation option in the Policy Actions menu.
2. Edit Risk Characteristics
Use the Edit button (pencil icon) in the upper right of the Risk Characteristics section.
This will open all NFIP structural variable fields for editing.
The NFIP Structural Variables fields will all be open for editing.
Make Adjustments to Structural Variables
These fields describe the physical details of the building, which can be changed over time due to reconstruction or disrepair. They should be accurately represented on an NFIP policy; they can be corrected if they are not.
Required Documentation:Changes: proof of a change to the building, such as a photograph.
Required Documentation:Corrections: an agent statement that the item was incorrect on the original application.
Changes: the effective date is the date the change occurred (the event date). Corrections: the effective date is the policy inception date.
Once all details are entered, click the "Save" button (move to Step 3 below).
3. Choose 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.
