NFIP Policyholder Communications

This page is a rough draft and will need more work before it's finalized.

This page outlines the documents the insurer will provide to the insured.

Key Components of Policyholder Communications

1. Declarations Page and Summary of Coverage
   • Declarations Page: A detailed, computer-generated summary of the policy, including coverage limits, premium breakdown, and terms.
   • Summary of Coverage: Accompanies the Declarations Page, providing an overview of the policy’s protections. This ensures policyholders understand their coverage at a glance.
2. Mandatory Notifications Insurers must send specific communications for various scenarios, including:
   • Building Replacement Cost Value (BRCV) Updates: Sent every three years to ensure replacement cost values are current for applicable buildings.
   • Severe Repetitive Loss (SRL) Notices: Inform policyholders of their property’s designation as SRL and the implications for premiums and mitigation assistance eligibility.
   • Flood Insurance Reform Act (FIRA) Notices: Annual notifications about claims history and its impact on premiums.
   • Renewal and Expiration Notices: Ensure policyholders are reminded of upcoming renewal deadlines and potential lapses.
3. Addressing Changes and Errors
   • Provisional Rating Notices: Inform policyholders if their policy uses provisional rates, requiring updates for accurate rating.
   • Effective Date Adjustments: Use the cancel/rewrite process to amend policy start dates while adhering to NFIP guidelines.
4. Specialized Communication Templates
   • Templates are included for all key communications, such as SRL notices, renewal reminders, and cancellation verification letters, to maintain standardized and professional messaging.

Agent Responsibilities in Communications

Agents play a vital role in facilitating effective communication between the insurer and the policyholder. Key responsibilities include:

• Ensuring timely delivery of required notices.
• Explaining the implications of notifications, such as premium adjustments due to claims history or SRL status.
• Providing guidance on mitigation efforts to address premium increases or SRL designations.

Resources

The manual emphasizes the importance of providing agents with resources to support their communication efforts, including:

• NFIP Summary of Coverage (Residential)
• NFIP Summary of Coverage (Commercial Property)
• Summary of Coverage (Residential Condominium Buildings)
• FloodSmart.gov

This page contains information about the NFIP. Find more NFIP Resources.