Cancellation Qualifying Reasons/RC 04

Reason Code 04: Duplicate NFIP Policies

This reason code applies when there are two or more NFIP policies covering the same building or contents. The insurer must cancel the policy with the later effective date unless there are specific exceptions that allow cancellation of the earlier policy.

Condition	Details
Eligibility for Cancellation	If multiple NFIP policies are issued for the same building or contents, the policy with the later effective date must be canceled. If both policies have the same effective date, the policyholder may choose which policy to keep.
Effective Date of Cancellation	The effective date of the duplicate policy, unless an exception applies.
Policy Terms Eligible for Refund	The term in which the duplicate coverage began and subsequent renewed terms, up to 5 years prior to the cancellation request.
Type of Refund	Full premium refund, including surcharges and fees, if the duplicate policy with the same or later effective date is canceled. If an exception allows cancellation of the earlier policy, a pro-rata refund applies, excluding the Federal Policy Fee and Probation Surcharge.
Required Documentation	Copies of the duplicate NFIP policy declarations pages showing coverage for the same property.

This table can be seen on pages 6-5 and 6-6 of the FIM.

Additional Guidance

• If both policies have the same effective date, the policyholder is allowed to select which policy to cancel.
• When a duplicate policy with a later effective date has been created by the insurer, the request to cancel only needs to be signed by the agent, not the insured. [1]
• If the duplicate policy is covered by a non-NFIP carrier (private flood policy or endorsement), see Reason Code 26.

Required Documents

To process this cancellation reason, underwriters must verify the documentation provided.

• Copies of both NFIP policy declarations pages showing the same insured building or contents.

Scenarios for Context

Scenario 1:
A homeowner accidentally purchases two NFIP policies for the same building through different agents. Upon discovery, they submit a cancellation request with copies of both policies, and the later policy is canceled.

Scenario 2:
A lender mistakenly places flood insurance on a property that already has an NFIP policy. The policyholder provides both policy declarations pages, and the lender's policy is canceled with a full refund.

This page contains details about NFIP Cancellations. Find more in the How To Cancel section of the NFIP Flood Insurance Manual.