Cancellation Qualifying Reasons/RC 29
Reason Code 29: Building Physically Altered and No Longer Eligible for NFIP Coverage
This reason code applies when a building has been physically altered in such a way that it is no longer eligible for flood insurance coverage. An example of this scenario is when a policyholder removes a mobile home from a permanent foundation and places it on wheels, making it ineligible for NFIP coverage.
| Condition | Details |
|---|---|
| Eligibility for Cancellation | A policy may be canceled if the insured building has been physically altered in a manner that makes it ineligible for NFIP coverage. |
| Effective Date of Cancellation | The date the building became ineligible for NFIP coverage. |
| Policy Terms Eligible for Refund | The current policy term. |
| Type of Refund | A pro-rata refund, excluding the HFIAA Surcharge, Federal Policy Fee, and Probation Surcharge. |
| Required Documentation | Documentation verifying the building’s ineligibility for NFIP coverage, such as photographs or other relevant proof. |
This table can be seen on page 6-9 of the FIM.
Additional Guidance
- This reason code applies strictly to cases where the building itself has been physically altered, affecting its eligibility for NFIP coverage.
- If the policyholder moves the building to a different location but it remains insurable, this reason code does not apply.
- The cancellation effective date must reflect the date the building was physically altered and deemed ineligible.
Required Documents
To process this cancellation reason, underwriters must verify the documentation provided.
- Photographs or other visual evidence confirming the building alteration.
- Documentation explaining how the alteration affected the eligibility of the building for NFIP coverage.
Document Gallery
- Photographs: Images demonstrating the physical alteration of the building.
- Verification Report: A report or official document confirming the ineligibility status.
Scenarios for Context
Scenario 1:
A policyholder removes a manufactured home from a permanent foundation and places it on a wheeled chassis. This alteration makes the building ineligible for NFIP coverage. The insurer processes a cancellation effective the date of the modification.
Scenario 2:
A commercial structure is converted into an open pavilion without walls, removing it from eligibility under NFIP guidelines. The underwriter reviews the documentation and cancels the policy effective the date of the modification.
 |
This page contains details about NFIP Cancellations. |