WikiAdmin: /* Reason Code 02: Contents Sold, Removed, or Destroyed */

2025-03-26T15:02:58Z

Reason Code 02: Contents Sold, Removed, or Destroyed

← Older revision		Revision as of 08:02, 26 March 2025
Line 22:		Line 22:
	\|Evidence of contents sale, removal, or destruction, such as a bill of sale, inventory record, proof of destruction, or a signed statement from the policyholder for residential contents.		\|Evidence of contents sale, removal, or destruction, such as a bill of sale, inventory record, proof of destruction, or a signed statement from the policyholder for residential contents.
	\|}		\|}
	''This table can be seen on page 6-3 of the {{FIM\|165}}.''		''This table can be seen on page 6-3 of the {{FIM\|page=165}}.''

	==== Additional Guidance ====		==== Additional Guidance ====

WikiAdmin: /* Reason Code 02: Contents Sold, Removed, or Destroyed */

2025-02-12T18:37:01Z

Reason Code 02: Contents Sold, Removed, or Destroyed

← Older revision		Revision as of 11:37, 12 February 2025
Line 22:		Line 22:
	\|Evidence of contents sale, removal, or destruction, such as a bill of sale, inventory record, proof of destruction, or a signed statement from the policyholder for residential contents.		\|Evidence of contents sale, removal, or destruction, such as a bill of sale, inventory record, proof of destruction, or a signed statement from the policyholder for residential contents.
	\|}		\|}
	''This table can be seen on ~~pages~~ 6-3 ~~and 6-4~~ of the {{FIM\|~~164~~}}.''		''This table can be seen on page 6-3 of the {{FIM\|165}}.''

	==== Additional Guidance ====		==== Additional Guidance ====

WikiAdmin: Created page with "=== Reason Code 02: Contents Sold, Removed, or Destroyed === This reason code applies when the policyholder no longer has an insurable interest in the contents covered by a flood insurance policy due to their sale, removal, or destruction. This includes situations where contents are permanently relocated, sold, or completely lost due to a peril other than flooding. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |The policyho..."

2025-02-12T18:36:31Z

Created page with "=== Reason Code 02: Contents Sold, Removed, or Destroyed === This reason code applies when the policyholder no longer has an insurable interest in the contents covered by a flood insurance policy due to their sale, removal, or destruction. This includes situations where contents are permanently relocated, sold, or completely lost due to a peril other than flooding. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |The policyho..."

New page

=== Reason Code 02: Contents Sold, Removed, or Destroyed ===

This reason code applies when the policyholder no longer has an insurable interest in the contents covered by a flood insurance policy due to their sale, removal, or destruction. This includes situations where contents are permanently relocated, sold, or completely lost due to a peril other than flooding.

{| class="wikitable"
!'''Condition'''
!'''Details'''
|-
|'''Eligibility for Cancellation'''
|The policyholder had an insurable interest in the insured contents during the policy term but no longer does due to sale, removal, or destruction.
|-
|'''Effective Date of Cancellation'''
|The date the policyholder ceased to have an insurable interest in the contents (e.g., sale date, removal date, or destruction date).
|-
|'''Policy Terms Eligible for Refund'''
|The term in which the policyholder lost insurable interest and subsequent renewed terms, up to 5 years prior to the cancellation request.
|-
|'''Type of Refund'''
|Pro-rata refund (excluding Federal Policy Fee and Probation Surcharge) for the canceled term. Full refund, including surcharges and fees, for eligible renewed terms.
|-
|'''Required Documentation'''
|Evidence of contents sale, removal, or destruction, such as a bill of sale, inventory record, proof of destruction, or a signed statement from the policyholder for residential contents.
|}
''This table can be seen on pages 6-3 and 6-4 of the {{FIM|164}}.''

==== Additional Guidance ====
* If there is an open claim related to the contents, the policy '''cannot''' be canceled.
* If contents were destroyed by a flood-related peril, standard claims processing should be followed instead of cancellation.
* Cancellation requests missing adequate proof of sale, removal, or destruction may lead to processing delays.

== Required Documents ==
The key factor for this reason code is that the policyholder no longer possesses or has an insurable interest in the insured contents.

* If the policyholder has sold the contents, the effective date should align with the date on the bill of sale or inventory record.
* If contents were permanently removed or relocated, documentation such as a moving company receipt or signed statement from the policyholder may be required.
* If the contents were destroyed, acceptable proof may include photographs, insurance claims documentation, or other verification of loss.

=== Document Gallery ===
* '''Sale/Transfer:''' Bill of Sale, Inventory Record
* '''Removal:''' Moving Company Receipt, Signed Policyholder Statement
* '''Destruction:''' Proof of Destruction, Photographs, Insurance Claim Documentation

== Scenarios for Context ==

'''Scenario 1:''' <br>
A tenant moves out of a rental property and sells all their furniture. The tenant submits a cancellation request along with a bill of sale listing the sold items, and the policy is canceled effective the date of sale.

'''Scenario 2:''' <br>
A homeowner’s contents are destroyed in a house fire. The policyholder provides fire department documentation and an insurance claim report confirming the destruction. The underwriter processes the cancellation effective the date of the loss.

{{line-nfip-cxl}}

Cancellation Qualifying Reasons/RC 02 - Revision history

WikiAdmin: /* Reason Code 02: Contents Sold, Removed, or Destroyed */

WikiAdmin: /* Reason Code 02: Contents Sold, Removed, or Destroyed */