NFIP Policy Transfer

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Policy transfers within the National Flood Insurance Program (NFIP) allow for the movement of policies between Write Your Own (WYO) carriers or from a WYO carrier to NFIP Direct. These transfers typically occur at the time of policy renewal and can involve a single policy, multiple policies, or an insurer’s entire book of business.

Policy transfers differ from policy assignments.

Policy Transfers Types

Single Policy Transfers

Single policy transfers happen when a policyholder or agent chooses to move an individual policy from one insurer to another. This process resembles the issuance of a new policy but retains the policy’s historical information and coverage continuity.

1. The receiving insurer collects essential details, including:
   • Existing NFIP policy number.
   • Policyholder name and property address.
   • Underwriting information such as primary residence status, mitigation discounts, and elevation certificates (if applicable).
   • Prior insurer’s declaration page.
2. The receiving insurer validates the information for discrepancies and submits it to FEMA for a transfer quote.
3. Upon renewal, the receiving insurer generates a policy renewal notice reflecting the updated data.

Book of Business Transfer

A Book of Business Transfer (also known as a "bookroll") is when an agent, typically a broker, or a WYO company moves all of its NFIP policies to another WYO company or to NFIP Direct. This can be done in bulk or gradually, as policies reach their renewal dates.

• The transferring WYO company provides all policy and underwriting information to the new insurer.
• The new insurer requests renewal quotes from FEMA for policies nearing their renewal dates.
• The new insurer issues renewal notices using the FEMA-provided quotes.
• The process must align with a transfer plan approved by FEMA.

Rollovers

A rollover is a subset of policy transfers initiated by an agent, typically a broker, who decides to move some or all of their book of policies to a new WYO carrier.

• Rollovers are agent-driven and involve significant coordination between the agent, the current insurer, and the new insurer.
• Policies are transferred at renewal to avoid lapses in coverage.
• The receiving insurer must ensure proper documentation and compliance with NFIP rules.

Documentation Requirements

For any policy transfer, the receiving insurer must collect and validate the following:

• Existing NFIP policy number.
• Policyholder name and property address.
• Underwriting details, such as:
  • Primary residence verification if applicable.
  • Mitigation discount documentation.
  • Elevation certificate (if available).
  • Building replacement cost value for applicable property types.
• Prior insurer’s declaration page.

Additional Considerations

• Timing: Policy transfers can only occur within 90 days of a policy’s expiration date.
• Renewal Notices: The receiving insurer must issue renewal notices based on FEMA’s transfer quotes.
• Policy Continuity: Policyholders maintain coverage continuity, ensuring no lapse occurs during the transfer.

Summary

Policy transfers are an integral part of the NFIP’s operational flexibility, allowing policyholders, agents, and insurers to adapt to changing circumstances. Whether a single policy transfer, a rollover, or an entire book transfer, these processes are governed by FEMA’s guidelines to ensure coverage integrity and compliance with NFIP standards.

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