Cancellation Qualifying Reasons/RC 21: Difference between revisions
Created page with "=== Reason Code 21: Continuous Lake Flooding or Closed Basin Lakes === This reason code applies when an NFIP policy must be canceled due to continuous lake flooding or a closed basin lake scenario as determined by FEMA. These properties experience ongoing inundation, making them uninsurable under NFIP guidelines. {| class="wikitable" !'''Condition''' !'''Details''' |- |'''Eligibility for Cancellation''' |A policy may be canceled if FEMA designates the property as affec..." |
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|FEMA notification designating the property as affected by continuous lake flooding or a closed basin lake. | |FEMA notification designating the property as affected by continuous lake flooding or a closed basin lake. | ||
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''This table can be seen on page 6-13 of the {{FIM|175}}.'' | ''This table can be seen on page 6-13 of the {{FIM|page=175}}.'' | ||
==== Additional Guidance ==== | ==== Additional Guidance ==== | ||
Latest revision as of 08:32, 26 March 2025
Reason Code 21: Continuous Lake Flooding or Closed Basin Lakes
This reason code applies when an NFIP policy must be canceled due to continuous lake flooding or a closed basin lake scenario as determined by FEMA. These properties experience ongoing inundation, making them uninsurable under NFIP guidelines.
| Condition | Details |
|---|---|
| Eligibility for Cancellation | A policy may be canceled if FEMA designates the property as affected by continuous lake flooding or located in a closed basin lake area. |
| Effective Date of Cancellation | The day after the date of loss. |
| Policy Terms Eligible for Refund | N/A (Policy is not eligible for a refund). |
| Type of Refund | No premium refund allowed. |
| Required Documentation | FEMA notification designating the property as affected by continuous lake flooding or a closed basin lake. |
This table can be seen on page 6-13 of the FIM.
Additional Guidance
- FEMA must confirm that the property qualifies for this cancellation reason.
- The cancellation is processed without a refund, as coverage was in force until the determined date of loss.
- The policyholder should be informed that flood insurance is not available for properties affected by continuous lake flooding or closed basin lakes.
Required Documents
To process this cancellation reason, underwriters must verify the documentation provided.
- FEMA notification designating the property as affected by continuous lake flooding or a closed basin lake.
Document Gallery
- FEMA Designation Notice: Official FEMA document confirming property status.
Scenarios for Context
Scenario 1:
A property located near a closed basin lake is permanently inundated. FEMA notifies the insurer, and the policy is canceled effective the day after the date of loss without a refund.
Scenario 2:
A homeowner’s property experiences continuous lake flooding, and FEMA determines the property is no longer insurable under NFIP. The policy is canceled with no premium refund, and the homeowner is notified of the change in coverage eligibility.
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This page contains details about NFIP Cancellations. |