Cancellation Qualifying Reasons/RC 26

Reason Code 26: Duplicate Policy from a Source Other Than NFIP

This reason code applies when a policy is canceled because the policyholder obtained a duplicate flood insurance policy from a private insurer, rather than from another NFIP source. The NFIP policy is nullified to prevent overlapping coverage.

Condition	Details
Eligibility for Cancellation	A policy may be canceled if the policyholder obtained a private flood insurance policy that duplicates NFIP coverage, and the NFIP policy was not intended to be purchased or renewed.
Effective Date of Cancellation	The effective date of the NFIP policy (nullification).
Policy Terms Eligible for Refund	The current policy term.
Type of Refund	A full refund, including surcharges and fees, is issued if the cancellation request is submitted within 60 days of the NFIP policy effective date.
Required Documentation	Evidence of a valid private flood insurance policy, such as a declarations page or proof of payment.

This table can be seen on page 6-7 of the FIM.

Additional Guidance

• The policyholder must provide proof that they obtained private flood insurance for the same property and coverage period.
• The cancellation request must be submitted within 60 days of the NFIP policy effective date.
• If the private policy was purchased after the NFIP policy was issued, the NFIP policy cannot be canceled under this reason code.
• If FEMA must review additional cancellation requests beyond the outlined conditions, insurers should submit the request to NFIPUnderwritingmailbox@fema.dhs.gov for review.

Required Documents

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

• Declarations page of the private flood insurance policy.
• Proof of payment or policy issuance date.

Document Gallery

• Private Policy Declarations: Documentation confirming duplicate coverage.
• Payment Receipt: Proof of private flood insurance payment.

Scenarios for Context

Scenario 1:
A homeowner purchases an NFIP policy but later secures private flood insurance before the NFIP policy takes effect. The policyholder submits proof of the private policy within 60 days, and the NFIP policy is nullified with a full refund.

Scenario 2:
A commercial property owner inadvertently purchases an NFIP policy while having an active private flood insurance policy. Upon realizing the duplication, the owner submits the private policy declarations page and payment receipt, leading to NFIP policy nullification.

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