NFIP Policy Changes

The NFIP allows the policy details that were recorded on the application to be changed. The policy contract itself remains unchanged, unlike a normal insurance endorsement.

An NFIP endorsement is not a rider or a change to the contractual agreement outlined in the Policy Form.

Although the NFIP uses the word "endorsement" to identify the process of policy detail change or correction, its use throughout the Equinox platform and in this wiki has been minimized in favor of the term "Policy Changes".

Policy changes range from simple administrative updates to complex procedures involving rating factors and FEMA approval. Equinox will create the documents required for NFIP compliance based on agent inputs. Therefore, it is the agent's responsibility to understand how to apply policy changes effectively.

Make Policy Changes in Equinox

Documentation

The agent is responsible for providing two types of documents:

Signed forms, as needed
Proof of changes, as needed

Not all policy changes need policyholder signatures or specific documentation.

Effective Dates

All NFIP Policy Changes require an effective date, and the dates used must conform to NFIP guidelines.
Policy Change Effective Dates are determined by the type of change made.

Administrative changes align with the processing date.
Policy detail corrections typically use the policy’s inception date.
Coverage changes or real-world updates (e.g., assigning the policy to a new building owner) align with the event date.
Waiting period rules apply to adding or increasing coverage.

Premium Impact

Premium may be required or returned based on the type of policy change. Not all policy changes require premium changes. If additional premium is required, then it must be received before the policy change is completed.

Non-premium-bearing: No impact on premiums (e.g., address corrections, adding mortgagee information).
Premium-bearing: Adjustments to coverage or rating factors that increase or decrease premiums.

NFIP Policy Change Types

Level	Category	Description	Examples	Complexity Rationale
1	Administrative	Simple updates or corrections to policy information without affecting coverage or premiums.	Correcting typos Updating mailing addresses Adding unit numbers to addresses	No premium impact, minimal documentation, and strictly operational.
2	Policy Interests	Updates involving policyholders or agents, such as transferring ownership or changing agents of record.	Assigning policy to a new owner Changing agent of record	Requires supporting documentation and validation but does not affect coverage or rating.
3	Policy Corrections (including Rating Corrections)	Adjustments to correct policy details that may or may not affect premiums. Effective date is always the policy inception date.	Correcting Building Replacement Cost Value (BRCV) errors Correcting number of floors on the insured building	Documentation required, but effective date tied to policy inception simplifies adjustments.
4	Policy Changes (including Rating Adjustments)	Changes to policy details based on real-world events. May or may not affect premiums. Effective date reflects the event date.	Adjusting foundation type after construction updates Removing portions of buildings no longer present	Real-world event complexity; effective dates must align with the event causing the change.
5	Coverage Increases	Increasing building or contents coverage, typically requiring additional premium. Involves waiting period rules.	Adding coverage during policy term Increasing contents coverage following a loan closing	Introduces waiting period rules and strict documentation requirements.
6	Coverage Decreases	Reducing coverage, typically resulting in a refund. Includes criteria like property damage or over-insuring.	Reducing building coverage after partial demolition Removing contents coverage when contents are sold	Requires valid explanations and effective dates reflecting the change or correction.
7	Property Address Corrections	Correction to property address that may require additional documentation and NFIP rating engine updates.	Correcting property address that affects the position of the structure on a map	Complex due to geolocation and other factors influenced by community information
8	Incorrect Policy Form or Rate Category Changes	Changing the rating structure for the entire policy, including maximum coverage limits	Changing a building from apartments to a residential condominium building Applying full risk rates to a policy that was issued with Provisional Rates	Complex due to determining correct effective dates, assigning appropriate coverage, and balancing premium

This page contains details about NFIP Policy Changes.
Find more NFIP information in the How To Endorse section of the Flood Insurance Manual.