Cancellation Qualifying Reasons
The NFIP relies on a structured system of qualifying reasons ("Reason Codes") to ensure policy cancellations are handled consistently and transparently. These codes categorize the allowable reasons for canceling or nullifying a policy, such as when there is no longer an insurable interest, duplicate coverage exists, or a property becomes ineligible for coverage.
Each qualifying reason outlines specific conditions, documentation requirements, and refund eligibility.
Equinox outlines all qualifying reasons shown below as part of the Cancellation Request process.
Cancellation Qualifying Reasons
Each of the reasons shown below are organized by category and NFIP code.
| Category | Code | Description |
|---|---|---|
| No Insurable Interest | 01 | Building sold, removed, or destroyed |
| 02 | Contents sold, removed, or destroyed | |
| 07 | Property closing did not occur | |
| Establish a Common Expiration Date | 03 | Policy canceled and rewritten to establish a common expiration date with other insurance coverage for the same building |
| Duplicate Coverage | 04 | Duplicate NFIP policies |
| 10 | Condominium unit or association policy converting to RCBAP | |
| 26 | Duplicate policy from a source other than NFIP | |
| Not Eligible for Coverage | 06 | Property not eligible for coverage at time of application |
| 27 | Property becomes ineligible for coverage during policy term | |
| 29 | Building physically altered and no longer eligible for NFIP coverage | |
| Lender No Longer Requires Insurance | 28 | Insurance no longer required by lender |
| Invalid Payment or Fraud | 05 | Invalid payment |
| 23 | Fraud or misrepresentation | |
| 30 | Insufficient premium to retain coverage | |
| Other Reason Codes | 13 | Nullification prior to policy effective date |
| 20 | SRL written with incorrect insurer | |
| 21 | Continuous lake flooding or closed basin lakes | |
| 22 | Cancel and rewrite due to administrative error |
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This page contains details about NFIP Cancellations. |