NFIP Policy Changes

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

Endorsement Types

Level	Category	Description	Examples	Complexity Rationale
1	Administrative Changes	Basic updates to policy information without affecting coverage or premiums. Requires minimal documentation.	- Updating mortgagee clause (name, address, loan number) - Correcting typos - Adding unit numbers to addresses	No premium impact, straightforward, and minimal insurer involvement.
2	Ownership and Agent-Related Changes	Updates involving stakeholders like ownership transfers or agent changes. May require supporting documentation and signatures.	- Assigning policy to new property owner - Changing agent of record	Involves validation by insurer and requires key stakeholder updates.
3	Non-Premium-Bearing Coverage Adjustments	Coverage changes without premium adjustments. Typically involve removing duplications or aligning coverage with valid explanations.	- Removing duplicate coverage - Reducing building coverage (e.g., after partial demolition)	Requires documentation and review but no financial recalculations.
4	Premium-Bearing Coverage Adjustments	Changes affecting premiums. Require FEMA calculations and may involve waiting periods, prorated amounts, or refunds.	- Adding/increasing coverage - Decreasing deductible - Applying rating corrections (e.g., First Floor Height)	Financial recalculations, documentation, and interaction with FEMA’s rating engine add complexity.
5	Geolocation and Address-Driven Changes	Changes affecting insured property location or flood zone classification. Require detailed documentation and often FEMA coordination.	- Correcting address with geolocation impact - Adjusting policy for SFHA map revisions	Requires geocoding validation, potential flood zone changes, and FEMA interaction.
6	Multifactorial Adjustments	Complex endorsements combining multiple changes, often requiring extensive documentation and strict sequencing.	- Transitioning provisional to rating engine rates - Applying completed construction updates - Address corrections affecting zones	Involves integrating documentation, financial recalculations, and system updates. Coordination and sequencing are critical.