NFIP Claims

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Claims payment delays

Claims adjusters are required to validate the mortgagee information at the time of the loss.  A few common issues cause most of the delays.

If the mortgagee has changed between the time the policy was issued and the date of the loss, the mortgagee information must be updated before the claim can be paid.  Validating and updating the information at the time of loss frequently causes delays in payment.

Agents/Insureds can help avoid these delays by advising the company prior to the loss that the mortgagee has changed.  Agents are allowed to update mortgage information on the Equinox Platform.  As soon as the agent submits the new information, the system will update the Policy Record and issue a new Declarations Page. Insureds can also update mortgagee information using their Consumer Portal.  When the insured submits the change, Equinox will automatically update the mortgage information on the Policy Record and issue a new Declarations Page.

Incorrect foundation information on the policy causes delays during the claim process.  It is very important that the correct foundation information is used during the application/change process.  The foundation type is a rating element so an error may cause a difference in premium.   If at the time of the loss an error is found, the policy must be reformed to use the correct foundation type. Additional premiums may required to retain the amount of coverage on the policy.  This same process applies to all errors discovered at the time of loss and may result in a reduction of coverage and a lower claim payment if not handled correctly.

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