Notice today issued by our valued business affiliate, Progressive Home Advantage. Congressional gridlock impacting the insurance world, too!
Congress Fails To Reauthorize NFIP
The National Flood Insurance Program’s authority to issue new business, renewals and coverage increases expired at midnight Friday, Jan. 19, 2018. The lapse in reauthorization impacts our ability to offer flood coverage.
While we wait and see what Congress does regarding the government shutdown and the NFIP, there are two important guidelines for handling flood applications, renewals, and coverage changes you should be aware of:
- For new business and coverage increases, if the application or request was submitted prior to the lapse in authority, the policy can be issued/endorsed as long as payment is received within 10 days, or 30 days if escrowed. Standard waiting periods apply for coverage start dates.
- Renewals offered before the lapsed date can be issued as long as the payment is received within the 30-day grace period, even if the premium is received after the authorization expiration.
Lapses in the NFIP’s authority have happened in the past. They are generally brief, and in most cases when reauthorization occurred, it was done so retroactively. It is likely that the majority of flood customers will be unaffected – policies in force will stay in force and claims on existing policies will be handled as normal.
Those seeking new policies, renewing or increasing coverage are affected by the lapse. Policies with no waiting period will be issued or endorsed effective the day of reauthorization. Policies with one- or 30-day waiting periods will become effective that many days after the reauthorization date.
Customers who apply or renew during a lapsed period have the option of having their payment held or returned.
- To have payment held, no additional action is required. Policies will be issued effective the earliest effective date consistent with the NFIP's rules and reauthorization.
- For any who wish their payment returned, send a request to firstname.lastname@example.org. It is important to note that if this is chosen, coverage cannot be granted retroactively. Future requests for insurance are subject to applicable waiting periods and requirements.
Keep an eye out for updates as we hear from the NFIP regarding the status of reauthorization.
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