Cancellation Reason Code 26
Duplicate Coverage Under Private Flood Insurance Policy
Agent Alert

Contents Only policies are not eligible for Cancellation Reason Code 26

Effective October 1, 2018: The Federal Emergency Management Agency (FEMA) has established Cancellation Reason Code 26 to allow cancellation of an NFIP policy when a policyholder has obtained a duplicate policy from sources other than the NFIP.  The
non-NFIP insurance coverage must be for building coverage on the same building that is insured by the NFIP flood insurance policy being canceled.
  • Cancellation Effective Date: The date cancellation request is received by The Flood Insurance Processing Center
  • Cancellation Request:  Must be received within the current NFIP policy year
  • Years Eligible for Refund: Only the current policy term is eligible
  • Type of Refund: Refund is pro-rata and includes the ICC Premium, Reserve Fund Assessment, and HFIAA Surcharge. The Federal Policy Fee and Probation Surcharge (if applicable), will not be refunded
  • Required Documentation: A copy of the non-NFIP policy’s declaration page and a statement from the mortgage(s), if any, accepting the non-NFIP policy as a replacement
Increased Cost of Compliance (ICC)
Coverage for expenses that a property owner must incur, above and beyond the cost to repair the physical damage the building actually sustained from a flooding event, to comply with mitigation requirements of state or local floodplain management ordinances or laws.
Homeowner Flood Insurance Affordability Act (HFIAA)
The statutory surcharge imposed by Section 1308 of the Act.
Federal policy fee
A flat charge that the policyholder must pay on each new or renewal policy to defray certain administrative expenses incurred in carrying out the NFIP.
Probation Surcharge
A flat charge that the policyholder must pay on each new or renewal policy issued covering property in a community that the NFIP has placed on probation under the provisions of 44 CFR 59.24.
Reserve Fund Assessment
An amount dedicated to the NFIP Reserve Fund as authorized by the BiggertWaters Flood Insurance Reform Act of 2012 (BW12).