banker-12
Diamond Poster
Joined: May 2007
Posts: 1,240
We are reviewing a private flood policy that is included together with hazard insurance (small commercial property form). The policy states " written notice within 10 days if cancelled for nonpayment". It does include the 45 days for cancellation but I can't find cancellation for nonpayment in the SFIP. Is it okay that it's stated in the policy?
banker-12
Diamond Poster
Joined: May 2007
Posts: 1,240
I found another post that states "insurance company cannot terminate a policy for anything other than non-payment - just like a NFIP policy" so I think we are okay with it being on the policy.
I am not sure that a notification 10 days later meets the requirement unless they are also sending a 45 day prenotification prior to the annual payment becoming due.:
A requirement for the insurer to give written notice 45 days before cancellation or non-renewal of flood insurance coverage.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
Unless you're utilizing the MPPP, I believe it would have to be private coverage. That said, I would require that any private force-placed coverage (at minimum) meet the criteria allowing for discretionary acceptance.