Policy change while in effect?

We are in the process of refinancing a loan from another institution and the loan is in a flood zone. The flood cert came back as being in "A" but the flood policy is rated "C". Insurance company says policy can not be changed while the policy is in effect and will be changed at the renewal date. Has anyone else ran into this?

When did the property move from C to A???

From correspondence with the insurance agency, map revision was 2/10/2012. Seems like this should have been changed by now or the previous bank didn't push for it. I don't think we can close until this is fixed can we?

Either the policy is written wrong or the "grandfathered" box is checked. Do they reference the correct current map on the declaration page?? Or an older version of the correct map???

The insurance company saying they can't do anything until policy expiration is hogwash in my opinion. They cannot knowingly allow a policy to remain mis-rated.

I'll have to check on that. It is very early in the process here but the officer knew it was in a flood zone and started working on this. I haven't seen the policy yet, but the officer says the grandfathered box is not checked.

Just as an update:

We are dealing with a PRP Eligibility Extension Policy on this. I have seen where buildings are eligible for an extension of the policy with the lower risk for two years after date of map revision. Per the insurance company, map revision was in 2012 (I'm trying to verify that with our flood vendor), but they are saying the program states that "This procedure also applies to policies previously issued under the Preferred Risk Policy Eligibility Extension that are renewing on or after April 1, 2015". Does anyone recognize the April 1 date for flood? I'm just trying to get a handle on this so I can understand it better.

Thank you.

This is a little old (the program has been extended), but it does tell you how the declaration page should read (display of two different zones). If that isn't happening, then I would contact the insurance company again and point them to this FEMA release.


http://www.nfipiservice.com/stakeholder/pdf/bulletin/w-10089.pdf