Flood Policies Renewing After April 1.
For renewal invoices to generate for policies renewing April 1, 2022, and later, additional Risk Rating 2.0 (RR 2.0) information is required. We will be unable to renew the policy until the necessary RR 2.0 information is provided. To ensure there is no delay with sending renewal bills, beginning Friday, January 28, 2022, you will be able to access the flood policies renewing April 1, 2022, and later that require additional information.
What does this mean for you?
· NFIP Direct has added a new queue to the Agency Dashboard to streamline this process. The RR 2.0 Renewal Pending Data queue will be the top queue on the agent dashboard.
· When you click on this queue, it will populate all policies renewing on or after April 1, 2022, that require you to enter additional information before a renewal offer can be generated.
· It is advisable to begin with the policies expiring April 1, 2022, to ensure the renewal offer can be released on time with RR 2.0 rates applied.
· When you select a policy number from this queue, the required information fields for that individual policy will be presented. Simply enter the missing information and continue.
· Renewal quotes cannot be generated more than 90 days prior to the expiration. However, even if a renewal quote cannot be generated after entering the missing information, it will be stored for all policies with future effective dates.
Common RR 2.0 Information Missing from Policies
What additional information will need to be input to generate RR2.0 renewals? While the information that will need to be input and/or validated will differ based upon the policy, the potential inputs, or data to verify could include:
· Building square footage (unit square footage if it is a unit owner policy)
· Number of detached structures on the property
· Location of machinery, equipment, and appliances
· The floor number the unit is on (for residential and non-residential units)
· Number of floors in the building (excluding enclosures, basements, crawlspaces, and unfinished attics)
· Total number of units in the building (for residential and non-residential units)
· Construction Type – only on Single Family Dwellings. Inputs will be “Frame,†“Masonry,†and “Otherâ€
· Replacement Cost Documentation for any General Property or RCBAP policy
o Documentation must include property address, the foundation, and value
o A report generated from tools used for home insurance, such as 360Value, Xactware or Marshall & Swift, is sufficient
o the replacement cost value will need to be verified every three years for these policy types unless the property meets exclusion criteria below.
§ Contents only policies
§ Replacement cost is less than $1,000
§ Building occupancy is Non-Residential Manufactured/Mobile Building
§ Building description is either Storage/Tool Shed or Detached Garage; or
§ The building or unit’s square footage is less than 1,000 square feet
Risking Rating 2.0 is supposed to make things easier for agents to write flood insurance. Perhaps, but this is not the case now. Colyott & Watson can help you cut through all the changes and confusion for you and your clients. Give us a call and see what we can do to make things easier for you and your clients to deal with the changing face of today’s flood insurance.