Cancellation

In flood insurance, cancellation means the policy is ended before the expiration date shown on the declarations page.

A flood insurance policy may be cancelled for several reasons, including non-payment of premium, duplicate coverage, or changes in property ownership. In some cases, a policyholder may request cancellation voluntarily, while in other situations the insurer may cancel the policy under specific conditions permitted by law.

Cancellation is different from expiration, which occurs naturally at the end of the policy term if the policy is not renewed. When a policy is cancelled, coverage stops as of the effective cancellation date, and any eligible refund of premium is calculated according to NFIP rules.

Reference: NFIP Standard Flood Insurance Policy (SFIP), Definitions and Policy Conditions