(January 2019)
ACORD’s flood insurance forms are aligned with the philosophy of the federal government's National Flood Insurance Program. ACORD forms may be used for submitting new business, especially for Flood coverage since most companies use the National Flood Insurance Program policies and forms, rather than their own.
60—Flood Insurance Notice/Rejection
301—Flood Insurance Application
302—Flood Insurance General Change Endorsement
303—Flood Insurance Preferred Risk Application
304—Flood Insurance Cancellation/Nullification Form
305—National Flood Insurance Program Credit Card Payment Form
306—National Flood Insurance
Program Rating Information and
307—National Flood Insurance Program Flood Proofing Certificate for Non-Residential Structures
308—National Flood Insurance Program Flood Residential Basement Floodproofing Certificate
60—Flood Insurance Notice/Rejection
This form is useful to describe the benefit of buying protection against flooding, a catastrophic source of loss. Specifically, the form includes advisory information from the Federal Emergency Management Agency (FEMA) which points out that the following:
· Flood coverage is excluded under standard property forms
· Flooding is the largest, natural source of property damage in the U.S.
· Emergency disaster relief is not universally available and it consists of LOANS, not insurance
The form serves another important purpose. It has a place to list the insured property and for the property owner to sign that he or she does not want to buy flood insurance. It is a tool for documenting that the insurance professional made the property owner aware of the availability of flood insurance, but it was not desired.
301—Flood Insurance Application
All of the applicant information appearing in this form is considered relevant and must be completed in full. The instructions for completing the application are found in the NFIP’s Flood Insurance Manual. The named insured and current address must be listed. Normally, a 30-day waiting period applies for flood insurance coverage. However, the form has spaces to indicate if an exception should be made because the purchase is part of a home loan requirement or if it is due to the property being newly assigned to a Special Flood Hazard Area.
Note: There are no questions about the applicant’s occupation, employer name and length of employment since this information is more relevant to the standard property coverage than the flood coverage supplements. The flood application focuses on the elements that affect the underwriting and rating of the flood exposure.
The application’s Construction and Community Information section requires answers regarding the property’s construction, flood zone location, occupancy, its construction status (substantially renovated or in the process of being built), number of floors, existence of a basement, the lowest floor’s distance from ground level, where contents are located, whether the contents are personal or business property and details about the lowest floor construction and use.
The Coverage and Rating section contains sufficient detail for adequately rating the building and contents coverage against flood damage. It includes space for indicating payment options, community rating class, building deductible, contents deductible, the rating type that applies, etc. Further, the application may have to be accompanied by a building diagram as well as a completed elevation certificate.
The form includes space for the signature of the applicant that acknowledges that the information in the application is accurate. This is critical! The flood application is a warranty and becomes a formal part of any subsequent flood policy. A policy may be voided and coverage denied if material information in the application is discovered.
Finally, the form includes information regarding the federal act that authorizes coverage, privacy information and a statement concern the burden that the form places on an applicant to complete the form.
302—Flood Insurance General Change Endorsement
This form is used by an insured to make a change to flood insurance coverage after a policy has been issued. Since the change could affect any element of the insured premises, the form duplicates the information that appears in the application.
This form includes information regarding the federal act that authorizes coverage, privacy information and a statement concern the burden that the form places on an applicant to complete the form.
303—Flood Insurance Preferred Risk Application
This is a “short form” version of the standard Flood Insurance Application. The Construction and Community Information section is much more abbreviated. Since the NFIP only permits certain types of structures in the Preferred Risk program, the extra information is inapplicable.
Note: The form has a special two-part question where the property owner has to answer whether the home is in a special flood area and if the home has experienced any of five loss-related situations. If the answer is yes to ANY item, the property is disqualified from the preferred program.
Instead of a section on Coverage and Rating, the Preferred Risk application has a Coverage Combinations section. The applicant merely picks among the choices of building and contents coverage amount options. The premium is also automatic according to whether the property includes a basement or enclosure. Separate $500 deductibles apply to the building and content coverage.
Space is allotted for the signature of the applicant AND the broker to acknowledge that the information in the application is accurate. This is critical! The flood application is a warranty and becomes a formal part of any subsequent flood policy. A policy may be voided and coverage denied if material information in the application is discovered.
This form includes information regarding the federal act that authorizes coverage, privacy information and a statement concerning the burden that the form places on an applicant to complete the form.
304—Flood Insurance Cancellation/Nullification Form
The National Flood Insurance Program asked ACORD to create this form which allows a flood policyholder to cancel their coverage. The insured must select among more than 20 valid cancel reasons that appear on the form. Except for cancellations due to nonpayment or the property being ineligible for coverage, the form has to be signed by the insured and the agent/broker.
A common source of litigation is the dispute over whether an insurance client desired flood protection. It is increasingly important for agents and companies to properly document the client’s intent. The benefits of increased documentation are that all parties are aware of the exact coverage situation; future disputes may be avoided or resolved before resorting to litigation. Further requiring an insured to document a cancellation may actually cause him or her to reconsider (hopefully deciding to keep coverage in force).
305—National Flood Insurance
Program Credit Card Payment Form
This is not a coverage form, rather it is designed to facilitate payment for flood insurance via American Express, VISA or Master Card credit cards. It is meant to accompany flood insurance applications, renewal policies or endorsement requests.
306—National Flood Insurance
Program Rating Information and
This form is used for supplying critical underwriting information for rating flood coverage as well as evaluating a structure’s qualification as an elevated building. It allows submission of information concerning a structure’s FIRM Zone, type of structural support, construction features and machinery and equipment located in the structure.
This form must be completed in its entirety and all information is deemed relevant. A signature is required and this information is treated on the same basis as an application.
307—National Flood Insurance
Program Flood Proofing Certificate for Non-Residential Structures
In certain circumstance, NFIP rules require that structures be elevated according to a set of specifications in order to minimize a flood hazard and to qualify for coverage under the program. However, as an alternative for non-residential risks, meeting a given set of floodproofing standards may create eligibility.
The structure owner must provide information on the FIRM where the building is located, the level to which floodproofing has been installed, and must warrant that the work on the structure meets accepted standards for resisting various flood forces, including the impact of waterborne debris. Such information must be provided by a registered architect or engineer.
308—National Flood Insurance
Program Flood Residential Basement Floodproofing Certificate
In certain circumstance, NFIP rules require that structures be elevated according to a set of specifications in order to minimize a flood hazard and to qualify for coverage under the program. However, as an alternative for residential risks, meeting a given set of floodproofing standards may create eligibility.
The residence owner must provide information on the FIRM where the residence is located, the level to which floodproofing has been installed and must warrant that the work meets accepted standards for resisting various flood forces, including the impact of waterborne debris. Such information must be provided by a registered architect or engineer.