FAST-TRACK ANSWERS
TO THE TOP 8 RISK RATING 2.0 FAQs
WHAT AGENTS WANT TO KNOW
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Risk Rating 2.0 is so different than how we have been rating flood insurance for the past 50 years so it’s no surprise that agents and policyholders have an abundance of inquiries about just how to navigate this new rating methodology.
As a result of RR 2.0, hold times for customer service calls are at an all-time high. The length of a call has continued to increase. Our chats have been affected, too, and face similar longer wait times. We expect those questions to rise as peak flood season nears.
To help you get the information you need quickly -- without taking your valuable time to contact your customer service team -- we’ve outlined our top 8 most frequently asked agent questions and included the answers so the next time you encounter a Risk Rating 2.0 dilemma, you may already have the answer at your fingertips!
#1: How can I quickly get a copy of my client’s dec page or renewal bill?
- Search for the policy,
- Go to the “Documents” tab on the left-hand menu bar
- Click on the “carrot” in front of the document you wish to open
- Click “Select”
- Click the dropdown arrow on the Download button and click “Email” where you can email the document to yourself and forward to your customer from your inbox or add your client’s email address on the pop-up window to send directly.
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#2: How do I add, change, or delete a lender on a policy?
- Search for the policy
- On the Policy Summary screen, click the “Make Changes” button at the top of the page
- Scroll down to Policy Transactions, select “Lender Change”
- Click “Begin Transaction” and follow the options to add, edit, or delete lender
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#3: Why is the renewal premium for my customer's policy substantially different than last year's premium, even though the policy is eligible for the glidepath discount?
Changes to the Community Rating System (CRS Credit) and changes in rating variables can impact a policy's glidepath premium for renewals. (See FIM Section 3.I.A. Table 1 for a full list of rating variables.)
Policies renewing on or after April 1, 2022, that were in effect prior to the implementation of Risk Rating 2.0 are subject to an annual 18% capped increase on premium until the policy reaches its full risk rate. Most policies on the glidepath will see 18% or less as their increase. However, changes to prior year's coverage and/or deductible may also impact the premium for renewal.
(25% annual increase capped for non-primary residences, Severe Repetitive Loss (SRL), Pre-FIRM business properties, or substantial damage/improved).
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#4: Which occupancies am I required to submit documentation for proof of Replacement Cost Value (RCV)?
Documentation is now required for New Business and Renewals for all of the following occupancy types (unless the building is <1000 square feet or building description is Storage Tool/Shed or Detached Garage):
- Other Residential Buildings
- Non-Residential Building
- Non-Residential units
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Residential Condominium Buildings (Prior years documentation will be allowed for this year's RCBAP renewals, but updated documentation will be needed for the next renewal term.)
NOTE: RCV documentation on the above occupancies must be updated and submitted every three years.
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#5: My customers are calling to report a letter they received in the mail showing their policy renewal offer is incorrectly listing their policy with 99 elevators and 999 detached structures. Is there a glitch in the system?
Policies that renew on or after April 1, 2022 require additional underwriting data to correctly rate the policy under RR 2.0. When information is not confirmed or provided on policies at 56 days prior to renewal, a bill will be issued based on 3rd party data and/or FEMA defaults.
The 99 elevators and 999 detached structures is a FEMA default. Agents should go to the Risk Rating 2.0 tab at the top right of the main page of the agent portal, access the link to the policy, and review, and add/correct the RR 2.0 data elements required for the policy's renewal as incorrect and/or missing information can cause an unnecessary increase to the policy's premium, Once the policy's RR 2.0 data has been confirmed, a new renewal bill will be generated to reflect an accurate rating and premium due.
For important guidance on working your policy renewals click HERE.
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#6: Why is a new application required for a late payments and/or non-sufficient funds (NSF)?
Renewal payments must be received within the policy's grace period. If the policy is paid outside of the grace period, (renewal effective date + 29 days), a new application is now required to ensure all the RR 2.0 variables are provided for rating and the renewal will be effective 30 days from the date we receive the application and premium.
If we receive an NSF payment on a renewal payment, the policy will not be rejected or cancelled until the grace period has expired. If replacement funds are received within the grace period, the renewal payment will be processed without a lapse in coverage.
When we receive an NSF notice from the bank, a notice automatically goes out advising a replacement payment is required.
NOTE: Lenders are also subject to the payment deadlines as noted above.
Cancelled or rejected policies cannot be reinstated per the NFIP RR 2.0 guidelines.
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#7: How do I submit a request for a change in coverage on a policy?
Currently, endorsements must be handled as a manual process until we have all of the programming in place from FEMA to resume the normal process under Policy Maintenance. Stay tuned for an update coming soon. In the meantime to submit an endorsement request such as a change in coverage:.
- Go to the Bulletin Board tab on the left-hand menu bar
- Click on “Toolkits”
- From the list, click the “+” sign in front of the Risk Rating 2-0 Toolkit to open to the documents, then click on “Endorsement Request Risk Rating 2.0”
- Fill out the request form, then search for policy online
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Click on “File Upload,” to upload the completed, signed, endorsement request directly to the policy and be sure to include any required documentation that is needed to process the change/request. (See NFIP Manual Section 4.1 “How to Endorse” for additional guidance as needed.)
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#8: Where can I learn more about Risk Rating 2.0 and the changes?
Take time to view the following webinar recordings available on-demand on the webinar page of the agent portal:
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RR 2.0 Renewal Handling for Policies Effective on or after April 1, 2022 (Discusses all NFIP policies/occupancy types).
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RR 2.0 Payment Details and Due Date Guidance (Discusses payment received date and new guidance on consequences when payments are late or rescinded for policies rated using Risk Rating 2.0)
Forms, documents, and resources related to RR 2.0 are available on the agent portal Bulletin Board RR 2.0 Toolkits as shown above for question #3.
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Remember, your dedicated customer service team and RSM are still here to help. But, you can save yourself time and effort by becoming familiar with these FAQs and utilizing the tools for you on the Bulletin Board on the agent portal.
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Flood Communications
Wright Flood | 801 94th Avenue North | St. Petersburg | FL | 33733
(800) 820-3242
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