How to Cancel Your Flood Insurance
Don't Leave Yourself at Risk

To cancel your flood insurance, your property must have been released from the Federal flood insurance requirement. Click here to view a map of the areas that have been released from or remain subject to this requirement.

IN BRIEF: How to Cancel Your Flood Insurance Policy

1. Write to Your Lender and Ask Its Permission to Cancel Your Flood Insurance. Under Federal rules, most property owners must obtain their lender's permission before canceling their flood insurance. See IN DETAIL for the information that your letter should include.



2. Obtain Your Lender's Written Permission to Cancel Your Flood Insurance. Your lender will respond to your cancellation request in writing. If your property has been released from the Federal flood insurance requirement, in most cases your lender will mail you a letter granting its permission to cancel your flood insurance. However, please keep in mind: Your lender may legally require you to carry flood insurance, even if your property has been removed from the Federal requirement. If your lender denies your cancellation request, chances are you can still save money by switching to a low-cost, Preferred Risk flood insurance policy.



3. Contact Your Insurance Agent. If your lender grants your cancellation request, provide your insurance agent with a copy of your lender's letter permitting you to cancel your flood insurance. Then, ask your agent to cancel your flood insurance and apply on your behalf for a refund of your flood insurance premium. (For most people, the insurance agent who handles their flood insurance is the same agent who writes their Homeowners policy.)

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Jim's property has been released from the Federal flood insurance requirement. Despite warnings from Local, State and Federal flood control authorities, Jim elects to cancel his flood insurance. To do this, Jim must write a letter to his lender's Insurance Compliance Department and ask for its permission to cancel his flood insurance. This letter should include:

1. Jim's loan number and property address.



2. The following language: "As a result of levee improvements in the City of Sacramento and Sacramento County, the property referred to herein has been moved, by Letter of Map Revision, into an X flood zone as of February 18, 2005." Click here for information on Letters of Map Revision and to view the major Letters of Map Revision issued for the Sacramento area.
   
   If your property is located in the Natomas/North Area, substitute the above language with: "As a result of revisions to the Flood Insurance Rate Maps for the City of Sacramento and Sacramento County, effective July 6, 1998, the property referred to herein has been moved into an X flood zone."



3. A request that the lender provide Jim with its written permission to cancel his flood insurance. Jim should ask his lender to include, in its letter to him, the following language: "Flood insurance was originally required as a condition of the loan for this property. However, the flood insurance requirement no longer applies because this property has been moved, by Letter of Map Revision, into an X flood zone."
   
   If your property is located in the Natomas/North Area, substitute the above language with: "Flood insurance was originally required as a condition of the loan for this property. However, the flood insurance requirement no longer applies because this property was moved, by a Flood Insurance Rate Map revision, into an X flood zone."



4. Jim should attach the Letter of Map Revision that removed his property from the Federal flood insurance requirement to the letter he sends his lender, asking his lender's permission to cancel his flood insurance. Jim's lender may use information found in this Letter of Map Revision to confirm that Jim's property has been released from the Federal flood insurance requirement. Click here to view and download the major Letters of Map Revision for the Sacramento area.
   
   If your property is located in the Natomas/North Area, you will not need to attach a Letter of Map Revision to the letter you send your letter. In most cases, your lender will no longer require you to document that your property has been released from the flood insurance requirement. However, you may want to obtain from the City of Sacramento a printout that shows your property is no longer subject to the flood insurance requirement. To obtain this letter, please contact the City's Floodplain Information Line at (916) 808-5061 and ask the City to provide you with a printout that shows your property is located in an X flood zone. Please note: An automated phone system answers the City's Floodplain Information line. When you call this number, a recorded message will ask you to leave information that will help City staff to check the current flood risk to your property. In most cases, City staff can check this flood risk and get back to you within 48 hours. However, high caller volume may delay their response to your request.



5. Under Federal rules, Jim's lender can deny Jim's cancellation request, even if his property has been removed from the Federal flood insurance requirement. If Jim's lender denies this request, Jim can still save money by switching to a low-cost, Preferred Risk flood insurance policy. To find out if he qualifies for a Preferred Risk Policy (PRP), Jim must contact his insurance agent.

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If Jim's lender grants his cancellation request, Jim should provide his agent with a copy of the letter that he has received from his lender permitting him to cancel his flood insurance. Then, he should ask his agent to cancel his flood insurance policy and apply on his behalf for a flood insurance premium refund. Under Federal rules, if Jim has not had a lapse in his flood insurance coverage and has an active policy at the time he applies for his refund, Jim will obtain a full-year refund of his flood insurance premium. Jim's premium refund will take approximately 90 days to process.

The cancellation process may differ if you escrow your flood insurance through an impound account set up with your lender. For questions about this process, please contact your insurance agent and, if necessary, your lender's Insurance Compliance Department.

DISCLAIMER: The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program. The Sacramento Area Flood Control Agency (SAFCA) is not part of FEMA. SAFCA does not set or enforce Federal flood insurance rules, procedures or policies. Nor does SAFCA receive a fiduciary benefit from the sale of any flood insurance product.

¹ Under Federal rules, property owners who carry a Federally-insured mortgage must obtain their lender's permission to cancel their flood insurance. Property owners who do not carry a mortgage on their property are not required to carry flood insurance.

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