My flood insurer says I paid too little premium. What happens to my coverage and to a claim?

This answer is about the federal National Flood Insurance Program (NFIP) Dwelling Form policy only.

The policy says that if the premium you paid was not enough to buy the kinds and amounts of coverage you asked for, the insurer will provide only the kinds and amounts that the premium can buy. If it finds the premium was not enough, it sends you, and any mortgagee or trustee known to it, a bill for the extra premium.

If you or the mortgagee or trustee pays within 30 days from the date of the bill, the insurer raises the coverage to the amount originally requested, back to the beginning of the current term. If not paid within 30 days of the date of the bill, any flood claim will be settled on the reduced amount of coverage. You also have the option of paying all or part of the amount due out of a claim payment based on the originally requested coverage.

A different rule covers missing rating information. The insurer asks you to send it, and you must send it within 60 days of the request. If the insurer does not receive it within 60 days, no claims will be paid until the information is provided.

Open the eCFR page and find "Insufficient Premium or Rating Information" under Article VII.