National Flood Insurance Program
Upon purchase of a flood policy
1 30 days waiting period is in place beginning from the time of application and premium payment Can be waive in certain circumstances surrounding new or revised loans, map revisions or if a loan exists on a property that should have obtained but did not
Federal government passed Flood Disaster Protection Act of 1973 which mandated flood insurance
1. Flood insurance is required in certain flood prone areas as a condition for receiving loans through or backed by federal government 2. Fail to purchase flood insurance within 1 year will not be eligible for full disaster relief funding.
Exclusion
Accounts, bills, lawns, trees, aircraft, motor vehicles, fences, retaining walls, etc
Federal emergency flood insurance program goes into effect when a community applies for the program and ends when all NFIP criteria met
Building. Contents Single family - $35,000. Single family - $10,000 Other Residential - $100,000. Other Residential - $100,000 Small Business - $100,000. Small Business - $100,000 Other Nonresidential - $100,000. Other Nonresidential $100,000
Maximum coverage available under regular National Flood Insurance Program (smaller emergency limits are avail until a community has been approved by the NFIP)
Building. Cotents Single family - $250,000 Single Family - $100,000 Other residential - $250,000. Other Resident - $100,000 Small business - $500,000. Small Business - $500,000 Other nonresidential - $500,000. Other Nonresidential $500,000
30 days waiting period after application has been accepted before coverage is effective except
During first 30 days after a community enters emergency or normal programs the coverage begins at 12:01am the day after application and premium payment have been mailed An existing policy is assigned to a property purchaser At 12:01am on the 5th day after an endorsement request and premium has been mailed for an existing policy NO binders are issued during the waitiing period
Definition
General and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area, or of 2 or more properties.
3 Main components
Insurance Floodplain management Floodplain mapping
Excluded from
Landslides, backup of sewers unrelated to a flood, windblown rain, snow, or sleet
Eligibility
Must live in a community that has met the minimum floodplain management guidelines Must have 2 solid walls and a roof, be principally above ground, and not entirely over water
Flood may be caused by
Overflow of inland or tidal waters Unusual & rapid accumulation or runoff of surface waters from any source Mudflow (a river of liquid and flowing mud on surfaces of normally dry land) and collapse Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined
National flood insurance is sold & serviced directly through the NFIP or through a write your own (WYO) insurance program
Private insurers participate in a WYO write & service policies on a no risk bearing basis through a special arrangement with Federal Insurance Administration (FIA).
Deductibles
Single family dwellings are automatically provided with replacement cost coverage if insured to at least 80% or max allowed under flood insurance program standard deductible amounts apply separately to building and contents losses, with higher deductibles avail
National Flood Insurance Program (NFIP)
Was created by the federal government to fill the gap left by private insurance industry and is administered by the Federal Insurance and Mitigation Administration (FIMA), a part of the Federal Emergency Management Agency (FEMA)
