National Flood Insurance Program (NFIP)

Debris Removal

no limit

Sandbagging Expenses

$1000

Dwelling Form Eligibility containing 1-4 units

single-family, noncondominium residences with incidental occupancy limited to less than 50 percent of the total floor area two to four family, noncondominium buildings with incidental occupancy limited to less than 25 percent of the total floor area dwelling units in residential condominium buildings residential townhouses and row houses personal contents in a nonresidential buildings

special flood hazard areas (SFHA)

sometimes informally referred to as the floodplain, have a 1 percent chance of being flooded in any given year (100-year floodplain). However, even homes in moderate- to low-risk flood zones are exposed to flooding. In fact, 25 percent of flood losses occur in these zones.

replacement cost

the replacement cost valuation applies to a single-family dwelling

Pollution Damage

$10,000

Removal Expenses

$1000

Coinsurance

80%

Coverage Limits

Coverage Type Coverage Limit One to four-family structure $250,000 One to four-family home contents $100,000 Other residential structures $250,000 Other residential contents $100,000 Business structure $500,000 Business contents $500,000 Renter contents $100,000

special loss settlement

For the dwelling form, this loss settlement applies to a single-family dwelling that is a manufactured or mobile home or is a travel trailer and serves as the insured's principal residence. For a total loss, the insurer pays the least of the replacement cost of the dwelling; 1.5 times the actual cash value of the dwelling; or the building limit shown on the declarations page. For a partial loss, if the insurer determines it is economically feasible to repair the dwelling to its predamage condition, the loss will be settled based on the replacement cost provisions.

Increased Cost of Compliance (Coverage D)

The policy also provides up to $30,000 of coverage for "increased cost of compliance." This coverage pays for increased costs resulting from the enforcement of floodplain management ordinances or laws that require elevation, flood proofing, relocation, or demolition of a structure after direct loss by flood. Increased cost of compliance coverage applies only under the following circumstances: When the cost to repair a flood-damaged structure equals or exceeds 50 percent of its market value, and the state or community is enforcing a substantial damage provision in its floodplain management law. When the structure has suffered two flood losses (including the current loss) paid by the NFIP program during a ten-year period, the cost of each repair equaled or exceeded 25 percent of the market value of the structure, and the state or community is enforcing a cumulative substantial damage provision or repetitive loss provision in its floodplain management law.

actual cash value

This loss settlement applies to a single-family dwelling not subject to replacement cost or the special loss settlement valuations as well as to: two-, three-, or four-family dwellings units that are not used exclusively for single-family dwelling purposes detached garages personal property appliances and carpets outdoor equipment, such as awnings and aerials of any type abandoned property on the described location dwellings that are not the insured's principal residence Actual cash value is deemed the cost to replace the covered property at the time of the loss, less any applicable depreciation.

Eligibility for coverage

affected by a community's participation in the national flood insurance program and by the type and/or location of the building, structure, or contents to be insured.

General Property Form Eligibility containing 5 or more units

apartment buildings residential cooperative buildings dormitories assisted-living facilities hotels, motels, tourist homes, and rooming houses that have more than four units where the normal guest occupancy is six months or more The general property form is also issued to owners or lessees of nonresidential building units. In the NFIP regular and emergency program communities, this form provides building and contents coverage for these and similar eligible properties: hotels or motels with normal guest occupancy of less than six months licensed bed-and-breakfast inns retail shops, restaurants, or other businesses mercantile buildings grain bins, silos, or other farm buildings agricultural or industrial processing facilities factories warehouses pool houses, clubhouses, or other recreational buildings houses of worship schools nursing homes nonresidential condominiums condominium buildings with less than 75 percent of its total floor area in residential use detached garages toolsheds stock, inventory, or other commercial contents

Deductibles

apply separately to building coverage and contents coverage. Under the emergency program a $2,000 deductible applies. Under the standard program, the deductibles available on residential buildings and contents range from $1,000 to $5,000. Deductibles up to $50,000 are available on nonresidential buildings and contents.

The three standard flood insurance policy coverage forms available are the:

dwelling form general property form residential condominium building association policy (RCBAP) form

Participation in the NFIP is a two-stage process

flood insurance rate map (FIRM), which will identify all of the flood hazard zones in the community, all properties in that community are eligible for flood insurance at emergency program rates, subject to the emergency program low maximum limits. the regular flood insurance program. A community becomes a participant in the regular flood program once its flood hazard zones have been identified and published in a FIRM.

offer the following three methods of settling losses, and each is used for a different type of property:

replacement cost special loss settlement actual cash value