National Flood Insurance Program
Adjuster Claims 
Manual

Effective December 31, 2000
Revision 1January 1, 2002
Change 1January 1, 2004





CONTENTS


I.	National Flood Insurance Program	I-1
A.	Background	I-1
B.	The Write Your Own Program	I-1
C.	The NFIP Today	I-1
	1.	NFIP Direct Program	I-1
	2.	WYO Program	I-1
D.	Flood Hazard Zones	I-2
E.	Program Phases and Coverage Limits	I-3
	1.	Program Phases	I-3
	2.	Amounts of Insurance Available	I-3

II.	Adjuster Participation in the NFIP	II-1
A.	Qualifications	II-1
	1.	Residential, Manufactured (Mobile) Home/Travel Trailer,
		and Commercial Authorization	II-1
	2.	Large Commercial and RCBAP Authorization	II-2
B.	Authorization Requirements	II-2
C.	Adjustment Standards and Requirements	II-2
	1.	General Standards and Requirements	II-3
	2.	Specific Standards and Requirements	II-3
D.	NFIP Fee Schedule Billing	II-6
	1.	Gross Losses	II-6
	2.	Increased Cost of Compliance (ICC) Claims	II-6

III.	NFIP Disaster Response	III-1
A.	Disaster Response Field Offices	III-1
	1.	Adjuster Control Office	III-1
	2.	Claims Coordinating Office	III-1
	3.	Flood Insurance Claims Office	III-1
	4.	Flood Response Office	III-1
B.	Single Adjuster Program and Claims Coordinating Office	III-2
	1.	Objective	III-2
	2.	Background	III-2
	3.	Implementation	III-2
	4.	Training	III-3

IV. Policy Changes Affecting the Liberalization Clause	IV-1
A.	Additions and Extensions	IV-1
B.	Water Softeners and Other Parts of Plumbing System	IV-1
C.	Tenants Personal Property and Improvements	IV-2
D.	Unit Owners Interior Walls, Floor, and Ceiling	IV-2
E.	Special Limits on Certain Personal Property Items	IV-2
F.	Loss Avoidance Measures	IV-3
G.	Self-Propelled Vehicles	IV-4
H.	Backup, Overflow, and Seepage of Water	IV-5
I.	Pressure or Weight of Water	IV-5
J.	Special Loss Settlement	IV-

V.	Standard Flood Insurance Policy	V-1
A.	Introduction	V-1
	1.	The Three Policy Forms	V-1
	2.	Use of New Policy Forms	V-1
	3.	Currentness of Information	V-1
B.	Coverage Comparison Table	V-1
C.	New Policy Forms and Commentaries	V-4
	Dwelling Form	V-5
	General Property Form	V-43
	Residential Condominium Building Association Policy	V-79

VI.	Increased Cost of Compliance (ICC)	VI-1
A.	Principal Features of ICC Coverage	VI-1
B.	Coverage Questions and Answers	VI-1
C.	Eligibility Questions and Answers	VI-2
D.	Claims Adjustment Questions and Answers	VI-4
E.	Other Frequently Asked Questions and Answers	VI-6

VII.	Basic Adjustment Issues	VII-1
A.	Actual Cash Value (ACV)	VII-1
B.	Additions and Extensions	VII-1
C.	Depreciation	VII-1
	1.	Building Depreciation	VII-1
	2.	Contents Depreciation	VII-1
D.	Evidence of Loss	VII-1
	1.	Insureds Responsibilities	VII-1
	2.	Adjusters Responsibilities	VII-2
E.	Improvements and Betterments 	VII-2
F.	Non-Waiver Agreement	VII-2
G.	Other Insurance Clause	VII-3
	1.	Introduction	VII-3
	2.	Examples	VII-3
H.	Overhead and Profit	VII-4
I.	Pollution Damage	VII-4
J.	Proof of Loss Requirements and Waiver	VII-5
K.	Repair vs. Replacement	VII-5
	1.	Appliances	VII-5
	2.	Furniture	VII-5
L.	Replacement Cost Coverage (RCC)	VII-5
M.	Reservation of Rights Letter	VII-6
N.	Reserves	VII-6
O.	Salvage	VII-6
P.	Self-Propelled Vehicles	VII-6
Q.	Special Loss Settlement	VII-6
R.	Subrogation	VII-7

VIII.Special Adjustment Issues	VIII-1
A.	Air Conditioning Condensers and Solar Heating Elements	VIII-1
B.	Bailee Goods	VIII-1

C.	Boathouses: Coverage for Non-Boathouse Parts of Building
into Which Boats Are Floated	VIII-1
D.	Carpeting and Drapes	VIII-2
E.	Cisterns	VIII-2
F.	Closed Basin Lakes and Continuous Lake Flooding	VIII-2
	1.	Closed Basin Lakes	VIII-2
	2.	Continuous Lake Flooding	VIII-2
G.	Coastal Barrier Resources System (CBRS)	VIII-3
	1.	Introduction	VIII-3
	2.	Coastal Barrier Resources Act	VIII-3
	3.	Coastal Barrier Improvement Act	VIII-4
	4.	Substantial Improvement: The 50 Percent Rule	VIII-4
H.	Commercial Losses	VIII-4
I.	Condemnation of Property	VIII-5
J.	Constructive Total Loss	VIII-5
K.	Decks	VIII-5
L.	Elevated Buildings	VIII-5
	1.	Coverage Restrictions	VIII-5
	2.	Coverage for Garages and Contents	VIII-6
	3.	Coverage for Building Property in a Building Enclosure 
		below the Lowest Elevated Floor or in a Basement	VIII-6
M.	Elevators	VIII-8
N.	Erosion and Wave Wash	VIII-8
O.	Food in Freezers	VIII-8
P.	Foundations	VIII-8
Q.	Freezers	VIII-9
R.	Hydrostatic Pressure	VIII-9
S.	Ice and Debris Impact Damage	VIII-9
T.	Manufactured (Mobile) Homes	VIII-9
U.	Mudflow	VIII-9
V.	Property Removed to Safety	VIII-9
W.	Repetitive Loss Structures and Previous Claims	VIII-10
	1.	Repetitive Loss Structures	VIII-10
	2.	Previous Claims	VIII-10
X.	Scrip and Stored Value Cards	VIII-10
Y.	Seepage and High Water Table	VIII-10
Z.	Swimming Pools, Hot Tubs, and Spas	VIII-11
A'.	Travel Trailers	VIII-11
B'.	Venetian Blinds	VIII-11
C'.	Water, Moisture, Mildew, or Mold Damage	VIII-11
D'.	Water Softeners	VIII-12
E'.	Well Water Pumps	VIII-12

IX.	Maintaining the Integrity of the NFIP	IX-1
A.	Quality Assurance Inspections	IX-1
	1.	Routine Reinspections	IX-1
	2.	Special Assist Reinspections	IX-1
B.	Fraud Prevention	IX-1
	1.	Detecting Possible Fraud	IX-1
	2.	Reporting Possible Fraud	IX-2
Appendix: NFIP Forms Used in Claims Adjustment	A-1
Exhibit 1.	Adjuster Certification Application [pending OMB approval]	A-3
Exhibit 2.	Adjuster Preliminary Damage Assessment [pending OMB approval]	A-5
Exhibit 3.	Assignment of Coverage D  Increased Cost of Compliance Coverage
			[pending OMB approval]	A-7
Exhibit 4.	Cause of Loss and Subrogation Report	A-9
Exhibit 5.	Elevation Certificate, 2003 Revision	A-11
Exhibit 6.	Increased Cost of Compliance (ICC) Adjuster Report	A-13
Exhibit 7.	Increased Cost of Compliance Proof of Loss	A-15
Exhibit 8.	Manufactured (Mobile) Home/Travel Trailer Worksheet	A-17
Exhibit 9.	NFIP Fee Schedule [Gross Loss]	A-19
Exhibit 10.	NFIP ICC Fee Schedule	A-21
Exhibit 11.	National Flood Insurance Program Preliminary Report	A-23
Exhibit 12.	National Flood Insurance Program Narrative Report	A-25
Exhibit 13.	National Flood Insurance Program Final Report	A-27
Exhibit 14.	Notice of Loss	A-29
Exhibit 15.	Proof of Loss	A-31
Exhibit 16.	Statement as to Full Cost of Repair or Replacement	A-33
Exhibit 17.	Worksheet  Building	A-35
Exhibit 18.	Worksheet  Building (Contd)	A-37
Exhibit 19.	Worksheet  Contents  Personal Property	A-39



I. NATIONAL FLOOD INSURANCE PROGRAM


A.	BACKGROUND

The National Flood Insurance Program (NFIP) is a federal program that allows property owners 
to purchase insurance protection against losses from flooding. This insurance is designed to 
provide an alternative to costly, taxpayer-funded disaster assistance in repairing flood damage 
to buildings and their contents.

Congress established the NFIP with the passage of the National Flood Insurance Act of 1968. It 
is this act that provides the authority and guidelines for the NFIP. All changes since 1968 have 
been made as amendments to this act. The Federal Emergency Management Agency (FEMA) 
administers the NFIP.

Participation in the NFIP is based on an agreement between local communities and the federal 
government. The agreement states that, if a community will implement and enforce measures 
to reduce future flood risks to new construction in Special Flood Hazard Areas, the federal 
government will make flood insurance available within the community as financial protection 
against future flood losses.

B.	THE WRITE YOUR OWN PROGRAM

In 1981, a strong effort was initiated by FEMA to reinvolve the insurance industry in the NFIP. A 
cooperative effort between FEMA and insurance company representatives led to the creation of 
the Write Your Own (WYO) Program in July 1983. The WYO companies issue and service 
federally backed Standard Flood Insurance Policies under their own names, collect premiums, 
and pay claims. They are reimbursed for their services by FEMA. In August 1983, FEMA 
extended an invitation to all licensed property and casualty companies to participate in the 
WYO Program for fiscal year 1984.

C.	THE NFIP TODAY

The NFIP now has two programsthe NFIP Direct Program and the WYO Program.

1.	NFIP Direct Program

The program that deals with the issuing and servicing of flood insurance policies, and the 
handling of resultant claims, directly by the federal government is known as the NFIP Direct 
Program. The NFIP Servicing Agent assists and advises agents and adjusters who handle 
Direct Program policies.

2.	WYO Program

The WYO Program now accounts for approximately 90 percent of all flood policies. The 
NFIP Bureau and Statistical Agent assists and advises the WYO companies. However, this 
does not diminish the authority of the WYO company or relieve the company of its 
obligations. The WYO company still collects the premium, issues the policy, and provides 
adjustment and payment for claims.
D.	FLOOD HAZARD ZONES

In addition to providing flood insurance for property, the NFIP is actively engaged in evaluation 
of existing and potential flood hazards and long-term reduction of them. Accordingly, various 
zones of flooding probability and severity have been established.

Flood Insurance Rate Maps (FIRMs) are produced to show the projected elevations to which 
flooding is likely to occur in a Special Flood Hazard Area (SFHA). These maps can be 
inspected at various locations, depending on the individual community. Places to check would 
be the building inspectors office, city engineers office, city hall, planning commission, 
courthouse, etc. In some instances, the local agent may have the maps available. Maps can 
also be obtained by contacting the FEMA Map Service Center at 1-800-358-9616. The zone 
designations currently in use and the criteria by which they are grouped are as follows:

 Zone Designation					Criteria														
 
 Zone A	SFHA in which the lowest floor elevation is required and 
the Base Flood Elevations (BFEs) are not provided.

Zones A1-A30	SFHAs in which the lowest floor elevation is required and 
the BFEs are provided.

Zone AE	SFHA designation used in place of Zones A1-A30 on 
some maps.

Zone AH	SFHA in which shallow water depths (ponding) and/or 
unpredictable flow paths between 1 and 3 feet deep occur. 
BFEs are provided.

Zone AO	SFHA in which shallow water paths (sheet flow) and/or 
unpredictable flow paths between 1 and 3 feet deep occur. 
BFEs are not provided. Base flood depths may be 
provided.

Zone A99	SFHA in which enough progress has been made on a 
protective system such as dikes, dams, and levees to 
consider it complete for insurance rating purposes. BFEs 
are not provided.

Zone AR	SFHA in which there has been decertification of a 
previously accredited flood protection system that is being 
restored to provide base flood protection.

Zones AR/AE, AR/AH, AR/AO,	Dual-zone SFHAs in which, because of flood risk from
AR/A1-A30, and AR/A 	water sources 	that the flood protection system does not 
contain, there will continue to be hazard of flooding after 
the flood protection system is adequately restored.

 Zone Designation (continued)		Criteria (continued)											

Zone V	Coastal high-hazard SFHA in which inundation by tidal 
floods with velocity occurs. BFEs are not provided.

Zones V1-V30	Coastal high-hazard SFHAs in which inundation by tidal 
floods with velocity occurs. BFEs are provided.

Zone VE	SFHA designation used in place of Zones V1-V30 on 
some maps.

Zone VO	SFHA in which shallow water depths and/or unpredictable 
flow paths between 1 and 3 feet deep with velocity occur.

Zones B, C, and X	Areas in which moderate or minimal flooding may result 
from severe storm activity or local drainage problems. 
Because they are not SFHAs, these zones may be lightly 
shaded or unshaded on the FIRM. Zone X is the 
designation for B and C Zones and is used in place of 
these zones on some maps.

Zone D	Area of undetermined flood hazard in which the population 
usually is very sparse. The designation of Zone D can also 
be used when one community has incorporated portions of 
another communitys area where no map has been 
prepared.

 
E.	PROGRAM PHASES AND COVERAGE LIMITS

1.	Program Phases

Flood insurance may be written only in those communities that have been designated by 
FEMA as participating in the NFIP.

a.	Emergency Program

This is the initial phase of a communitys participation in the NFIP. Limited amounts of 
coverage are available.

b.	Regular Program

This is the final phase of a communitys participation in the NFIP. In this phase, a Flood 
Insurance Rate Map is in effect and full limits of coverage are available.

2. Amounts of Insurance Available

 The table on the next page shows maximum amounts of insurance available under the 
Standard Flood Insurance Policy (SFIP) for building coverage and contents coverage, in 
both Emergency Program communities and Regular Program communities


 AMOUNTS OF INSURANCE AVAILABLE:
DWELLING FORM AND GENERAL PROPERTY FORM1






EMERGENCY
PROGRAM


REGULAR PROGRAM


Insurance
Limits
Basic
Insurance
Limits
Additional
Insurance
Limits
Total
Insurance
Limits

BUILDING COVERAGE

Single-Family Dwelling

Two- to Four-Family Dwelling

Other Residential

Non-Residential




	$  35,0002

	$  35,0002

	$100,0003

	$100,0003



$  50,000

$  50,000

$150,000

$150,000



$200,000

$200,000

$100,000

$350,000



  $250,000

  $250,000

  $250,000

  $500,000

CONTENTS COVERAGE

Residential

Non-Residential




	$  10,000

	$100,000



$  20,000

$130,000



$  80,000

$370,000



  $100,000

  $500,000

1For the Residential Condominium Building Association Policy (which is written only in Regular
 Program communities), the amount of building coverage available is the lesser of replacement
 cost value or $250,000 times the number of insured units in the building. See the CONDO section 
 of the Flood Insurance Manual for contents coverage options.
	2In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, the amount of building coverage available
 in the Emergency Program for Single-Family Dwellings and Two- to Four-Family Dwellings is
 $50,000.
	3In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, the amount of building coverage available
	 in the Emergency Program for Other Residential and Non-Residential buildings is $150,000


II. ADJUSTER PARTICIPATION IN THE NFIP


A.	QUALIFICATIONS

The National Flood Insurance Program (NFIP) Bureau and Statistical Agent is required to 
maintain a database of independent adjusters who qualify to adjust flood claims under policies 
issued by the NFIP Direct and the Write Your Own (WYO) carriers who utilize the services of 
the independent adjusting community. The qualifications reflect that the NFIP, like many other 
insurers, has its own distinct characteristics concerning coverage and adjusting requirements.

The adjuster database is designed to reflect by Flood Certification Number or other means that 
the approved adjuster has attended regular or special workshops that are held throughout the 
country. This includes adjusters who attend a FEMA-recognized flood workshop conducted by 
independent adjusting firms or WYO companies each year. The records reflect the adjusters 
name and the date and location of the workshop. The purpose of these workshops is to keep 
the adjusting community current with claims procedures required for adjusting losses under the 
three forms of the Standard Flood Insurance Policythe Dwelling Form, the General Property 
Form, and the Residential Condominium Building Association Policy (RCBAP). For this reason, 
all independent adjusters who wish to be certified must submit the Adjuster Certification 
Application. WYO company staff adjusters should be guided by their particular companys 
procedures.

The application contains five areas of authorization. An adjuster can be authorized in all five 
categories or any combination thereof, if the adjusters qualifications meet the requirements. 
The five categories are as follows:
 
? Residential
? Manufactured (Mobile) Home/Travel Trailer
? Commercial
? Large Commercial
? RCBAP
 
1.	Residential, Manufactured (Mobile) Home/Travel Trailer, and Commercial Authorization
 
 To be approved for Residential, Manufactured (Mobile) Home/Travel Trailer, or Commercial 
losses, or any combination thereof, an adjuster must:
 
a. Have at least 4 consecutive years of full-time property loss adjusting experience.

b. Be capable of preparing an accurate scope of damage and dollar estimate to $50,000 
for manufactured (mobile) homes/travel trailers and to $500,000 for residential and 
commercial losses.

c. Have attended an NFIP workshop and be able to demonstrate knowledge of the SFIP 
and of NFIP adjustment criteria for all policy forms.

d.	Be familiar with manufactured (mobile) home/travel trailer and Increased Cost of 
Compliance adjusting techniques.

These requirements will be checked and verified prior to approval

2.	Large Commercial and RCBAP Authorization
 
 To be approved for Large Commercial or RCBAP losses, or both, an adjuster must:

	a.	Have at least 5 consecutive years of full-time large-loss property adjusting experience.

b.	Be capable of preparing an accurate scope of damage and dollar estimate of $500,000 
or more.

c.	Submit written recommendations from three insurance company supervisory or claim 
management personnel. The recommendations must reflect adjusting experience only.

d.	Provide information regarding current Errors and Omissions coverage.
 
 These requirements will be checked and verified prior to approval.

B.	AUTHORIZATION REQUIREMENTS

FEMA recognizes that specialized knowledge is required in order for the adjuster to properly 
adjust NFIP losses. Adjusters must know the differences between the Standard Flood 
Insurance Policy (SFIP) and industry property insurance forms. They must know interpretations 
of coverage made by FEMA and the unique reporting requirements of the NFIP. Accordingly, 
FEMA has made it a contractual requirement for the NFIP Bureau and Statistical Agent to 
maintain a list of adjusters who are authorized to handle NFIP losses.

The requirement that independent adjusters be certified by the NFIP applies to all independent 
adjusters seeking to handle flood losses. However, this is only one of the capacities in which 
adjusters are involved in the NFIP. FEMA does not require that staff adjusters handling WYO 
claims be certified by the NFIP Bureau and Statistical Agent. The WYO companies are free to 
choose whatever adjusters they wish, staff or independent, to adjust their flood losses and are 
likewise free to establish any related qualifications or requirements for adjusters, including, at 
their option, the requirement that an adjuster be NFIP certified. A WYO staff adjuster handling a 
Direct loss assigned under the Single Adjuster Program is not required to submit an application 
for NFIP certification. In this case, WYO staff adjusters are deemed authorized by virtue of their 
being staff adjusters for a WYO company. (For further discussion of this situation, see Single 
Adjuster Program and Claims Coordinating Office in Subsection III.B. of this manual.) 
Independent adjusters must be approved by FEMA in order to adjust losses under the Single 
Adjuster Program.

C.	ADJUSTMENT STANDARDS AND REQUIREMENTS

FEMAs adjustment standards and requirements have been revised and expanded in order to 
clarify what the NFIP expects from the adjuster in the adjustment of a flood loss. What follows 
supersedes the NFIP Minimum Standards and Reporting Procedures, which have been 
distributed in the past. Since there are several significant changes from the previous Minimum 
Standards, adjusters should review these revised standards and requirements carefully and 
become thoroughly familiar with them.

1.	General Standards and Requirements

a.	Authority of the Adjuster. The NFIP expects every adjuster handling NFIP flood losses 
to understand and to communicate to the policyholders that the adjuster does not have 
the authority either to deny a claim or to commit the NFIP or the WYO company to pay a 
claim and that all adjustments are recommendations only, subject to review by the NFIP 
Servicing Agent or the WYO company.

b.	Knowledge of Program. The NFIP expects every adjuster handling flood losses to be 
thoroughly familiar with the provisions of the SFIP, including coverage interpretations 
issued by FEMA, as explained in the NFIP Claims Presentations conducted by NFIP 
staff, and to adjust NFIP losses in accordance with these provisions.

c.	Professionalism. Because the adjuster represents the NFIP to the policyholder, the 
NFIP expects that every adjuster will conduct himself or herself in accordance with the 
highest standards of integrity and ethics and that his or her conduct will be courteous 
and professional in all dealings with policyholders.

2.	Specific Standards and Requirements

a. Adjuster Preliminary Damage Assessment. The adjuster must complete the Adjuster 
Preliminary Damage Assessment form on all building claims that meet the criteria for 
substantial damage. After the adjuster conducts the inspection of the risk, the form must 
be completed and faxed to the NFIP Bureau and Statistical Agents Claims Department 
at 1-800-457-4232.

b.	Building RC, Special Loss Settlement, and ACV. The adjuster must prepare accurate 
calculations of the insured buildings replacement cost and actual cash value and 
properly conclude the claim on an RC or ACV basis as applicable.

c.	Contents Claim Adjustment. The NFIP requires the adjuster to assist the insured as 
necessary with the preparation of the contents claim, to verify that all contents included 
in the adjustment are covered under the SFIP, and to determine or verify accurate local 
replacement costs and reasonable actual cash value. Applicable depreciation must be 
shown separately for each item.

d.	Coverage Limitations. The special limitation on some contents (jewelry, furs, etc.) 
must be properly applied. Documentation supporting the claimed value must accompany 
the worksheets as appropriate. Claims for removal of insured property due to the 
imminent danger of flooding must be documented and verified in order to be covered 
under the SFIP.

e.	Final Report. The NFIP Final Report is required on all NFIP Direct and WYO losses. 
The adjuster must not close his or her file until all items on the Final Report are 
completed.

f.	Identification of Building Equipment and Major Appliances. The NFIP requires the 
adjuster to provide identifying information (manufacturer, model, serial number if

possible, capacity, etc.) on major building equipment such as furnaces and central air 
conditioning units and major appliances such as refrigerators, washers, televisions, etc.

g.	Identification of Minor Appliances. The adjuster must provide identifying information 
on certain items for claims control and validation purposes.

h.	Inspection. The adjuster is required to inspect the property within 48 hours of receiving 
the loss assignment for those losses of a critical nature and to inspect other losses as 
soon as possible within 1 week of receiving the loss assignment. This is also the time to 
complete the Adjuster Preliminary Damage Assessment form and fax it to the NFIP 
Bureau and Statistical Agents Claims Department at 1-800-457-4232. The initial 
inspection will include preparation of a preliminary scope of damages. The adjuster 
assigned to the loss must inspect it personally and should not take a contractor along to 
inspect or scope the loss. If it is not possible for the adjuster to inspect the loss within 
this time frame, the adjuster must explain why in the NFIP Preliminary Report and 
advise when the loss will be inspected. Visits to the insured risk without an appointment 
should be avoided.

i.	Insureds Copy. When the claim has been concluded, the adjuster must furnish the 
insured with a copy of all building and contents worksheets and proof(s) of loss.

j.	Manufactured (Mobile) Home/Travel Trailer Worksheet. The adjuster must complete 
a Manufactured (Mobile) Home/Travel Trailer Worksheet for every manufactured 
(mobile) home/travel trailer loss.

k.	Narrative Report. One or more NFIP Narrative Reports must be submitted for any flood 
claim in which the circumstances are unusual, suspect, or especially complicated, and 
additional explanation is appropriate.

l.	Origin of Loss Verified. The adjuster must verify whether the reported loss resulted 
from flood as defined in the SFIP.

m.	Partial (Advance) Payments. The adjuster must advise the insured of the availability of 
a partial (advance) payment. If the insured requests a partial payment, the adjuster must 
prepare documentation necessary to support the amount of payment requested, 
including an NFIP Proof of Loss form. The partial payment should not be for more than 
50 percent of the anticipated total claim and preferably should be made against the 
contents claim.

n.	Preliminary Report Complete. The NFIP Preliminary Report is required on all flood 
losses; however, adjusters who handle losses for WYO companies may use whatever 
comparable form is maintained by the company. The adjuster must eventually complete 
all items in the Preliminary Report; any information unknown at the time that the 
Preliminary Report is submitted must be supplied in a later report.

o.	Prior Losses Checked. The adjuster must verify that damages from any prior loss have 
been repaired before the subject loss occurred, and must exclude from the adjustment 
any unrepaired prior damages. The adjuster can contact the NFIP Bureau and Statistical 
Agent to determine prior losses. The adjuster will then contact the previous insurer and 
ask for the file copies of any prior flood claims. The adjuster is expected to review these

as appropriate, drawing on investigative experience and exercising judgment to 
determine whether prior damage has been repaired.

p.	Progress Notes in File. The adjusters file must contain adequate notes regarding the 
progress of the claim and the scope of damages, calculations of replacement cost and 
actual cash value, and a diagram of the insured building with measurements. The 
adjuster must make this file available upon the request of the NFIP General Adjuster for 
the purpose of reinspection, whether the file is open or closed.

q.	Prompt Contact. The adjuster must initiate contact with the insured or agent by the end 
of the business day after receiving the loss assignment. This initial contact preferably 
will be by telephone, but, if contact by telephone is not possible, the adjuster should 
send the insured or agent a postcard or letter acknowledging the assignment and 
include a telephone number where the adjuster can be reached. Also, when the insured, 
agent, or company staff person leaves a telephone message for the adjuster, the 
adjuster must return the call by the end of the business day after the message was left.

r.	Proof of Loss. An NFIP Proof of Loss form signed by the insured is required on every 
claim on which any payment is recommended. On claims up to $7,500, the NFIP Final 
Report form will suffice for this purpose. On claims over $7,500, a separate Proof of 
Loss form must be submitted. If the insured qualifies for replacement cost coverage, the 
adjuster must submit the Statement as to Full Cost of Repair or Replacement for the 
additional amount recoverable under the replacement cost provisions. If the insured 
qualifies for Increased Cost of Compliance (ICC) coverage, the Increased Cost of 
Compliance Proof of Loss form must be submitted. The insured has 60 days from the 
date of loss to proffer the proof.

	A Proof of Loss must be submitted also for the amount of any partial payment that is 
requested. It is required that each Proof of Loss be filled out completely before the 
insured signs it. Proof of Loss forms must be dated and witnessed; notarization is not 
required. The forms must be submitted to the NFIP Servicing Agent or WYO company 
within 72 hours after securing the insureds signature. The insured has 60 days from the 
date of loss to proffer the proof. Only FEMA can waive this requirement.

s.	Proper Building Depreciation. Depreciation must be applied reasonably and 
accurately. This refers both to the determination of the buildings actual cash value and 
the repair estimate. Depreciation must be shown separately, as applicable, for each item 
in the adjustment, including overhead and profit. Lump sum depreciation is not 
acceptable. Replacement cost, depreciation, and actual cash value for each item must 
be shown in this manner on all claims, regardless of whether the claim is concluded on 
an RC or ACV basis.

t.	Proper Building Scope and Estimate. The NFIP expects the adjuster to accurately 
identify the covered damages caused by flood and to allow in the adjustment only those 
repairs and replacements reasonably required to restore the structure. The repair 
estimate should be prepared on a room-by-room, unit-cost basis, clearly indicating room 
dimensions and unit costs, except when the building has been completely destroyed. 
For buildings that have been destroyed, value determination by a standard insurance 
industry method, such as Marshall-Swift, Boeckh, etc., is acceptable. The adjuster must

personally prepare the repair estimates. If circumstances require the involvement of a 
contractor or other expert, the adjuster must obtain the authorization of the NFIP 
Servicing Agent or WYO company.

u.	Proper Photographs. The adjuster must take as many photographs as are necessary 
to portray the damage.

v.	Salvage. The salvage value of all total-loss items must be considered. Where the size 
of the salvageable loss makes it appropriate, a salvor should be engaged, with the 
authorization of the NFIP Servicing Agent or WYO company. Otherwise, the reasonable 
salvage value of property left with the insured must be deducted from the covered loss.

w.	Subrogation. When the adjuster identifies subrogation potential, he or she must 
determine whether there are grounds for a possible subrogation recovery. The 
investigation is considered a routine part of a loss adjustment. The adjuster must 
complete the Cause of Loss and Subrogation Report form.

x.	Timely Reporting. The adjusters NFIP Preliminary Report must be submitted within 15 
days after receipt of the loss assignment. The NFIP Final Report is due 30 days later. If 
the claim has not been concluded within 45 days, subsequent reports are due every 30 
days after the Preliminary Report, or otherwise as specifically directed by the claims 
examiner, until the claim is concluded.

D.	NFIP FEE SCHEDULE BILLING

Payment of the adjusters service fee will be according to the NFIP fee schedule. The 
scheduled fee for handling a loss is based on the NFIP-approved adjustment. The fee includes 
all travel, photographs, reporting, telephone, and office investigation expenses to conclude 
the claim, including identification of possible subrogation, salvage, and fraud. Customarily, the 
claim file contents will include coverage verification; normal adjuster investigation 
documentation, including statements where necessary; building reports and investigations; 
damage verification; and other documentation relevant to the adjustment of the claim under the 
NFIPs and the WYO companys traditional claim adjustment procedures.

There are two fee schedules (pages A-19 and A-21)one for gross losses and one for 
Increased Cost of Compliance claims.

 1.	Gross Losses

For gross losses sustained on or after May 1, 1997, use the NFIP Fee Schedule [Gross 
Loss] (page A-19). Use this schedule whether the claim will be closed without payment or 
will be paid up to the limit of $250,000 or more.

 2.	Increased Cost of Compliance (ICC) Claims

For Increased Cost of Compliance claims, use the NFIP ICC Fee Schedule (page A-21). 
Use this schedule whether the claim will be closed without payment or will be paid up to the 
increased limit of $30,000 that became effective on May 1, 2003

III. NFIP DISASTER RESPONSE


A.	DISASTER RESPONSE FIELD OFFICES

1.	Adjuster Control Office

The Adjuster Control Office (ACO) is a temporary catastrophe office established by the NFIP 
Direct to assign losses to adjusters.

2.	Claims Coordinating Office

The Claims Coordinating Office (CCO) is a central clearinghouse for receiving notices of 
loss involving hurricane, wind, and flood damage. This is accomplished by the systematic 
identification of wind and flood losses at the same property address followed by assignment 
of the loss to a single adjuster who represents both insurers. Adjuster assignments are 
made for the NFIP Direct, the Write Your Own (WYO) companies, and the Coastal Plans. 
This measure avoids duplicate assignments of losses and better deploys the available 
adjuster resources in a major hurricane event. (See Subsection III.B. of this manual, Single 
Adjuster Program and Claims Coordinating Office, following.)

3.	Flood Insurance Claims Office

The Flood Insurance Claims Office (FICO) is a functioning flood insurance claim office 
established by the NFIP Direct to efficiently handle losses generated by major flooding 
events for the NFIP Direct only.

4.	Flood Response Office

The Flood Response Office (FRO) is established to efficiently coordinate with private sector 
windpool associations, WYO companies, FEMAs Disaster Field Office (DFO) and Disaster 
Assistance Centers, and FEMAs regional staff engaged in mitigation and floodplain 
management compliance activities in local communities.

Major activities of the FRO include the following:

a.	Coordination with WYO companies to provide guidance, define the scope of coverage, 
and facilitate the adjustment of losses sustained by policyholders of the NFIP who are 
insured by WYO companies.

b.	Coordination with WYO companies, the NFIP Servicing Agent, and state windpool 
associations under the Single Adjuster Program (SAP) and NFIP Claims Coordinating 
Office (CCO).

c.	Support and coordination with the DFOs to advise the Federal Coordinating Officer on 
flood insurance activities, help avoid duplication of benefits, provide information and 
assistance to NFIP policyholders, and speed the delivery of flood insurance claim 
payments

d.	Distribution and utilization at the FRO and Disaster Assistance Centers of a series of 
education and information posters, notices, and instructions to provide guidance to the 
flood-insured public, agents, adjusters, and federal and state officials in matters related 
to the NFIPs overall catastrophe response procedures.

e.	Implementation of support services such as the reinspection program, special adjuster 
meetings, and claim troubleshooting activities. Additional activities include surveying 
flood disaster areas, assessing the extent of damage, and advising FEMA of the 
findings.
 
 B.	SINGLE ADJUSTER PROGRAM AND CLAIMS COORDINATING OFFICE
 
 1.	Objective 
 
 In conjunction with the Claims Coordinating Office (CCO), the Single Adjuster Program 
(SAP) provides the most efficient use of adjusting resources in a catastrophic hurricane 
situation to improve service to the mutual policyholders of both wind damage and flood 
damage insurers.
 
 2.	Background
 
 There are currently over a million coastal flood insurance policies at risk, many of which 
could be subject to a combined wind/flood loss.
 
 Through the establishment of a CCO at the time of a catastrophe, many of these potential 
combined losses can be identified and assigned to loss adjusting companies jointly 
representing the WYO companies and the Coastal Plans (e.g., Windpool Associations, Fair 
Plans, Beach Plans, and Joint Underwriting Associations).
 
 The purpose of the CCO is to provide a central clearinghouse for receiving notices of loss 
involving hurricane, wind, and flood damage. This is accomplished by the systematic 
identification of wind and flood losses at the same property address followed by assignment 
of the loss to a single adjuster who represents both insurers. Adjuster assignments are 
made for the NFIP Direct, WYO companies, and Coastal Plans. The CCO, in cooperation 
with the WYO companies, Coastal Plans, and other property insurers, oversees the SAP. 
This measure avoids duplicate assignments of losses and better deploys the available 
adjuster resources in a major hurricane event.
 
 3.	Implementation
 
 FEMA and the various Coastal Plans determine whether a catastrophic event will 
necessitate an SAP response. The National Weather Services declaration of a tropical 
storm or hurricane event begins the watch for possible single adjuster response. In general, 
FEMA approves the SAP response when the storm is 48 hours from landfall.
 
 The NFIP Bureau and Statistical Agent deploys one or more General Adjusters to the 
affected area no later than 24 hours after landfall. The WYO companies are advised by 
telephone or fax, through their designated Single Adjuster Liaison, as to the areas and 
states that will be subject to the SAP response. At that point, the WYO companies are 
asked to immediately notify their agents of the SAP procedures for reporting the losses.
 The telephone call or facsimile to the WYO companies is followed by a written notice 
directing all WYO companies to have their agency force submit all flood losses that are 
reasonably believed to involve wind and flood damage to the CCO.
 
 Telephone contact also is made and a written notice is simultaneously sent to the 
participating State Coastal Plan, Joint Underwriting Association, etc., advising them of the 
opening of the CCO, which is co-located with or near the State Coastal Plan at a 
predetermined site. The on-site CCO becomes fully operational within 24 hours after the 
storms landfall.
 
 When the CCO is operational, the WYO companies are notified of all of their assigned 
claims. Reports reflecting the assigned claims are faxed each day. Once the assignment is 
made and communicated to each company, the WYO company manages its own loss 
adjustment. However, the CCO personnel ensure that the adjuster receives the loss 
assignment containing all the relevant information.
 
 4.	Training
 
 The NFIP Bureau and Statistical Agent General Adjusters and FEMA conduct educational 
workshops before and after major storms. These educational programs address regional 
problems, construction issues, adjuster certification, and community and state ordinances, 
etc. Contact information is provided for all of the single adjuster firms, as well as the WYO 
companies

 

IV. POLICY CHANGES AFFECTING THE 
LIBERALIZATION CLAUSE


All forms of the Standard Flood Insurance Policy (SFIP)Dwelling Form, General Property 
Form, and Residential Condominium Building Association Policy (RCBAP)were revised 
effective December 31, 2000. Under the SFIPs Liberalization Clause, the liberalized coverages 
quoted and described below apply to claims occurring on or after December 31, 2000, under 
old policies effective before December 31, 2000.

A.	ADDITIONS AND EXTENSIONS

Pertains to:
? Dwelling Form, Section III. Property Covered, A. Coverage A  Building Property, 2.
? General Property Form and RCBAP, Section III. Property Covered, A. Coverage A  
Building Property, 3 (language differs slightly from Dwelling Form language quoted below).

Coverage A  Building Property now includes:

Additions and extensions attached to and in contact with the dwelling by 
means of a rigid exterior wall, a solid load-bearing interior wall, a 
stairway, an elevated walkway, or a roof. At your option, additions and 
extensions connected by any of these methods may be separately 
insured. Additions and extensions attached to and in contact with the 
building by means of a common interior wall that is not a solid load-
bearing wall are always considered part of the dwelling and cannot be 
separately insured.

Additions and extensions connected in an approved method can be insured either as separate 
buildings or as one building, except that, if the connection is a common interior wall that is not a 
solid load-bearing wall, the building and the addition or extension must be insured as one 
building.

In the event of a loss occurring on or after December 31, 2000, to two or more buildings 
insured under the old policy and not eligible as one building under that policy but eligible as 
one building under the new policy, coverage will be extended to all buildings.

If an insured has separate policies for two or more buildings as required under the old policy, 
but under the new policy these buildings are eligible to be insured with a single policy, the 
insured may combine coverage into one policy to reduce the premium. Under NFIP rules, such 
adjustment cannot be made until renewal.

B.	WATER SOFTENERS AND OTHER PARTS OF PLUMBING SYSTEM

Pertains to: All policy forms, Section III. Property Covered, A. Coverage A  Building Property, 
8.a.(14).

Coverage A  Building Property now includes:

Water softeners and the chemicals in them, water filters, and faucets 
installed as an integral part of the plumbing system.


These items have been added to the list of building property covered in a post-FIRM enclosure 
or in a basement.

C.	TENANTS PERSONAL PROPERTY AND IMPROVEMENTS

Pertains to: Dwelling Form, Section III. Property Covered, B. Coverage B  Personal Property, 4.

Coverage B  Personal Property now includes more tenant personal property and certain tenant 
improvements:

If you are a tenant and have insured personal property under Coverage 
B in this policy, we will cover such property, including your cooking stove 
or range and refrigerator. The policy will also cover improvements made 
or acquired solely at your expense in the dwelling or apartment in which 
you reside, but for not more than 10 percent of the limit of liability shown 
for personal property on the Declarations Page. Use of this insurance is 
at your option but reduces the personal property limit of liability.

Contents coverage has been expanded to include cooking stoves, ranges, and refrigerators 
owned by renters. In addition, improvements made by a renter are covered up to 10 percent of 
contents coverage (not as an additional amount of coverage).

D.	UNIT OWNERS INTERIOR WALLS, FLOOR, AND CEILING

Pertains to:
? Dwelling Form, Section III. Property Covered, B. Coverage B  Personal Property, 5.
? General Property Form, Section III. Property Covered, B. Coverage B  Personal Property, 
8 (language differs slightly from Dwelling Form language quoted below).

Coverage B  Personal Property now includes the interior walls, floor, and ceiling of a 
condominium unit owner, if these are not insured under the condominium associations policy:

If you are the owner of a unit and have insured personal property under 
Coverage B in this policy, we will also cover your interior walls, floor, and 
ceiling (not otherwise covered under a flood insurance policy purchased 
by your condominium association) for not more than 10 percent of the 
limit of liability shown for personal property on the Declarations Page. 
Use of this insurance is at your option but reduces the personal property 
limit of liability.

For condominium unit owners, up to 10 percent of the contents coverage (not an additional 
amount of coverage) may be applied to losses to interior walls, floor, and ceiling not covered by 
the condominium associations master policy.

E.	SPECIAL LIMITS ON CERTAIN PERSONAL PROPERTY ITEMS

Pertains to:
? Dwelling Form, Section III. Property Covered, B. Coverage B  Personal Property, 6.
? General Property Form, Section III. Property Covered, B. Coverage B  Personal Property, 5.
? RCBAP, Section III. Property Covered, B. Coverage B  Personal Property, 4

Under Coverage B  Personal Property, the per-loss limit for certain items of personal property 
(formerly $500 per loss) has been increased:

Special Limits. We will pay no more than $2,500 for any one loss to 
one or more of the following kinds of personal property:

a.	Artwork, photographs, collectibles, or memorabilia, including but not 
limited to, porcelain or other figures, and sports cards; 

b.	Rare books or autographed items;

c.	Jewelry, watches, precious and semiprecious stones, or articles of 
gold, silver, or platinum;

d.	Furs or any article containing fur which represents its principal value.

Coverage has been increased in all policies to $2,500 per loss for the items listed. In the 
Dwelling Form only, similar coverage has been added for Personal property used in any 
business.

F.	LOSS AVOIDANCE MEASURES

Pertains to: All policy forms, Section III. Property Covered, C. Coverage C  Other Coverages, 2.

Under Coverage C.  Other Coverages, the amount payable for specified loss avoidance 
measures (formerly $500 per measure) has been increased:

Loss Avoidance Measures

a. Sandbags, Supplies, and Labor

(1) We will pay up to $1,000 for costs you incur to protect the insured 
building from a flood or imminent danger of flood, for the 
following:

(a) Your reasonable expenses to buy:

(i) Sandbags, including sand to fill them;
(ii) Fill for temporary levees;
(iii) Pumps; and
(iv) Plastics sheeting and lumber used in connection with 
these items.

(b) The value of work, at the federal minimum wage, that you or a 
member of your household perform.

(2) This coverage for Sandbags, Supplies, and Labor applies only if 
damage to insured property by or from flood is imminent, and the 
threat of flood damage is apparent enough to lead a person of 
common prudence to anticipate flood damage. One of the 
following must also occur:

(a) A general and temporary condition of flooding in the area near 
the described location must occur, even if the flood does not 
reach the insured building; or


(b) A legally authorized official must issue an evacuation order or 
other civil order for the community in which the insured 
building is located calling for measures to preserve life and 
property from the peril of flood. 

This coverage does not increase the Coverage A or Coverage B limit 
of liability. 

b.	Property Removed to Safety

(1) We will pay up to $1,000 for the reasonable expenses you incur to 
move insured property to a place other than the described location 
that contains the property in order to protect it from flood or the 
imminent danger of flood.

Reasonable expenses include the value of work, at the federal 
minimum wage, that you or a member or your household perform.

(2) If you move insured property to a location other than the 
described location that contains the property, in order to protect it 
from flood or the imminent danger of flood, we will cover such 
property while at that location for a period of 45 consecutive days 
from the date you begin to move it there. The personal property 
that is moved must be placed in a fully enclosed building or 
otherwise reasonably protected from the elements.

Any property removed, including a moveable home described in 
II.B.6.b. and c., must be placed above ground level or outside of the 
special flood hazard area.

This coverage does not increase the Coverage A or Coverage B limit 
of liability.

Coverage for these two loss avoidance measures has been increased to $1,000 per measure.

G.	SELF-PROPELLED VEHICLES

Pertains to: All policy forms, Section IV. Property Not Covered, 5.

The former prohibition on coverage of self-propelled vehicles has been modified:

Self-propelled vehicles or machines, including their parts and 
equipment[, generally are not covered]. However, we do cover self-
propelled vehicles or machines not licensed for use on public roads that 
are:

a. Used mainly to service the described location, or

b. Designed and used to assist handicapped persons,

while the vehicles or machines are inside a building at the described 
location.

Self-propelled vehicles that service the described location (not just the building) or are designed 
and used to assist the handicapped now are covered

H.	BACKUP, OVERFLOW, AND SEEPAGE OF WATER

Pertains to: All policy forms, Section V. Exclusions, D.5.

The former exclusion of coverage for backup, overflow, and seepage of water has been 
modified:

[Coverage generally is excluded for w]ater or waterborne material that:

a. Backs up through sewer or drains;

b. Discharges or overflows from a sump, sump pump, or related 
equipment; or

c. Seeps or leaks on or through the covered [insured] property;

unless there is a flood in the area and the flood is the proximate cause of 
the sewer or drain backup, sump pump discharge or overflow, or 
seepage of water.

Damage from backup, overflow, and seepage is covered if there is a general condition of 
flooding in the area. The other former requirementsadditional $250 deductible, insurance to 
80 percent of value, occurrence of damage within 72 hourshave been eliminated.

I.	PRESSURE OR WEIGHT OF WATER

Pertains to: All policy forms, Section V. Exclusions, D.6.

The former exclusion of coverage for damage by pressure or weight of water has been 
modified:

[Coverage generally is excluded for damage caused by t]he pressure or 
weight of water unless there is a flood in the area and the flood is the 
proximate cause of the damage from the pressure or weight of water.

Coverage is provided for damage by the pressure or weight of water against the insured 
building if there is a flood in the area and the flood is the proximate cause of damage from the 
pressure or weight of water.

J.	SPECIAL LOSS SETTLEMENT

Pertains to:
? Dwelling Form, Section VII. General Conditions, V. Loss Settlement, 3.
? RCBAP, Section VIII. General Conditions, V. Loss Settlement, 3 (language differs slightly 
from Dwelling Form language quoted on the next page).

Coverage provisions for total loss of a manufactured (mobile) home/travel trailer have been 
clarified, as shown on the next page

Special Loss Settlement

a. The following loss settlement conditions apply to a single-family 
dwelling that:

(1) Is a manufactured or mobile home or a travel trailer, as defined in 
II.B.6.b. and II.B.6.c.;

(2) Is at least 16 feet wide when fully assembled and has an area of 
at least 600 square feet within its perimeter walls when fully 
assembled; and

(3) Is your principal residence, as specified in V.1.a .(1) above. [Note: 
This requirement appears only in the Dwelling Form, not in the 
RCBAP.]

b. If such a dwelling is totally destroyed or damaged to such an extent 
that, in our judgment, it is not economically feasible to repair, at least 
to its predamage condition, we will, at our discretion, pay the least of 
the following amounts:

(1) The lesser of the replacement cost of the dwelling or 1.5 times the 
actual cash value, or

(2) The building limit of liability shown on your Declarations Page.

c. If such a dwelling is partially damaged and, in our judgment, it is 
economically feasible to repair it to its predamage condition, we will 
settle the loss according to the Replacement Cost conditions in 
paragraph V.2. above.

Coverage for a total loss of a manufactured (mobile) home or travel trailer eligible for 
replacement cost coverage now is the lesser of its replacement cost or 1.5 times its actual cash 
value.

Loss Settlement paragraph 1.a.(2) does not apply to manufactured (mobile) homes or travel 
trailers under Special Loss Settlement.

Only manufactured (mobile) homes and travel trailers as described in paragraphs 3.a.(2) and 
(3) qualify for Special Loss Settlement. All other manufactured (mobile) homes and travel 
trailers require Actual Cash Value Loss Settlement.


V. STANDARD FLOOD INSURANCE POLICY


A.	INTRODUCTION

The Standard Flood Insurance Policy (SFIP) specifies the terms and conditions of the 
agreement of insurance between either the Federal Emergency Management Agency (FEMA) 
as insurer (for policies issued by the NFIP Direct) or the WYO company as insurer (for policies 
issued by the WYO Program) and the named insured.

Named insureds in NFIP participating communities include homeowners, renters, business 
owners, builders of buildings that are in the course of construction, condominium associations, 
owners of residential condominium units, and mortgagees/trustees (applicable to building 
coverage only).

1.	The Three Policy Forms

There are three policy formsthe Dwelling Form, the General Property Form, and the 
Residential Condominium Building Association Policy. Each is used to insure a different 
type of property. All, however, contain certain terms and conditions (e.g., Mortgage Clause, 
Reformation of Coverage) that are unique to flood insurance.

2.	Use of New Policy Forms

All forms of the SFIP have been revised. The new SFIP policy forms must be used for all 
new and renewal policies that become effective on or after December 31, 2000. On the 
following pages, youll find a coverage comparison table for the new policy forms and a 
detailed commentary on key provisions of each form.

The Liberalization Clause applies for losses occurring on or after December 31, 2000, for 
policies written on the old SFIP policy forms.

3.	Currentness of Information

The National Flood Insurance Reform Act of 1994 substantially revised the SFIP. As noted 
above, FEMA revised the SFIP in December 2000. FEMA published and maintains the 
Adjuster Claims Manual with its integrated explanations of the 2000 SFIP. FEMA published 
and maintains Policy Issuances and Claims and Underwriting Bulletins to further explain and 
clarify coverage under the SFIP. These are available at www.fema.gov/library. All other 
earlier policy explanations, coverage interpretations, policy guidance memorandums, and 
letters are superseded and should not be referred to in determining coverage.

B.	COVERAGE COMPARISON TABLE

The table on page V-3 shows similarities and differences among the three new SFIP forms for 
more than 30 coverage items























This page is intentionally left blank.

COVERAGE COMPARISON AS OF DECEMBER 31, 2000

ITEM
DWELLING FORM
GEN. PROP. FORM
   RCBAP
Additional Living Exp.
NO
NO
NO
Appurtenant Structures
YES; 10% of limit of 
liability can be applied to 
detached garage at 
described location.
NO
NO
Awnings
ACV, if attached to bldg.
ACV, if attached to bldg.
ACV, if attached to bldg.
Building Fixtures
Listed
Listed
Listed
Carpeting
ACV; no overhead and 
profit
ACV; no overhead and 
profit
ACV; no overhead and 
profit
Construction Before 
Walled & Roofed
YES; two times the 
deductible
YES; two times the 
deductible
YES; two times the 
deductible
Debris Removal
YES
YES
YES
Decks
NO; limit of 16 sq. feet
NO; limit of 16 sq. feet
NO; limit of 16 sq. feet
Deductible
Applied separately to 
building and contents
Applied separately to 
building and contents
Applied separately to 
building and contents
Emergency Mitigation,
Pre-Flood
Limited coverage, 
$1,000
Limited coverage, 
$1,000
Limited coverage, 
$1,000
Exterior Paint
YES
YES
YES
Fences
NO
NO
NO
Hot Tubs & Spas
YES, if they are 
bathroom fixtures
YES, if they are 
bathroom fixtures or stock
YES, if they are 
bathroom fixtures
Hurricane Shutters
YES
YES
YES
ICC
YES, except Emergency 
Program and Group 
Policy
YES, except Emergency 
Program
YES, except Emergency 
Program
Improvements & 
Betterments
YES; if tenant has per-
sonal property coverage, 
we cover cooking stove, 
range, and refrigerator. 
10% of personal 
property coverage will 
cover other tenant-
installed improvements. 
10% of personal 
property coverage
Yes
Loss Assessments
YES; limited
NO
NO
Loss of Rents
NO
NO
NO
Ordinance or Law
YES, subject to 
Exclusion A.6.
YES, subject to 
Exclusion A.6.
YES, subject to 
Exclusion A.6.
Pollutants
YES
YES, up to $10,000
YES 
Power Failure
YES, if caused by flood 
on the described 
location
YES, if caused by flood on 
the described 
location
YES, if caused by flood 
on the described 
location
Replacement Cost, 
Building
YES, if insured to 80% of 
RC and insured lived at 
risk 80% of previous 365 
days
NO
YES, with coinsurance 
provision 
Replacement Cost, 
Personal Property
NO
NO
NO
Screened Porches
YES, unless below ele-
vated floor (Post-FIRM)
YES
YES
Storage Sheds
NO
NO
NO
Stove & Refrigerator 
Building ACV, if tenants 
contents
Building ACV, if tenants 
contents
Building ACV
Swimming Pools/Hot Tubs
NO
NO
NO
Temporary Repairs
NO
NO
NO
Trees
NO
NO
NO
Venetian Blinds
Building ACV
Building ACV
Building ACV
Walkways
NO
NO
NO

C.	NEW POLICY FORMS AND COMMENTARIES

The new SFIP forms, along with a commentary on each, are reproduced on the following pages 
in this order: Dwelling Form, General Property Form, and Residential Condominium Building 
Association Policy. This section of the manual uses a side-by-side format in which:

1.	Each left-hand page reproduces a page of the new SFIP; and

2.	Each facing right-hand page provides a commentary about policy changes and other 
coverage issues important to claims adjusters.

The footer on each page includes the name of the policy form, so youll know which form of the 
SFIP is being shown and discussed




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V-4


Dwelling Form


DWELLING FORM

COMMENTARY


LIMITATIONS, RESTRICTIONS, AND EXCLUSIONS

The Dwelling Form covers only:

? A 1- to 4-family dwelling not under the condominium form of ownership
? A single-family dwelling unit in a condominium building

I. AGREEMENT

The insuring agreement states the following:

? The Standard Flood Insurance Policy (SFIP) is based upon the National Flood Insurance 
Act of 1968 and all amendments, and Title 44 of the Code of Federal Regulations (CFR).

? The insured must pay the correct premium to get the requested amount of coverage.

? The insured or the insureds representative must submit accurate information.

II. DEFINITIONS

Flood. Requires surface water inundation of normally dry land from any source, including 
mudflow (see mudflow definition). Two acres or two or more properties must be inundated.

Actual Cash Value. Replacement cost value of the property minus depreciation (does not 
include antique value).

Application. Part of this policy; the application paragraph states that the insured must pay 
the correct premium.



II. DEFINITIONS (continued)

Basement. Any area that is below the natural grade on all sides.

Building. A building must have at least two rigid walls and a roof. Liquid storage tanks and 
bubbles are not covered. Grain bins and silos are covered. Travel trailers without wheels and 
affixed to a permanent foundation are covered if regulated by local law.

Condominium. Ownership of real property in which each unit owner has an interest in the 
common elements.

Condominium Association. This policy does not cover homeowner associations. The adjuster 
must check the by-laws if there is a question.

Declarations Page. A summary of information provided by the policyholder on the insurance 
application. The adjuster must verify the accuracy of the building description, as this may affect 
coverage.

Described Location. Shown on the Declarations Page.

Direct Physical Loss By or From Flood. Floodwaters must touch the insured property with the 
exception of seepage/hydrostatic pressure.

Elevated Building. This definition requires space between ground level and the lowest floor.

Mudflow. A surface river of liquid and flowing mud. Other earth movements such as landslide, 
slope failure, or saturated soil moving by liquidity are not mudflows. (The word mudslide no 
longer is used in the SFIP.)

Pollutants. Testing for or monitoring of pollutants is not covered unless required by law.


II. DEFINITIONS (continued)

Post-FIRM Building. Start of construction or substantial improvement after December 31, 
1974, or on or after the publication of the initial Flood Insurance Rate Map (FIRM), whichever is 
later.

Special Flood Hazard Area (SFHA). All zones listed are SFHAs. However, the Post-FIRM 
coverage limitations apply only to Zones A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, 
AR/A1-A30, V1-V30, and VE.

Valued Policy. The SFIP is not a valued policy, in any state.

III. PROPERTY COVERED

 COVERAGE A  BUILDING PROPERTY

This policy covers only one- to four-family dwellings.

Additions that are attached to and in contact with the risk by a rigid exterior wall, a solid load-
bearing interior wall, a stairway, an elevated walkway, or a roof are covered.

A solid load-bearing interior wall cannot have any openings and must not provide access from 
one building or room into another (partial walls). If access is available through a doorway or 
opening, then the structure must be insured as one building. Other provisions are:

? At the insureds option, the additions and extensions may be insured separately.
? A common interior wall that is not solid or load bearing necessitates one policy.

Garages. Coverage is limited to no more than 10 percent of liability on the dwelling. Any 
reimbursement for damage to garages would reduce the coverage. If any part of the garage is 
used for anything other than storage or parking, coverage for the garage is nullified.

For example, a garage that has been converted and contains a separate room such as a play 
room, home workshop, workout room, laundry room, or bathroom does not meet the definition of 
a garage. There is no coverage unless the insured has purchased a separate policy for the 
garage. Coverage for detached carports has been eliminated.

Materials and Supplies. Those used to alter, repair, or construct the insured building or a 
detached garage must be in a fully enclosed building at the property address or an adjacent 
property.

Building Under Construction. The deductible is doubled (see Dwelling Form VI. Deductibles, 
second paragraph of provision A.) and, if there is no work on the building for a period of 90 
continuous days, coverage ceases until such time as work is resumed. Coverage is provided for 
those items that will become part of the finished building. For example, rebar, footings, and 
concrete walls that will become part of the finished building are covered. There is no coverage 
for the forms used to retain the concrete. There is no coverage for a building under construction 
before it is walled and roofed when the building is Post-FIRM and the basement floor or lowest 
elevated floor is below Base Flood Elevation in any of Zones AH, AE, A1-A30, AR, AR/AE, 
AR/AH, AR/A1-A30, AR/A, or AR/AO, or below Base Flood Elevation adjusted for wave action in 
any of Zones VE or V1-V30.


III. PROPERTY COVERED (continued)

 COVERAGE A  BUILDING PROPERTY (continued)

The items listed in Dwelling Form III.A.7. are considered building property; they cannot be paid 
under contents coverage unless III.B.4. applies. Other building items are not excluded, but the 
items listed are those that will be covered only as part of the building.

The items listed in Dwelling Form III.A.8., when installed beneath the lowest elevated floor of an 
elevated Post-FIRM building or in a basement, are considered building property; they cannot be 
paid under contents coverage.

COVERAGE B  PERSONAL PROPERTY

Contents coverage must be purchased separately, and a separate deductible is applied.

Contents must be owned by the insured or family members of the insureds household, or at the 
insureds option, within the limits of liability of the policy, by the insureds guests or servants.

Contents are covered while stored in the dwelling or in another fully enclosed building at the 
property address. Flotation of contents out of a building that has fewer than four rigid walls is not 
covered.

The items listed in Dwelling Form III.B.2., General Property Form III.B.3., and RCBAP III.B.2. 
are considered personal property and cannot be paid under building coverage.

The items listed in Dwelling Form III.B.3., when installed beneath the lowest elevated floor of an 
elevated Post-FIRM building or in a basement, are considered personal property items. They 
cannot be paid under building coverage. Also see General Property Form III.B.4. and RCBAP 
III.B.3.



Note: The policy lists items that must always be considered contents (III.B.2.). The policy also lists 
items covered in a basement or beneath the lowest elevated floor of a Post-FIRM elevated building 
(III.B.3.).that must always be considered contents

III. PROPERTY COVERED (continued)

COVERAGE B  PERSONAL PROPERTY (continued)

Tenants. Paragraph 4. states that, if the insured is a tenant and has personal property coverage 
(Coverage B), the coverage extends to the insureds cooking stove, range, and refrigerator. 
Also, improvements made or acquired solely at the insureds expense are covered for up to 
10 percent of the limit of liability for personal property. The 10 percent limit of liability for 
improvements does not include cooking stoves, ranges, or refrigerators.

Condominium Unit Owners. Paragraph 5. states that the 10 percent coverage for building 
items cannot be applied and no coverage is available if the condominium policy or a 
combination of coverages pays the statutory limit.

Special Limits. A total of $2,500 is the maximum payment allowed for artwork, rare books, 
jewelry, furs, or any article containing fur, which represents its principal value, as well as 
personal property used in any business. This maximum payment also extends to the following:


? Photographs
? Collectibles
? Memorabilia
? Porcelain or other figures and sports 
cards

? Autographed items
? Watches
? Precious and semiprecious stones
? Articles of gold, silver, or platinum


This coverage is limited to personal property owned by the named insured, household family 
members, servants, and guests and to other personal property for which the insured is liable.

Antiques. Coverage is provided only for the functional value of antiques.

COVERAGE C  OTHER COVERAGES

Debris Removal. Insured property means property we insurei.e., the described building and 
covered contents. The described premises includes the lot, which is not covered.

Coverage extends to insured property anywhere and to non-owned debris from beyond the 
insured premises or on or in the insured property. Non-covered items such as contents in a 
basement are excluded from debris removal coverage.

Loss Mitigation. Expenses are covered up to $1,000 per measure; no deductible applies. Loss 
mitigation measures are described below.

a.	Sandbags, Supplies, and Labor


? Sandbags, including sand
? Fill for temporary levees
? Pumps



? 
? Plastic sheeting and lumber used in 
connection with these items
? Labor (Members of family can be paid 
for labor at the federal minimum wage.

This coverage applies only under Coverage A  Building Property.

b.	Property Removed to Safety. A maximum of $1,000 can be paid to move insured property 
to another place other than the described location above ground or outside the SFHA to 
preserve it from flood. Read Dwelling Form III.C.2.b. Property Removed to Safety


III. PROPERTY COVERED (continued)

COVERAGE C  OTHER COVERAGES (continued)

If the property removed is a manufactured (mobile) home or travel trailer, coverage extends 
to it for 45 days, even if it is not on a foundation. This coverage can be used for building, 
contents, or both; but the total of building and contents payments cannot exceed $1,000.

	Other provisions regarding property removed to safety are:

? Contents must be placed in a fully enclosed building or otherwise reasonably protected 
and moved temporarily away from the peril of flood.

? Property must be removed to a location other than the described location. Property 
moved from one place to another at the described location is not covered.

? Coverage extends for 45 days at another place.

? No deductible applies.

Removed property is covered for damage by flood only. Any property removed, including a 
moveable home described in Dwelling Form II.B.6.b. and c., must be placed above ground 
level at a location other than the described location or outside of the SFHA. See General 
Property Form III.C.2.b. and RCBAP III.C.2.b.

Condominium Loss Assessment: If no Residential Condominium Building Association 
Policy (RCBAP) is in force on the building, then the Dwelling Form will respond to covered 
loss assessments. The Dwelling Form will not respond to assessments if there is an RCBAP 
that is not insured to 80 percent of the RCV or the maximum insurable value of the building, 
whichever is less. See 3.b.(4)(a) and (b).

COVERAGE D  INCREASED COST OF COMPLIANCE

The limit of liability for Increased Cost of Compliance (ICC) coverage was raised to $30,000 on 
May 1, 2003. Any flood loss incurred prior to May 2003 will be adjusted according to the 
previous limit of $20,000.

ICC coverage is used for floodproofing, demolition, elevation, or relocation of the structure, or a 
combination of these. It is an additional amount of insurance above building limits of liability, but 
we cannot pay more than the law allows ($250,000 dwelling and $500,000 commercial).

For further information about ICC coverage, see Section VI. of this manual. Subsection VI.D.3. 
specifically addresses assignment of Coverage D by the policyholder to the community


III. PROPERTY COVERED (continued)

COVERAGE D  INCREASED COST OF COMPLIANCE (continued)

Structures that are in an SFHA and are declared by the local community to be substantially flood-
damaged by 50 percent of their market value are eligible. An ICC claim must not be opened until 
the local official has declared in writing that the structure is substantially damaged.

On ICC claims for structures in B, C, X, D, unnumbered A and V, and A99 zones, the adjuster 
needs to obtain a written statement explaining why the local official is requiring an ICC activity.

For communities that have cumulative damage language in their ordinance, the building must 
have sustained two losses in 10 years, averaging 25 percent. The adjuster must verify that the 
community has such language in the ordinance. The adjuster must also verify that NFIP claim 
payments were issued to the insured for both qualifying losses.



III. PROPERTY COVERED (continued)

COVERAGE D  INCREASED COST OF COMPLIANCE (continued)

Under ICC, even if a local ordinance or law requires the testing, monitoring, clean-up, removal, 
containment, treatment, detoxification, or neutralization of pollutants, there is no coverage.

The 2-year limit for completing an ICC claim begins on the date of the declaration by the local 
community official that the insured structure has been substantially damaged by flood. This means 
that the 2-year period referenced in paragraph 5.e.(2) begins on that date.

The two conditions in Paragraph 5.e. refer to the total payment of an ICC claim. Partial payments 
of ICC claims are permitted. Partial payments may be issued before completion of the mitigation 
activity but cannot exceed 50 percent of the estimated reimbursable cost of the mitigation activity.

The adjuster must complete the Adjuster Preliminary Damage Assessment form on a daily basis 
as needed and fax it to the NFIP Bureau and Statistical Agents Claims Department at 1-800-457-
4232.

IV. PROPERTY NOT COVERED

Building or Personal Property Entirely in, on, or over Water or Seaward of Mean High Tide. 
No coverage is provided if the building was constructed or substantially improved after 
September 30,1982.

Recreational Vehicles. Excluded from coverage except travel trailers defined in Dwelling Form 
II.B.6.c.

Self-Propelled Vehicles or Machines. Excluded except those used to service the described 
location or designed and used to assist handicapped persons. The vehicles or machines must 
be located inside the building at the described location.

Land, Land Values, Lawns, Trees, Shrubs, Plants, Growing Crops, or Animals. Animals 
are specifically excluded from coverage by the provision in Dwelling Form IV.6 (also General 
Property Form IV.6 and Residential Condominium Building Association Policy IV.6). This 
exclusion applies to live bait, such as worms or minnows, sold in fishing tackle shops


IV. PROPERTY NOT COVERED (continued)

Containers. Fuel tanks and well water tanks are not covered outside a basement, elevated 
building enclosure, or the insured building. Tanks containing other liquids or gases are not 
covered.

Swimming Pools, Hot Tubs, and Spas. These and their equipment are not covered, except 
that spas and hot tubs are covered if they are bathroom fixtures.

Coastal Barrier Resources Act (CBRA). It is the adjusters responsibility not to recommend 
payment for buildings and their contents made ineligible by CBRA legislation, as it is against the 
law to insure such buildings. These should be referred to Underwriting for a coverage 
determination.

V. EXCLUSIONS

Loss of Revenue or Profit, Loss of Access, Loss of Use, Business Interruption, and 
Additional Living Expenses. We will not pay for these. Coverage is not provided for the cost of 
complying with any ordinance or law except those described in D. Coverage D  Increased Cost 
of Compliance.

Loss in Progress. Not covered (Paragraph B.).

Single Peril. Paragraph C. makes it clear that this is a single-peril policy. Earth movement 
caused by flood is excluded. This includes but is not limited to earthquake, landslide, land 
subsidence, sinkholes, destabilization, or movement of land resulting from the accumulation of 
water in subsurface land areas, and gradual erosion.

Land subsidence is covered if it is caused by erosion as specified in the definition of flood (see 
Dwelling Form II.A.2.).

Water, Moisture, Mildew, or Mold Damage. Not covered when caused by a condition 
substantially confined to the building, or within the insureds control, which includes design, 
structural, or mechanical defects; failure, stoppage, or breakage of water or sewer lines, drains, 
pumps, fixtures, or equipment; or the insureds failure to adequately inspect and maintain the 
property after the flood waters recede. (For additional information about mold damage, see 
Subsection VIII.C'. of this manual.)


V. EXCLUSIONS (continued)

Water or Waterborne Materials. Damage from water or waterborne materials that cause sewers 
or drains to back up, including the discharge or overflow of water from a sump, sump pump, or 
any related equipment, or seeps or leaks on or through insured property, is not covered. However, 
if there is a general and temporary condition of flooding in the area and the flood is the proximate 
cause of the sewer, drain, or sump pump back-up and is the proximate cause of the seepage of 
water, then coverage is provided.

Other Water Damage. Damage to the covered property from a roof leak or wind-driven rain is not 
covered.

Power Failure. Only losses resulting from power, heating, or cooling equipment failure, if the 
failure was caused by flood and the failing equipment was located on the described location, are 
covered. Power failures occurring off the described location due to flood and causing damage to 
insured heating or cooling equipment or any other insured property are not covered. If the power 
is intentionally turned off by the insured, there is no coverage.

Note: Federal government lease exclusion.

VI. DEDUCTIBLES

The deductible is doubled for a building under construction. (Per Dwelling Form III.A.5.a.(2), if 
there is no work on the building for a period of 90 continuous days, coverage ceases until such 
time as work is resumed.)

There are separate deductibles for the structure and personal property ranging from $500 to 
$5,000.

VII. GENERAL CONDITIONS

Pairs and Sets. We pay for the one item damaged, or the fair proportion of the value of the pair or 
set. 

Concealment or Fraud and Policy Voidance. This and any other NFIP flood policy can be 
voided if the insured commits fraud. The adjuster must report to the insurer any discrepancies on 
the Narrative Report form. If there is a misrating, this needs to be corrected and the correct 
premium paid before the claim can be settled. The necessary premium must be paid in order for 
the requested limits of liability to be applicable.


VII. GENERAL CONDITIONS (continued)

Other Insurance. This policy is primary over all other policies that clearly state they are excess. If 
the other policy does not state it is excess, this policy is primary up to the other policys deductible, 
subject to this policys deductible; once our payment reaches the other deductible amount, the 
coverage becomes pro-rata. (See examples in Section VII. of this manual, Basic Adjustment 
Issues, following.)

Nonrenewal of the Policy by Us. The policy will not be renewed if the community in which the 
insured property is located stops participating in the NFIP or if the building has been declared 
ineligible under Section 1316 of the National Flood Insurance Act of 1968, as amended.

Reduction and Reformation of Coverage. The coverage amounts will be reduced if it is 
discovered that the premium was insufficient; if the amount of additional premium can be 
determined, the insured has 30 days to pay the additional premium.



VII. GENERAL CONDITIONS (continued)

Requirements in Case of Loss. Claims should be investigated under a Reservation of Rights or 
Non-Waiver Agreement if the insured does not comply with Paragraphs J.1. through 9.


VII. GENERAL CONDITIONS (continued)

Bailee Goods. No coverage.


VII. GENERAL CONDITIONS (continued)

Loss Payment. The adjuster needs to be prompt in reporting the investigation, as the insurer has 
only 60 days from the date of receiving the insureds Proof of Loss to pay the claim, or within 90 
days after the adjuster files a report that is signed and sworn to by the insured in lieu of the Proof 
of Loss. If the Proof of Loss is rejected in whole or in part or a new supplemental Proof of Loss is 
filed, it must be submitted and received within 60 days of the date of loss. Only FEMA has the 
authority to waive or extend the filing deadline.

Salvage. The insured has the option to keep damaged property after a flood, and the adjuster will 
reduce the amount of the loss proceeds payable to the insured.

Appraisal. The appraisal clause is much like that in the homeowners policy. There is no 
appraisal for coverage issues. The appraisal clause applies if the insured and adjuster fail to 
agree on the actual cash value or replacement cost of the damaged property, whichever is 
appropriate. In the event that the two appraisers appointed by the insured and insurer cannot 
agree, they should submit only their differences to an umpire.

Mortgage Clause. We will protect the interest of any listed mortgagee or any mortgagee 
discovered during the investigation.

Suit Against Us. The insured must file suit in federal court within 12 months from the date the 
denial letter was mailed.

Subrogation. The insureds right to recover for a loss in part or in whole for damages caused by 
someone else is transferred to the insurer if the loss is paid under the Standard Flood Insurance 
Policy.


VII. GENERAL CONDITIONS (continued)

Continuous Lake Flooding. The structure must be inundated by lake water for 90 continuous 
days, and it must be reasonably certain that the continuation of this flooding will result in damage 
equal to or greater than policy limits, or the ACV or RCV, as applicable. If it is not reasonably 
certain that the flooding will cause a total loss, then we will pay only for the actual damage up to 
the waterline. (See Section VIII. of this manual, Special Adjustment Issues, for more information 
about continuous lake flooding.)

Closed Basin Lakes. A closed basin lake is a natural lake from which water leaves primarily 
through evaporation, and whose surface area now exceeds or has exceeded 1 square mile at any 
time in the past. If an insured building is subject to continuous closed basin lake flooding, a total 
loss claim can be paid if lake flood waters damage or imminently threaten to damage the building 
and an eventual total loss appears likely.

Special reporting procedures apply to ICC claims and closed basin lake claims. Notify the NFIP 
Bureau and Statistical Agent upon receipt of either type of claim.


VII. GENERAL CONDITIONS (continued)

Duplicate Policies Not Allowed. If the insured has two policies on the same property, the 
insured may choose to keep either policy. However, if the insured wishes to combine coverage 
limits, the effective date of the policy will be that of the later of the two policies purchased.

Loss Settlement. There are three methods to settle a loss under the Dwelling Form:

? Replacement Cost
? Special Loss Settlement
? Actual Cash Value


VII. GENERAL CONDITIONS (continued)

Replacement Cost. The insured residence must be the principal residence, meaning that, at 
the time of loss, the insured lived there for at least 80 percent of the preceding 365 days, or 
80 percent of the period of ownership if less than 365 days. Replacement cost applies if the 
building is insured to 80 percent or more of its full replacement cost before a loss occurs, or if the 
maximum amount of insurance is purchased.

Special Loss Settlement. Replacement Cost applies to a manufactured (mobile) home or travel 
trailer if the dwelling is at least 16 feet wide and has an area of at least 600 square feet within its 
walls. The structure must also be the principal residence. If a single-family dwelling that is a 
manufactured (mobile) home or travel trailer is a total loss or is not economically feasible to repair, 
then the adjustment of the property will be the lesser of:

? The replacement cost of the dwelling or 1.5 times the actual cash value, or
? The building limit of liability.

Loss Settlement paragraph 1.a.(2) does not apply to manufactured (mobile) homes or travel 
trailers under Special Loss Settlement.

Only manufactured (mobile) homes and travel trailers as described in paragraph 3.a.(2) and (3) 
qualify for Special Loss Settlement. All other manufactured (mobile) homes and travel trailers 
require Actual Cash Value Loss Settlement.

If we determine that the building is repairable, the loss will be settled according to the 
Replacement Cost conditions stated in Dwelling Form VII.V.2.

ACV or Proportional Settlement. If proportional settlement is beneficial to the insured, no 
depreciation is taken and Replacement Cost is used after the deductible is taken. There are two 
ways to do this:

? When 80 percent of the RC is less than the maximum amount of NFIP insurance available, 
then the proportion is figured as follows:

                      Amount of insurance purchased 		x	RC loss with deductible already 
                Amount of insurance that is 80% of RC			taken

? When 80 percent of the replacement cost is more than the maximum amount of NFIP 
insurance available, compute as follows:

                     Amount of insurance purchased	     	x 	loss less the deductible
          Maximum amount of NFIP insurance available

The insured will receive either of the above or ACV, whichever is higher.

If the insured dwelling is a total loss, there is no provision that the insured must rebuild at the 
same location. If the insured buys or builds another house of equal value (not including land 
value), we will pay the RCV upon presentment of the appropriate documentation.

Proof that repairs have been completed and that the amount actually spent exceeds the ACV 
payment must be submitted by the insured prior to payment of the RC holdback. Items that do not 
have to be included in calculating the dwellings RCV are listed in Dwelling Form VII. V.5.a., b., 
and c.


VII. GENERAL CONDITIONS (continued)

The types of property subject to Actual Cash Value loss settlements are:

? A two-, three-, or four-family dwelling
? A unit that is not used exclusively for single-family dwelling purposes
? Detached garages
? Personal property
? Appliances, carpets, and carpet pads
? Outdoor awnings, outdoor antennas or aerials of any type, and other outdoor equipment
? Abandoned property that, after a loss, remains as debris at the described location
? A dwelling that is not the principal residence

Amount of Insurance Required. When the insured, agent, and/or adjuster calculates the amount 
of insurance required for a dwelling before the loss, the following building components will not be 
considered:

? Footings, foundations, piers, or any other structures or devices that are below the 
undersurface of the lowest basement floor and support all or part of the dwelling

? Supports listed above that are below the surface of the ground inside the foundation walls if 
there is no basement

? Excavations and underground flues, pipes, wiring, and drains

The ICC limit of liability is not included in the determination of the amount of insurance required.

VIII. LIBERALIZATION CLAUSE

This is similar to that in the homeowners policy. Liberalization with additional premium, such as 
ICC, does not fall into this category. The insured can choose the policy application that is most 
beneficial. The loss must be after the effective date of the liberalization.

IX. WHAT LAW GOVERNS

Federal law governs. This policy is not subject to state departments of insurance or state and local 
courts.

























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V-42



General Property Form



GENERAL PROPERTY FORM
 
 COMMENTARY


LIMITATIONS, RESTRICTIONS, AND EXCLUSIONS

The General Property Form does not provide coverage for:

? A residential condominium building
? A unit in a condominium building, except for personal property coverage

I. AGREEMENT

The insuring agreement states the following:

? The Standard Flood Insurance Policy (SFIP) is based upon the National Flood Insurance 
Act of 1968 and all amendments, and Title 44 of the Code of Federal Regulations (CFR).

? The insured must pay the correct premium to get the requested amount of coverage.

? The insured or the insureds representative must submit accurate information.

II. DEFINITIONS

Flood. Requires surface water inundation of normally dry land from any source, including 
mudflow (see mudflow definition). Two acres or two or more properties must be inundated.

Actual Cash Value. Replacement cost value of the property minus depreciation (does not 
include antique value).

Application. Part of the policy; the application paragraph states that the insured must pay 
the correct premium.


II. DEFINITIONS (continued)

Basement. Any area that is below the natural grade on all sides.

Building. A building must have at least two rigid walls and a roof. Liquid storage tanks and 
bubbles are not covered. Grain bins and silos are covered. Travel trailers without wheels and 
affixed to a permanent foundation are covered if regulated by local law.

Condominium. Ownership of real property in which each unit owner has an interest in the 
common elements.

Condominium Association. This policy does not cover homeowner associations. The adjuster 
must check the by-laws if there is a question.

Declarations Page. A summary of information provided by the policyholder on the insurance 
application. The adjuster must verify the accuracy of the building description, as this may affect 
coverage.

Described Location. Shown on the Declarations Page.

Direct Physical Loss By or From Flood. Floodwaters must touch the insured property with the 
exception of seepage/hydrostatic pressure.

Elevated Building. This definition requires space between ground level and the lowest floor.

Mudflow. A surface river of liquid and flowing mud. Other earth movements such as landslide, 
slope failure, or saturated soil moving by liquidity are not mudflows. (The word mudslide no 
longer is used in the SFIP.)

Pollutants. Testing for or monitoring of pollutants is not covered unless required by law.

Post-FIRM Building. Start of construction or substantial improvement after December 31, 
1974, or on or after the publication of the initial Flood Insurance Rate Map (FIRM), whichever is 
later.


II. DEFINITIONS (continued)

Special Flood Hazard Area (SFHA). All zones listed are SFHAs. However, the Post-FIRM 
coverage limitations apply only to Zones A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, 
AR/A1-A30, V1-V30, and VE.

Stock. Merchandise that is stored or for sale, raw materials, and in-process or finished goods, 
inclusive of supplies used for their packing and shipping, are covered. However, coverage is not 
provided for property listed in General Property Form IV. Property Not Covered, with the 
exception of the following:

? Parts and equipment for self-propelled vehicles
? Furnishings and equipment for watercraft
? Spas and hot tubs, including their equipment 
? Swimming pool equipment

Valued Policy. This is not a valued policy, in any state.

III. PROPERTY COVERED

COVERAGE A  BUILDING PROPERTY

If the insured building is a condominium building in the name of the condominium association, 
coverage is provided for all units and the improvements, if the units are owned in common by all 
unit owners.

Additions that are attached to and in contact with the risk by a rigid exterior wall, a solid load-
bearing interior wall, a stairway, an elevated walkway, or a roof are covered.

A solid load-bearing interior wall cannot have any openings and must not provide access from 
one building or room into another (partial walls). If access is available through a doorway or 
opening, then the structure must be insured as one building. Other provisions are:

? At the insureds option, the additions and extensions may be insured separately. 
? A common interior wall that is not solid or load bearing necessitates one policy.

Fixtures, Machinery, and Equipment. The items in this list (General Property Form III. Prop-
erty Covered, A. Coverage A  Building Property, 4.) are defined as building property and 
cannot be paid under contents coverage. The list of items in Paragraph 4 is not exclusive. If 
there are other items that fit this coverage, they can be included.



III. PROPERTY COVERED (continued)

COVERAGE A  BUILDING PROPERTY (continued)

Materials and Supplies. Those used to alter, repair, or construct the insured building must be 
in a fully enclosed building at the property address or an adjacent property.

Building Under Construction. The deductible is doubled (see General Property Form VI. 
Deductibles, second paragraph of provision A.) and, if there is no work on the building for a 
period of 90 continuous days, coverage ceases until such time as work is resumed. Coverage is 
provided for those items that will become part of the finished building.  For example, rebar, 
footings, and concrete walls that will become part of the finished building are covered.  There is 
no coverage for the forms used to retain the concrete. There is no coverage for a building under 
construction before it is walled and roofed when the building is Post-FIRM and the basement 
floor or lowest elevated floor is below Base Flood Elevation in any of Zones AH, AE, A1-A30, 
AR, AR/AE, AR/AH, AR/A1-A30, AR/A, or AR/AO, or below Base Flood Elevation adjusted for 
wave action in any of Zones VE or V1-V30.

COVERAGE B  PERSONAL PROPERTY

Contents owned solely by the insured or by a condominium are covered.

Contents are covered while stored in the building. Flotation of contents out of a building that has 
fewer than four rigid walls is not covered.

The items listed in General Property Form III.B.3., Dwelling Form III.B.2., and RCBAP III.B.2. are 
considered personal property and cannot be paid under building coverage.

The items listed in General Property Form III.B.4., when installed beneath the lowest elevated 
floor of an elevated Post-FIRM building or in the basement, are considered personal property 
items.  They cannot be paid under building coverage.  Also see Dwelling Form III.B.3. and 
RCBAP III.B.3.



III. PROPERTY COVERED (continued)

COVERAGE B  PERSONAL PROPERTY (continued)

Coverage is extended for either household contents or commercial contents. The policy will not 
respond to both. Commercial contents coverage is subject to all limitations and exclusions of this 
policy. The policy does not cover any types of stock listed in General Property Form IV. Property 
Not Covered, except those specifically mentioned in the definition of stock. The list of items in 
Paragraph 2.b. is not exclusive. If there are other items that fit this coverage, they can be 
included.

B.2.b.(3) Stock. Spas and hot tubs, including their equipment, are covered if held in storage or for 
sale.  Refer to II. Definitions, 27, for covered items inside the described location.

Special Limits. A total of $2,500 is the maximum payment allowed for artwork, rare books, 
jewelry, furs, or any article containing fur, which represents its principal value, as well as 
personal property used in any business. This maximum payment also extends to the following:

? Photographs
? Collectibles
? Memorabilia
? Porcelain or other figures; sports cards
? Autographed items
? Watches
? Precious and semiprecious stones
? Articles of gold, silver, or platinu


These special limits apply even if the items are stock. Personal property is defined as either 
household personal property or other than household personal property, while within the insured 
building, but not both. Confusion arose when a jewelry store sustained a loss to its stock and 
items. The question was whether the $2,500 limit applies to stock that is not personal property (an 
item owned individually).

Antiques. Coverage is provided only for the functional value of antiques.

 Improvements. For tenant-occupied properties, the tenant may apply up to 10 percent of the 
limit of liability for personal property to tenant-installed improvements. This includes items that 
the insured purchased and that are permanently installed and considered part of the building.
 
Interior Walls, Floors, and Ceilings. If the policyholder is a condominium unit owner and has 
insured personal property under Coverage B, the units interior walls, floors, and ceilings (not 
otherwise covered under a flood insurance policy purchased by the condominium association) are 
covered for up to 10 percent of the limit of liability shown for personal property on the Declarations 
Page. The use of this insurance is at the insureds option but reduces the personal property limit 
of liability. The 10 percent coverage cannot be applied and no coverage is available if the RCBAP 
or a combination of coverages pays the statutory limit.

 COVERAGE C  OTHER COVERAGES
 
 Debris Removal. Insured property means property we insurei.e., the described building and 
covered contents. The described premises includes the lot, which is not covered.
 
 Coverage extends to insured property anywhere and to non-owned debris from beyond the 
insured premises or on or in the insured property. Non-covered items such as contents in a 
basement are excluded from debris removal coverage.

 

 III. PROPERTY COVERED (continued)
 
COVERAGE C  OTHER COVERAGES (continued)

Loss Mitigation. Expenses are covered up to $1,000 per measure; no deductible applies. Loss 
mitigation measures are described below.

a. Sandbags, Supplies, and Labor
? Sandbags, including sand
? Fill for temporary levees
? Pumps
? Plastic sheeting and lumber used in connection with these items
? Labor (Members of family can be paid for labor at the federal minimum wage.)

This coverage applies only under Coverage A  Building Property.

b.	Property Removed to Safety. A maximum of $1,000 can be paid to move insured property 
to another place other than the described location above ground or outside the SFHA to 
preserve it from flood. If the property removed is a manufactured (mobile) home or travel 
trailer, coverage extends to it for 45 days even if it is not on a foundation. This coverage can 
be used for building, contents, or both; but the total of building and contents payments 
cannot exceed $1,000.

Other provisions regarding property removed to safety are:

? Contents must be placed in a fully enclosed building or otherwise reasonably protected 
and moved temporarily away from the peril of flood.

? Coverage extends for 45 days at another place.

? No deductible applies.

 Removed property is covered for damage by flood only. Any property removed, including a 
moveable home described in General Property Form II.B.6.b. and c., must be placed above 
ground level at a location other than the described location or outside of the SFHA. See 
Dwelling Form III.C.2.b. and RCBAP III.C.2.b.
 
 Pollution Expenses. Damages to insured property caused by pollutants are covered if the 
discharge, seepage, migration, release, or escape of the pollutants is caused by flood. The 
maximum allowed under this coverage is $10,000. Testing for or monitoring of pollutants is 
excluded unless required by law or ordinance. This is not an additional amount of insurance.
 
 COVERAGE D  INCREASED COST OF COMPLIANCE
 
 The limit of liability for Increased Cost of Compliance (ICC) coverage was raised to $30,000 on 
May 1, 2003. Any flood loss incurred prior to May 2003 will be adjusted according to the 
previous limit of $20,000.
 
 ICC coverage is used for floodproofing, demolition, elevation, or relocation of the structure, or a 
combination of these. It is an additional amount of insurance above building limits of liability, but 
we cannot pay more than the law allows ($250,000 dwelling and $500,000 commercial).
 
 For further information about ICC coverage, see Section VI. of this manual. Subsection VI.D.3. 
specifically addresses assignment of Coverage D by the policyholder to the community

 
 
 
 
 
 
 
 
 

 III. PROPERTY COVERED (continued)

 COVERAGE D  INCREASED COST OF COMPLIANCE (continued)

Structures that are in an SFHA and are declared by the local community to be substantially flood-
damaged by 50 percent of their market value are eligible. An ICC claim must not be opened until 
the local official has declared in writing that the structure is substantially damaged.
 
On ICC claims for structures in B, C, X, D, unnumbered A and V, and A99 zones, the adjuster 
needs to obtain a written statement explaining why the local official is requiring an ICC activity.
 
For communities that have cumulative damage language in their ordinance, the building must 
have sustained two losses in 10 years, averaging 25 percent. The adjuster must verify that the 
community has such language in the ordinance. The adjuster must also verify that NFIP claim 
payments were issued to the insured for both qualifying losses.

 

 III. PROPERTY COVERED (continued)

 COVERAGE D  INCREASED COST OF COMPLIANCE (continued)

Under ICC, even if a local ordinance or law requires the testing, monitoring, clean-up, removal, 
containment, treatment, detoxification, or neutralization of pollutants, there is no coverage.

The 2-year limit for completing an ICC claim begins on the date of the declaration by the local 
community official that the insured structure has been substantially damaged by flood. This means 
that the 2-year period referenced in paragraph 5.e.(2) begins on that date.

The two conditions in Paragraph 5.e. refer to the total payment of an ICC claim. Partial payments 
of ICC claims are permitted. Partial payments may be issued before completion of the mitigation 
activity but cannot exceed 50 percent of the estimated reimbursable cost of the mitigation activity.

The adjuster must complete the Adjuster Preliminary Damage Assessment form on a daily basis 
as needed and fax it to the NFIP Bureau and Statistical Agents Claims Department at 1-800-457-
4232.

IV. PROPERTY NOT COVERED

Building or Personal Property Entirely in, on, or over Water or Seaward of Mean High Tide. 
No coverage is provided if the building was constructed or substantially improved after 
September 30,1982.

Recreational Vehicles. Excluded from coverage except travel trailers defined in General 
Property Form II.B.6.c.

Self-Propelled Vehicles or Machines. Excluded except those used to service the described 
location or designed and used to assist handicapped persons. The vehicles or machines must 
be located inside the building at the described location.


IV. PROPERTY NOT COVERED (continued)

Land, Land Values, Lawns, Trees, Shrubs, Plants, Growing Crops, or Animals. Animals 
are specifically excluded from coverage by the provision in General Property Form IV.6 (also 
Dwelling Form IV.6 and Residential Condominium Building Association Policy IV.6). This 
exclusion applies to live bait, such as worms or minnows, sold in fishing tackle shops.

Containers. Fuel tanks and well water tanks are not covered outside a basement, elevated 
building enclosure, or the insured building. Tanks containing other liquids or gases are not 
covered.

Swimming Pools, Hot Tubs, and Spas. These and their equipment are not covered, except 
that spas and hot tubs are covered if they are bathroom fixtures or stock and inventory held for 
sale.

Coastal Barrier Resources Act (CBRA). It is the adjusters responsibility not to recommend 
payment for buildings and their contents made ineligible by CBRA legislation, as it is against the 
law to insure such buildings. These should be referred to Underwriting for a coverage 
determination.

V. EXCLUSIONS

Loss of Revenue or Profit, Loss of Access, Loss of Use, Business Interruption, and 
Additional Living Expenses. We will not pay for these. Coverage is not provided for the cost of 
complying with any ordinance or law except those described in D. Coverage D  Increased Cost 
of Compliance and C. Coverage C  Other Coverages, 3. Pollution Damage.

Loss in Progress. Not covered (Paragraph B.).

Single Peril. Paragraph C. makes it clear that this is a single-peril policy. Earth movement 
caused by flood is excluded. This includes but is not limited to earthquake, landslide, land 
subsidence, sinkholes, destabilization, or movement of land resulting from the accumulation of 
water in subsurface land areas, and gradual erosion.

Land subsidence is covered if it is caused by erosion as specified in the definition of flood (see 
General Property Form II.A.2.).


V. EXCLUSIONS (continued)

Water, Moisture, Mildew, or Mold Damage. Not covered when caused by a condition 
substantially confined to the building, or within the insureds control, which includes design, 
structural, or mechanical defects; failure, stoppage, or breakage of water or sewer lines, drains, 
pumps, fixtures, or equipment; or the insureds failure to adequately inspect and maintain the 
property after the flood waters recede. (For additional information about mold damage, see 
Subsection VIII.C'. of this manual.)

Water or Waterborne Materials. Damage from water or waterborne materials that cause sewers 
or drains to back up, including the discharge or overflow of water from a sump, sump pump, or 
any related equipment, or seeps or leaks on or through insured property, is not covered. However, 
if there is a general and temporary condition of flooding in the area and the flood is the proximate 
cause of the sewer, drain, or sump pump back-up and is the proximate cause of the seepage of 
water, then coverage is provided.

Other Water Damage. Damage to the covered property from a roof leak or wind-driven rain is not 
covered.

Power Failure. Only losses resulting from power, heating, or cooling equipment failure, if the 
failure was caused by flood and the failing equipment was located on the described location, are 
covered. Power failures occurring off the described location due to flood and causing damage to 
insured heating or cooling equipment or any other insured property are not covered. If the power 
is intentionally turned off by the insured, there is no coverage.

Note: Federal government lease exclusion.

VI. DEDUCTIBLES

The deductible is doubled for a building under construction. (Per General Property Form 
III.A.6.a.(2), if there is no work on the building for a period of 90 continuous days, coverage 
ceases until such time as work is resumed.)

As in the past, there are separate deductibles for the structure and personal property ranging from 
$500 to $5,000. Effective May 1, 2003, higher deductibles of $10,000 to $50,000 became 
available for nonresidential policies only.

VII. GENERAL CONDITIONS

Pairs and Sets. We pay for the one item damaged, or the fair proportion of the value of the pair or 
set.


VII. GENERAL CONDITIONS (continued)

Concealment or Fraud and Policy Voidance. This and any other NFIP flood policy can be 
voided if the insured commits fraud. The adjuster must report to the insurer any discrepancies on 
the Narrative Report form. If there is a misrating, this needs to be corrected and the correct 
premium paid before the claim can be settled. The necessary premium must be paid in order for 
the requested limits of liability to be applicable.

Other Insurance. This policy is primary over all other policies that clearly state they are excess. If 
the other policy does not state it is excess, this policy is primary up to the other policys deductible, 
subject to this policys deductible; once our payment reaches the other deductible amount, the 
coverage becomes pro-rata. (See examples in Section VII. of this manual, Basic Adjustment 
Issues, following.)

Nonrenewal of the Policy by Us. The policy will not be renewed if the community in which the 
insured property is located stops participating in the NFIP or if the building has been declared 
ineligible under Section 1316 of the National Flood Insurance Act of 1968, as amended.

Reduction and Reformation of Coverage. The coverage amounts will be reduced if it is 
discovered that the premium was insufficient; if the amount of additional premium can be 
determined, the insured has 30 days to pay the additional premium.



VII. GENERAL CONDITIONS (continued)

Policy Renewal. The policy expires at 12:01 a.m. on the final day of the policy term. For renewal, 
premium must be received within 30 days of the expiration date


VII. GENERAL CONDITIONS (continued)

Requirements in Case of Loss. Claims should be investigated under a Reservation of Rights or 
Non-Waiver Agreement if the insured does not comply with Paragraphs J.1. through 9.


VII. GENERAL CONDITIONS (continued)

Bailee Goods. No coverage.

Loss Payment. The adjuster needs to be prompt in reporting the investigation, as the insurer 
has only 60 days from the date of receiving the insureds Proof of Loss to pay the claim, or within 
90 days after the adjuster files a report that is signed and sworn to by the insured in lieu of the 
Proof of Loss. If the Proof of Loss is rejected in whole or in part or a new supplemental Proof of 
Loss is filed, it must be submitted and received within 60 days of the date of loss. Only FEMA has 
the authority to waive or extend the filing deadline.

Salvage. The insured has the option to keep damaged property after a flood, and the adjuster will 
reduce the amount of the loss proceeds payable to the insured.

Appraisal. The appraisal clause is much like that in the homeowners policy. There is no 
appraisal for coverage issues. The appraisal clause applies if the insured and adjuster fail to 
agree on the actual cash value or replacement cost of the damaged property, whichever is 
appropriate. In the event that the two appraisers appointed by the insured and insurer cannot 
agree, they should submit only their differences to an umpire.

Mortgage Clause. We will protect the interest of any listed mortgagee or any mortgagee 
discovered during the investigation.

Suit Against Us. The insured must file suit in federal court within 12 months from the date the 
denial letter was mailed.


VII. GENERAL CONDITIONS (continued)

Subrogation. The insureds right to recover for a loss in part or in whole for damages caused by 
someone else is transferred to the insurer if the loss is paid under the Standard Flood Insurance 
Policy.

Continuous Lake Flooding. The structure must be inundated by lake water for 90 continuous 
days, and it must be reasonably certain that the continuation of this flooding will result in damage 
equal to or greater than policy limits, or the ACV or RCV, as applicable. If it is not reasonably 
certain that the flooding will cause a total loss, then we will pay only for the actual damage up to 
the waterline. (See Section VIII. of this manual, Special Adjustment Issues, for more information 
about continuous lake flooding.)

Closed Basin Lakes. A closed basin lake is a natural lake from which water leaves primarily 
through evaporation, and whose surface area now exceeds or has exceeded 1 square mile at any 
time in the past. If an insured building is subject to continuous closed basin lake flooding, a total 
loss claim can be paid if lake floodwaters damage or imminently threaten to damage the building, 
and an eventual total loss appears likely.

Special reporting procedures apply to ICC claims and closed basin lake claims. Notify the NFIP 
Bureau and Statistical Agent upon receipt of either type of claim.


VII. GENERAL CONDITIONS (continued)

Duplicate Policies Not Allowed. If the insured has two policies on the same property, the 
insured may choose to keep either policy. However, if the insured wishes to combine coverage 
limits, the effective date of the policy will be that of the later of the two policies issued.

Loss Settlement. Under the General Property Form, building and contents claims can be settled 
on an Actual Cash Value basis, or the adjuster can estimate the cost to repair or replace the 
property with material of like kind and quality.





VIII. LIBERALIZATION CLAUSE

This is similar to that in the homeowners policy. Liberalization with additional premium, such as 
ICC, does not fall into this category. The insured can choose the policy application that is most 
beneficial. The loss must be after the effective date of the liberalization.

IX. WHAT LAW GOVERNS

Federal law governs. This policy is not subject to state departments of insurance or state and local 
courts.
























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Residential Condominium Building 
Association Policy



RESIDENTIAL CONDOMINIUM BUILDING 
ASSOCIATION POLICY

COMMENTARY


LIMITATIONS, RESTRICTIONS, AND EXCLUSIONS

The Residential Condominium Building Association Policy covers only a residential 
condominium building in a Regular Program community.

I. AGREEMENT

The insuring agreement states the following:

? The Standard Flood Insurance Policy (SFIP) is based upon the National Flood Insurance 
Act of 1968 and all amendments, and Title 44 of the Code of Federal Regulations (CFR).

? The insured must pay the correct premium to get the requested amount of coverage.

? The insured or the insureds representative must submit accurate information.

II. DEFINITIONS

Flood. Requires surface water inundation of normally dry land from any source, including 
mudflow (see mudflow definition). Two acres or two or more properties must be inundated.

Actual Cash Value. Replacement cost value of the property minus depreciation (does not 
include antique value).

Application. Part of the policy; the application paragraph states that the insured must pay 
the correct premium.


II. DEFINITIONS (continued)

Basement. Any area that is below the natural grade on all sides.

Building. A building must have at least two rigid walls and a roof. Liquid storage tanks and 
bubbles are not covered. Grain bins and silos are covered. Travel trailers without wheels and 
affixed to a permanent foundation are covered if regulated by local law.

Condominium. Ownership of real property in which each unit owner has an interest in the 
common elements.

Condominium Association. The association is comprised of unit owners who are responsible 
for the maintenance and operation of the common elements owned by the unit owners and 
other real property. This policy does not cover homeowner associations. The adjuster must 
check the by-laws if there is a question.

Declarations Page. A summary of information provided by the policyholder on the insurance 
application. The adjuster must verify the accuracy of the building description, as this may affect 
coverage.

Described Location. Shown on the Declarations Page.

Direct Physical Loss By or From Flood. Floodwaters must touch the insured property with 
the exception of seepage/hydrostatic pressure.

Elevated Building. This definition requires space between ground level and the lowest floor.

Mudflow. A surface river of liquid and flowing mud. Other earth movements such as landslide, 
slope failure, or saturated soil moving by liquidity are not mudflows. (The word mudslide no 
longer is used in the SFIP.)

Pollutants. Testing for or monitoring of pollutants is not covered unless required by law.


II. DEFINITIONS (continued)

Post-FIRM Building. Start of construction or substantial improvement after December 31, 
1974, or on or after the publication of the initial Flood Insurance Rate Map (FIRM), whichever is 
later.

Special Flood Hazard Area (SFHA). All zones listed are SFHAs. However, the Post-FIRM 
coverage limitations apply only to Zones A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, 
AR/A1-A30, V1-V30, and VE.

Valued Policy. This is not a valued policy, in any state.

III. PROPERTY COVERED

 COVERAGE A  BUILDING PROPERTY

This policy covers only a residential condominium building including the units within the building 
and the improvements within the units.

Additions that are attached to and in contact with the risk by a rigid exterior wall, a solid load-
bearing interior wall, a stairway, an elevated walkway, or a roof are covered.

A solid load-bearing interior wall cannot have any openings and must not provide access from 
one building or room into another (partial walls). If access is available through a doorway or 
opening, then the structure must be insured as one building. Other provisions are:

? At the insureds option, the additions and extensions may be insured separately.
? A common interior wall that is not solid or load bearing necessitates one policy.

Fixtures, Machinery, and Equipment. The items in this list (RCBAP III. Property Covered, 
A. Coverage A  Building Property, 4.) are defined as building property and cannot be paid 
under contents coverage. The list of items in Paragraph 4 is not exclusive. If there are other 
items that fit this coverage, they can be included.

Materials and Supplies. Those used to alter, repair, or construct the insured building must be 
in a fully enclosed building at the property address or an adjacent property.

Building Under Construction. The deductible is doubled (see RCBAP VI. Deductibles, second 
paragraph of provision A.) and, if there is no work on the building for a period of 90 continuous 
days, coverage ceases until such time as work is resumed. Coverage is provided for those 
items that will become part of the finished building. For example, rebar, footings, and concrete 
walls that will become part of the finished building are covered. There is no coverage for the 
forms used to retain the concrete. There is no coverage for a building under construction before 
it is walled and roofed when the building is Post-FIRM and the basement floor or lowest 
elevated floor is below Base Flood Elevation in any of Zones AH, AE, A1-A30, AR, AR/AE, 
AR/AH, AR/A1-A30, AR/A, or AR/AO, or below Base Flood Elevation adjusted for wave action 
in any of Zones VE or V1-V30.


III. PROPERTY COVERED (continued)

COVERAGE B  PERSONAL PROPERTY

Contents coverage must be purchased separately, and a separate deductible is applied.

Contents must be owned by the unit owner who has ownership interest, or be owned solely by 
the condominium association and used exclusively for the associations business.

Contents are covered while stored in the enclosed building at the property address. Flotation of 
contents out of a building that has fewer than four rigid walls is not covered.

Read RCBAP III.C.2.b. Property Removed to Safety.

The policy lists items that must always be considered contents (RCBAP III.B.2.). The policy also 
lists contents items covered in a basement or beneath the lowest elevated floor of a Post-FIRM 
elevated building (RCBAP III.B.3.).


III. PROPERTY COVERED (continued)

COVERAGE B  PERSONAL PROPERTY (continued)

Special Limits. A total of $2,500 is the maximum payment allowed for artwork, rare books, 
jewelry, furs, or any article containing fur, which represents its principal value. This maximum 
payment also extends to the following:

? Photographs
? Collectibles
? Memorabilia
? Porcelain or other figures and sports cards
? Autographed items
? Watches
? Precious and semiprecious stones
? Articles of gold, silver, or platinum

Antiques. Coverage is provided only for the functional value of antiques.

COVERAGE C  OTHER COVERAGES

Debris Removal. Insured property means property we insurei.e., the described building and 
covered contents. The described premises includes the lot, which is not covered.

Coverage extends to insured property anywhere and to non-owned debris from beyond the 
insured premises or on or in the insured property. Non-covered items such as contents in a 
basement are excluded from debris removal coverage.

Loss Mitigation. Expenses are covered up to $1,000 per measure; no deductible applies. Loss 
mitigation measures are described below.

a.	Sandbags, Supplies, and Labor

? Sandbags, including sand
? Fill for temporary levees
? Pumps
? Plastic sheeting and lumber used in connection with these items
? Labor (Members of family can be paid for labor at the federal minimum wage.)

This coverage applies only under Coverage A  Building Property.

b.	Property Removed to Safety. A maximum of $1,000 can be paid to move insured property 
to another place other than the described location above ground or outside the SFHA to 
preserve it from flood. If the property removed is a manufactured (mobile) home or travel 
trailer, coverage extends to it for 45 days even if it is not on a foundation. This coverage can 
be used for building, contents, or both; but the total of building and contents payments 
cannot exceed $1,000.




III. PROPERTY COVERED (continued)

COVERAGE C  OTHER COVERAGES (continued)

Other provisions regarding property removed to safety are:

? Contents must be placed in a fully enclosed building or otherwise reasonably protected 
and moved temporarily away from the peril of flood.

? Coverage extends for 45 days at another place.

? No deductible applies.

Removed property is covered for damage by flood only. Any property removed, including a 
moveable home described in RCBAP II.B.6.b. and c., must be placed above ground level at 
a location other than the described location or outside of the SFHA. See Dwelling Form 
III.C.2.b. and General Property Form III.C.2.b.

COVERAGE D  INCREASED COST OF COMPLIANCE

The limit of liability for Increased Cost of Compliance (ICC) coverage was raised to $30,000 on 
May 1, 2003. Any flood loss incurred prior to May 2003 will be adjusted according to the 
previous limit of $20,000.

ICC coverage is used for floodproofing, demolition, elevation, or relocation of the structure, or a 
combination of these. It is an additional amount of insurance above building limits of liability, but 
we cannot pay more than the law allows.

Structures that are in an SFHA and are declared by the local community to be substantially flood-
damaged by 50 percent of their market value are eligible. An ICC claim must not be opened until 
the local official has declared in writing that the structure is substantially damaged.

On ICC claims for structures in B, C, X, D, unnumbered A and V, and A99 zones, the adjuster 
needs to obtain a written statement explaining why the local official is requiring an ICC activity.

For communities that have cumulative damage language in their ordinance, the building must 
have sustained two losses in 10 years, averaging 25 percent. The adjuster must verify that the 
community has such language in the ordinance. The adjuster must also verify that NFIP claim 
payments were issued to the insured for both qualifying losses.


III. PROPERTY COVERED (continued)

COVERAGE D  INCREASED COST OF COMPLIANCE (continued)

Under ICC, even if a local ordinance or law requires the testing, monitoring, clean-up, removal, 
containment, treatment, detoxification, or neutralization of pollutants, there is no coverage.

The 2-year limit for completing an ICC claim begins on the date of the declaration by the local 
community official that the insured structure has been substantially damaged by flood. This 
means that the 2-year period referenced in paragraph 5.e.(2) begins on that date.

The two conditions in Paragraph 5.e. refer to the total payment of an ICC claim. Partial payments 
of ICC claims are permitted. Partial payments may be issued before completion of the mitigation 
activity but cannot exceed 50 percent of the estimated reimbursable cost of the mitigation activity.

The adjuster must complete the Adjuster Preliminary Damage Assessment form on a daily basis 
as needed and fax it to the NFIP Bureau and Statistical Agents Claims Department at 1-800-457-
4232.


IV. PROPERTY NOT COVERED

Building or Personal Property Entirely in, on, or over Water or Seaward of Mean High Tide. 
No coverage is provided if the building was constructed or substantially improved after 
September 30,1982.

Recreational Vehicles. Excluded from coverage except travel trailers defined in RCBAP 
II.B.6.c.

Self-Propelled Vehicles or Machines. Excluded except those used to service the described 
location or designed and used to assist handicapped persons. The vehicles or machines must 
be located inside the building at the described location.

Land, Land Values, Lawns, Trees, Shrubs, Plants, Growing Crops, or Animals. Animals 
are specifically excluded from coverage by the provision in RCBAP IV.6 (also Dwelling Form 
IV.6 and General Property Form IV.6). This exclusion applies to live bait, such as worms or 
minnows, sold in fishing tackle shops.

Containers. Fuel tanks and well water tanks are not covered outside a basement, elevated 
building enclosure, or the insured building. Tanks containing other liquids or gases are not 
covered.

Swimming Pools, Hot Tubs, and Spas. These and their equipment are not covered, except 
that spas and hot tubs are covered if they are bathroom fixtures.

Coastal Barrier Resources Act (CBRA). It is the adjusters responsibility not to recommend 
payment for buildings and their contents made ineligible by CBRA legislation, as it is against the 
law to insure such buildings. These should be referred to Underwriting for a coverage 
determination.

V. EXCLUSIONS

Loss of Revenue or Profit, Loss of Access, Loss of Use, Business Interruption, and 
Additional Living Expenses. We will not pay for these


V. EXCLUSIONS (continued)

Coverage is not provided for the cost of complying with any ordinance or law except those 
described in D. Coverage D  Increased Cost of Compliance.

Loss in Progress. Not covered (Paragraph B.).

Single Peril. Paragraph C. makes it clear that this is a single-peril policy. Earth movement 
caused by flood is excluded. This includes but is not limited to earthquake, landslide, land 
subsidence, sinkholes, destabilization, or movement of land resulting from the accumulation of 
water in subsurface land areas, and gradual erosion.

Land subsidence is covered if it is caused by erosion as specified in the definition of flood (see 
RCBAP II.A.2.).

Water, Moisture, Mildew, or Mold Damage. Not covered when caused by a condition 
substantially confined to the building, or within the insureds control, which includes design, 
structural, or mechanical defects; failure, stoppage, or breakage of water or sewer lines, drains, 
pumps, fixtures, or equipment; or the insureds failure to adequately inspect and maintain the 
property after the flood waters recede. (For additional information about mold damage, see 
Subsection VIII.C'. of this manual.)

Water or Waterborne Materials. Damage from water or waterborne materials that cause sewers 
or drains to back up, including the discharge or overflow of water from a sump, sump pump, or 
any related equipment, or seeps or leaks on or through insured property, is not covered. However, 
if there is a general and temporary condition of flooding in the area and the flood is the proximate 
cause of the sewer, drain, or sump pump back-up and is the proximate cause of the seepage of 
water, then coverage is provided.

Other Water Damage. Damage to the covered property from a roof leak or wind-driven rain is not 
covered.

Power Failure. Only losses resulting from power, heating, or cooling equipment failure, if the 
failure was caused by flood and the failing equipment was located on the described location, are 
covered. Power failures occurring off the described location due to flood and causing damage to 
insured heating or cooling equipment or any other insured property are not covered. If the power 
is intentionally turned off by the insured, there is no coverage.

Note: Federal government lease exclusion.

Pollutants. Testing for or monitoring of pollutants is not covered unless required by law.

VI. DEDUCTIBLES

The deductible is doubled for a building under construction. (Per RCBAP III.A.6.a.(2), if there is 
no work on the building for a period of 90 continuous days, coverage ceases until such time as 
work is resumed.)


VI. DEDUCTIBLES (continued)

As in the past, there are separate deductibles for the structure and personal property ranging from 
$500 to $5,000. Effective May 1, 2003, higher deductibles of $10,000 and $25,000 became 
available.

VII. COINSURANCE

Coinsurance is applied only to the building portion of the claim.

We will reduce any loss payment unless the amount of insurance applicable to the damaged 
building is the lesser of:

? At least 80 percent of its replacement cost; or
? The maximum amount of insurance available for that building under the RCBAP.


VIII. GENERAL CONDITIONS

Pairs and Sets. We pay for the one item damaged, or the fair proportion of the value of the pair 
or set.

Concealment or Fraud and Policy Voidance. This and any other NFIP flood policy can be 
voided if the insured commits fraud. The adjuster must report to the insurer any discrepancies on 
the Narrative Report form. If there is a misrating, this needs to be corrected and the correct 
premium paid before the claim can be settled. The necessary premium must be paid in order for 
the requested limits of liability to be applicable.

Other Insurance. This policy is primary over all other policies that clearly state they are excess. If 
the other policy does not state it is excess, this policy is primary up to the other policys deductible, 
subject to this policys deductible; once our payment reaches the other deductible amount, the 
coverage becomes pro-rata. (See examples in Section VII. of this manual, Basic Adjustment 
Issues, following.)


VIII. GENERAL CONDITIONS (continued)

Nonrenewal of the Policy by Us. The policy will not be renewed if the community in which the 
insured property is located stops participating in the NFIP or if the building has been declared 
ineligible under Section 1316 of the National Flood Insurance Act of 1968, as amended.

Reduction and Reformation of Coverage. The coverage amounts will be reduced if it is 
discovered that the premium was insufficient; if the amount of additional premium can be 
determined, the insured has 30 days to pay the additional premium.



VIII. GENERAL CONDITIONS (continued)

Requirements in Case of Loss. Claims should be investigated under a Reservation of Rights or 
Non-Waiver Agreement if the insured does not comply with Paragraphs J.1. through 9.


VIII. GENERAL CONDITIONS (continued)

Bailee Goods. No coverage.

Loss Payment. The adjuster needs to be prompt in reporting the investigation, as the insurer has 
only 60 days from the date of receiving the insureds Proof of Loss to pay the claim, or within 90 
days after the adjuster files a report that is signed and sworn to by the insured in lieu of the Proof 
of Loss. If the Proof of Loss is rejected in whole or in part or a new supplemental Proof of Loss is 
filed, it must be submitted and received within 60 days of the date of loss. Only FEMA has the 
authority to waive or extend the filing deadline.

Salvage. The insured has the option to keep damaged property after a flood, and the adjuster will 
reduce the amount of the loss proceeds payable to the insured.

Appraisal. The appraisal clause is much like that in the homeowners policy. There is no appraisal 
for coverage issues. The appraisal clause applies if the insured and adjuster fail to agree on the 
actual cash value or replacement cost of the damaged property, whichever is appropriate. In the 
event that the two appraisers appointed by the insured and insurer cannot agree, they should 
submit only their differences to an umpire.

Mortgage Clause. We will protect the interest of any listed mortgagee or any mortgagee 
discovered during the investigation


VIII. GENERAL CONDITIONS (continued)

Suit Against Us. The insured must file suit in federal court within 12 months from the date the 
denial letter was mailed.

Subrogation. The insureds right to recover for a loss in part or in whole for damages caused by 
someone else is transferred to the insurer if the loss is paid under the Standard Flood Insurance 
Policy.

Continuous Lake Flooding. The structure must be inundated by lake water for 90 continuous 
days, and it must be reasonably certain that the continuation of this flooding will result in 
damage equal to or greater than policy limits, or the ACV or RCV, as applicable. If it is not 
reasonably certain that the flooding will cause a total loss, then we will pay only for the actual 
damage up to the waterline. (See Section VIII. of this manual, Special Adjustment Issues, for 
more information about continuous lake flooding.)

Closed Basin Lakes. A closed basin lake is a natural lake from which water leaves primarily 
through evaporation, and whose surface area now exceeds or has exceeded 1 square mile at any 
time in the past. If an insured building is subject to continuous closed basin lake flooding, a total 
loss claim can be paid if lake flood waters damage or imminently threaten to damage the building 
and an eventual total loss appears likely.

Special reporting procedures apply to ICC claims and closed basin lake claims. Notify the NFIP 
Bureau and Statistical Agent upon receipt of either type of claim.


VIII. GENERAL CONDITIONS (continued)

Duplicate Policies Not Allowed. If the insured has two policies on the same property, the 
insured may choose to keep either policy. However, if the insured wishes to combine coverage 
limits, the effective date of the policy will be that of the later of the two policies purchased.


VIII. GENERAL CONDITIONS (continued)

Loss Settlement. There are three methods to settle a loss under the Residential Condominium 
Building Association Policy:

? Replacement Cost
? Special Loss Settlement
? Actual Cash Value

Replacement Cost. The insured residence must be the principal residence, meaning that, at 
the time of loss, the insured lived there for at least 80 percent of the preceding 365 days, or 
80 percent of the period of ownership if less than 365 days. Replacement cost applies if the 
building is insured to 80 percent or more of its full replacement cost before a loss occurs, or if the 
maximum amount of insurance is purchased.

Special Loss Settlement. If the residential condominium building is a manufactured (mobile) 
home or travel trailer, is at least 16 feet wide, and has an area of at least 600 square feet within its 
walls, then the loss will be settled on a Replacement Cost basis. If a single-family dwelling that is a 
manufactured (mobile) home or travel trailer is a total loss or is not economically feasible to repair, 
then the adjustment of the property will be the lesser of:

? The replacement cost of the dwelling or 1.5 times the actual cash value, or
? The building limit of liability.

If we determine that the building is repairable, the loss will be settled according to the 
Replacement Cost conditions stated in Paragraph VIII.V.2.

Actual Cash Value. The types of property that are subject to Actual Cash Value Loss Settlement 
are:
 
? The insureds personal property
? Abandoned property that, after a loss, remains as debris at the described location
? Outside antennas and aerials, awnings, and other outdoor equipment
? Carpeting and pads
? Appliances
? A manufactured (mobile) home or travel trailer that is not at least 16 feet wide or does not 
have an area of at least 600 square feet within its walls


IX. LIBERALIZATION CLAUSE

This is similar to that in the homeowners policy. Liberalization with additional premium, such as 
ICC, does not fall into this category. The insured can choose the policy application that is most 
beneficial. The loss must be after the effective date of the liberalization.

X. WHAT LAW GOVERNS

Federal law governs. This policy is not subject to state departments of insurance or state and local 
courts.



V-79

RCBAP	V-80	Change 1, 1/1/04

RCBAP COMMENTARY	V-81
RCBAP	V-82
RCBAP COMMENTARY	V-83
RCBAP	V-84
RCBAP COMMENTARY	V-85	Change 1, 1/1/04
RCBAP	V-86
RCBAP COMMENTARY	V-87
RCBAP	V-88

RCBAP COMMENTARY	V-89	Change 1, 1/1/04
RCBAP	V-90	Change 1, 1/1/04
RCBAP COMMENTARY	V-91	Change 1, 1/1/04
RCBAP	V-92
RCBAP COMMENTARY	V-93	Change 1, 1/1/04
RCBAP	V-94
RCBAP COMMENTARY	V-95	Change 1, 1/1/04
RCBAP	V-96
RCBAP COMMENTARY	V-97	Change 1, 1/1/04
RCBAP	V-98
RCBAP COMMENTARY	V-99	Change 1, 1/1/04
RCBAP	V-100
RCBAP COMMENTARY	V-101	Change 1, 1/1/04
RCBAP	V-102
RCBAP COMMENTARY	V-103
RCBAP	V-104
RCBAP COMMENTARY	V-105
RCBAP	V-106
RCBAP COMMENTARY	V-107	Change 1, 1/1/04
RCBAP	V-108
RCBAP COMMENTARY	V-109
RCBAP	V-110
RCBAP COMMENTARY	V-111
RCBAP	V-112
RCBAP COMMENTARY	V-113	Change 1, 1/1/04
RCBAP	V-114	Change 1, 1/1/04
RCBAP COMMENTARY	V-115



VI. INCREASED COST OF COMPLIANCE (ICC)


A.	PRINCIPAL FEATURES OF ICC COVERAGE

The limit of liability for Increased Cost of Compliance (ICC) coverage was raised to $30,000 on 
May 1, 2003. Any flood loss incurred prior to May 2003 will be adjusted according to the 
previous limit of $20,000.

When a building covered by a Standard Flood Insurance Policy (SFIP) sustains repetitive 
losses (see Subsection VI.C.3.b., following) or substantial damage (see Subsection VI.C.4.) 
caused by a flood, the NFIP will pay up to $20,000 for losses sustained prior to May 1, 2003, 
and up to $30,000 for losses sustained on or after May 1, 2003, for the cost to elevate, 
floodproof (for nonresidential buildings only), demolish, or relocate the building, or any 
combination thereof, when any of these actions is undertaken to comply with the enforcement 
of state or local floodplain management laws or ordinances. ICC coverage is available on 
residential and nonresidential buildings (this category includes public and government buildings, 
such as schools, libraries, and municipal buildings) insured under the SFIP.

The National Flood Insurance Reform Act of 1994 authorizes ICC coverage only for flood-
damaged buildings. Therefore, ICC coverage does not pay for the increased cost of repairing or 
altering buildings damaged by wind, fire, earthquake, or other perils.

ICC coverage was included as Coverage D in every SFIP written or renewed on and after 
June 1, 1997. The premium charged for ICC coverage varies depending on the type of building, 
whether the building is Pre-FIRM or Post-FIRM, the flood zone, and other factors.

The maximum amount collectible under the SFIP for both the ICC payment and the direct loss 
payment for flood cannot be greater that the maximum limits of coverage for that class of 
buildings authorized under the National Flood Insurance Act of 1968, as amended. The 
statutory limits of flood insurance building coverage are $250,000 for most residential buildings 
and $500,000 for nonresidential buildings. For a residential condominium building, the statutory 
limit of flood insurance building coverage is $250,000 times the number of insured units.

B.	COVERAGE QUESTIONS AND ANSWERS

1.	Does ICC coverage extend beyond the building itself?

No. ICC coverage is provided only on the building covered by an SFIP. Under the SFIP, a 
building is defined as a walled and roofed structure, other than a gas or liquid storage 
tank, that is principally above ground and affixed to a permanent site. Land, land values, 
lawns, trees, shrubs, plants, and growing crops are not covered. In addition, items such as 
portions of walks, walkways, decks, driveways, patios, and other surfaces located outside 
the perimeter exterior walls of the insured building or units are not covered.

2.	Is ICC coverage available for appurtenant (accessory) buildings?

Yes. ICC coverage is available for an appurtenant (accessory) building but only when a 
separate flood insurance policy is written on the appurtenant building. An appurtenant 
structure is one on the same parcel of property as the principal structure and the use of 
which is incidental to the use of the principal structure. The SFIP does not provide coverage 
for direct physical loss from flood for an appurtenant structure except in the Dwelling Form. 
The Dwelling Form extends coverage for direct physical loss from flood to a detached 
garage located on the premises of a one- to four-family dwelling. However, ICC coverage 
does not apply to these or any other appurtenant buildings indicated in the Exclusions 
section of the ICC coverage. Therefore, a separate flood insurance policy must be written 
on any appurtenant structure to obtain ICC coverage.

3.	What buildings have ICC coverage?

All buildings in Regular Program communities have ICC coverage except the following:

a.	Buildings insured under the Group Flood Insurance Policy, which covers recipients 
awarded an Individual and Family Grant for flood damage under 411 of the Stafford 
Act (42 U.S.C.  5178) as a result of a Presidential major disaster declaration.

b.	Units insured under a condominium unit owner policy.

Buildings located in communities participating in the Emergency Program do not have ICC 
coverage.

C.	ELIGIBILITY QUESTIONS AND ANSWERS

1.	When is an insured building eligible for an ICC claim payment?

An insured building is eligible for an ICC claim payment when a new SFIP is issued or upon 
the renewal of an SFIP on or after June 1, 1997. Canceling a policy to obtain ICC coverage 
is prohibited.

2.	Will an ICC claim be paid on a building that is less than 50 percent damaged but must 
comply with a state or community floodplain management law or ordinance that has 
a substantial damage threshold below 50 percent of the market value of the building?

No. Buildings must be damaged by flood to at least 50 percent of market value in order to 
be eligible for an ICC claim payment. The National Flood Insurance Reform Act of 1994 
established the threshold at 50 percent of the value of the structure at the time of the flood 
event. Because the term substantial damage is already defined in the NFIP Floodplain 
Management Regulations (at 44 CFR 59.1) and is consistent with the 1994 Act, this 
definition is used to determine eligibility for a claim payment under ICC coverage.

3.	What conditions must be met for a repetitively damaged building to be eligible for an 
ICC claim payment?

A building is eligible for an ICC claim payment for repetitive damage if it is in an SFHA 
(A and V zones), is a repetitive loss structure, and is subject to state or community 
floodplain management laws or ordinances.

There are two additional conditions that must be met in order for an ICC claim to be paid 
under the SFIP for a repetitive loss structure.
a.	The state or community must have adopted and be currently enforcing a repetitive loss 
provision or a cumulative substantial damage provision requiring action by the property 
owner to comply with the state or community floodplain management laws or 
ordinances.

States and communities are not required to adopt a repetitive loss provision. Adoption of 
a cumulative substantial damage provision or a repetitive loss provision is voluntary. In 
the event that a state or community adopts a repetitive loss provision or a cumulative 
substantial damage provision, this provision must be enforced on all buildings in the 
community irrespective of whether the buildings are covered by flood insurance.

b.	The building must have a history of NFIP claim payments that satisfies the National 
Flood Insurance Reform Act of 1994 definition of a repetitive loss structure:

a building covered by a contract for flood insurance that has incurred 
flood-related damages on 2 occasions during a 10-year period ending on 
the date of the event for which a second claim is made, in which the cost 
of repairing the flood damage, on the average, equaled or exceeded 25% 
of the market value of the building at the time of each such flood event.

The date on which the first loss occurred, even if the loss occurred before June 1, 1997, 
is immaterial as to eligibility for an ICC claim payment, so long as the state or 
community enforced a repetitive loss or cumulative substantial damage requirement and 
the loss occurred within the 10-year period and the insured building satisfies the 
definition of repetitive loss structure under the National Flood Insurance Reform Act of 
1994.

4.	What conditions must be met for a substantially damaged building to be eligible for 
an ICC claim payment?

A building is eligible for an ICC claim payment for substantial damage if the community 
determines that it has been damaged by flood and the cost of restoring the building to its 
before-damaged condition would equal or exceed 50 percent of the market value of the 
building before damage occurred. The NFIP requirement to bring substantially damaged 
buildings into compliance, though necessary to reduce flood damages, can create financial 
hardships for property owners at a time that they can least afford it. ICC coverage provides 
an important source of financial assistance that helps property owners pay for most and in 
some cases all of the costs of complying with state or community floodplain management 
laws or ordinances pertaining to substantially damaged buildings.

All states and communities participating in the NFIP must have a substantial damage 
provision in their floodplain management laws or ordinances in accordance with the 
minimum NFIP criteria at 44 CFR 59.1 and 60.3. As defined in the NFIP Floodplain 
Management Regulations at 44 CFR 59.1, substantial damage is deemed to have occurred 
when:

damage of any origin is sustained by a building whereby the cost of 
restoring the building to its before damaged condition would equal or 
exceed 50 percent of the market value of the building before the damage 
occurred.

The NFIP substantial damage definition applies to building damage from any origin, such as 
fire, wind, earthquake, etc. In cases where the damage is due to a combination of hazards, 
such as wind and flood, an ICC claim is paid only when the flood component of the damage 
equals or exceeds 50 percent of the market value of the building. In order for a payment to 
be made under ICC, the claim representative must verify that the damage was caused 
solely by flood or that the cost to repair the flood component of the damage to the building 
equals or exceeds 50 percent of the market value of the building.

5.	Can the date when the property was declared substantially damaged serve as the 
date of loss for an ICC claim?

	The 2-year limit for completing an ICC claim begins on the date of the declaration by the 
local community official that the insured structure has been substantially damaged by flood. 
This means that the 2-year period referenced in SFIP paragraph 5.e.(2) begins on the date 
of loss.

D.	CLAIMS ADJUSTMENT QUESTIONS AND ANSWERS

1. What is the process for adjusting a claim under ICC coverage?

When a flood event has occurred, an adjuster is assigned to adjust the direct physical 
damages. The adjuster advises the policyholder of ICC coverage in the SFIP if it appears 
that damages may exceed 50 percent of the value of the structure and the building is in an 
SFHA.

Because ICC claims are paid only when the property owner is required to rebuild in 
compliance with a communitys substantial damage or repetitive loss provision, a 
determination must be made by the community whether the flood damages to the building 
result in substantial damage or repetitive loss that requires compliance with state or 
community floodplain management laws or ordinances. The adjuster must obtain the 
substantial damage or repetitive loss determination in writing before adjusting the ICC 
claim. The policyholder and the community should discuss the floodplain management 
requirements and the mitigation options (elevation, floodproofing, demolition, or relocation 
of the building, or any combination of these) once a determination by the community has 
been made.

Once a determination has been made by the community that the building has been 
substantially or repetitively damaged by flooding, the policyholder notifies the insurer of the 
determination. The adjuster advises the property owner that a signed construction contract, 
an itemized cost breakdown of the work, and a start and completion date for the work will be 
needed.

Once the policyholder has notified the adjuster of the substantial damage or repetitive loss 
determination, the insurer creates a claim file. The adjuster must obtain information from the 
community regarding the communitys substantial damage or repetitive loss determination. 
The adjuster uses this information to confirm that the flood-related damage for the current 
building claim (and prior claim, if it is a repetitive loss structure) supports the communitys 
substantial damage or repetitive loss determination. In addition, the adjuster will verify 
whether the claim meets all other eligibility requirements for payment under ICC coverage.

The adjuster confirms that the damage met requirements for making an ICC claim payment 
and that the policyholder has provided a signed contract and three itemized cost estimates 
for the mitigation measure. The adjuster provides the policyholder with the ICC Proof of 
Loss form. The adjuster also explains to the policyholder how payments will be made and 
advises the policyholder that, if the mitigation measure is not completed, any payments 
under the ICC claim must be returned to the insurer. In addition, the adjuster advises the 
policyholder that a permit issued by the community to undertake the work will be needed 
prior to making the initial ICC claim payment. For buildings that are to be elevated or 
floodproofed in SFHAs, the permit must indicate the level of protection to which the building 
is to be elevated or floodproofed.

After the ICC Proof of Loss form and a permit from the community have been returned to 
the adjuster, the adjuster advises the property owner that the initial payment toward the ICC 
claim will be issued by the company.

When the mitigation measure is completed, the adjuster obtains a copy of the certificate of 
occupancy, letter, or written official notice from the community that the mitigation measure 
has been satisfactorily completed and that no variance was granted. The claim 
representative pays the final ICC claim payment after all documentation of satisfactory 
completion has been submitted.

2. Can partial payment be issued on an ICC claim?

Paragraph 5.e. of SFIP Coverage D  Increased Cost of Compliance provides that an ICC 
claim cannot be paid (1) until the building is elevated, floodproofed, demolished, or 
relocated on the same or to another premises, and (2) unless the building is elevated, flood 
proofed, demolished, or relocated as soon as reasonably possible after the loss, not to 
exceed 2 years.  The question has arisen as to whether this provision precludes the 
issuance of partial payments for ICC claims.

The two conditions in SFIP paragraph 5.e. refer to the total payment of an ICC claim, which 
means partial payments are permitted. Partial payments may be issued in advance of 
completion of the mitigation activity but cannot exceed 50 percent of the total estimated 
reimbursable cost of the mitigation activity.

3. What does assignment of Coverage D mean? What is the process involved?

If a community plans to pursue a FEMA-approved mitigation project, such as a project 
under the Hazard Mitigation Grant Program, the policyholder can assign the eligible portion 
of the Coverage D (ICC) claim to the community. The insured must complete the 
Assignment of Coverage D form and return it to the community official. The community 
official will submit a copy of the form and a written Declaration of Substantial Damage to the 
NFIP Bureau and Statistical Agent. The Bureau and Statistical Agent will enter the data into 
a tracking system and send both documents to the insurer, with instructions.

Specific steps for assignment of the ICC claim benefit to the community are itemized below.

a. Policyholder consents to assignment of the ICC claim payment.

b. Community official provides the policyholder with an Assignment of Coverage D form.
c. Policyholder completes the form and returns it to the community official.

d. Community official sends a copy of the form, along with the communitys signed 
Declaration of Substantial Damage, to the NFIP Bureau and Statistical Agent at the 
following address:

NFIP Bureau and Statistical Agent
PO Box 310
Lanham MD  20706

e. Bureau and Statistical Agent enters the ICC information submitted by the community 
into a database. The Bureau then sends the documents to the appropriate WYO 
company, with instructions. The company assigns an adjuster. 

f. Assigned adjuster contacts the policyholder to confirm receipt of the claim, then 
contacts the community official to help coordinate the claim.

g. Adjuster reviews the contract for demolition, elevation, relocation, or floodproofing to 
determine the cost.

h. Adjuster has the community official sign the ICC Proof of Loss form once the claim 
value has been determined.

i. Adjuster sends the NFIP Final Report form and the Proof of Loss to the insurance 
company for payment.

j. Insurance company issues the check to the community and advises the NFIP Bureau 
and Statistical Agent of the amount of the claim payment.

E.	OTHER FREQUENTLY ASKED QUESTIONS AND ANSWERS

1.	When an estimate for demolition of a dwelling includes the cost to demolish the 
garage, is coverage for the garage provided under ICC?

	The cost to demolish the home is covered. If the garage is detached, then coverage will not 
apply. The garage should have its own policy.

2.	Is ICC coverage provided for the slab, walkway, and driveway?

Coverage is afforded for the slab. However, there is no coverage for the walkway and 
driveway.

3.	Fill dirt is required to stabilize the lot. Is this covered under ICC?

If the cost is to grade the lot, then coverage will apply. The Interim Guidance for ICC  Part 
4, Demolition, paragraph 2, states Once the building is removed from the site, steps should 
be taken to clear the site of any remaining materials such as the foundation, remove any 
utility systems, and grade and stabilize the site in accordance with any State or local 
regulations.

4.	If the lot is littered with trash such as tires, cans, etc., will this be considered ICC-
covered debris?

No coverage applies.

5.	The SFIP excludes coverage for septic systems. If the building is demolished under 
ICC, will the cost to remove the septic system be covered?

Yes. First, all applicable permits to demolish the building must be obtained. Once the 
building is removed from the site, steps should be taken to clear the site of any remaining 
materials such as the foundation, remove any utility systems, and grade and stabilize the 
site in accordance with any State or local regulations.

6.	Are well water plugs covered under ICC?

If the well water plug is part of the abandonment of on-site utilities, the coverage will be 
afforded.

7.	What conditions must be met for a substantially damaged building to be eligible for 
an ICC claim payment, and how is the date of loss determined?

	A building is eligible for an ICC claim payment if it is in a Special Flood Hazard Area, and 
the community determines that the building has been damaged by flood to such an extent 
that the cost of restoring the building to its pre-damage condition would equal or exceed 50 
percent of its pre-damage market value. Therefore, the date of loss for an ICC claim is the 
date on which the community declares or submits a notification that the building has been 
substantially damaged by flood.

8. A flood claim was processed in accordance with the policy provisions. In the interim, 
the policy expired and was not renewed. The community then declared the building 
substantially damaged by flood. Will an ICC claim be honored even though the policy 
expired?

No. The substantial damage declaration or notification triggers the date of loss for the ICC 
claim.



VII. BASIC ADJUSTMENT ISSUES


A.	ACTUAL CASH VALUE (ACV)

The NFIP defines ACV as the replacement cost of an insured item at the time of loss, less the 
value of physical depreciation.

B.	ADDITIONS AND EXTENSIONS

Buildings that are connected by a rigid exterior wall, a solid load-bearing interior wall, a 
stairway, an elevated walkway, or a roof can be insured as part of the dwelling. Effective 
December 31, 2000, the insured has the option of obtaining separate coverage for these 
building items. Prior to this date, the additions and extensions were considered part of the 
building and had to be covered as such.

C.	DEPRECIATION

To accurately determine the ACV of an item, the adjuster must consider the replacement cost 
along with the depreciation, as well as the average useful life of the item. The condition of the 
item prior to loss must also be considered. The NFIP will not accept lump-sum depreciation 
figures. Replacement costs on contents items need to be checked more carefully and verified 
when they appear high.

1.	Building Depreciation

If an adjuster is removing and replacing a building item that is not new, appropriate 
depreciation must be applied.

2.	Contents Depreciation

Contents depreciation must be line by line and item by item. Each item is considered on its 
own merit. Things to consider include replacement cost of the item, age of the item, and 
condition of the item prior to the flood.

D.	EVIDENCE OF LOSS

1.	Insureds Responsibilities

The insureds responsibilities in the event of loss (which adjusters should remind the 
policyholder of) are as follows:

a.	Immediately notify the agent or the company of the flood loss.

b. As soon as reasonably possible, separate the damaged and undamaged property, 
putting it in the best possible order so that the adjuster can examine it and properly 
substantiate the loss

	c.	Place all account books, financial records, receipts, and other loss verification material 
in a safe place for examination and evaluation by the adjuster.

d.	Within 60 days after the loss, submit an NFIP Proof of Loss form to the WYO company 
or the NFIP Servicing Agent.

2.	Adjusters Responsibilities

The adjusters responsibilities in the event of a loss are as follows:

a.	Determine whether there was a general condition of flooding as defined by the policy.

b.	Determine how the water entered the building.

c.	Check for exterior and interior waterlines and provide the height of each in the report as 
well as photographs.

d.	Investigate and document all other evidence of loss.

E. IMPROVEMENTS AND BETTERMENTS

If the insured is a tenant and has personal property coverage (Coverage B) under the Dwelling 
Form, the coverage extends to the insureds cooking stove, range, and refrigerator. Also, 
improvements made or acquired solely at the insureds expense are covered for up to 
10 percent of the limit of liability for personal property. Improvements do not include cooking 
stoves, ranges, or refrigerators.

F.	NON-WAIVER AGREEMENT

When the adjuster identifies a problem that could affect coverage or result in denial, a non-
waiver agreement must be secured from the insured. Failure to secure a non-waiver agreement 
might hinder the company from denial of claim when denial would be in order.

Examples of circumstances that require a non-waiver agreement include the following:

1.	The policy has lapsed in coverage.

2. 	By action of the insured, the policy has become void.

3.	More than one building is on a policy (except when scheduled), or there is more than one 
building at the property address. (Blanket coverage is not provided under the SFIP.)

4.	The address of the risk is different from that listed on the policy.

5.	The insured has not complied with the policy requirements.

6.	Possibility of fraud.

7.	Late reporting.

8.	Any other situation for which the adjuster believes that a non-waiver agreement is needed

G.	OTHER INSURANCE CLAUSE

1.	Introduction

Where there is another flood insurance policy in addition to the Dwelling Form, General 
Property Form, or Residential Condominium Building Association Policy, and the other 
policy has a provision stating that it is excess insurance, and the SFIP policy limits do not 
equal the maximum amount available, the SFIP will pay the proportion of the loss that the 
amount of SFIP insurance purchased bears to the maximum amount of SFIP insurance 
available. When the proportion for a large loss exceeds SFIP limits plus the deductible, the 
SFIP limit is paid.

If there is other insurance in the name of a condominium association covering the same 
property covered by the SFIP, the SFIP is excess over the other insurance.

2.	Examples

a.	Where there is another insurance policy in addition to the SFIP and the other policy has 
a provision stating it is excess insurance, the SFIP will be primary.

Loss:  $ 35,000
SFIP Coverage
  $  50,000
Deductible     $  1,000
Other Insurance
  $250,000
Deductible     $50,000

The SFIP is primary and the other insurance is excess. The NFIP will pay $35,000 loss 
minus the $1,000 deductible.
 
 b.	For any other flood insurance policy, the SFIP will be primary (subject to its own 
deductible) up to the deductible in the other flood policy. When the other deductible 
amount is reached, the SFIP will pro-rate for the remainder of the loss.

Loss:  $480,000
SFIP Coverage
$250,000
Deductible  $  5,000
Other Insurance
$500,000
Deductible  $15,000

The SFIP is primary up to $15,000 of the loss. The SFIP $5,000 deductible will be 
deducted from the amount for which the SFIP is primary. In this case, the result of the 
calculation is $10,000. We will pro-rate the loss that exceeds the amount for which the 
SFIP is primary  ($15,000). The other insurance equation will be used to pro-rate the 
remainder of the loss (i.e., $480,000 - $15,000 = $465,000).

SFIP Coverage
 $250,000/$750,000 = .3333 x $465,000 = $154,984.50
Other Insurance
 $500,000/$750,000 = .6667 x $465,000 = $310,015.50
SFIP Pays          
 $154,984.50 + $10,000 =                          $164,984.50
Total
                                                                   $475,000.00

c.	The limit of liability under the Residential Condominium Building Association Policy 
(RCBAP) depends on coinsurance by the insured.

Value of Building
$1,500,000

Other Insurance
 $1,000,000
Deductible $200,000
SFIP Coverage
$   500,000
 Deductible $    5,000
Insurance Required
  $1,200,000
(80% of $1,500,000)
Loss
$   625,000


Calculation of the coinsurance formula is as follows:

		      $500,000  = .4167 x $625,000 = $260,437.50
		    $1,200,000

			$260,437.50 is the RCBAP limit of liability.

The RCBAP will pay the primary share, $200,000 - $5,000 = $195,000.

We will pro-rate   $500,000  = .3333 x $425,000 = $141,652.50.
		                    $1,500,000

The RCBAP will not pay $336,652.50 ($195,000 + $141,652.50) but will pay up to 
$260,437.50, which is its limit of liability under the coinsurance clause. If the loss 
exceeds the combined policy limits, the RCBAP deductible will disappear.

H.	OVERHEAD AND PROFIT

The overhead and profit percentage must be applied to the depreciation total and reflected in 
the ACV loss figure. Overhead and profit is not applied to the following items:

1.	Carpeting

2.	Insureds own labor

3.	Outside service charges such as plumber, electrician, or appliance service calls

4.	Repairs made by the insured (However, an allowance can be made for the insureds time 
and expense in purchasing materials, not to exceed 10 percent.)

Overhead and profit is warranted only if a general contractor has been hired to make repairs. 
The adjuster must document the general contractors involvement. The NFIP Servicing Agent or 
the WYO company has the option of withholding the overhead and profit until the repairs are 
completed or until a contract is signed. 

I.	POLLUTION DAMAGE

The SFIP covers direct physical loss by or from flood. Therefore, when flood waters contain 
pollutants or cause release of pollutants, the cleanup, repair, and mitigation costs associated 
with pollutants are covered under the General Property Form up to $10,000

J.	PROOF OF LOSS REQUIREMENTS AND WAIVER

The NFIP Proof of Loss form is required on all advance payments, as well as on any paid claim. 
However, the Proof of Loss may be waived on claims under $7,500. When a Proof of Loss is 
waived, the insureds signature must be obtained on the NFIP Final Report form after the loss 
and the claim have been determined. A copy of the signed Final Report must be left with the 
insured. In the absence of a local witness, the adjuster may witness the form. If the loss is over 
$7,500, the Final Report must still be completed and a Proof of Loss must be obtained.

Two forms are used for documenting losses. The Proof of Loss form is used for actual cash 
value claims. The Statement as to Full Cost of Repair or Replacement is used for replacement 
cost claims.

K.	REPAIR VS. REPLACEMENT

This is an area where adjuster improvement is needed. Everything that becomes wet is not 
necessarily a total loss. In these instances, the expertise of the adjuster is essential. 
Consideration must be given to the type of floodwaters involved (clear, muddy, fresh, salt, 
contaminated) and to the length of time the water remained in the building. Many buildings and 
contents items will respond to cleaning and need not be replaced. Some examples of repair vs. 
replacement are presented below.

1.	Appliances

Always consider having the item checked and serviced rather than replaced. Even if a 
service technician states that the appliance will break down in the future, do not total the 
unit out if it is working. Advise the insured that a supplemental claim can be presented 
within a reasonable period of time (30-60 days) if the insured can prove that the flood 
caused the breakdown.

2.	Furniture

Refinish, rather than replace, when possible.

On reinspections conducted weeks and months after losses, NFIP General Adjusters have 
discovered appliances and furniture that were still being used after they had been declared total 
losses in the adjustment.

The SFIP provides up to three loss settlement methods, depending on the policy form under 
which the risk is insured. See Dwelling Form and General Property Form VII.V. Loss Settlement 
and RCBAP VIII.V. Loss Settlement.

L.	REPLACEMENT COST COVERAGE (RCC)

For single-family residences, including doublewide manufactured (mobile) homes, RCC is 
applicable only to building coverage. Under the Residential Condominium Building Association 
Policy, a coinsurance clause requires the condominium association to insure its building to at 
least 80 percent of the replacement cost value, in order to avoid suffering uninsured losses and 
charging assessments to members

M.	RESERVATION OF RIGHTS LETTER

A Reservation of Rights letter from the insurer to the insured is a notice that, even though the 
company is investigating the claim, certain losses might not be covered by the SFIP. By means 
of this letter, the company reserves its legal right to deny coverage later, as additional 
information about the loss becomes available.

N.	RESERVES

The reserving system mandates that reports must be timely and reflect true reserves. After 
the NFIP Preliminary Report, each subsequent report must address reserves. Separate 
reserves must be established on building and contents.

Any partial payment must be included in the indicated reserve. For example, if a loss is 
estimated at $20,000 total, and a $5,000 partial payment is being made, the reserves are  
$20,000, not $15,000.

O.	SALVAGE

On residential and small mercantile losses, adequate salvage credit is taken when the insured 
retains possession of totally damaged items. The contents inventory must specifically denote 
those items that have been considered salvageable and left with the insured. An approved 
professional salvor must be used to handle items of significant value. 

Salvage on large commercial losses must be promptly identified and inventoried by an 
approved professional salvor. Salvage agreements are executed in all cases where the stock 
has been taken over by a salvage company.

Permission to secure the services of a salvor must be authorized by the WYO company or 
NFIP Servicing Agent.

P.	SELF-PROPELLED VEHICLES

Coverage is provided for self-propelled vehicles that service the described location and for self-
propelled vehicles used to assist handicapped persons, so long as the vehicles are inside the 
building at the described location.

Q.	SPECIAL LOSS SETTLEMENT

Replacement cost applies to manufactured (mobile) homes or travel trailers if the dwelling is at 
least 16 feet wide and has an area of at least 600 square feet within its walls. The structure must 
also be the principal residence. If a single-family dwelling that is a manufactured (mobile) home or 
travel trailer and that qualifies for replacement cost is a total loss or is not economically feasible to 
repair, then the adjustment of the property will be the lesser of:

1.	The replacement cost of the dwelling or 1.5 times the actual cash value, or
2.	The building limit of liability.

Loss Settlement paragraph 1.a.(2) does not apply to manufactured (mobile) homes or travel 
trailers under Special Loss Settlement.

Only manufactured (mobile) homes and travel trailers as described in paragraphs 3.a.(2) and (3) 
qualify for Special Loss Settlement. All other manufactured (mobile) homes and travel trailers 
require Actual Cash Value Loss Settlement.

If we determine that the building is repairable, the loss will be settled according to the replacement 
cost conditions stated in Dwelling Form VII.V.2. and RCBAP VIII.V.2.

R.	SUBROGATION

The identification of subrogation lies initially with the adjuster assigned to the flood loss and, 
ultimately, with the claims representative responsible for the file. The adjuster must identify on 
the NFIP Preliminary Report, in the Origin section, the cause of loss, whether the loss was 
associated with failure of a dam, pumps, storm drain system, or other flood control measure, 
and whether a non-natural cause contributed to the loss. The Cause of Loss and Subrogation 
Report then must be completed.



VIII. SPECIAL ADJUSTMENT ISSUES


A.	AIR CONDITIONING CONDENSERS AND SOLAR HEATING ELEMENTS

Building coverage extends to the insured building and additions and extensions attached to and 
in contact with it by means of a common wall. Air conditioning condensers and solar heating 
panels are considered building property even if they are located apart from the structure and 
are not attached in accordance with the policy definition. Condensers are eligible for 
replacement cost coverage if the structures they service are eligible for it.

B.	BAILEE GOODS

Customer property held by commercial bailees, such as shoe repair shops, dry cleaners, 
laundries, and consignment shops, are not covered by the bailees Standard Flood Insurance 
Policy (SFIP) for personal property. Only personal property owned solely by the insured is 
covered by the General Property Form. The bailor can take out a separate flood policy for his 
property while located at the bailees location, provided the property location is that of the 
bailee. There is no coverage for property such as the neighbors lawn mower or the cable box 
under the Dwelling Form.

C.	BOATHOUSES: COVERAGE FOR NON-BOATHOUSE PARTS 
	OF BUILDING INTO WHICH BOATS ARE FLOATED

FEMA has determined that non-boathouse parts of a building into which boats are floated are 
not excluded from coverage. This means that, with respect to a building, a part of which is used 
for boathouse purposes and a part of which is used for other than boathouse purposes (e.g., 
residential, commercial, or municipal), non-covered items are limited to the following:

1.	The ceiling and roof over the boathouse portion of the building into which boats are floated 
(unless there is an area above the boathouse used for purposes unrelated to the boathouse 
use, e.g., residential, in which case the upper area is covered, from the floor joists to and 
including the upper area walls and roof)

2.	Floors, walkways, etc., within the boathouse area, or outside the area but pertaining to the 
boathouse use

3.	Exterior walls and doors of the boathouse area not common to the rest of the building

4.	Interior walls and coverings within the boathouse area (although a common wall between 
the boathouse area and the other part of the building is covered)

5.	Contents located with the boathouse area, including furnishings and equipment, relating to 
the operation and storage of boats and other boathouse uses.

However, when the building is entirely in, on, or over water, there is no coverage at all if it was 
constructed or substantially improved after September 30, 1982.

D.	CARPETING AND DRAPES

Carpeting is considered building property if it is installed over an unfinished floor surface. 
Carpeting over finished floors is considered personal property (contents), even if it is wall to wall 
or permanently affixed to the floor. All carpet losses, whether building property coverage or 
personal property coverage, are adjusted on an ACV basis. When a carpet loss is paid, 
overhead and profit is not allowed, unless a general contractor is responsible for installation.

Drapes are always treated as contents items, even if they are custom-made and fit only a 
specific window. However, window blinds of all kinds are considered building property. (See 
Dwelling Form III.A.7.)

E.	CISTERNS

In certain communities, especially in the Virgin Islands, cisterns are fundamental parts of 
residential buildings. These are often the only source for storing water. Methods of construction 
of cisterns include beneath the structure, on the roof, above ground and physically attached to 
a side of a structure by a common wall, or as a separate unit detached from the structure. The 
SFIP provides coverage only if the cistern is an integral part of the insured building, such as 
above ground and connected by a common wall, on the roof, or within the perimeter walls. 
There is no coverage if the cistern is under ground unless it is contained in the basement. If the 
cistern is covered by the SFIP, the water in it also is covered.

F.	CLOSED BASIN LAKES AND CONTINUOUS LAKE FLOODING

1.	Closed Basin Lakes

A closed basin lake is a natural lake from which water leaves primarily through evaporation 
and whose surface area now exceeds or has exceeded 1 square mile at any time in the 
past. If an insured building is subject to closed basin lake flooding, a total loss claim can be 
paid if lake flood waters damage or imminently threaten to damage the building and an 
eventual total loss appears likely.

2.	Continuous Lake Flooding

In a few areas of the United States, lake waters have risen to long-term record levels. 
Devils Lake, North Dakota, is a primary example of this condition. The insured building 
must be inundated by rising lake waters continuously for 90 days or more, and it must 
appear reasonably certain that the loss and damage will reach or exceed the policy building 
limits including the deductible, or the maximum amount payable under the policy for any one 
building loss.

The current position of the National Flood Insurance Program (NFIP) is that occurrences 
of long-term, continuous lake flooding, loss, and damage to property will be settled on a 
one-time basis by paying the lesser of the two amounts mentioned above, if the insured 
signs a release agreeing to the following:

a.	To make no further claim under the SFIP

b.	Not to seek renewal of the polic

c.	Not to apply for any NFIP flood insurance for the property at the property location of the 
insured building

G.	COASTAL BARRIER RESOURCES SYSTEM (CBRS)

1.	Introduction

To determine whether a building (the insurable property) is eligible for flood insurance 
coverage when the building appears to be located in a Coastal Barrier Resources System 
(CBRS) area, the adjuster should consult the communitys Flood Insurance Rate Map (FIRM) 
panel or a community code office (for example, the Tax Assessors Office or the Building and 
Zoning Office) to determine which coastal barriers act applies to the property in question. In 
CBRS areas, eligibility for flood insurance coverage depends on this determination. (See 
IV. Property Not Covered, 15. in the SFIP.)

When handling any claim that may be in a CBRS area, the adjuster should:

a.	Identify the location of the risk on the FIRM;
b.	Determine when the risk was constructed;
c.	Comment on substantial improvement; and
d.	Provide photographs of all sides of the risk.

If any building you are adjusting appears to be subject to one of the laws discussed below, 
write a brief summary of your findings on the NFIP Narrative Report form and send it to the 
NFIP Servicing Agent or the WYO company for the claims examiners to evaluate.

2.	Coastal Barrier Resources Act

Congress passed the Coastal Barrier Resources Act (CBRA) on October 1, 1982. The act 
became effective on October 1, 1983. Congresss intent was to reduce or restrict the federal 
governments direct involvement in encouraging development of certain undeveloped 
coastal barriers. The act defined a coastal barrier as a naturally occurring island, sandbar, 
or other strip of land, including coastal mainland, that protects the coast from severe wave 
wash.

CBRA does not prohibit development of designated undeveloped coastal barrier islands; nor 
does it affect private funding or investment for development of such areas. Instead, the act 
attempts to eliminate the use of federal funds (specifically, loans) for such development.

Under the terms of the act, FEMA is prohibited from providing NFIP flood insurance 
protection for structures built or substantially improved after October 1, 1983, in any area 
designated an undeveloped coastal barrier. However, structures in such areas that were 
built (walled and roofed) before October 1, 1983, remain eligible for coverage until such 
time as they are substantially damaged or substantially improved.

3.	Coastal Barrier Improvement Act

The Coastal Barrier Improvement Act (CBIA) was enacted and made effective on November 
16, 1990. The CBIA greatly expanded the identified land in the Coastal Barrier Resources 
System established pursuant to the CBRA of 1982.

 4.	Substantial Improvement: The 50 Percent Rule
 
 Substantial improvement, as defined in public law (44 Code of Federal Regulations 59.1) 
means:
 
 any reconstruction, rehabilitation, addition, or other improvement of a 
structure, the cost of which requires or exceeds 50 percent of the market 
value of the structure before the start of construction of the 
improvement. This term includes structures which have incurred 
substantial damage, regardless of the value of or actual cost of repair 
work performed. The term does not, however, include either (1) any 
project for improvement of a structure to correct existing violations of 
state or local health, sanitary, or safety code specifications which have 
been identified by the local code enforcement official and which are the 
minimum necessary to assure safe living conditions or (2) any alterations 
of a historical structure, provided that the alteration will not preclude the 
structures continued designation as a historical structure.
 
 In other words, if the damage or improvement equals 50 percent of the market value of the 
structure before damage, the insured building could be considered substantially damaged. If 
any building you are adjusting appears to be subject to the 50 percent rule, write a brief 
summary of your findings on the NFIP Narrative Report form and send it to the NFIP 
Servicing Agent or the WYO company for the underwriters to evaluate. In your report, use 
the replacement cost of the building less fair depreciation to obtain actual cash value 
(market value). Land values and outside improvements are not considered in the 
determination of market value.
 
 The community that has jurisdiction over the area is the only authority that can make the final 
determination as to substantial improvement or substantial damage.

H.	COMMERCIAL LOSSES

When you encounter an unusual commodity or type of business, with which you are not 
familiar, notify the examiner or claims management immediately for assistance and guidance.

On commercial stock losses, substantiation as to quantity and the insureds cost must be 
obtained. Adjusters should not assume that all stock and business property on the premises is 
owned by the insured. The adjuster must verify ownership, especially for manufacturing, 
repairing, and high-end sales businesses. The SFIP insures only property owned solely by the 
insured. There is no bailee, consignment, or floor plan coverage. The SFIP does not provide 
coverage for property of others in the care, custody, and control of the insured under any policy 
form. On larger losses, the use of a CPA is encouraged.


I.	CONDEMNATION OF PROPERTY

Communities may condemn flood-damaged properties as the result of ordinance enforcement 
or for loss mitigation. The SFIP covers only direct physical damage caused by flood and not 
loss of use or access. A flood claim for a structure with less than total damage but not 
repairable due to a condemnation order or ordinance receives coverage only for the direct 
physical loss by or from flood.

J.	CONSTRUCTIVE TOTAL LOSS

Sometimes, when a flood-damaged building is less than a total loss, the insured will ask to be 
paid on the basis that a constructive total loss has occurred, so as to use the loss proceeds to 
move the insured building away from the peril of flood. FEMA has concluded that the SFIP does 
not and should not provide for such payments, unless Increased Cost of Compliance coverage 
applies.

K.	DECKS

Since 1994, the SFIP has specifically excluded coverage for decks. However, stairways and 
staircases are still covered, if they are attached directly to the insured building. We also cover 
stairways or staircases attached to decks or walkways for the purpose of ingress and egress. If 
there are two staircases attached to the same deck or walkway, then there is coverage for only 
one of the staircases. The SFIP allows for payment of steps and a landing. The maximum 
allowable area is 16 square feet.

L.	ELEVATED BUILDINGS

1.	Coverage Restrictions

An elevated building is defined as a non-basement building in which the lowest elevated 
floor is raised above ground level by foundation walls, shear walls, posts, piers, pilings, or 
columns. Post-FIRM elevated buildings in certain SFHAs are subject to coverage 
restrictions specified in the Standard Flood Insurance Policy. A manufactured (mobile) 
home may be an elevated building.

Some confusion has been reported about the applicability of the elevated building coverage 
restrictions to a non-elevated Post-FIRM building located in an SFHA and constructed with 
its lowest floor below the Base Flood Elevation. Such a building is not subject to the 
elevated building coverage restrictions. The rating of any structure must be based on the 
correct elevation difference between the lowest floor and the Base Flood Elevation. Any 
policy found to be misrated must be corrected before a claim can be paid.

The restrictions apply only to Post-FIRM, Regular Program, elevated buildings in Zones 
A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE. Post-FIRM 
means that a building was constructed or substantially improved on or after the communitys 
initial FIRM date or after December 31, 1974, whichever is later. The coverage restrictions 
apply to any area of an elevated building that is lower than the lowest elevated floor.


Coverage will respond for the building and personal property items listed in the policy, 
provided that these items are connected to a power source and installed in their functioning 
locations and that the insured has purchased appropriate coverage.

2.	Coverage for Garages and Contents

a.	Attached Garage

If a building is elevated and has an attached garage with a floor lower than the lowest 
elevated floor, the coverage restrictions apply to that area. Any contents located above 
the level of the lowest elevated floor (as hanging from the ceiling or on the garage walls) 
are covered.

b.	Detached Garage

If a building is elevated and has a detached garage with a floor lower than the lowest 
elevated floor, the garage is fully covered. Also, contents inside the garage are covered, 
subject to all other policy provisions (such as the requirement that they be secured 
against flotation if the structure is not fully enclosed).

The General Property Form and RCBAP do not provide coverage for appurtenant 
private structures. Coverage for a detached garage responds only on one- to four-family 
residential buildings insured under the Dwelling Form. The insured may elect to apply 
10 percent of the building coverage for an appurtenant private structure. This is not an 
additional amount of insurance.

As indicated in the Exclusions section of the ICC coverage (Coverage D), ICC 
coverage does not apply to a detached garage or any other appurtenant buildings. To 
obtain ICC coverage on an appurtenant structure, a separate flood insurance policy 
must be written. For example, a detached garage that has been converted and contains 
a separate room such as a play room, home workshop, laundry room, workout room, or 
bathroom receives no ICC coverage unless it is insured under a separate policy.

3.	Coverage for Building Property in a Building Enclosure below the Lowest Elevated 
Floor or in a Basement

	Paragraph III.A.8. of the SFIP provides coverage for certain items of building property (and 
related clean-up) in an enclosure below the lowest elevated floor of an elevated Post-FIRM 
building in any of Zones A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, 
or VE, or in a basement regardless of zone. Coverage is limited to:

	a.	Clean-up expenses

b.	Any of the following items, if installed in their functioning locations and, if necessary for 
operation, connected to a power source:

? Central air conditioners

? Cisterns and the water in the

? Drywall for walls and ceilings in a basement and the cost of labor to nail it, 
unfinished and unfloated and not taped, to the framing

? Electrical junction and circuit breaker boxes

? Electrical outlets and switches

? Elevators, dumbwaiters, and related equipment, except for related equipment 
installed below the Base Flood Elevation after September 30, 1987

? Fuel tanks and the fuel in them

? Furnaces and hot water heaters

? Heat pumps

? Nonflammable insulation in a basement

? Pumps and tanks used in solar energy systems

? Stairways and staircases attached to the building, not separated from it by elevated 
walkways

? Sump pumps

? Water softeners and the chemicals in them, water filters, and faucets installed as an 
integral part of the plumbing system

? Well water tanks and pumps

? Required utility connections for any item in this list

? Footings, foundations, posts, pilings, piers, or other foundation walls and anchorage 
systems required to support a building

If an area below grade on all sides is within a room, such as a living room, then coverage is 
not provided for the finished walls of the area below grade. When the area extends above 
grade, or if there are contents located in the sunken area, coverage limitations will apply. 
When the entire room is below grade, even if the walls extend above grade, as in a daylight 
basement, there is no coverage for contents on the floor or coverage for the walls except 
those listed in the policy. The coverage limitations apply to the whole area, including the 
finished walls.

If an elevated building has an attached garage with a floor lower than the lowest elevated 
floor of the building, the coverage restrictions apply to that area. Any contents located 
above the level of the lowest elevated floor (as hanging from the ceiling or on garage walls) 
are covered.


M.	ELEVATORS

The SFIP provides coverage for elevators, dumbwaiters, and related equipment. When these 
items are located in a basement or the enclosed area below an elevated building, there is no 
coverage for the related equipment below the Base Flood Elevation unless it was installed on or 
before September 30, 1987.

N.	EROSION AND WAVE WASH

The SFIP states that loss and damage from wave action along a lake or other body of water is 
considered direct physical loss by flood. Loss and damage from spray consequent to wash-
over, whether wind driven or not, is not covered. Loss and damage to structures arising from 
ongoing erosion is not covered under the SFIP. However, collapse or subsidence of land along 
the shore of a lake or other body of water as a result of erosion or undermining caused by 
waves or currents of water exceeding cyclical levels which result in flooding is included in the 
definition of flood (SFIP II.A.2.) and, thus, is covered.

Replacement of soil lost through erosion is covered only when the erosion results from an 
overflow of inland or tidal waters and not from the unusual and rapid accumulation or runoff of 
surface waters from any source. Soil replacement must be confined to within the perimeter of, 
and related to the support of, the building. Soil replacement beyond this perimeter is not 
payable under the SFIP. Rip-rap, armoring, and retaining walls are not covered.

O.	FOOD IN FREEZERS

Coverage is only provided for food in food freezers. Damage to food in refrigerator/freezers is 
excluded from coverage.  The SFIP specifically states that coverage is not provided for 
refrigerator/freezers located in basements and enclosures under Post-FIRM elevated buildings.

P.	FOUNDATIONS

Floods can cause significant foundation damage, but so can settlement, improper construction, 
earth movement, tree roots, and sinkholes. Many times an insured will claim normal settlement 
cracks in slabs and foundations as flood related. The insured will indicate that he or she never 
noticed the foundation and slab damage until after the flood. This neither proves nor disproves 
that the damage resulted from flood.

Most slab and foundation damage occurs because of a lack of moisture in the ground. The soil 
shrinks away from the foundation, allowing the grade beams to settle downward under the 
supported weight. This results in a bowing effect and cracks. Excess water in the ground exerts 
upward pressure on the slab floor and inward pressure on the subgrade foundation walls. This 
also results in cracks and displacement. Damage of this kind is considered the result of 
hydrostatic pressure and is not covered under the SFIP, unless there is a general condition of 
flooding in the area.

Flooding with sufficient water movement to carry the subsoil away (scouring) from the slab or 
foundation walls generally leaves visible signs. Claims for foundation damage without any 
visible indication of scouring or land subsidence bear close scrutiny. Most foundation and slab 
damage that occurs without any visible signs of soil displacement may have resulted from 
causes other than flooding and is not covered by the SFIP. The adjuster must carefully check

the perimeter and underneath the building for soil washout from velocity water flow. When 
finding no indication, the adjuster must resist a claim for foundation damage. The insured then 
has the responsibility to prove that the damage was caused by flood. Use of structural 
engineers must be limited to losses with visible indications of flood damage or of floodwaters 
having exacerbated preexisting damage.

Q.	FREEZERS

Walk-in freezers attached to the building are considered part of the building.

R.	HYDROSTATIC PRESSURE

The SFIP excludes damages resulting from hydrostatic pressure unless there is surface 
flooding in the area and the flood is the proximate cause of the damage from the pressure of 
water against the insured structure.

S.	ICE AND DEBRIS IMPACT DAMAGE

Damage sustained from freezing or thawing of water, along with damage sustained from and by 
the weight and pressure of ice, is not covered unless the property itself is under direct contact 
by flood as defined in the SFIP. Damage to property elements by freeze or thaw after the 
surface water has receded from the property is not covered.

T.	MANUFACTURED (MOBILE) HOMES

The replacement cost for a manufactured (mobile) home will not exceed 1.5 times its actual 
cash value.

U.	MUDFLOW

Mudflow is the only form of earth movement covered by the SFIP. (The word mudslide no 
longer is used in the SFIP.) A mudflow is a river of liquid and flowing mud on the surfaces of 
normally dry land areas, as when earth is carried by a current of water.

Mudflow is unforeseeable, is less common than earth movement from landslide or erosion, and 
has characteristics markedly similar to those of a flood. Landslide and slope failure are not 
covered under the policy. However, coverage is provided for subsidence of land along the shore 
of a lake or similar body of water which results from the erosion or undermining of the shoreline 
caused by waves or currents of water which results in a flood.

V.	PROPERTY REMOVED TO SAFETY

If coverage has been purchased both for personal property (contents) and for the building, the 
SFIP covers direct physical loss by flood to each while the property is located at the property 
address shown on the application or endorsement. Coverage is available for 45 days at another 
place above ground or outside of a Special Flood Hazard Area to which any insured property 
(including a moveable building) is removed in order to protect and preserve it from a flood or 
from the imminent danger of flood. Personal property that has been removed must be placed in 
a fully enclosed building or otherwise reasonably protected from the elements to be insured

against loss. The reasonable expense incurred by the insured, including the value of the 
insureds own labor at prevailing federal minimum wage in moving the insured property away 
from the peril of flood and storing the property at the temporary location, will be reimbursed to 
the insured, up to $1,000.

W.	REPETITIVE LOSS STRUCTURES AND PREVIOUS CLAIMS

1.	Repetitive Loss Structures

A repetitive loss structure is one that has sustained flood damage on two occasions during 
a 10-year period ending on the date of the event for which a second claim is made, and 
for which the cost of repairing the flood damage, on the average, equaled or exceeded 
25 percent of the market value of the structure at the time of each such flood event. Repetitive 
losses are a major challenge to the NFIP. Since 1980, $1.2 billion has been paid on risks with 
a repetitive loss history.

2.	Previous Claims

It is imperative for the adjuster to be alert to the possibility that any loss property may have 
been involved in previous claim activity. Where there is evidence of repetitive flood loss, the 
adjuster must request the prior loss file from the WYO company or the NFIP Servicing 
Agent. To identify the previous carrier, the adjuster should call the NFIP Bureau and 
Statistical Agent.

In such cases, analyze prior loss file photographs and compare previous data to current 
conditions. Photographs from different dates of loss that show the same paneling, 
appliances, fixtures, machinery, and equipment indicating non-replacement for the prior 
flood event should be brought to the attention of the claims examiner. When investigating 
possible repetitive loss, always:

a.	Look for similarities in furniture color and style.

b.	Look for the same design, pattern, and texture in paneling.

c.	Check appliances and mechanical apparatuses for manufacturer names, model 
classifications, and serial numbers. (The same serial numbers between two events show 
non-replacement of these items after a previous flood.)

X.	SCRIP AND STORED VALUE CARDS

Coverage is specifically excluded for these items.

Y.	SEEPAGE AND HIGH WATER TABLE

The SFIP does not provide coverage for losses related to high water tables or seepage unless 
there was a general condition of flooding in the area

Z.	SWIMMING POOLS, HOT TUBS, AND SPAS

Coverage for swimming pools, hot tubs, spas, and their equipment is excluded, except that 
spas and hot tubs are covered if they are bathroom fixtures. Spas and hot tubs are covered 
under the General Property Form if they are bathroom fixtures or stock and inventory held for 
sale.

A'.	TRAVEL TRAILERS

Travel trailers without wheels, built on a chassis, affixed to a permanent foundation, and 
regulated under the communitys floodplain management and building ordinances or laws are 
covered.

B'.	VENETIAN BLINDS

The SFIP now covers all types of window blinds.

C'.	WATER, MOISTURE, MILDEW, OR MOLD DAMAGE

The SFIP covers reasonable costs for remediation of mold damage except when the damage 
results from a condition confined to the insured building or within [the insureds] control, such 
as failure to inspect and maintain the property after a flood recedes. Four examples of SFIP 
coverage are provided below.

1.	If a building was inundated but not evacuated, the SFIP will pay reasonable expenses for 
water extraction, dehumidifier and fan rental, and mildicide and anti-microbial application.

2.	If, after the insured has taken the mitigation measures in example 1 above, mold reappears 
and causes damage to the upper portions of walls, ceilings, etc., the NFIP will honor such 
claims if the insured can show that mitigation attempts were made.

3.	If a local official requires testing for mold, and has legal authority to do so, the SFIP will 
pay  reasonable costs for the test. No other testing is necessary because the SFIP pays for 
reasonable remediation of mold damage (except as noted above). Therefore, the cost of 
other testing, except as described here and in example 4 below, will not be covered.

4.	If, during inspection of a claim for mold damage, the adjuster believes that such damage is 
not the result of the recent flood but is a long-term, recurring problem, it may be necessary 
to obtain a testing report from a Certified or Licensed Hygienist or Microbiologist. The report 
must be specific as to whether the mold is a recent problem or a long-term, recurring 
problem.

Obviously, there can be other scenarios: situations where waist-deep water has inundated the 
building and remained for several days, or situations where the insured was not allowed to 
return to the building for an extended period of time. In such cases, apply common sense and 
good adjusting principles. Use these examples as a guide in the handling of the more complex 
cases.

D'.	WATER SOFTENERS

If the water softener is installed at the described location and connected to a power source, 
coverage is provided for the water softener and the chemicals in it.

E'.	WELL WATER PUMPS

The Dwelling Form provides coverage for well pumps located below the lowest elevated floor of 
an elevated building and in basements. Well pumps are described as building items and 
therefore cannot be construed as content items. If the well pump is located in an unattached 
shed or building, then there is no coverage.


IX. MAINTAINING THE INTEGRITY OF THE NFIP


A.	QUALITY ASSURANCE REINSPECTIONS

The purpose of reinspections is to maintain the high quality of claims processing in the WYO 
program. There are two types of reinspections:

? Routine
? Special Assist

1.	Routine Reinspections

Routine reinspections are conducted principally on open claim files. During a flooding event, a 
General Adjuster from the NFIP Bureau and Statistical Agent will select a WYO company for 
reinspection, determine the number of claims, and select the claims to be reinspected.

The General Adjuster uses the three-part Reinspection Report form. The form is completed in 
full and signed by both the WYO company representative and the General Adjuster. If the WYO 
company representative disagrees with the reinspection results, the representative must 
indicate the reasons for disagreement at the bottom of the form.

The General Adjuster then forwards copies of the Reinspection Report for review by FEMAs 
Government Technical Monitor in the offices of the NFIP Bureau and Statistical Agent. If 
overpayments are noted, the Monitor will correspond with the WYO company for collection. If, 
over time, patterns of adjustment errors or oversights are noted, Bureau and Statistical Agent 
staff will determine what additional training is needed.

2.	Special Assist Reinspections

Special assist reinspections are precipitated by a written request from the WYO company claim 
coordinator or direction (oral or written) from FEMA. These involve specific claim situations that 
require a General Adjusters intervention.

B. FRAUD PREVENTION

Fraud or misrepresentation is a continuing problem in the National Flood Insurance Program. 
It is the adjusters responsibility to detect and report fraud. Any case where it is reasonably 
believed that there is the possibility of fraud must immediately be reported to the NFIP Servicing 
Agent or WYO company.

1.	Detecting Possible Fraud

The following are common indications of possible fraud:

a.	Changes of dates or amounts on receipts

b.	Dated receipts or invoices that have their printed serial numbers out of sequenc

c.	Recent, multiple changes of ownership of real property (Check for relationship of parties 
involved.)

d.	Repeated changing of policies by insured

e.	Multiple waterlines in a building (This possible indicator of previous flooding may 
demonstrate that the insured is trying to collect for repairs not completed from a prior 
flood.)

f.	Bringing in damaged property not owned by the insured to be submitted in the claim

g.	Fraudulent cause of loss

h.	Deliberate misrating

i.	Photocopied receipts

j.	Price quotes rather than receipts of purchase

2.	Reporting Possible Fraud

As noted above, all instances of possible fraud must immediately be reported to the NFIP 
Servicing Agent or the WYO company.

Other improper or wasteful practices should be reported to FEMAs Waste and Abuse Hotline at 
1-800-323-8603.



	VI-1	Change 1, 1/1/04
	
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	IX-2				



Appendix:
NFIP Forms Used in Claims Adjustment







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Exhibit 1. Adjuster Certification Application, fron

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Exhibit 1 (continued). Adjuster Certification Application, back

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Exhibit 2. Adjuster Preliminary Damage Assessmen



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Exhibit 3. Assignment of Coverage D  Increased Cost of Compliance Coverage





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Exhibit 4. Cause of Loss and Subrogation Repor





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Exhibit 5. Elevation Certificate, 2003 Revision, front
 

Exhibit 5 (continued). Elevation Certificate, 2003 Revision, back
 

Exhibit 6. Increased Cost of Compliance (ICC) Adjuster Repor




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Exhibit 7. Increased Cost of Compliance Proof of Los


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Exhibit 8. Manufactured (Mobile) Home/Travel Trailer Workshee



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Exhibit 9. NFIP Fee Schedule [Gross Loss] (Date of Loss on/after May 1, 1997




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Exhibit 10. NFIP ICC Fee Schedule (Date of Loss on/after May 1, 2003



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Exhibit 11. National Flood Insurance Program Preliminary Repor


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Exhibit 12. National Flood Insurance Program Narrative Repor







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Exhibit 13. National Flood Insurance Program Final Repor





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Exhibit 14. Notice of Los





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Exhibit 15. Proof of Los








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Exhibit 16. Statement as to Full Cost of Repair or Replacemen




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Exhibit 17. Worksheet  Buildin







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Exhibit 18. Worksheet  Building (Contd











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Exhibit 19. Worksheet  Contents  Personal Propert