National Flood Insurance Program

Dwelling Form

Standard Flood Insurance Policy

F-122 / October 2015

SFIP DWELLING FORM PAGE 1 OF 26

FEDERAL EMERGENCY MANAGEMENT AGENCY

FEDERAL INSURANCE ADMINISTRATION

STANDARD FLOOD INSURANCE POLICY

DWELLING FORM

PLEASE READ THE POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS SUBJECT TO LIMITATIONS, 

RESTRICTIONS, AND EXCLUSIONS. THIS POLICY COVERS ONLY:

1. A NON-CONDOMINIUM RESIDENTIAL BUILDING DESIGNED FOR PRINCIPAL USE AS A DWELLING PLACE OF ONE 

TO FOUR FAMILIES, OR

2. A SINGLE FAMILY DWELLING UNIT IN A CONDOMINIUM BUILDING.

I. AGREEMENT

The Federal Emergency Management Agency (FEMA) 

provides flood insurance under the terms of the National 

Flood Insurance Act of 1968 and its Amendments, and Title 

44 of the Code of Federal Regulations.

We will pay you for direct physical 

loss by or from flood to your insured 

property if you:

1. Have paid the correct premium;

2. Comply with all terms and conditions of this policy; and

3. Have furnished accurate information and statements.

We have the right to review the information you give us at any 

time and to revise your policy based on our review. 

II. DEFINITIONS

A. In this policy, “you” and “your” refer to the insured(s) 

shown on the Declarations Page of this policy and your 

spouse, if a resident of the same household. Insured(s) 

includes: Any mortgagee and loss payee named in the 

Application and Declarations Page, as well as any other 

mortgagee or loss payee determined to exist at the time 

of loss in the order of precedence. “We,” “us,” and “our” 

refer to the insurer.

Some definitions are complex because they are provided 

as they appear in the law or regulations, or result from court 

cases. The precise definitions are intended to protect you.

Flood, as used in this flood insurance policy, means: 

1. A general and temporary condition of partial or complete 

inundation of two or more acres of normally dry land area 

or of two or more properties (one of which is your 

property) from:

a. Overflow of inland or tidal waters,

b. Unusual and rapid accumulation or runoff of surface 

waters from any source,

c. Mudflow.

2. Collapse or subsidence of land along the shore of a 

lake or similar body of water as a result of erosion or 

undermining caused by waves or currents of water 

exceeding anticipated cyclical levels that result in a flood 

as defined in A.1.a. above.

B. The following are the other key definitions we use in 

this policy:

1. Act. The National Flood Insurance Act of 1968 and any 

amendments to it.

2. Actual Cash Value. The cost to replace an insured item 

of property at the time of loss, less the value of its physical 

depreciation.

3. Application. The statement made and signed by you or 

your agent in applying for this policy. The application 

gives information we use to determine the eligibility of the 

risk, the kind of policy to be issued, and the correct 

premium payment. The application is part of this flood 

insurance policy. For us to issue you a policy, the correct 

premium payment must accompany the application.

4. Base Flood. A flood having a one percent chance of 

being equaled or exceeded in any given year.

5. Basement. Any area of the building, including any 

sunken room or sunken portion of a room, having its floor 

below ground level (subgrade) on all sides.

6. Building.

a. A structure with two or more outside rigid walls 

and a fully secured roof, that is affixed to a 

permanent site;
SFIP DWELLING FORM PAGE 2 OF 26 

b. A manufactured home (a “manufactured home,” 

also known as a mobile home, is a structure: built 

on a permanent chassis, transported to its site in 

one or more sections, and affixed to a permanent 

foundation); or

c. A travel trailer without wheels, built on a chassis and 

affixed to a permanent foundation, that is regulated 

under the community’s floodplain management and 

building ordinances or laws.

Building does not mean a gas or liquid storage tank or a 

recreational vehicle, park trailer or other similar vehicle, 

except as described in B.6.c. above. 

7. Cancellation. The ending of the insurance coverage 

provided by this policy before the expiration date.

8. Condominium. That form of ownership of real property 

in which each unit owner has an undivided interest in 

common elements.

9. Condominium Association. The entity made up of the 

unit owners responsible for the maintenance and 

operation of:

a. Common elements owned in undivided shares by 

unit owners; and

b. Other real property in which the unit owners have 

use rights; where membership in the entity is a 

required condition of unit ownership.

10. Declarations Page. A computer-generated summary of 

information you provided in the application for insurance. 

The Declarations Page also describes the term of the 

policy, limits of coverage, and displays the premium and 

our name. The Declarations Page is a part of this flood 

insurance policy.

11. Described Location. The location where the insured 

building(s) or personal property are found. The described 

location is shown on the Declarations Page.

12.Direct Physical Loss By or From 

Flood. Loss or damage to insured 

property, directly caused by a 

flood. There must be evidence of 

physical changes to the property.

13. Dwelling. A building designed for use as a residence for 

no more than four families or a single-family unit in a 

building under a condominium form of ownership.

14. Elevated Building. A building that has no basement and 

that has its lowest elevated floor raised above ground 

level by foundation walls, shear walls, posts, piers, 

pilings, or columns.

15. Emergency Program. The initial phase of a community’s 

participation in the National Flood Insurance Program. 

During this phase, only limited amounts of insurance are 

available under the Act.

16. Expense Constant. A flat charge you must pay on each 

new or renewal policy to defray the expenses of the 

Federal Government related to flood insurance. 

17. Federal Policy Fee. A flat charge you must pay on each 

new or renewal policy to defray certain administrative 

expenses incurred in carrying out the National Flood 

Insurance Program. This fee covers expenses not 

covered by the Expense Constant. 

18. Improvements. Fixtures, alterations, installations, or 

additions comprising a part of the insured dwelling or the 

apartment in which you reside.

19. Mudflow. A river of liquid and flowing mud on the surface 

of normally dry land areas, as when earth is carried by a 

current of water. Other earth movements, such as 

landslide, slope failure, or a saturated soil mass moving 

by liquidity down a slope, are not mudflows.

20. National Flood Insurance Program (NFIP). The 

program of flood insurance coverage and floodplain 

management administered under the Act and applicable 

Federal regulations in Title 44 of the Code of Federal 

Regulations, Subchapter B.

21. Policy. The entire written contract between you and us. 

It includes:

a. This printed form;

b. The application and Declarations Page; 

c. Any endorsement(s) that may be issued; and

d. Any renewal certificate indicating that coverage has 

been instituted for a new policy and new policy term. 

Only one dwelling, which you 

specifically described in the 

application, may be insured under 

this policy.

22. Pollutants. Substances that include, but are not limited 

to, any solid, liquid, gaseous, or thermal irritant or 

contaminant, including smoke, vapor, soot, fumes, acids, 

alkalis, chemicals, and waste. “Waste” includes, but is 

not limited to, materials to be recycled, reconditioned, or 

reclaimed.

23. Post-FIRM Building. A building for which construction 

or substantial improvement occurred after December 31, 

1974, or on or after the effective date of an initial Flood 

Insurance Rate Map (FIRM), whichever is later.

24. Probation Premium. A flat charge you must pay on 

each new or renewal policy issued covering property in a 

community the NFIP has placed on probation under the 

provisions of 44 CFR 59.24.

25. Regular Program. The final phase of a community’s 

participation in the National Flood Insurance Program. In 

this phase, a Flood Insurance Rate Map is in effect and 

full limits of coverage are available under the Act.
SFIP DWELLING FORM PAGE 3 OF 26

26. Special Flood Hazard Area. An area having special 

flood or mudflow, and/or flood-related erosion hazards, 

and shown on a Flood Hazard Boundary Map or Flood 

Insurance Rate Map as Zone A, AO, A1–A30, AE, A99, 

AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1–A30, 

V1–V30, VE, or V.

27. Unit. A single-family unit you own in a condominium 

building.

28. Valued Policy. A policy in which the insured and the 

insurer agree on the value of the property insured, that 

value being payable in the event of a total loss. The 

Standard Flood Insurance Policy is not a valued policy.

III. PROPERTY COVERED

A. COVERAGE A—BUILDING PROPERTY

We insure against direct physical loss by or from flood to:

1. The dwelling at the described location, or for a period 

of 45 days at another location as set forth in III.C.2.b., 

Property Removed to Safety.

2. Additions and extensions attached to and in contact with 

the dwelling by means of a rigid exterior wall, a solid loadbearing 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.

3. A detached garage at the described 

location. Coverage is limited to 

no more than 10% of the limit of 

liability on the dwelling. Use of 

this insurance is at your option 

but reduces the building limit 

of liability. We do not cover any 

detached garage used or held for 

use for residential (i.e., dwelling), 

business, or farming purposes.

4. Materials and supplies to be used for construction, 

alteration, or repair of the dwelling or a detached garage 

while the materials and supplies are stored in a fully 

enclosed building at the described location or on an 

adjacent property. 

5. A building under construction, alteration, or repair at the 

described location. 

a. If the structure is not yet walled or roofed as 

described in the definition for building (see II.B. 6.a.) 

then coverage applies:

(1) Only while such work is in progress; or

(2) If such work is halted, only for a period of up to 

90 continuous days thereafter.

b. However, coverage does not 

apply until the building is walled 

and roofed if the lowest floor, 

including the basement floor, 

of a non-elevated building or 

the lowest elevated floor of an 

elevated building is:

(1) Below the base flood 

elevation in Zones AH, AE, 

A1–A30, AR, AR/AE, AR/

AH, AR/A1–A30, AR/A, AR/

AO; or

(2) Below the base flood elevation adjusted to include 

the effect of wave action in 

Zones VE or V1–V30. 

The lowest floor levels are based on the bottom of 

the lowest horizontal structural member of the floor in 

Zones VE or V1–V30 and the top of the floor in Zones 

AH, AE, A1–A30, AR, AR/AE, AR/AH, AR/A1–A30, 

AR/A, AR/AO.

6. A manufactured home or a 

travel trailer as described in the 

Definitions section (see II.B.6.b. 

and II.B.6.c.).

If the manufactured home or travel 

trailer is in a special flood hazard 

area, it must be anchored in the 

following manner at the time of 

the loss:

a. By over-the-top or frame ties to 

ground anchors; or
SFIP DWELLING FORM PAGE 4 OF 26 

b. In accordance with the manufacturer’s specifications; or

c. In compliance with the community’s floodplain management 

requirements unless it has 

been continuously insured by 

the NFIP at the same described 

location since September 

30, 1982.

7. The following items of property which are covered under 

Coverage A only: 

a. Awnings and canopies;

b. Blinds;

c. Built-in dishwashers;

d. Built-in microwave ovens;

e. Carpet permanently installed over unfinished 

flooring;

f. Central air conditioners;

g. Elevator equipment;

h. Fire sprinkler systems;

i. Walk-in freezers;

j. Furnaces and radiators;

k. Garbage disposal units;

l. Hot water heaters, including solar water heaters;

m. Light fixtures; 

n. Outdoor antennas and aerials fastened to buildings;

o. Permanently installed cupboards, bookcases, 

cabinets, paneling, and wallpaper;

p. Plumbing fixtures;

q. Pumps and machinery for operating pumps;

r. Ranges, cooking stoves, and ovens; 

s. Refrigerators; and

t. Wall mirrors, permanently installed.

8. Items of property in a building 

enclosure below the lowest 

elevated floor of an elevated postFIRM building located in 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 the zone. Coverage is limited to 

the following:

a. Any of the following items, if 

installed in their functioning 

locations and, if necessary 

for operation, connected to a 

power source:

(1) Central air conditioners;

(2) Cisterns and the water 

in them;

(3) 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;

(4) Electrical junction and 

circuit breaker boxes;

(5) Electrical outlets and 

switches;

(6) Elevators, dumbwaiters, 

and related equipment, 

except for related equipment installed below the 

base flood elevation after 

September 30, 1987;

(7) Fuel tanks and the fuel 

in them;

(8) Furnaces and hot water 

heaters;

(9) Heat pumps;

(10) Nonflammable insulation 

in a basement;

(11) Pumps and tanks used in 

solar energy systems;

(12) Stairways and staircases 

attached to the building, 
SFIP DWELLING FORM PAGE 5 OF 26

not separated from it by 

elevated walkways;

(13) Sump pumps;

(14) Water softeners and the 

chemicals in them, water 

filters, and faucets installed 

as an integral part of the 

plumbing system;

(15) Well water tanks and 

pumps; 

(16) Required utility connections 

for any item in this list; and

(17) Footings, foundations, 

posts, pilings, piers, or 

other foundation walls 

and anchorage systems 

required to support a 

building.

b. Clean-up.

B. COVERAGE B—PERSONAL PROPERTY

1. If you have purchased personal 

property coverage, we insure 

against direct physical loss by or 

from flood to personal property 

inside a building at the described 

location, if: 

a. The property is owned by 

you or your household family 

members; and 

b. At your option, the property is 

owned by guests or servants. 

Personal property is also covered 

for a period of 45 days at another 

location as set forth in III.C.2.b., 

Property Removed to Safety.

Personal property in a building 

that is not fully enclosed must be 

secured to prevent flotation out of 

the building. If the personal property does float out during a flood, 

it will be conclusively presumed 

that it was not reasonably secured. 

In that case there is no coverage 

for such property.

2. Coverage for personal property includes the following 

property, subject to B.1. above, which is covered under 

Coverage B only:

a. Air conditioning units, portable or window type;

b. Carpets, not permanently installed, over unfinished 

flooring;

c. Carpets over finished flooring;

d. Clothes washers and dryers;

e. “Cook-out” grills;

f. Food freezers, other than walk-in, and food in any 

freezer; and 

g. Portable microwave ovens and portable 

dishwashers.

3. Coverage for items of property 

in a building enclosure below the 

lowest elevated floor of an elevated post-FIRM building located 

in 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 the zone, is limited 

to the following items, if installed 

in their functioning locations and, 

if necessary for operation, connected to a power source:

a. Air conditioning units, portable 

or window type;

b. Clothes washers and dryers; 

and

c. Food freezers, other than 

walk-in, and food in any freezer.

4. If you are a tenant and have insured personal property 

under Coverage B in this policy, we will cover such 
SFIP DWELLING FORM PAGE 6 OF 26 

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% 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.

5. 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% 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. 

6. 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 

semi-precious stones, or articles of gold, silver, or platinum; 

d. Furs or any article containing 

fur which represents its 

principal value; or

e. Personal property used in 

any business.

7. We will pay only for the functional 

value of antiques.

C. COVERAGE C—OTHER COVERAGES

1. Debris Removal

a. We will pay the expense to remove non-owned 

debris that is on or in insured property and debris of 

insured property anywhere.

b. If you or a member of your household perform the 

removal work, the value of your work will be based 

on the Federal minimum wage. 

c. This coverage does not increase the Coverage A or 

Coverage B limit of liability.

2. 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) Plastic 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 only applies 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: 
SFIP DWELLING FORM PAGE 7 OF 26

(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 building; or

(b) A legally authorized official must issue 

an evacuation order or other civil order 

for the community in which the 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, you or a 

member of 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.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.

3. Condominium Loss Assessments

a. If this policy insures a unit, we will pay, up to 

the Coverage A limit of liability, your share of 

loss assessments charged against you by the 

condominium association in accordance with the 

condominium association’s articles of association, 

declarations and your deed.

The assessment must be made 

as a result of direct physical 

loss by or from flood during the 

policy term, to the building’s 

common elements.

b. We will not pay any loss 

assessment charged against 

you:

(1) And the condominium 

association by any governmental body;

(2) That results from a 

deductible under the insurance purchased by the 

condominium association 

insuring common elements;

(3) That results from a loss to 

personal property, including 

contents of a condominium 

building;

(4) That results from a loss sustained by the condominium 

association that was not 

reimbursed under a flood 

insurance policy written 

in the name of the 
SFIP DWELLING FORM PAGE 8 OF 26 

association under the Act 

because the building was 

not, at the time of loss, 

insured for an amount 

equal to the lesser of: 

(a) 80% or more of its full 

replacement cost; or

(b) The maximum amount 

of insurance permitted 

under the Act;

(5) To the extent that payment 

under this policy for a condominium building loss, in 

combination with payments 

under any other NFIP policies for the same building 

loss, exceeds the maximum 

amount of insurance permitted under the Act for 

that kind of building; or

(6) To the extent that payment under this policy for 

a condominium building 

loss, in combination with 

any recovery available to 

you as a tenant in common 

under any NFIP condominium association policies 

for the same building loss, 

exceeds the amount of 

insurance permitted under 

the Act for a single-family 

dwelling.

Loss assessment coverage does not increase the 

Coverage A limit of liability.

D. COVERAGE D—INCREASED COST OF COMPLIANCE

1. General

This policy pays you to comply with a State or local 

floodplain management law or ordinance affecting 

repair or reconstruction of a structure suffering flood 

damage. Compliance activities eligible for payment are: 

elevation, floodproofing, relocation, or demolition (or 

any combination of these activities) of your structure. 

Eligible floodproofing activities 

are limited to:

a. Non-residential structures.

b. Residential structures with 

basements that satisfy FEMA’s 

standards published in the 

Code of Federal Regulations [44 

CFR 60.6 (b) or (c)].

2. Limit of Liability

We will pay you up to $30,000 

under this Coverage D—Increased 

Cost of Compliance, which only 

applies to policies with building 

coverage (Coverage A). Our payment of claims under Coverage 

D is in addition to the amount of 

coverage which you selected on 

the application and which appears 

on the Declarations Page. But the 

maximum you can collect under 

this policy for both Coverage A—

Building Property and Coverage 

D—Increased Cost of Compliance 

cannot exceed the maximum permitted under the Act. We do not charge a 

separate deductible for a claim under Coverage D.

3. Eligibility

a. A structure covered under 

Coverage A—Building Property 

sustaining a loss caused by 

a flood as defined by this 

policy must: 

(1) Be a “repetitive loss 

structure.” A repetitive loss structure 

is one that meets the following conditions:

(a) The structure is covered by a contract of 

flood insurance issued under the NFIP.
SFIP DWELLING FORM PAGE 9 OF 26

(b) The structure has suffered flood damage 

on two occasions during a 10-year period 

which ends on the date of the second loss.

(c) The cost to repair the flood damage, on 

average, equaled or exceeded 25% of the 

market value of the structure at the time of 

each flood loss.

(d) In addition to the current claim, the NFIP 

must have paid the previous qualifying 

claim, and the State or community must 

have a cumulative, substantial damage 

provision or repetitive loss provision in its 

floodplain management law or ordinance 

being enforced against the structure; or

(2) Be a structure that has had 

flood damage in which the 

cost to repair equals or 

exceeds 50% of the market 

value of the structure at the 

time of the flood. The State or 

community must have a substantial damage 

provision in its floodplain management law 

or ordinance being enforced against the 

structure. 

b. This Coverage D pays you to comply with State or 

local floodplain management laws or ordinances 

that meet the minimum standards of the National 

Flood Insurance Program found in the Code of 

Federal Regulations at 44 CFR 60.3. We pay 

for compliance activities that 

exceed those standards under 

these conditions: 

(1) 3.a.(1) above.

(2) Elevation or floodproofing 

in any risk zone to preliminary or advisory base 

flood elevations provided 

by FEMA which the State 

or local government has 

adopted and is enforcing 

for flood-damaged structures in such areas. (This 

includes compliance activities in B, C, X, 

or D zones which are being changed to 

zones with base flood elevations. This also 

includes compliance activities in zones 

where base flood elevations are being 

increased, and a flood-damaged structure 

must comply with the higher advisory base 

flood elevation.) Increased Cost of 

Compliance coverage does 

not apply to situations in 

B, C, X, or D zones where 

the community has derived 

its own elevations and 

is enforcing elevation or 

floodproofing requirements 

for flood-damaged structures to elevations derived 

solely by the community.

(3) Elevation or floodproofing 

above the base flood elevation to meet State or local 

“freeboard” requirements, 

i.e., that a structure must 

be elevated above the base 

flood elevation.

c. Under the minimum NFIP criteria at 44 CFR 

60.3 (b)(4), States and communities must require 

the elevation or floodproofing of structures in 

unnumbered A zones to the base flood elevation 

where elevation data is obtained from a Federal, 

State, or other source. Such compliance activities 

are also eligible for Coverage D.

d. This coverage will also pay for the incremental 

cost, after demolition or relocation, of elevating 

or floodproofing a structure during its rebuilding 

at the same or another site to meet State or local 

floodplain management laws or ordinances, subject 

to Exclusion D.5.g. below.

e. This coverage will also pay to bring a flooddamaged structure into compliance with state or 

local floodplain management laws or ordinances 

even if the structure had received a variance before 

the present loss from the applicable floodplain 

management requirements. 

4. Conditions

a. When a structure covered 

under Coverage A—Building 

Property sustains a loss caused 

by a flood, our payment for 

the loss under this Coverage 

D will be for the increased 

cost to elevate, floodproof, 

relocate, or demolish (or any 
SFIP DWELLING FORM PAGE 10 OF 26 

combination of these activities) 

caused by the enforcement of 

current State or local floodplain 

management ordinances or 

laws. Our payment for eligible 

demolition activities will be for 

the cost to demolish and clear 

the site of the building debris or 

a portion thereof caused by the 

enforcement of current State or 

local floodplain management 

ordinances or laws. Eligible 

activities for the cost of 

clearing the site will include 

those necessary to discontinue 

utility service to the site and 

ensure proper abandonment of 

on-site utilities. 

b. When the building is repaired 

or rebuilt, it must be intended 

for the same occupancy as 

the present building unless 

otherwise required by current 

floodplain management ordinances or laws. 

5. Exclusions

Under this Coverage D (Increased 

Cost of Compliance) we will not 

pay for:

a. The cost to comply with any 

floodplain management law 

or ordinance in communities 

participating in the Emergency 

Program.

b. The cost associated with 

enforcement of any ordinance 

or law that requires any insured 

or others to test for, monitor, 

clean up, remove, contain, treat, 

detoxify or neutralize, or in any 

way respond to, or assess the 

effects of pollutants. 

c. The loss in value to any insured 

building or other structure due 

to the requirements of any 

ordinance or law.

d. The loss in residual value of the 

undamaged portion of a building 

demolished as a consequence 

of enforcement of any State or 

local floodplain management 

law or ordinance. 

e. Any Increased Cost of Compliance under this Coverage D:

(1) Until the building is elevated, 

floodproofed, demolished, 

or relocated on the same or 

to another premises; and 

(2) Unless the building is 

elevated, floodproofed, 

demolished, or relocated as 

soon as reasonably possible 

after the loss, not to exceed 

two years.

f. Any code upgrade requirements, e.g., plumbing or 

electrical wiring, not specifically related to the State or local 

floodplain management law or 

ordinance.

g. Any compliance activities 

needed to bring additions 

or improvements made after 

the loss occurred into compliance with State or local 

floodplain management laws or 

ordinances. 
SFIP DWELLING FORM PAGE 11 OF 26

h. Loss due to any ordinance 

or law that you were required 

to comply with before the 

current loss.

i. Any rebuilding activity to 

standards that do not meet the 

NFIP’s minimum requirements. 

This includes any situation 

where the insured has received 

from the State or community a 

variance in connection with the 

current flood loss to rebuild the 

property to an elevation below 

the base flood elevation. 

j. Increased Cost of Compliance 

for a garage or carport. 

k. Any structure insured under an 

NFIP Group Flood Insurance 

Policy. 

l. Assessments made by a condominium association on 

individual condominium unit 

owners to pay increased costs 

of repairing commonly owned 

buildings after a flood in compliance with State or local 

floodplain management ordinances or laws.

6. Other Provisions

a. Increased Cost of Compliance coverage will not be 

included in the calculation to determine whether 

coverage meets the 80% insurance-to-value 

requirement for replacement cost coverage as set 

forth in VII. General Conditions, V. Loss Settlement.

b. All other conditions and provisions of the policy 

apply.

IV. PROPERTY NOT COVERED

We do not cover any of the following:

1. Personal property not inside a 

building;

2. A building, and personal property 

in it, located entirely in, on, or 

over water or seaward of mean 

high tide if it was constructed 

or substantially improved after 

September 30, 1982;

3. Open structures, including a 

building used as a boathouse 

or any structure or building into 

which boats are floated, and 

personal property located in, on, 

or over water;

4. Recreational vehicles other than 

travel trailers described in the 

Definitions section (see II.B.6.c.) 

whether affixed to a permanent 

foundation or on wheels;

5. Self-propelled vehicles or 

machines, including their parts 

and equipment. 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;
SFIP DWELLING FORM PAGE 12 OF 26 

6. Land, land values, lawns, trees, 

shrubs, plants, growing crops, or 

animals;

7. Accounts, bills, coins, currency, 

deeds, evidences of debt, medals, money, scrip, stored value 

cards, postage stamps, securities, 

bullion, manuscripts, or other valuable papers;

8. Underground structures and 

equipment, including wells, septic 

tanks, and septic systems;

9. Those portions of walks, walkways, 

decks, driveways, patios and other 

surfaces, all whether protected by 

a roof or not, located outside the 

perimeter, exterior walls of the 

insured building or the building in 

which the insured unit is located;

10.Containers, including related 

equipment, such as, but not limited to, tanks containing gases 

or liquids;

11. Buildings or units and all their 

contents if more than 49% of the 

actual cash value of the building is 

below ground, unless the lowest 

level is at or above the base flood 

elevation and is below ground 

by reason of earth having been 

used as insulation material in 

conjunction with energy efficient 

building techniques;

12.Fences, retaining walls, seawalls, 

bulkheads, wharves, piers, 

bridges, and docks;

13.Aircraft or watercraft, or their 

furnishings and equipment;

14.Hot tubs and spas that are not 

bathroom fixtures, and swimming 

pools, and their equipment, such 

as, but not limited to, heaters, 

filters, pumps, and pipes, wherever 

located;

15.Property not eligible for flood 

insurance pursuant to the provisions of the Coastal Barrier 

Resources Act and the Coastal 

Barrier Improvement Act and 

amendments to these Acts;

16.Personal property you own in 

common with other unit owners 

comprising the membership of a 

condominium association.

V. EXCLUSIONS

A. We only pay for direct physical loss 

by or from flood, which means that 

we do not pay you for:

1. Loss of revenue or profits; 

2. Loss of access to the insured 

property or described location;

3. Loss of use of the insured property 

or described location;

4. Loss from interruption of business 

or production;

5. Any additional living expenses 

incurred while the insured building 

is being repaired or is unable to be 

occupied for any reason;

6. The cost of complying with any 

ordinance or law requiring or 
SFIP DWELLING FORM PAGE 13 OF 26

regulating the construction, demolition, remodeling, renovation, 

or repair of property, including 

removal of any resulting debris. 

This exclusion does not apply to 

any eligible activities we describe 

in Coverage D—Increased Cost of 

Compliance; or

7. Any other economic loss you 

suffer.

B. We do not insure a loss directly or 

indirectly caused by a flood that 

is already in progress at the time 

and date:

1. The policy term begins; or

2. Coverage is added at your request.

C. We do not insure for loss to property caused directly by earth 

movement even if the earth movement is caused by flood. Some 

examples of earth movement that 

we do not cover are: 

1. Earthquake;

2. Landslide;

3. Land subsidence;

4. Sinkholes;

5. Destabilization or movement of 

land that results from accumulation of water in subsurface land 

area; or

6. Gradual erosion.

We do, however, pay for losses 

from mudflow and land subsidence as a result of erosion that are 

specifically covered under our definition of flood (see II.A.1.c. and 

II.A.2.).

D. We do not insure for direct physical 

loss caused directly or indirectly 

by any of the following:

1. The pressure or weight of ice;

2. Freezing or thawing;

3. Rain, snow, sleet, hail, or water 

spray;

4. Water, moisture, mildew, or mold 

damage that results primarily from 

any condition: 

a. Substantially confined to the 

dwelling; or 

b. That is within your control, 

including but not limited to:

(1) Design, structural, or 

mechanical defects;

(2) Failure, stoppage, or breakage of water or sewer lines, 

drains, pumps, fixtures, or 

equipment; or

(3) Failure to inspect and maintain the property after a 

flood recedes;

5. Water or water-borne material that:

a. Backs up through sewers or 

drains; 

b. Discharges or overflows from 

a sump, sump pump or related 

equipment; or

c. Seeps or leaks on or through 

the covered property;

unless there is a flood in the area 

and the flood is the proximate 

cause of the sewer or drain backup, 
SFIP DWELLING FORM PAGE 14 OF 26 

sump pump discharge or overflow, 

or the seepage of water; 

6. The 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;

7. Power, heating, or cooling failure 

unless the failure results from 

direct physical loss by or from 

flood to power, heating, or cooling 

equipment on the described 

location; 

8. Theft, fire, explosion, wind, or 

windstorm;

9. Anything you or any member of 

your household do or conspires 

to do to deliberately cause loss by 

flood; or 

10. Alteration of the insured property 

that significantly increases the 

risk of flooding.

E. We do not insure for loss to any 

building or personal property 

located on land leased from the 

Federal Government, arising from 

or incident to the flooding of the 

land by the Federal Government, 

where the lease expressly holds 

the Federal Government harmless 

under flood insurance issued 

under any Federal Government 

program.

F. We do not pay for the testing for 

or monitoring of pollutants unless 

required by law or ordinance.

VI. DEDUCTIBLES

A. When a loss is covered under this policy, we will pay only 

that part of the loss that exceeds your deductible amount, 

subject to the limit of liability that applies. The deductible 

amount is shown on the Declarations Page. 

However, when a building under 

construction, alteration, or repair 

does not have at least two rigid 

exterior walls and a fully secured 

roof at the time of loss, your 

deductible amount will be two 

times the deductible that would 

otherwise apply to a completed 

building.

B. In each loss from flood, separate deductibles apply to the 

building and personal property insured by this policy.

C. The deductible does NOT apply to:

1. III.C.2. Loss Avoidance Measures;

2. III.C.3. Condominium Loss Assessments; or 

3. III.D. Increased Cost of Compliance.

VII. GENERAL CONDITIONS

A. PAIR AND SET CLAUSE

In case of loss to an article that is part of a pair or set, we will 

have the option of paying you: 

1. An amount equal to the cost of replacing the lost, 

damaged, or destroyed article, minus its depreciation, or

2. The amount that represents the fair proportion of the 

total value of the pair or set that the lost, damaged, or 

destroyed article bears to the pair or set.

B. CONCEALMENT OR FRAUD AND POLICY VOIDANCE

1. With respect to all insureds under 

this policy, this policy: 
SFIP DWELLING FORM PAGE 15 OF 26

a. Is void;

b. Has no legal force or effect;

c. Cannot be renewed; and

d. Cannot be replaced by a new 

NFIP policy, if, before or after a 

loss, you or any other insured 

or your agent have at any time:

(1) Intentionally concealed or 

misrepresented any material fact or circumstance; 

(2) Engaged in fraudulent 

conduct; or

(3) Made false statements; 

relating to this policy or any 

other NFIP insurance.

2. This policy will be void as of the date wrongful acts 

described in B.1. above were committed.

3. Fines, civil penalties, and imprisonment under applicable 

Federal laws may also apply to the acts of fraud or 

concealment described above.

4. This policy is also void for 

reasons other than fraud, 

misrepresentation, or wrongful 

act. This policy is void from its 

inception and has no legal force 

under the following conditions:

a. If the property is located in 

a community that was not 

participating in the NFIP on the 

policy’s inception date and did 

not join or reenter the program 

during the policy term and 

before the loss occurred; or 

b. If the property listed on the 

application is otherwise not 

eligible for coverage under the 

NFIP. 

C. OTHER INSURANCE

1. If a loss covered by this policy is 

also covered by other insurance 

that includes flood coverage not 

issued under the Act, we will 

not pay more than the amount 

of insurance you are entitled to 

for lost, damaged, or destroyed 

property insured under this policy 

subject to the following: 

a. We will pay only the proportion 

of the loss that the amount of 

insurance that applies under this 

policy bears to the total amount 

of insurance covering the loss, 

unless C.1.b. or c. immediately 

below applies.

b. If the other policy has a 

provision stating that it is 

excess insurance, this policy 

will be primary.

c. This policy will be primary (but 

subject to its own deductible) 

up to the deductible in the 

other flood policy (except 

another policy as described in 

C.1.b. above). When the other 

deductible amount is reached, 

this policy will participate in 

the same proportion that the 

amount of insurance under 

this policy bears to the total 

amount of both policies, for the 

remainder of the loss. 

2. If there is other insurance in 

the name of your condominium 

association covering the same 

property covered by this policy, 
SFIP DWELLING FORM PAGE 16 OF 26 

then this policy will be in excess 

over the other insurance.

D. AMENDMENTS, WAIVERS, ASSIGNMENT

This policy cannot be changed nor can any of its provisions 

be waived without the express written consent of the Federal 

Insurance Administrator. No action we take under the terms 

of this policy constitutes a waiver of any of our rights. You 

may assign this policy in writing when you transfer title of your 

property to someone else except under these conditions:

1. When this policy covers only personal property; or

2. When this policy covers a structure during the course of 

construction.

E. CANCELLATION OF THE POLICY BY YOU

1. You may cancel this policy in accordance with the 

applicable rules and regulations of the NFIP.

2. If you cancel this policy, you may be entitled to a full or 

partial refund of premium also under the applicable rules 

and regulations of the NFIP.

F. NON-RENEWAL OF THE POLICY BY US

Your policy will not be renewed:

1. If the community where your covered property is located 

stops participating in the NFIP, or

2. If your building has been declared ineligible under Section 

1316 of the Act.

G. REDUCTION AND REFORMATION OF COVERAGE

1. If the premium we received from 

you was not enough to buy the 

kind and amount of coverage you 

requested, we will provide only 

the amount of coverage that can 

be purchased for the premium 

payment we received.

2. The policy can be reformed to increase the amount of 

coverage resulting from the reduction described in G.1. 

above to the amount you requested as follows:

a. Discovery of Insufficient Premium or Incomplete 

Rating Information Before a Loss:

(1) If we discover before you 

have a flood loss that 

your premium payment 

was not enough to buy 

the requested amount of 

coverage, we will send 

you and any mortgagee or 

trustee known to us a bill 

for the required additional 

premium for the current 

policy term (or that portion 

of the current policy term 

following any endorsement 

changing the amount of 

coverage). If you or the 

mortgagee or trustee pay 

the additional premium 

within 30 days from the date 

of our bill, we will reform 

the policy to increase the 

amount of coverage to the 

originally requested amount 

effective to the beginning 

of the current policy term 

(or subsequent date of any 

endorsement changing the 

amount of coverage).

(2) If we determine before you 

have a flood loss that the 

rating information we have 

is incomplete and prevents 

us from calculating the 

additional premium, we 

will ask you to send the 

required information. 

You must submit the 

information within 60 days 

of our request. Once we 

determine the amount of 

additional premium for the 

current policy term, we will 

follow the procedure in 

G.2.a.(1) above.

(3) If we do not receive the 

additional premium (or 

additional information) by 
SFIP DWELLING FORM PAGE 17 OF 26

the date it is due, the amount 

of coverage can only be 

increased by endorsement 

subject to any appropriate 

waiting period.

b. Discovery of Insufficient Premium or Incomplete 

Rating Information After a Loss:

(1) If we discover after you 

have a flood loss that 

your premium payment 

was not enough to buy 

the requested amount of 

coverage, we will send 

you and any mortgagee or 

trustee known to us a bill 

for the required additional 

premium for the current 

and the prior policy terms. 

If you or the mortgagee or 

trustee pay the additional 

premium within 30 days 

of the date of our bill, we 

will reform the policy to 

increase the amount of 

coverage to the originally 

requested amount effective 

to the beginning of the prior 

policy term.

(2) If we discover after you 

have a flood loss that the 

rating information we have 

is incomplete and prevents 

us from calculating the 

additional premium, we will 

ask you to send the required 

information. You must 

submit the information 

before your claim can be 

paid. Once we determine 

the amount of additional 

premium for the current 

and prior policy terms, we 

will follow the procedure in 

G.2.b.(1) above.

(3) If we do not receive the 

additional premium by 

the date it is due, your 

flood insurance claim 

will be settled based on 

the reduced amount of 

coverage. The amount 

of coverage can only be 

increased by endorsement 

subject to any appropriate 

waiting period.

3. However, if we find that you or 

your agent intentionally did not 

tell us, or falsified, any important 

fact or circumstance or did 

anything fraudulent relating to 

this insurance, the provisions 

of Condition B. Concealment or 

Fraud and Policy Voidance apply.

H. POLICY RENEWAL 

1. This policy will expire at 12:01 a.m. on the last day of the 

policy term. 

2. We must receive the payment of the appropriate renewal 

premium within 30 days of the expiration date. 

3. If we find, however, that we did not place your renewal 

notice into the U.S. Postal Service, or if we did mail it, we 

made a mistake, e.g., we used an incorrect, incomplete, 

or illegible address, which delayed its delivery to you 

before the due date for the renewal premium, then we will 

follow these procedures: 

a. If you or your agent notified us, not later than 1 year 

after the date on which the payment of the renewal 

premium was due, of non-receipt of a renewal 

notice before the due date for the renewal premium, 

and we determine that the circumstances in the 

preceding paragraph apply, we will mail a second 

bill providing a revised due date, which will be 30 

days after the date on which the bill is mailed.

b. If we do not receive the premium requested in the 

second bill by the revised due date, then we will not 

renew the policy. In that case, the policy will remain 

an expired policy as of the expiration date shown on 

the Declarations Page.
SFIP DWELLING FORM PAGE 18 OF 26 

4. In connection with the renewal of this policy, we 

may ask you during the policy term to recertify, on a 

Recertification Questionnaire we will provide to you, 

the rating information used to rate your most recent 

application for or renewal of insurance.

I. CONDITIONS SUSPENDING OR RESTRICTING 

INSURANCE

We are not liable for loss that 

occurs while there is a hazard that is 

increased by any means within your 

control or knowledge. 

J. REQUIREMENTS IN CASE OF LOSS

In case of a flood loss to insured 

property, you must:

1. Give prompt written notice to us;

2. As soon as reasonably possible, 

separate the damaged and 

undamaged property, putting it in 

the best possible order so that we 

may examine it;

3. Prepare an inventory of damaged 

property showing the quantity, 

description, actual cash value, and 

amount of loss. Attach all bills, 

receipts, and related documents;

4. Within 60 days after the loss, send 

us a proof of loss, which is your 

statement of the amount you are 

claiming under the policy signed 

and sworn to by you, and which 

furnishes us with the following 

information:

a. The date and time of loss; 

b. A brief explanation of how the 

loss happened;

c. Your interest (for example, 

“owner”) and the interest, if 

any, of others in the damaged 

property; 

d. Details of any other insurance 

that may cover the loss; 

e. Changes in title or occupancy 

of the covered property during 

the term of the policy; 

f. Specifications of damaged 

buildings and detailed repair 

estimates;

g. Names of mortgagees or anyone 

else having a lien, charge, 

or claim against the insured 

property;

h. Details about who occupied any 

insured building at the time of 

loss and for what purpose; and

i. The inventory of damaged 

personal property described in 

J.3. above.

5. In completing the proof of loss, 

you must use your own judgment 

concerning the amount of loss and 

justify that amount.

6. You must cooperate with the 

adjuster or representative in the 

investigation of the claim.

7. The insurance adjuster whom we 

hire to investigate your claim may 

furnish you with a proof of loss 

form, and she or he may help you 

complete it. However, this is a 

matter of courtesy only, and you 

must still send us a proof of loss 

within 60 days after the loss even 

if the adjuster does not furnish the 

form or help you complete it.
SFIP DWELLING FORM PAGE 19 OF 26

8. We have not authorized the adjuster 

to approve or disapprove claims or 

to tell you whether we will approve 

your claim.

9. At our option, we may accept 

the adjuster’s report of the loss 

instead of your proof of loss. 

The adjuster’s report will include 

information about your loss and 

the damages you sustained. You 

must sign the adjuster’s report. At 

our option, we may require you to 

swear to the report.

K. OUR OPTIONS AFTER A LOSS

Options we may, in our sole 

discretion, exercise after loss include 

the following:

1. At such reasonable times and 

places that we may designate, 

you must:

a. Show us or our representative 

the damaged property;

b. Submit to examination under 

oath, while not in the presence 

of another insured, and sign the 

same; and

c. Permit us to examine and make 

extracts and copies of:

(1) Any policies of property 

insurance insuring you 

against loss and the deed 

establishing your ownership 

of the insured real property; 

(2) Condominium association 

documents including the 

Declarations of the condominium, its Articles of 

Association or Incorporation, Bylaws, rules and 

regulations, and other relevant documents if you are 

a unit owner in a condominium building; and

(3) All books of accounts, bills, 

invoices and other vouchers, or certified copies 

pertaining to the damaged 

property if the originals 

are lost.

2. We may request, in writing, that 

you furnish us with a complete 

inventory of the lost, damaged or 

destroyed property, including: 

a. Quantities and costs;

b. Actual cash values or replacement cost (whichever is 

appropriate);

c. Amounts of loss claimed; 

d. Any written plans and specifications for repair of the damaged 

property that you can reasonably make available to us; and

e. Evidence that prior flood 

damage has been repaired.

3. If we give you written notice 

within 30 days after we receive 

your signed, sworn proof of loss, 

we may:

a. Repair, rebuild, or replace 

any part of the lost, damaged, 

or destroyed property with 

material or property of like kind 

and quality or its functional 

equivalent; and
SFIP DWELLING FORM PAGE 20 OF 26 

b. Take all or any part of the 

damaged property at the value 

that we agree upon or its 

appraised value.

L. NO BENEFIT TO BAILEE

No person or organization, other than you, having custody of 

covered property will benefit from this insurance.

M. LOSS PAYMENT

1. We will adjust all losses with you. We will pay you unless 

some other person or entity is named in the policy or is 

legally entitled to receive payment. Loss will be payable 

60 days after we receive your proof of loss (or within 

90 days after the insurance adjuster files the adjuster’s 

report signed and sworn to by you in lieu of a proof of 

loss) and:

a. We reach an agreement with you;

b. There is an entry of a final judgment; or 

c. There is a filing of an appraisal award with us, as 

provided in VII.P.

2. If we reject your proof of loss in whole or in part you may:

a. Accept our denial of your claim;

b. Exercise your rights under this policy; or 

c. File an amended proof of loss as long as it is filed 

within 60 days of the date of the loss.

N. ABANDONMENT

You may not abandon to us damaged or undamaged property 

insured under this policy.

O. SALVAGE

We may permit you to keep damaged 

property insured under this policy 

after a loss, and we will reduce the 

amount of the loss proceeds payable 

to you under the policy by the value 

of the salvage.

P. APPRAISAL

If you and we fail to agree on the actual cash value or, if 

applicable, replacement cost of your damaged property 

to settle upon the amount of loss, then either may demand 

an appraisal of the loss. In this event, you and we will each 

choose a competent and impartial appraiser within 20 days 

after receiving a written request from the other. The two 

appraisers will choose an umpire. If they cannot agree upon 

an umpire within 15 days, you or we may request that the 

choice be made by a judge of a court of record in the State 

where the covered property is located. The appraisers will 

separately state the actual cash value, the replacement cost, 

and the amount of loss to each item. If the appraisers submit a 

written report of an agreement to us, the amount agreed upon 

will be the amount of loss. If they fail to agree, they will submit 

their differences to the umpire. A decision agreed to by any 

two will set the amount of actual cash value and loss, or if it 

applies, the replacement cost and loss.

Each party will:

1. Pay its own appraiser; and 

2. Bear the other expenses of the appraisal and 

umpire equally.

Q. MORTGAGE CLAUSE

The word “mortgagee” includes trustee.

Any loss payable under Coverage A—Building Property will 

be paid to any mortgagee of whom we have actual notice, as 

well as any other mortgagee or loss payee determined to exist 

at the time of loss, and you, as interests appear. If more than 

one mortgagee is named, the order of payment will be the 

same as the order of precedence of the mortgages.

If we deny your claim, that denial will not apply to a valid claim 

of the mortgagee, if the mortgagee:

1. Notifies us of any change in the ownership or occupancy, 

or substantial change in risk of which the mortgagee 

is aware;

2. Pays any premium due under this policy on demand if 

you have neglected to pay the premium; and 

3. Submits a signed, sworn proof of loss within 60 days after 

receiving notice from us of your failure to do so. 

All of the terms of this policy apply to the mortgagee.

The mortgagee has the right to receive loss payment even 

if the mortgagee has started foreclosure or similar action on 

the building.

If we decide to cancel or not renew this policy, it will continue 

in effect for the benefit of the mortgagee only for 30 days after 

we notify the mortgagee of the cancellation or non-renewal.

If we pay the mortgagee for any loss and deny payment to 

you, we are subrogated to all the rights of the mortgagee 

granted under the mortgage on the property. Subrogation 

will not impair the right of the mortgagee to recover the full 

amount of the mortgagee’s claim.

R. SUIT AGAINST US

You may not sue us to recover money under this policy unless 

you have complied with all the requirements of the policy. If 

you do sue, you must start the suit within 1 year after the date 

of the written denial of all or part of the claim, and you must 

file the suit in the United States District Court of the district in 

which the covered property was located at the time of loss. 

This requirement applies to any claim that you may have 
SFIP DWELLING FORM PAGE 21 OF 26

under this policy and to any dispute that you may have arising 

out of the handling of any claim under the policy.

S. SUBROGATION

Whenever we make a payment for a loss under this policy, 

we are subrogated to your right to recover for that loss from 

any other person. That means that your right to recover for 

a loss that was partly or totally caused by someone else is 

automatically transferred to us, to the extent that we have 

paid you for the loss. We may require you to acknowledge this 

transfer in writing. After the loss, you may not give up our right 

to recover this money or do anything that would prevent us 

from recovering it. If you make any claim against any person 

who caused your loss and recover any money, you must pay 

us back first before you may keep any of that money.

T. CONTINUOUS LAKE FLOODING

1. If an insured building has been flooded by rising lake 

waters continuously for 90 days or more and it appears 

reasonably certain that a continuation of this flooding will 

result in a covered loss to the insured building equal to or 

greater than the building policy limits plus the deductible 

or the maximum payable under the policy for any one 

building loss, we will pay you the lesser of these two 

amounts without waiting for the further damage to occur 

if you sign a release agreeing:

a. To make no further claim under this policy;

b. Not to seek renewal of this policy;

c. Not to apply for any flood insurance under the Act 

for property at the described location; and

d. Not to seek a premium refund for current or 

prior terms.

If the policy term ends before 

the insured building has been 

flooded continuously for 90 days, 

the provisions of this paragraph 

T.1. will apply when the insured 

building suffers a covered loss 

before the policy term ends.

2. If your insured building is subject to continuous lake 

flooding from a closed basin lake, you may elect to file 

a claim under either paragraph T.1. above or T.2. (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 recorded past. Most of the nation’s closed 

basin lakes are in the western half of the United States 

where annual evaporation exceeds annual precipitation 

and where lake levels and surface areas are subject to 

considerable fluctuation due to wide variations in the 

climate. These lakes may overtop their basins on rare 

occasions.) Under this paragraph T.2. we will pay your 

claim as if the building is a total loss even though it has 

not been continuously inundated for 90 days, subject to 

the following conditions:

a. Lake flood waters must damage 

or imminently threaten to damage your building.

b. Before approval of your claim, 

you must:

(1) Agree to a claim payment 

that reflects your buying 

back the salvage on a 

negotiated basis; and

(2) Grant the conservation 

easement described in 

FEMA’s “Policy Guidance 

for Closed Basin Lakes” to 

be recorded in the office 

of the local recorder of 

deeds. FEMA, in consultation with the 

community in which the property is located, 

will identify on a map an area or areas 

of special consideration (ASC) in which 

there is a potential for flood damage from 

continuous lake flooding. FEMA will give the 

community the agreed-upon map showing 

the ASC. This easement will only apply to 

that portion of the property in the ASC. It will 

allow certain agricultural and recreational 

uses of the land. The only structures it will 

allow on any portion of the property within 

the ASC are certain simple agricultural 

and recreational structures. If any of these 

allowable structures are insurable buildings 

under the NFIP and are insured under the 

NFIP, they will not be eligible for the benefits 

of this paragraph T.2. If a U.S. Army Corps 

of Engineers certified flood control project 

or otherwise certified flood control project 

later protects the property, FEMA will, upon 

request, amend the ASC to remove areas 

protected by those projects. The restrictions 

of the easement will then no longer apply to 

any portion of the property removed from the 

ASC; and

(3) Comply with paragraphs 

T.1.a. through T.1.d. above.

c. Within 90 days of approval of 

your claim, you must move 

your building to a new location 
SFIP DWELLING FORM PAGE 22 OF 26 

outside the ASC. FEMA will give you an 

additional 30 days to move if you show there is 

sufficient reason to extend the time.

d. Before the final payment of your claim, you must 

acquire an elevation certificate and a floodplain 

development permit from the local floodplain 

administrator for the new location of your building.

e. Before the approval of your 

claim, the community having 

jurisdiction over your building 

must:

(1) Adopt a permanent land use ordinance, or 

a temporary moratorium for a period not to 

exceed 6 months to be followed immediately 

by a permanent land use ordinance, that is 

consistent with the provisions specified in the 

easement required in paragraph T.2.b. above.

(2) Agree to declare and report any violations of this 

ordinance to FEMA so that under Section 1316 

of the National Flood Insurance Act of 1968, as 

amended, flood insurance to the building can be 

denied; and

(3) Agree to maintain as deedrestricted, for purposes 

compatible with open space 

or agricultural or recreational 

use only, any affected 

property the community 

acquires an interest in. These 

deed restrictions must be consistent with the 

provisions of paragraph T.2.b. above, except 

that, even if a certified project protects the 

property, the land use restrictions continue to 

apply if the property was acquired under the 

Hazard Mitigation Grant Program or the Flood 

Mitigation Assistance Program. If a non-profit 

land trust organization receives the property 

as a donation, that organization must maintain 

the property as deed-restricted, consistent 

with the provisions of paragraph T.2.b. above.

f. Before the approval of your claim, the affected State 

must take all action set forth in FEMA’s “Policy 

Guidance for Closed Basin Lakes.”

g. You must have NFIP flood insurance coverage continuously in 

effect from a date established 

by FEMA until you file a claim 

under paragraph T.2. If a subsequent 

owner buys NFIP insurance that goes into effect 

within 60 days of the date of transfer of title, any gap 

in coverage during that 60-day period will not be a 

violation of this continuous coverage requirement. 

For the purpose of honoring a claim under this paragraph T.2., we will not consider to be in effect any 

increased coverage that became effective after the 

date established by FEMA. The exception to this is 

any increased coverage in the amount suggested by 

your insurer as an inflation adjustment.

h. This paragraph T.2. will be in effect for a community 

when the FEMA Regional Administrator for the 

affected region provides to the community, in 

writing, the following:

(1) Confirmation that the community and the 

State are in compliance with the conditions in 

paragraphs T.2.e. and T.2.f. above, and

(2) The date by which you must have flood 

insurance in effect.

U. DUPLICATE POLICIES NOT ALLOWED

1. We will not insure your property 

under more than one NFIP policy. 

If we find that the duplication was not knowingly created, 

we will give you written notice. The notice will advise you 

that you may choose one of several options under the 

following procedures:

a. If you choose to keep in effect the policy with the 

earlier effective date, you may also choose to add 

the coverage limits of the later policy to the limits of 

the earlier policy. The change will become effective 

as of the effective date of the later policy.

b. If you choose to keep in effect the policy with the 

later effective date, you may also choose to add the 

coverage limits of the earlier policy to the limits of 

the later policy. The change will be effective as of 

the effective date of the later policy.

In either case, you must pay the pro rata premium for the 

increased coverage limits within 30 days of the written 

notice. In no event will the resulting coverage limits 

exceed the permissible limits of coverage under the Act 

or your insurable interest, whichever is less. 

We will make a refund to you, according to applicable 

NFIP rules, of the premium for the policy not being kept in 

effect.

2. Your option under Condition U. Duplicate Policies Not 

Allowed to elect which NFIP policy to keep in effect 

does not apply when duplicates have been knowingly 

created. Losses occurring under such circumstances will 

be adjusted according to the terms and conditions of the 

earlier policy. The policy with the later effective date must 

be canceled. 
SFIP DWELLING FORM PAGE 23 OF 26

V. LOSS SETTLEMENT 

1. Introduction

This policy provides three methods of settling losses: 

Replacement Cost, Special Loss Settlement, and Actual 

Cash Value. Each method is used for a different type of 

property, as explained in a–c. below.

a. Replacement Cost loss 

settlement, described in V.2. 

below, applies to a single-family 

dwelling provided:

(1) It is your principal residence, which means that, 

at the time of loss, you or 

your spouse lived there for 

80% of:

(a) The 365 days immediately preceding the loss; or

(b) The period of your 

ownership, if you owned 

the dwelling for less 

than 365 days; and

(2) At the time of loss, the 

amount of insurance in this 

policy that applies to the 

dwelling is 80% or more of 

its full replacement cost 

immediately before the loss, 

or is the maximum amount 

of insurance available 

under the NFIP.

b. Special loss settlement, 

described in V.3. below, applies 

to a single-family dwelling that 

is a manufactured or mobile 

home or a travel trailer. 

c. Actual Cash Value loss settlement applies to a single-family 

dwelling not subject to replacement cost or special loss 

settlement, and to the property 

listed in V.4. below. 

2. Replacement Cost Loss Settlement

The following loss settlement 

conditions apply to a single-family 

dwelling described in V.1.a. above:

a. We will pay to repair or replace 

the damaged dwelling after 

application of the deductible 

and without deduction for 

depreciation, but not more 

than the least of the following 

amounts:

(1) The building limit of liability 

shown on your Declarations 

Page;

(2) The replacement cost of 

that part of the dwelling 

damaged, with materials of 

like kind and quality and for 

like use; or

(3) The necessary amount 

actually spent to repair or 

replace the damaged part 

of the dwelling for like use.

b. If the dwelling is rebuilt at a new 

location, the cost described 

above is limited to the cost that 

would have been incurred if the 

dwelling had been rebuilt at its 

former location. 

c. When the full cost of repair or 

replacement is more than $1,000 

or more than 5 percent of the 

whole amount of insurance that 

applies to the dwelling, we will 

not be liable for any loss under 

V.2.a. above or V.4.a.(2) below 
SFIP DWELLING FORM PAGE 24 OF 26 

unless and until actual repair or 

replacement is completed.

d. You may disregard the 

replacement cost conditions 

above and make claim under 

this policy for loss to dwellings 

on an actual cash value basis. 

You may then make claim for any 

additional liability according to 

V.2.a., b., and c. above, provided 

you notify us of your intent to 

do so within 180 days after the 

date of loss.

e. If the community in which your dwelling is located 

has been converted from the Emergency Program 

to the Regular Program during the current policy 

term, then we will consider the maximum amount of 

available NFIP insurance to be the amount that was 

available at the beginning of the current policy term.

3. Special Loss Settlement

a. The following loss settlement 

conditions apply to a singlefamily dwelling that:

(1) Is a manufactured or mobile 

home or a travel trailer, as 

defined in II.B.6.b. and 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.

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 pre-damage 

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 pre-damage 

condition, we will settle the loss 

according to the Replacement 

Cost conditions in V.2. above.

4. Actual Cash Value Loss Settlement

The types of property noted below 

are subject to actual cash value 

(or in the case of V.4.a.(2), below, 

proportional) loss settlement.

a. A dwelling, at the time of loss, 

when the amount of insurance 

on the dwelling is both less than 

80% of its full replacement cost 

immediately before the loss and 

less than the maximum amount 

of insurance available under 

the NFIP. In that case, we will 

pay the greater of the following 

amounts, but not more than 

the amount of insurance that 

applies to that dwelling:

(1) The actual cash value, 

as defined in II.B.2., of 

the damaged part of the 

dwelling; or
SFIP DWELLING FORM PAGE 25 OF 26

(2) A proportion of the cost 

to repair or replace the 

damaged part of the 

dwelling, without deduction 

for physical depreciation 

and after application of the 

deductible.

This proportion is determined as follows: If 80% of 

the full replacement cost of 

the dwelling is less than the 

maximum amount of insurance available under the 

NFIP, then the proportion 

is determined by dividing 

the actual amount of insurance on the dwelling by 

the amount of insurance 

that represents 80% of its 

full replacement cost. But 

if 80% of the full replacement cost of the dwelling is 

greater than the maximum 

amount of insurance available under the NFIP, then 

the proportion is determined by dividing the actual 

amount of insurance on the 

dwelling by the maximum 

amount of insurance available under the NFIP.

b. A two-, three-, or four-family 

dwelling.

c. A unit that is not used 

exclusively for single-family 

dwelling purposes.

d. Detached garages.

e. Personal property.

f. Appliances, carpets, and carpet 

pads.

g. Outdoor awnings, outdoor 

antennas or aerials of any type, 

and other outdoor equipment.

h. Any property covered under 

this policy that is abandoned 

after a loss and remains 

as debris anywhere on the 

described location.

i. A dwelling that is not your 

principal residence.

5. Amount of Insurance Required

To determine the amount of insurance required for a 

dwelling immediately before the loss, we do not include 

the value of:

a. 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;

b. Those supports listed in V.5.a. above, that are below 

the surface of the ground inside the foundation walls 

if there is no basement; and

c. Excavations and underground flues, pipes, wiring, 

and drains.

NOTE: The Coverage D—Increased Cost of 

Compliance limit of liability is not included in the 

determination of the amount of insurance required. 
SFIP DWELLING FORM PAGE 26 OF 26 

VIII. LIBERALIZATION CLAUSE

If we make a change that broadens your coverage under 

this edition of our policy, but does not require any additional 

premium, then that change will automatically apply to your 

insurance as of the date we implement the change, provided 

that this implementation date falls within 60 days before or 

during the policy term stated on the Declarations Page. 

IX. WHAT LAW GOVERNS

This policy and all disputes arising from the handling of any 

claim under the policy are governed exclusively by the flood 

insurance regulations issued by FEMA, the National Flood 

Insurance Act of 1968, as amended (42 U.S.C. 4001, et seq.), 

and Federal common law.

IN WITNESS WHEREOF, we have signed this policy below and hereby enter into this Insurance Agreement.

Roy E. Wright

Deputy Associate Administrator

FEMA’s Federal Insurance and Mitigation Administration
CLAIM GUIDELINES IN CASE OF A FLOOD

If you have questions, consult your insurance agent or call the National Flood Insurance Program (NFIP) 

toll-free at 1-800-638-6620 or on the TDD line at 1-800-447-9487.

Know your insurance representative’s name and telephone number. List them here for fast reference:

Insurance Agent 

Agent’s Phone Number 

• Notify us or your agent, in writing, as soon as possible after the flood.

• Your claim will be assigned to an NFIP certified adjuster. 

•Identify the claims adjuster assigned to your claim and contact him or her if you have not been 

contacted within 24 hours after you reported the claim to your insurance representative. 

• As soon as possible, separate damaged property from undamaged property so that damage can be 

inspected and evaluated.

•To help the claims adjuster, take photographs of the outside of the premises showing the flooding 

and the damage and photographs of the inside of the premises showing the height of the water and 

the damaged property.

•Place all account books, financial records, receipts, and other loss verification material in a safe 

place for examination and evaluation by the claims adjuster.

•Work cooperatively with the claims adjuster to promptly determine and document all claim items. 

Be prepared to advise the claims adjuster of the cause and responsible party(ies) if the flooding 

resulted from other than natural cause.

• Make sure that the claims adjuster fully explains, and that you fully understand, all allowances and 

procedures for processing claim payments. This policy requires you to send us a signed and swornto, detailed proof of loss within 60 days after the loss.

• Any and all coverage problems and claim allowance restrictions must be communicated directly 

from the NFIP. Claims adjusters are not authorized to approve or deny claims; their job is to report 

to the NFIP on the elements of flood cause and damage.

At our option, we may accept an adjuster’s report of the loss instead of your proof of loss. The adjuster’s 

report will include information about your loss and the damages to your insured property. 

F-122 (OCT. 2015)