National Flood Insurance Program

Dwelling Form

Standard Flood Insurance Policy
DWELLING FORM 

Summary of Significant Changes, December 31, 2000 

1. Section III. Property Covered, A. Coverage A - 

Building Property, 2. 

Additions and extensions to buildings that are connected 

by a rigid exterior wall, a solid load-bearing interior wall, a 

stairway, an elevated walkway, or a roof may be insured 

as part of the dwelling. At the option of the insured, these 

extensions and additions may be insured separately. 

Additions and extensions that are 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 insured 

separately. 

2. Section III. Property Covered, A. Coverage A -

Building Property, 3. 

Coverage for detached carports has been eliminated. 

3. Section III. Property Covered, B. Coverage B -

Personal Property 4. 

Coverage has been extended to include coverage for 

cooking stoves, ranges, or refrigerators belonging to the 

renter, as well as 10 percent of contents coverage for 

improvements made by the renter to the building. 

4. Section III. Property Covered, B. Coverage B -

Personal Property, 5. 

Coverage for condominium unit owners has been 

extended to apply up to 10 percent of the contents 

coverage for losses to interior walls, floors, and ceilings 

not covered by the condominium association's master 

policy. 

5. Section III. Property Covered, B. Coverage B -

Personal Property, 6. Special Limits 

Coverage for fine arts, collectibles, jewelry, and furs, etc. 

has been increased to $2500. Also, personal property 

used in a business has been added under this extension 

of coverage. 

6. Section III. Property Covered, C. Coverage C -

Other Coverages, 2.a. & b. 

Coverage for the two loss avoidance measures 

(sandbagging and relocation of property to protect it from 

flood or the imminent danger of flood) has been increased 

to $1,000 for each. 

7. Section IV. Property Not Covered, 5.a. & b. 

Coverage has been changed to pay for losses to selfpropelled vehicles used to service the described location 

or designed to assist handicapped persons provided that 

the vehicles are in a building at the described location. 

8. Section IV. Property Not Covered, 7. 

Coverage is now specifically excluded for scrip and stored 

value cards. 

9. Section IV. Property Not Covered, 14. 

Coverage for swimming pools, hot tubs and spas (that are 

not bathroom hot tubs or spas), and their equipment is 

now excluded. 

10. Section V. Exclusions, B.1. & 2 

The explanation of when coverage begins as it relates to a 

loss in progress has been simplified. 

11. Section V. Exclusions, C. 

Coverage has been clarified to pay for losses from land 

subsidence under certain circumstances. Subsidence of 

land along a lake shore or similar body of water which 

results from the erosion or undermining of the shoreline 

caused by waves or currents of water exceeding cyclical 

levels that result in a flood continues to be covered. All 

other land subsidence is now excluded. 

12. Section V. Exclusions, D.4.b.(3) 

Coverage is now excluded for water, moisture, mildew, or 

mold damage caused by the policyholder's failure to 

inspect and maintain the insured property after the flood 

waters recede. 

13. Section V. Exclusions, D.6. 

Coverage is now added for damage from the pressure of 

water against the insured structure with the requirement 

that there be a flood in the area and the flood is the 

proximate cause of damage from the pressure of water 

against the insured structure. 

14. Section V. Exclusions, F. 

An exclusion for the cost of testing for or monitoring of 

pollutants unless it is required by law or ordinance has 

been added. 

15. Section VII. General Conditions, G. Reduction and 

Reformation of Coverage, 2.a.(2) 

If it is discovered before a claim occurs that there is 

incomplete rating information, the policyholder has 60 

days to submit the missing rating information. Otherwise, 

the coverage is limited to the amount of coverage that can 

be purchased for the premium originally received and can 

only be increased by an endorsement that is subject to the 

appropriate waiting period (currently 30 days). 

16. Section VII. General Conditions, V. Loss 

Settlement, 3. Special Loss Settlement, b.(1) 

Coverage for a manufactured or mobile home or a travel 

trailer eligible for replacement cost coverage is limited to 

1.5 times its actual cash value.
Page 1 of 19 

FEDERAL EMERGENCY MANAGEMENT AGENCY 

NATIONAL FLOOD INSURANCE PROGRAM 

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 FOR 

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 (CFR). 

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 (at least 

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 that 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. 
Page 2 of 19 

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; 

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 

surfaces 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. 
Page 3 of 19 

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 that 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.

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 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 loadbearing 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 percent 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 

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

c. In compliance with the community's floodplain 

management requirements; 
Page 4 of 19 

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 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. 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, 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. 
Page 5 of 19 

4. 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. 

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 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. 

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 semiprecious 

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 on or in insured property and owned 

debris 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 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. 
Page 6 of 19 

Reasonable expenses include the value of 

work, at the Federal minimum wage, that 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.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. 

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 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 percent 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. Nonresidential 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. 
Page 7 of 19 

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. 

(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 

percent 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 percent 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 flooddamaged 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 flooddamaged 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 

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. 
Page 8 of 19 

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 2 years (see 3.b.). 

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. 

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 you have 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 percent 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 this policy

apply. 

IV. PROPERTY NOT COVERED 

We do not cover any of the following property: 

1. Personal property not inside the fully enclosed 

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 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 selfpropelled 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; 

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; 
Page 9 of 19 

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 percent of the actual cash value of the building 

or unit 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 provide coverage 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 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 that 

we describe in Coverage D - Increased Cost of 

Compliance; or 

7. Any other economic loss. 

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; 
Page 10 of 19 

(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 waterborne 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, 

sump pump discharge or overflow, or 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 

conspire to do to cause loss by flood deliberately; 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. Pairs and Sets 

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: 

a. Is void; 

b. Has no legal force or effect; 

c. Cannot be renewed; and 

d. Cannot be replaced by a new NFIP policy; 
Page 11 of 19 

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 the 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 that 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, 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 that 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 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. Nonrenewal 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 
Page 12 of 19 

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 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 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 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 nonreceipt 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. 

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; 
Page 13 of 19 

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 covered 

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. 

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 

b. Take all or any part of the damaged property at 

the value 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. 
Page 14 of 19 

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 an 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 insured property 

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 nonrenewal. 

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 insured property 

was located at the time of loss. This requirement applies 

to any claim that you may have 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 
Page 15 of 19 

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 your 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 

paragraph 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 that 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 outside the 

ASC. FEMA will give you an additional 30 days to 

move if you show that 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 
Page 16 of 19 

(3) Agree to maintain as deed-restricted, 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 nonprofit 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 Director 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 will be canceled.

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 at least 80 percent 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 percent 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. 
Page 17 of 19 

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 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 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. 

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. 

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 

percent 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 

(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 percent 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 percent of its full replacement cost. But if 

80 percent 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 singlefamily dwelling purposes. 
Page 18 of 19 

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, 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. 

The Coverage D - Increased Cost of Compliance limit 

of liability is not included in the determination of the 

amount of insurance required. 

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. 

David I. Maurstad 

Acting Administrator, National Flood Insurance Program 

Federal Emergency Management Agency
Page 19 of 19 

______________________________________________________________________________________ 

CLAIM GUIDELINES IN CASE OF A FLOOD 

______________________________________________________________________________________ 

For the protection of you and your family, the following claim guidelines are provided by the National Flood 

Insurance Program (NFIP). If you are ever in doubt as to what action is needed, consult your insurance 

representative or call the 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 Representative _________________________________ 

Representative's Phone Number ______________________________ 

Notify us or your insurance representative, in writing, as soon as possible after the flood. 

If you report to your insurance representative, remind him or her to assign the claim to an NFIPapproved claims adjuster. The NFIP pays for the services of the independent claims adjuster assigned 

to your claim. 

Determine the independent 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. 

Discuss with the claims adjuster any need you may have for an advance or partial payment for your 

loss. 

To help the claims adjuster, try to 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 and promptly with the claims adjuster to 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 on the basis of your proof of loss. This policy requires you to 

send us 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. You must sign the 

adjuster's report. At our option, we may require you to swear to the report. 

FEMA Form 81-34 (5/03) F-122 (10/04) 
NFIP Direct Processing Center 

P.O. BOX 2965 Shawnee Mission, KS 66201-1365