The fallacy of this argument is that, while the DIC policy can be written excess of flood coverage available from the National Flood Insurance Program, the insured must first purchase the maximum available limits from the program before the DIC policy is triggered. Thus, if this insured had purchased a DIC policy, it still would not have paid the loss. It is uncertain what the nature of the insured's business was, but some property insurers have long offered flood insurance in excess of the maximum limits available from the governmental program. The problem is that not as many insurers have offered this coverage as business owners would have wished. ISO intends to offer this endorsement as excess coverage where insurance must be purchased from the National Flood Insurance Program, or as primary where this governmental program does not apply.
Coverage is subject to an annual aggregate.
With flexibility of the endorsement, the aggregate can be in the same amount as the single occurrence of flood limit, or the aggregate can be a multiple thereof. The flood loss that occurs before or within 72 hours after the inception date of this endorsement is not covered. The policy's Ordinance or Law exclusion applies to coverage under this flood endorsement, unless Ordinance or Law coverage has been purchased. This newly proposed endorsement also does not cover the cost of restoring or remediating land. Other points to consider In the above noted case, the agent who succeeded in writing the other coverages testified against the agent who had written the flood insurance.