National Flood Insurance Program
Dwelling Form
Standard Flood Insurance Policy
F-122 / October 2021
NFIP DWELLING FORM SFIP PAGE 1 OF 30
FEDERAL EMERGENCY MANAGEMENT AGENCY, FEDERAL INSURANCE AND MITIGATION ADMINISTRATION
Standard Flood Insurance Policy
Dwelling Form
Please read the policy carefully. The flood insurance provided is subject to limitations, restrictions, and exclusions.
I. AGREEMENT
A. This policy insures the following types of property only:
1.
A one to four family residential building, not under
a condominium form of ownership;
2.
A single-family dwelling unit in a condominium
building; and
3.
Personal property in a building.
B. 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.
C. We will pay you for direct physical loss by or from flood
to your insured property if you:
1.
Have paid the full amount due (including applicable
premiums, surcharges, and fees);
2.
Comply with all terms and conditions of this
policy; and
3.
Have furnished accurate information
and statements.
D. We have the right to review the information you give us
at any time and revise your policy based on our review.
E. This policy insures only one building. If you own more
than one building, coverage will apply to the single building
specifically described in the Flood Insurance Application.
F. Subject to the exception in I.G below, multiple policies
with building coverage cannot be issued to insure a single
building to one insured or to different insureds, even if
separate policies were issued through different NFIP
insurers. Payment for damages may only be made under
a single policy for building damages under Coverage A–
Building Property.
G. A Dwelling Form policy with building coverage may
be issued to a unit owner in a condominium building
that is also insured under a Residential Condominium
Building Association Policy (RCBAP).
However, no
more than $250,000 may be paid in
combined benefits for a single unit
under the Dwelling Form policy and the
RCBAP. We will only pay for damage
once. Items of damage paid for under
an RCBAP cannot also be claimed
under the Dwelling Form policy.
II. DEFINITIONS
A. In this policy, “you” and “your” refer to the named
insured(s) shown on the Declarations Page of this policy
and the spouse of the named insured, if a resident of the
same household. Insured(s) also 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.
B. 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
NFIP DWELLING FORM SFIP PAGE 2 OF 30
or undermining caused by waves or currents of
water exceeding anticipated cyclical levels that
result in a flood as defined in B.1.a above.
C. 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.
4.
Base Flood. A flood having a one percent chance
of being equaled or exceeded in any given year.
5.
Basement. Any area of a building, including any
sunken room or sunken portion of a room, having
its floor below ground level 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, 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, shipping container, or a recreational vehicle,
park trailer, or other similar vehicle, except as
described in C.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 one or
more buildings 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 buildings in which the unit owners have
use rights; where membership in the entity is a
required condition of ownership.
10.
Condominium Building. A type of building for
which the form of ownership is one in which each
unit owner has an undivided interest in common
elements of the building.
11.
Declarations Page. A computer-generated summary
of information you provided in your 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.
12.
Deductible. The amount of an insured loss that is
your responsibility and that is incurred by you before
any amounts are paid for the insured loss under
this policy.
13.
Described Location. The location where the
insured building(s) or personal property are
found. The described location is shown on the
Declarations Page.
14.
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.
15.
Dwelling. A building designed for use as a
residence for no more than four families or a
single-family unit in a condominium building.
16.
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.
17.
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
and the regulations prescribed pursuant to the
Act.
18.
Federal Policy Fee. A flat rate charge you must pay
on each new or renewal policy to defray certain
administrative expenses incurred in carrying out
the National Flood Insurance Program.
19.
Improvements. Fixtures, alterations, installations,
or additions comprising a part of the dwelling or
apartment in which you reside.
20.
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
NFIP DWELLING FORM SFIP PAGE 3 OF 30
a saturated soil mass moving by liquidity down a
slope, are not mudflows.
21.
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.
22.
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.
23.
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.
24.
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.
25.
Principal Residence. The dwelling in which you or
your spouse have lived for at least 80 percent of:
a. The 365 days immediately preceding the time
of loss; or
b. The period of ownership of you or your spouse,
if either you or your spouse owned the dwelling
for less than 365 days immediately preceding
the time of loss.
26.
Probation Surcharge. 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.
27.
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 and the regulations
prescribed pursuant to the Act.
28.
Special Flood Hazard Area (SFHA). 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.
29.
Unit. A single-family residential space you own in a
condominium building.
30.
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 INSURED
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 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 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.
NFIP DWELLING FORM SFIP PAGE 4 OF 30
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.C.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 ele-
vation in Zones AH, AE,
A1–A30, AR, AR/AE, AR/
AH, AR/A1–A30, AR/A,
AR/AO;
or
(2) Below the base flood ele-
vation adjusted to include
the effect of wave action
in Zones VE or V1–V30.
The lowest floor level is based on the bottom of
the lowest horizontal structural member of the
floor in Zones VE or V1–V30 or the top of the floor
in Zones AH, AE, A1–A30, AR, AR/AE, AR/AH, AR/
A1–A30, AR/A, and AR/AO.
6.
A manufactured home or a travel trailer, as
described in the II.C.6. 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 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 insured
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 below the lowest
elevated floor of an elevated post-
FIRM building located in Zones
NFIP DWELLING FORM SFIP PAGE 5 OF 30
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.
2.
Personal property is also insured for a period of 45
days at another location as set forth in III.C.2.b,
Property Removed to Safety.
3.
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.
4.
Coverage for personal property includes the
following property, subject to B.1 above, which is
insured 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.
5. Coverage for items of property
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
oper ation, connected to a power
source:
NFIP DWELLING FORM SFIP PAGE 6 OF 30
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.
6.
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.
7. 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 insured 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.
8. 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 that
represents its principal value; or
e. Personal property used in any business.
9. 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 house-hold 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:
(a) A general and temporary condition of
flooding in the area near the described
NFIP DWELLING FORM SFIP PAGE 7 OF 30
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.
(3) 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.
(4) This coverage does not increase the
Coverage A or Coverage B limit of liability.
3.
Condominium Loss Assessments
a. Subject to III.C.3.b below, if this policy
insures a condominium 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 because of
direct physical loss by or from flood during
the policy term, to the unit or to the common
elements of the NFIP insured condominium
building in which this unit is located.
b.
We will not pay any loss
assessment:
(1)
Charged against you 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
condomin ium building;
(4)
In which the total payment
combined under all policies
exceeds the maximum
amount of coverage
available under the Act for a
single unit in a condominium
building where the unit
is insured under both
a Dwelling Policy and a
RCBAP; or
(5)
On any item of damage that
has already been paid under
a RCBAP where a single unit
in a condominium building
is insured by both a Dwelling
Policy and a RCBAP.
c. Condominium Loss Assessment coverage
does not increase the Coverage A Limit
of Liability and is subject to the maximum
coverage limits available for a single-family
dwelling under the Act, payable between all
NFIP DWELLING FORM SFIP PAGE 8 OF 30
policies issued and covering the unit, under
the Act.
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 building
suffering flood damage. Compliance activities
eligible for payment are: elevation, floodproofing,
relocation, or demolition (or any combination
of these activities) of your building. Eligible
floodproofing activities are limited to:
a. Non-residential buildings.
b. Residential buildings 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 building insured under Coverage A—
Building Property sustaining a loss caused by
a flood as defined by this policy must:
(1) Be a “repetitive loss building.” A
repetitive loss building is one that meets
the following conditions:
(a) The building is insured by a contract of
flood insurance issued under the NFIP.
(b) The building 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
building 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
building; or
(2) Be a building that has had flood damage
in which the cost to repair equals or
exceeds 50 percent of the market value
of the building 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 building.
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 buildings 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
building 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 buildings to elevations derived
solely by the community.
(3) Elevation or floodproofing above the base
flood elevation to meet State or local
“free-board” requirements, i.e., that a
building must be elevated above the base
flood elevation.
NFIP DWELLING FORM SFIP PAGE 9 OF 30
c. Under the minimum NFIP criteria at 44 CFR
60.3(b)(4), States and communities must
require the elevation or floodproofing of
buildings 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 eligible
for Coverage D.
d. Coverage D will pay for the incremental cost,
after demolition or relocation, of elevating or
floodproofing a building during its rebuilding
at the same or another site to meet State
or local floodplain management laws or
ordinances, subject to Coverage D Exclusion
5.g below.
e. Coverage D will pay to bring a flood-damaged
building into compliance with State or local
floodplain management laws or ordinances
even if the building had received a variance
before the present loss from the applicable
floodplain management requirements.
4.
Conditions
a.
When a building insured 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 ordi-
nances or laws.
5.
Exclusions
Under this Coverage D (Increased
Cost of Compliance), we will not
pay for:
a.
The cost to comply with any
flood plain management law
or ordinance in communi-
ties participating in the
Emergency Program.
b.
The cost associated with en-
forcement 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 due to the
NFIP DWELLING FORM SFIP PAGE 10 OF 30
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 flood plain
management law or ordinance.
e.
Any Increased Cost of Com-
pliance 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 compli-
ance with State or local
flood plain 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 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 building insured under
an NFIP Group Flood
Insurance Policy.
l.
Assessments made by a condo -
minium 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 Art. VII.R (“Loss
Settlement”) of this policy.
b. All other conditions and provisions of this
policy apply.
NFIP DWELLING FORM SFIP PAGE 11 OF 30
IV. PROPERTY NOT INSURED
We do not insure 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.C.6.c)
whether affixed to a permanent
foundation or on wheels.
5. Self-propelled vehicles or ma-
chines, 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.
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
equip ment, including wells, sep-
tic 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 is below ground, unless
the lowest level is at or above the
base flood elevation and is below
NFIP DWELLING FORM SFIP PAGE 12 OF 30
ground by reason of earth having
been used as insulation material
in conjunction with energy
efficient building techniques.
12. Fences, retaining walls, sea-
walls, 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, wher-
ever 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
regulating the construction,
demolition, remodeling, renova-
tion, 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. Flood in Progress. If this policy
became effective as of the time of
a loan closing, as provided by 44
CFR 61.11(b), we will not pay for
a loss caused by a flood that is a
continuation of a flood that existed
prior to coverage becoming effective.
NFIP DWELLING FORM SFIP PAGE 13 OF 30
In all other circumstances, we will not
pay for a loss caused by a flood that is
a continuation of a flood that existed
on or before the day you submitted
the application for coverage under this
policy and the full amount due. We
will determine the date of application
using 44 CFR 61.11(f).
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 accu-
mulation 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
insured under our definition of flood
(see II.B.1.c and II.B.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 insured property;
unless there is a flood in the area
and the flood is the proximate
NFIP DWELLING FORM SFIP PAGE 14 OF 30
cause of the sewer or drain
backup, 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 conspire
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 insured 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.
NFIP DWELLING FORM SFIP PAGE 15 OF 30
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. Other Insurance
1. If a loss insured by this policy is
also insured 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 VII.B.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
VII.B.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
issued under the Act in the
name of your condominium
association covering the same
property insured by this policy,
then this policy will be in excess
over the other insurance, except
where a condominium loss
assessment to the unit owner
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
NFIP DWELLING FORM SFIP PAGE 16 OF 30
b.
The maximum amount of
insurance permitted under
the Act.
3. The combined coverage payment
under the other NFIP insurance
and this policy cannot exceed
the maximum coverage available
under the Act, of $250,000 per
single unit.
C. 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:
a. When this policy insures only personal
property; or
b. When this policy insures a building under
construction.
D. Insufficient Premium or Rating Information
1. Applicability. The following pro-
visions apply to all instances
where the premium paid on this
policy is insufficient or where the
rating information is insufficient,
such as where an Elevation
Certificate is not provided.
2. Reforming the Policy with Re-
duced Coverage. Except as
otherwise provided in VII.D.1,
if the premium we received
from you was not sufficient to
buy the kinds and amounts of
coverage you requested, we
will provide only the kinds and
amounts of coverage that can
be purchased for the premium
payment we received.
a.
For the purpose of determining
whether your premium payment
is sufficient to buy the kinds
and amounts of coverage you
requested, we will first deduct
the costs of all applicable fees
and surcharges.
b.
If the amount paid, after
deducting the costs of all
applicable fees and surcharges,
is not sufficient to buy any
amount of coverage, your
payment will be refunded.
Unless the policy is reformed to
increase the coverage amount to
the amount originally requested
pursuant to VII.D.3, this policy
will be cancelled, and no claims
will be paid under this policy.
c.
Coverage limits on the
reformed policy will be based
upon the amount of premium
submitted per type of coverage,
but will not exceed the amount
originally requested.
3. Discovery of Insufficient Premium
or Rating Information. If we
discover that your premium
payment was not sufficient
to buy the requested amount
of coverage, the policy will
NFIP DWELLING FORM SFIP PAGE 17 OF 30
be reformed as described in
VII.D.2. You have the option
of increasing the amount of
coverage resulting from this
reformation to the amount you
requested as follows:
a.
Insufficient Premium. If we
discover that your premium
payment was not sufficient
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 it
is discovered that the initial
amount charged to you for any
fees or surcharges is incorrect,
the difference will be added or
deducted, as applicable, to the
total amount in this bill.
(1)
If you or the mortgagee or
trustee pays the additional
premium amount due 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 you or the mortgagee
or trustee do not pay the
additional amount due with-
in 30 days of the date of
our bill, any flood insurance
claim will be settled based
on the reduced amount
of coverage.
(3)
As applicable, you have the
option of paying all or part
of the amount due out of a
claim payment based on the
originally requested amount
of coverage.
b.
Insufficient Rating Inform-
ation. If we determine that
the rating information we have
is insufficient 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.
(1)
If we receive the information
within 60 days of our
request, we will determine
the amount of additional
premium for the current
NFIP DWELLING FORM SFIP PAGE 18 OF 30
policy term, and follow the
procedure in VII.D.3.a above.
(2)
If we do not receive the
information within 60 days
of our request, no claims
will be paid until the
requested information is
provided. Coverage will
be limited to the amount
of coverage that can be
purchased for the payments
we received, as determined
when the requested infor-
mation is provided.
4. Coverage Increases. If we do not
receive the amounts requested
in VII.D.3.a or the additional
information requested in VII.D.3.b
by the date it is due, the amount
of coverage under this policy can
only be increased by endorsement
subject to the appropriate waiting
period. However, no coverage
increases will be allowed until you
have provided the information
requested in VII.D.3.b.
5. Falsifying Information. How-
ever, 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
VIII.A apply.
E. 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
one 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.
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.
F. 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.
G. 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
NFIP DWELLING FORM SFIP PAGE 19 OF 30
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 insured 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
G.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.
H. Our Options After a Loss
Options we may, in our sole discretion,
exercise after loss include the following:
NFIP DWELLING FORM SFIP PAGE 20 OF 30
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 condo-
minium, its Articles of
Association or Incorporation,
Bylaws, rules and regula-
tions, 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 spec-
ifications 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
that we agree upon or its
appraised value.
I. No Benefit to Bailee
No person or organization, other than
you, having custody of insured property
will benefit from this insurance.
NFIP DWELLING FORM SFIP PAGE 21 OF 30
J. 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.M.
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.
K. Abandonment
You may not abandon to us damaged or undamaged
property insured under this policy.
L. 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.
M. 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 insured 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.
N. Mortgage Clause
1. The word “mortgagee” includes
trustee.
2. 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.
3. If we deny your claim, that denial
will not apply to a valid claim of
the mortgagee, if the mortgagee:
a.
Notifies us of any change in
the ownership or occupancy,
or substantial change in risk of
which the mortgagee is aware;
b.
Pays any premium due under
this policy on demand if you
have neglected to pay the
premium; and
c.
Submits a signed, sworn proof
of loss within 60 days after
receiving notice from us of your
failure to do so.
NFIP DWELLING FORM SFIP PAGE 22 OF 30
4. All of the terms of this policy
apply to the mortgagee.
5. The mortgagee has the right
to receive loss payment even
if the mortgagee has started
foreclosure or similar action on
the building.
6. 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.
7. 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.
O. 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 one 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.
P. 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.
Q. 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 an
insured 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
NFIP DWELLING FORM SFIP PAGE 23 OF 30
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;
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
Q.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 Q.1 above or Q.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 one
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 Q.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 floodwaters 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
NFIP DWELLING FORM SFIP PAGE 24 OF 30
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 Q.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
Q.1.a through Q.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 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 ad-
ministrator for the new location
of your building.
e.
Before the approval of your
claim, the community having
jurisdiction over your build-
ing 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 Q.2.b above;
NFIP DWELLING FORM SFIP PAGE 25 OF 30
(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 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
Q.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 Q2.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 con tin-
uously in effect from a date
established by FEMA until you
file a claim under paragraph
Q.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 Q.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 in-
creased coverage in the amount
suggested by your insurer as an
inflation adjustment.
h.
This paragraph Q.2 will be in
effect for a community when the
FEMA Regional Administrator
for the affected region provides
NFIP DWELLING FORM SFIP PAGE 26 OF 30
to the community, in writing,
the following:
(1)
Confirmation that the
community and the State
are in compliance with the
conditions in paragraphs
Q.2.e and Q.2.f above; and
(2)
The date by which you
must have flood insurance
in effect.
R. 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 paragraphs a–c below.
a.
Replacement Cost Loss
Set tlement, described in R.2
below, applies to a single-
family dwelling provided:
(1)
It is your principal
residence; 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 avail-
able under the NFIP.
b. Special Loss Settlement, described in R.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 R.4 below.
2.
Replacement Cost Loss Settlement
The following loss settlement conditions apply to
a single-family dwelling described in R.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 R.2.a above or R.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 R.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.C.6.b and c;
NFIP DWELLING FORM SFIP PAGE 27 OF 30
(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
R.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 R.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 R.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.C.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 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 insured 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 R.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.
NFIP DWELLING FORM SFIP PAGE 28 OF 30
VIII. POLICY NULLIFICATION, CANCELLATION, AND NON-RENEWAL
A. Policy Nullification for Fraud, Misrepresentation, or
Making False Statements
1. With respect to all insureds
under this policy, this policy is
void and has no legal force and
effect if at any time, before or
after a loss, you or any other
insured or your agent have, with
respect to this policy or any
other NFIP insurance:
a.
Concealed or misrepre-
sented any material fact
or circumstance;
b.
Engaged in fraudulent
conduct; or
c.
Made false statements.
2. Policies voided under A.1 cannot
be renewed or replaced by a new
NFIP policy.
3. Policies are void as of the date
the acts described in A.1 above
were committed.
4. Fines, civil penalties, and impris-
onment under applicable Federal
laws may also apply to the acts of
fraud or concealment described
above.
B. Policy Nullification for Reasons Other Than Fraud
1. This policy is void from its
inception, and has no legal force
or effect, if:
a.
The property listed on the
application is located in
a community that was not
participating in the NFIP on
this policy’s inception date
and did not join or reenter the
program during the policy term
and before the loss occurred;
b.
The property listed on the
application is otherwise not
eligible for coverage under
the NFIP at the time of the
initial application;
c.
You never had an insurable
interest in the property listed
on the application;
d.
You provided an agent with an
application and payment, but
the payment did not clear; or
e.
We receive notice from you,
prior to the policy effective
date, that you have deter-
mined not to take the policy
and you are not subject to a
requirement to obtain and
maintain flood insurance
pursuant to any statute, regu-
lation, or contract.
2.
In such cases, you will be entitled to a full refund
of all premium, fees, and surcharges received.
However, if a claim was paid for a policy that
is void, the claim payment must be returned to
FEMA or offset from the premiums to be refunded
before the refund will be processed.
NFIP DWELLING FORM SFIP PAGE 29 OF 30
C. Cancellation of the Policy by You
1.
You may cancel this policy in accordance with
the terms and conditions of this policy and 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, surcharges, or fees
under the terms and conditions of this policy and
the applicable rules and regulations of the NFIP.
D. Cancellation of the Policy by Us
1. Cancellation for Underpayment
of Amounts Owed on Policy. This
policy will be cancelled, pursuant
to VII.D.2, if it is determined
that the premium amount you
paid is not sufficient to buy any
amount of coverage, and you do
not pay the additional amount
of premium owed to increase
the coverage to the originally
requested amount within the
required time period.
2. Cancellation Due to Lack of an
Insurable Interest.
a.
If you no longer have an
insurable interest in the insured
property, we will cancel this
policy. You will cease to have
an insurable interest if:
(1)
For building coverage,
the building was sold,
destroyed, or removed.
(2)
For contents coverage,
the contents were sold
or transferred ownership,
or the contents were
completely removed from
the described location.
b.
If your policy is cancelled for
this reason, you may be entitled
to a partial refund of premium
under the applicable rules and
regulations of the NFIP.
3. Cancellation of Duplicate
Policies
a.
Except as allowed under Article
I.G, your property may not
be insured by more than one
NFIP policy, and payment for
damages to your property will
only be made under one policy.
b.
Except as allowed under Article
I.G, if the property is insured
by more than one NFIP policy,
we will cancel all but one of the
policies. The policy, or policies,
will be selected for cancellation
in accordance with 44 CFR
62.5 and the applicable rules
and guidance of the NFIP.
c.
If this policy is cancelled
pursuant to VIII.D.4.b, you may
be entitled to a full or partial
refund of premium, surcharges,
or fees under the terms and
conditions of this policy and
the applicable rules and
regulations of the NFIP.
NFIP DWELLING FORM SFIP PAGE 30 OF 30
4. Cancellation Due to Physical
Alteration of Property
a.
If the insured building has
been physically altered in such
a manner that it is no longer
eligible for flood insurance cov-
erage, we will cancel this policy.
b.
If your policy is cancelled for
this reason, you may be entitled
to a partial refund of premium
under the terms and conditions
of this policy and the appli-
cable rules and regulations of
the NFIP.
E. Non-Renewal of the Policy by Us
Your policy will not be renewed if:
1.
The community where your insured property is
located is suspended or stops participating in
the NFIP;
2.
Your building is otherwise ineligible for flood
insurance under the Act;
3.
You have failed to provide the information we
requested for the purpose of rating the policy
within the required deadline.
IX. 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.
X. WHAT LAW GOVERNS
This policy and all disputes arising from the insurer’s policy
issuance, policy administration, or 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.
Deputy Associate Administrator
Federal Insurance and Mitigation Administration
