44 CFR Part 61 - Insurance Coverage and Rates

PART 61-INSURANCE COVERAGE
AND RATES
Sec.
61.1 P u r p o s e of p a r t .
61.2 Definitions.
61.3 T y p e s of coverage."
61.4 L i m i t a t i o n s o n coverage.
61.5 S p e c i a l t e r m s a n d conditions.
61.6 M a x i m u m a m o u n t s of coverage a v a i l able.
61.7 R i s k p r e m i u m r a t e d e t e r m i n a t i o n s .
61.8 Applicability of r i s k p r e m i u m r a t e s .
61.9 E s t a b l i s h m e n t of chargeable r a t e s .
61.11 Effective d a t e a n d t i m e of coverage
u n d e r t h e S t a n d a r d Flood I n s u r a n c e Policy-New
Business Applications a n d Endorsements,
61.12 R a t e s based o n a flood p r o t e c t i o n syst e m involving F e d e r a l funds.
61.13 S t a n d a r d F l o o d I n s u r a n c e P o l i c y .
61.14 S t a n d a r d F l o o d I n s u r a n c e P o l i c y Interpretations.
61.16 P r o b a t i o n a d d i t i o n a l p r e m i u m .
61.17 G r o u p Flood I n s u r a n c e P o l i c y .
APPENDIX A(1) TO PART61-FEDERAL EMERGENCY MANAGEMENTAGENCY, FEDERAL
INSURANCE
ADMINISTRATION, STANDARD
FLOODINSURANCE
POLICY
XFPENDIX X(2) TO P4FaT ~I-FEDEZIL EMEROEKCY N I ~ ~ ~ AGENCY.
i ~ ~ FEDERAL
~ i ~ s

~

INSURANCE
ADMINISTRATION, STANDARD
FLOOD
INSURANCE
POLICY
APPENDIX A(3) TO PART 61-FEDERAL EMERGENCY MANAGEMENTAGENCY, FEDERAL
INSURANCE
ADMINISTRATION, STANDARD
FLOOD
INSURANCE
POLICY
I
APPEND~X
A(4) TO PART 61-FEDERAL EMERGENCY MANAGEMENTAGENCY, FEDERAL
INSURANCE
ADMINISTRATION, STANDARD
FLOOD
INSURANCE POLICY
APPENDIX A(5) TO PART61-FEDERAL EMERGENCY MANAGEMENTAGENCY, FEDERAL
INSURANCE
ADMINISTRATION, STANDARD I
FLOOD
INSURANCE
POLICY
I
APPENDIX A(6) TO PART61-FEDERAI, EMERGENCY MANAGEMENTAGENCY, FEDERAL
INSURANCE
ADMINISTRATION, STANDARD
FLOOD
INSURANCE
POLICY
AUTHORITY: 42 U.S.C.
n i z a t i o n P l a n No. 3 of
C F R , 1978 Comp., p. 329;
1979, 44 F R 19367, 3 CFR,

4001 et seq.; Reorga1978, 43 F R 41943, 3
E . O . 12127 of Mar. 31,
1979 Comp., p . 376.

SOURCE:
43 F R 2570, Jan. 17, 1978, unless
o t h e r w i s e n o t e d . R e d e s i g n a t e d a t 44 F R 31177,
M a y 31, 1979.

Federal Emergency Management Agency, DHS
0 61.4 Limitations on coverage.
All flood insurance made available
under the Program is subject:
(a) To the Act, the Amendments
thereto, and the Regulations issued
under the Act,
(b) To the terms and conditions of
the Standard Flood Insurance Policy,
which shall be promulgated by the Administrator for substance and form,
and which is subject t o interpretation
by the Administrator as t o scope of
coverage pursuant to the applicable
statutes and regulations;
(c) To the specified limits of coverage
set forth in the Application and Declarations page of the policy; and
(d) To the maximum limits of coverage set forth in $ 61.6.

1
5 61.1 Purpose of part.
This part describes the types of Properties eligible for flood insurance coverage under the Program, t h e limits of
such coverage, and t h e premium rates
to be paid by insureds' The
specific communities eligible for coverage are designated by t h e Administ r a t o r from time to time a s applications are a ~ ~ r o v eunder
d
the em''gency program and as ratemaking
studies of communities are completed
prior t o the regular program. Lists of
such communities are periodically published under part 64 of this subchapter.
[43 FR 2570, Jan. 17, 1978. R e d e s l g n a t e d a t 44
F R 31177, M a y 31, 1979, a s a m e n d e d a t 48 F R
39068, Aug. 29, 1983; 49 F R 4751, F e b . 8, 1984, 49
F R 5621, F e b . 14, 19841

0 61.2 Definitions.
The definitions set forth i n part 59 of
this subchapter are applicable t o this
part.

5 61.3 Types of coverage.
Insurance coverage under the Program i s available for structures and
their contents. Coverage for each may
be purchased separately.
[43 F R 2570, J a n . 17, 1978. R e d e s i g n a t e d a t 44
F R 31177, M a y 31, 1979, a s a m e n d e d at 48 F R
39068, Aug. 29: 1983; 50 F R 36025, S e p t . 4, 1985;
51 F R 30309, Aug. 25: 1986; 58 F R 62424, Ncv. 26>
19931

[43 F R 2570, J a n . 17, 1978 Redeslgnated a t 44
F R 31177, M a y 31, 1979, as amended at 48 F R
39068, Aug. 29, 1983; 50 F R 36025, S e p t 4, 1985;
53 F R 16277, M a y 6, 1988; 58 F R 62424, Nov. 26,
19931

561.5 Special terms and conditions.
insurance or renewal
(a) No new
policies shall be
of flood
declared by a
written for
duly constituted S t a t e or local zoning
or other authority to be in violation of
any flood plain, mudslide (i.e,, mudflow) or flood-related
area
management or control law, regulation, or ordinance.
(b) In order to reduce the administrative costs of the program,of which the
Federal Government pays a major
share, payment
of the full policyholder
premium must be made a t the time of
application.
(c) Because of the seasonal nature of
flooding, refunds of premiums upon
cancellation of coverage by the insured
are permitted only if t h e insurer ceases
to have a n ownership interest i n the
covered property a t the location described in t h e policy. Refunds of premiums for a n y other reason are subject
to the conditions set forth in $62.5 of
this subchapter.
(d) Optional Deductibles, All Zones,
are available a s follows:
ONE-1 TO 4 FAMILY
BUILDINGA N D
CATEGORY
CONTENTS COVERAGE
POLICIES

..

Emergency Management Agency, DHS

CFR Ch. 1 (1 0-1 -04 Edition)
.

pro r a t a in accordance with the rates
currently in force.
With respect to any submission of
a n application in connection with new
business, the payment by an insured to
an agent or the issuance of premium
payment by the agent, does not constitute payment to the NFIP, except
[ r j l FH. 13116, Mar. 17, 1999, as amended at 67
where a WYO Company receives an apF!.: 8905, Feb. 27, 2002; 68 FR 15668, Apr. 1, plication and premium payment from
20031
n
"n
--P- nf
- - its
- .- aeents and elects to refer the
91:1.11 Effective date and time of cov- business to the NFXP Servicing Agent
eraye under the Standard Flood In- because the WYO Company does not
surance Policy-New Business Ap- wish to write t h e business, in which
plications and-Endorsements.
case any applicable waiting period
f a )During the 13-month period begin- under this section shall be calculated
njng on the effective date of a revised in accordance with the first sentence of
F'lood Hazard Boundary Map or Flood paragraph (f) of this section. Therefore,
Insurance Rate Map for a c o m m u n i t ~ , i t is important that a n application fo>r
the effectlive date and time of any ini- ~ l o o dInsurance and i t s premium be - '
ti:d flood insurance coverage shall be mailed to the NFIP promptly in order
12:01 a.m. (local time) on the first cal- to have the effective date of the coveudar day after the application date erage based on the application date
and the presentment Of payment of Pre- plus the waiting period. If the applicanlium; for example, a flood insurance
tion and the premium payment are repolicy applied for with the Payment of ceived a t the office of the N F I P within
the premium on May 1 will become ef- ten (10)days from the date of applicafsctive a t 12:01 a.m. on May 2.
tion, the waiting period will be cal!b) Where the initial purchase of culated from the date of application.
flood inslirance is in connection with A ~ S Oas
, an alternative, in those cases
the makjng, increasing, extension, or where the application and premium
renewal of a loan, the coverage with re- paym,ntare mailed by certified mail.
spect to the property which is the sub- within four (4) days from the date of
ject of the loan shall be effective as of application, the waiting period will be
the time of the loan closing, provided calculated from the date of application
the written request for the coverage is even though the application and prereceived by the NFIP and the flood in- mium payment are received at the ofsarance policy is applied for and the fice of the N ~ after
~ ten
p (10) days folpresentment of payment of premium is lowing the date of application. ~
h if ~
made a t or prior to the loan closing.
the application and premium payment
are received after ten (10) days from
(c) Except as provided by paragraphs
(a) and (b) of this section, the effective the date of the application or are not
date and time of any new policy or mailed by certified mail within four (4)
coverage, or increase in the
the
from the date Of
amount of coverage shall be 12:01 a.m. waiting periodwill be calculated from
(local time) on the 30th calendar day
the date of receipt a t the office of the
after the application date and the preNFIP. To determine the effective date
sentment of payment of premium; for of any coverage added by endorsement
example, a flood insurance policy ap- to a flood insurance policy already in
plied for with the payment of the preInium on M~~ 1 will become effective effect, substitute the term endorsement
for the term application in this paraa t 12101 a.m. on May 31.
(d) Adding new coverage or increas- grapn te).
( f ) With respect to the submission of
ing the amount of coverage in force is
permitted during the term of any pol- an application in connection with new
icy. The additional premium for any business, a renewal of a policy in effect
new coverage or increase in the and an endorsement to a policy i n efm o u n t of coverage shall be calculated fect, the payment by an insured t o an

(b) We will charge rates for contellts
i n *re-FIRM buildings according t o the
u:;e of the building.
(I:)
A-zone rates for buildings without
bo.sements or enclosures apply unif u t ~ n l y t , ~ all buildings throughout
elrlergency program communities.

(e)

.,\

agent or the issuance of premium pay)
ment to a Write-Your-Own ( w y ~CornPanY by the agent, accompanied by a
properly completed a p ~ l i c a t i o n rpnewal or endorsement form, as appropriate, shall commence the calculation
of. any applicable waiting period under
this section, provided t h a t the agent is
acting in the capacity of an agent of a
Write-Your-Own (WYO) Company authorized by 44 CFR 62.23, is under writ,.-.
ten contract t o or is an employee of
such Company, and such WYO Company is, a t the time of such submission
of an application in connection with
new business or a renewal of or endorsement to flood insurance coverage,
engaged in WYO business under an arrangement entered into by the Administrator and the WYO Company pursuant to $62.23.
(g) Subject to the provisions of paragraph (f) of this section, the r d e s set
forth in paragraphs (a), (b), (c), (d) and
(e) of this section apply to WYO Companies, except t h a t premium payments
and accompanying applications and endorsements shall be mailed to and, received by the WYO Company, rather
than the NFIP.
[43 FR 50427, Oct. 30, 1978. Redesignated a t 44
FR 31177, M a y 31. 1979, as amended a t 46 FR
13514. Feb 23, 1981; 18 FR 39069, A u g . 29, 1983;
48 FR 44544, Sept. 29, 1983; 49 FR 33656, Aug.
24. 1984: 50 FR 16242, Apr. 25, 1985.50 FR 36026
Sept 4, 1985; 51 BR 30309, A u g . 2.; 1986; 53 FR
15211, Apr. 28, 1988; 60 FR 5585, 5586, Jan. 30,
~~

- - - - - 7

-

-

19951

961.12 Rates based on a flood protect ~ o n system involving Federal
~ funds.
,
(a) Where the Administrator determines t h a t a community has made adequate progress on the construction of a
flood protection system involving Federal funds which will significantly
limit the area of special flood hazards,
the applicable risk premium rates for
any property, located within a special
flood hazard area intended to be protected directly by such system will be
those risk premium rates which would
be applicable when the system is complete.
(b) Adequate progress in paragraph
(a) of this section means t h a t the community has provided information to
the Administrator sufficient to determine t h a t substantial completion of

the flood protection system has beell
effected
(1) 100 because:
percent of the total fingincinl
project cost of the completed floo~iprotection system has been authorizel:
(2) At least 60 percent of the tot;al financial project cost of the completed
flood protection system has been a.ppropriated;
(3) At least 50 percent of the total tinancial project cost of the compieted
flood protection system has been expended;
(4) All critical features of the 1100~1
protection system, as identified by tlle
Administrator, are under constructioil,
and each critical feature is 50 percellt;
completed as measured by the ac.tu:tl
expenditure of the estimated construction budget funds; and
(5) The community has not beer1 1.1:sponsible for any delay in the conipletion of the system.
(c) Each request by a community- fcr
a determination must be submitted i u
writing to the Risk Studies Division.
Office of Risk Assessment, Federal 111surance Administration, Federal Emergency Management Agency, W;~sbington DC, and contain a complet.:
statement of all relevant facts relatinr:.
to the flood protection system, including, but not limited to, support,ing:
technical data (e.g., U.S. Army Corp;
of Engineers flood protection project,
data), cost schedules, budget appropria
tion data and the extent of Fedcra;
funding of the system's construction.
Such facts shall include informatiul:
sufficient to identify all persons affected by such flood protection systenl
or by such request: A full and precise
statement of intended purposes of the
flood protection system; and a carefully detailed description of sucli
project, including construction completion target dates. In addition, true copies of all contracts, agreements, leases.
instruments, and other documents involved must be submitted with the raquest. Relevant facts reflected in documents, however, must be included iu
the statement and not merely incorporated by reference, and must be accompanied by an analysis of their bearing on the requirements of paragraph
(b) of this section, specifying the pertinent provisions. The request must contain a statement whether, to the best

44 cFR Ch. 1 (10-1 -04 Edition)
of the knowledge of the person responsible Sor preparing the application for
the community, the flood protection
systenl is currently t h e subject m a t t e r
of litigation before a n y Federal, S t a t e
or local court or administrative agen-c y , and t h e purpose of t h a t litigation.
The request must also contain a statem e n t LLS t o whether t h e community has
previously requested a determination
with respect to the same subject matt e r from tlie Administrator, detailing
t h e disposition of such previous request. As documents become part of
t h e file and cannot be returned, t h e
origin:~ldocuments should n o t be submitted.
(d) '?he effective date for a n y risk
premium rates established under t h i s
section shall bc t h e date of final determination by the Administrator t h a t
adequate progress toward completion
of a flood protection system has been
made i n a community.
(e) A responsible official of a commun i t y which received a determination
t h a t adequate progress h a s been made
towards colnpletion of a flood protection system shall certify t o the Admini s t r a t o r annually on the anniversary
d a t e of receipt of such determination
t h a t no present delay in completion of
t h e system i s attributable t o local
sponsors of t h e system, and t h a t a good
f a i t h effort i s being made t o complete
t h e project.
(0A community for which risk premium rates have been made available
under section 1307(e) of the National
Flood Insurance Act of 1968, a s amended, shall notify the Administrator if, a t
a n y time, all progress on the completion of the flood protection system has
been halted or if the project for t h e
completion of the flood protection system has been canceled.
[43 FR 2570, Jan. 17, 1978, Redesignated a t 44
FR 31177, May 31. 1979, as amended at 4'7 FR
43061 Sept. 30, 1982; 48 FR 39069, Aug. 29, 1983;
48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8,
1984; 5 1 FR 30310, Aug. 25. 19861

3 61.13 'standard Flood Insurance PolICY.

(a) Incorporatton o f forms. Each of t h e
Standard Flood Insurance Policy forms
included i n appendix "A" hereto (General Property, Dwelling, and Resident ~ a lCondominium Building Associa-

tion) and by reference incorporated
herein shall be incorporated into the
Standard Flood Insurance Policy.
(b) Endorsements. All endorsements t o
t h e Standard Flood Insurance Policy
shall be final upon publication in t h e
FEDERALREGISTERfor inclusion i n appendix A.
(c) Applications. The application and
renewal application forms utilized by
t h e National Flood Insurance Program
shall be t h e only application forms
used i n connection with the Standard
Flood Insurance Policy.
(d) Waivers. The Standard Flood Insurance Policy and required endorsements m u s t be used i n t h e Flood Insurance Program, and no provision of t h e
said documents shall be altered, vari.ed,
or waived other than by t h e express
written consent of the Administrator
through t h e issuance of a n appropriate
amendatory endorsement, approved by
t h e Administrator a s t o form and substance for uniform use.
(e) Oral and written binders. No oral
binder or contract shall be effective.
No written binder shall be effective unless issued with express authorization
of the Administrator.
(0 The Standard Flood Insurance
Policy and endorsements may be issued
by private sector "Write-Your-Own"
(WYO) property insurance companies,
based upon flood insurance applications and renewal forms, all of which
instruments of flood insurance may
bear t h e name, as h s u r e r , of t h e
issuing W O Company. In t h e case of
a n y Standard Flood Insurance Policy,
and i t s related forms, issued by a WYO
Company, wherever the names "Federal
Emergency Management Agency" and
"Federal Insurance Administration" appear, t h e WYO Company is authorized
t o substitute its own name therefor.
Standard Flood Insurance Policies
issued by WYO Companies may be executed by the issuing WYO Company a s
Insurer, i n t h e place and stead of the
Federal Insurance Administrator.
[43 FR 2570,

Jan. 17, 1978. Redesignated at 44

FR 31177. May 31, 1979, as amended a t 44 RR
6'2517, Oct. 31. 1979: 48 FR 46791,
58 FR 62424. Nov. 26, 19931

Oct. 14, 1983:

Federal Emergency Management Agency, DHS
8 61.14 Standard Flood Insurance Policy Interpretations.
(a) Definition. A Standard Flood Insurance Policy Interpretation is a written determination by t h e Administ r a t o r construing t h e scope of t h e flood
insurance coverage t h a t has been and
i s provided under the policy.
(b) Publication and requests for interpretation. The Administrator shall, pursuant t o these regulations from time t o
time, issue interpretative rulings regarding t h e provisions of t h e Standard
Flood Insurance Policy. Such'Interpretations shall be published in t h e FEDERAL REGISTER,made a p a r t of appendix C t o these regulations, and incorporated by reference as p a r t of these
regulations. Any policyholder or per,:son i n privity with a policyholder may
file a request for a n interpretation i n
writing with t h e Federal Insurance Administration, Federal Emergency Management Agency, Washington, DC
20472.
[43 FR 2570, Jan. 17, 1978. Redesignated at 44
31177, May 31, 1979, as amended a t 48 FR
39072, Aug. 29, 19831

FR

0 61.16 Probation additional premium.
The additional premium charged pursuant t o 5 59.24(b) on each policy sold or
renewed within a community placed on
probation prior to October 1, 1992, i s
$25.00. Where the community was
placed on probation on or after October
1. 1992, t h e additional premium charge
is $50.00.".
[50 FR 36026, Sept. 4,
FR 19541. May 7, 19921

1985,

as amended a t 57

161.17 Group Flood Insurance Policy.
(a) A Group Flood Insurance Policy
(GFIP) i s a policy covering all individuals named by a S t a t e a s recipients
under section 408 of the Stafford Act
(42 U.S.C. 5174) of a n Individuals and
Households Program (IHP) award for
flood damage a s a result of major disaster declaration by t h e President.
(b) The premium for t h e GFIP i s a
flat fee of $600 per insured. We m a y adjust t h e premium t o reflect NFIP loss
experience and a n y adjustment of benefits under the IHP program.
(c) The amount of coverage is equivalent t o t h e maximum g r a n t a m o u n t es-

tablished under section 408 of t h e Stafford Act (42 U.S.C. 5174).
(d) The t e r m of the GFIP is for 36
months and begins 60 days after the
date of the disaster declaration.
(e) Coverage for individual grantees
begins on t h e thirtieth day after the
NFIP receives the required data for individual grantees and their premium
payments.
(f) We will send a Certificate of Flood
Insurance t o each individual insured
under t h e GFIP.
(g) The GFIP is t h e Standard Flood
Insurance Policy Dwelling Form (a
copy of which i s included i n Appendix
A(1) of this part), except t h a t :
(1) VI. DEDUCTIBLES does not apply
t o t h e GFIP. . A special deductible of
$200 (applicable separately t o any
building loss and any contents loss) applies to insured flood-damage losses
sustained by the insured property i n
the course of a n y subsequent flooding
event during t h e term of the GFIP. The
deductible does n o t apply to:
(i) III.C.2. Loss Avoidance Measures:
or
(ii) 111. (2.3. Condominium Loss Assessments coverage.
(2) VII. GENERAL CONDITIONS, E.
Cancellation of Policy by You, does not
apply to the GFIP.
(3) W. GENERAL CONDITIONS, H.
Policy Renewal, does not apply t o the
GFIP.
(h) We will send a notice to t h e GPIP
certificate holders approximately 60
days before t h e end of t h e thirty-six
month term of t h e GFTP. The n o t ~ c e
will encourage t h e m t o contact a local
insurance agent or producer or a private insurance company selling NFIP
policies under t h e Write Your Own program of t h e NFIP Standard Flood Insurance Policy, and advise them a s to
the amount of coverage they must
maintain i n order n o t t o jeopardize
their eligibility for future disaster assistance. The IHP program will provide
the NFIP t h e amount of flood insurance coverage t o be maintained by certificate holders.
[65

FR 60769, Oct. 12, 2000, as amended at 67

FR 61462. Sept. 30, 20021

44 CFR Ch. 1 (10-1 -04 Edition)

Pt. 61. App. A(1)

'waves or currents of water exceedlng anticipated cyclical levels t h a t result i n a flood a s
FEDE~.AL
EMERGENCY
MANAGEMENT
AGENCY, defined in A.1.a. above.
B. The following are the other key definiINSURANCE
ADMINISTRATION
FEDERAL
tions we use i n this policy:
STANDARD
FLOOD
INSURANCE
POLICY
1. ~ c t The
.
National Flood Insurance Act of
1968 and any amendments t o it.
DWELLING FORM
2. Actual Cash Value. The cost to replace an
Please read the policy carefully. The flood
insured item of property a t the time of loss,
insurance provided i s subject t o limitations,
less the value of i t s physical depreciation.
restrictions, and exclusions. This policy cov3. Application. The statement made and
ers only:
signed by you or your agent in applying for
1. A non-condominium residential building
this policy. The application gives informadesignod for principal use as a dwelling place
tion we use to determine the eligibility Of
of one to four families, or
-the risk, the kind of policy to be issued, and
2. A single family dwelling unit i n a condothe correct premium payment. The applicaminium building.
tion is part of this flood insurance policy.
For us t o issue you a policy, the correct preI . AGREEMENT
mium -payment must accompany the application.
The Federa.1 Emergency Management
4. Base Flood. A flood having a one percent
Agency (FEMA) provides flood insurance
chance of being equaled or exceeded in any
under the terms of the National Flood Insurgiven year.
ance Act of 1968 and i t s Amendments; and
5. Basement. Any area of the building, inTitle 44 of the Code of Federal Regulations.
cluding any sunken room or sunken portion
We will pay you for direct physical loss by
of a room, having i t s floor below ground
or from flood to your insured property if
level (subgrade) on all sides.
you:
6. Building.
1. Have paid the correct premium;
a . A structure with two or more outside
2. Comply with all terms and conditions of
rigid walls and a fully secured roof, t n a t is
this policy; and
affixed to a permanent site;
3. Have furnished accurate information and
b. A manufactured home ( a "manufactured
statements.
We have the right to review the informa- home," also known as a mobile home, is a
tion you give us a t any time and to revise
structure{ built on a permanent chassis,
transported to its site i n one or more secyour policy based on our review.
tions, and affixed t o a permanent foundaXI. DEFINITIONS
tion); or
c. A travel trailer without wheels, built on
A. In this policy, "you" and "your" refer to
a chassis and affixed to a permanent foundatlie insured(s) shown on the Declarations
tion,
t h a t is regulated under the commuPage of this policy and your spouse, if a resinity's floodplain management and building
dent of the same household. Insured(s) inordinances or laws.
cludes: Any mortgagee and loss payee named
Building does not mean a gas or liquid storin the Application and Declarations Page, as
age t a n k or a recreational vehicle, park
well as any other mortgagee or loss payee
trailer or other similar vehicle, except as dedetermined to exist a t the time of loss in the
scribed in B.6.c. above.
order of precedence. "We," "us." and "our"
7. Cancellation. The ending of the insurance
refer to the insurer.
coverage provided by this policy before the
Soiile :definitions are complex because they
expiration date.
are pro"ided as they appear in the law or
8. Condominium. T h a t form of ownership of
regulations, or result from court cases. The
real property i n which each unit owner has
precise .definitions are intended t o protect
VO
i
a n undivided interest in common elements
"
- ~- I .
9. Condominium Association. The entity
Flood, as used in this flood insurance polmade up of the unit owners responsible for
icy, means:
the maintenance and operation of:
1 A general and temporary condition of
a. Common elements owned in undivided
partial or conrplete inundation of two or
shares by unit owners: and
more acres of normally dry land area or of
b. Other real, property in which the unit
two or more properties (one of which is your
owners have use rights; wbere membership in
property) from:
the entity is a required condition of unit
a . Overflow of inland or tidal waters,
ownership.
b Tlnusual and rapid accumulation or run10. Declarations Page. A computer-genoff of surface waters from any source,
erated summary of information you provided
c. Ivluclflow.
in the application for insurance. The Dec2. Collapse or subsidence of land along the
larations Page also describes the term of the
shore of a lake or similar body of water as a
policy, limits of coverage, and displays the
result of erosion or undermining caused by
APPENDIX

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Federal Emergency Management Agency. DHS

A(1) TO P A R T 61

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premium and our name. The Declarations
Page i s 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 i s 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 a s
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 t h a t has
no basement and t h a t has i t s lowest elevated
floor raised above ground level by foundation
walls, shear walls, posts, piers, pilings, or
columns.
15. Emergency Proyram. The initial phase of
a community's participation in the National
Flood Insurance P r o g r a m During this phase,
only limited amounts of insurance are available under t h e 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 t o flood insurance.
17. Federal Policy Fee. A flat charge you
must pay o n each new or renewal policy t o
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 llquid and flowing
mud on t h e surface of normally dry land
areas. as when earth i s carried bv a current
of water. Other earth movements, such as
landslide, slope failure, o r 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 t h e Act and applicable Federal
regulations in Title 44 of t h e Code of Federal
Regulations. Subchapter B.
21. Policy. The entire written,contract between you and us. I t includes:
a. This printed form;
b. The application and Declarations Page;
c. Any endorsement@) t h a t may be issued;
and
d. Any renewal certificate indicating t h a t
coverage has been instituted for a new policy
and new policy term.
Only one dwelling, which you specifically
described i n the application, may be insured
under this policy.
22. Pollutants. Substances t h a t include, but
are not limited t o , any solid, liquid, gaseous,
or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis,

Pt. 61, App. A(l;

chemicals, and waste. "Waste" includes, but.
is not limited to, materials to be recycled
reconditioned, Or reclaimed.
23. Post-FIRM Building. A building for
which construction or substantial improvement occurred after December 31, 1974, or on
or a f t e r the effective date of an initial Rloo~l
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 i n a community the
NFIP has placed on probation under the provisions of 44 CFR 59.24.
25. Regular Program. The final phase of a
community's participation in the National
Flood Insurance Program. Ln this phase, a
Flood Insurance Rate Map is in effect and
full limits of coverage are available under
the Act.
26. Speciul Flood Hazard Area. An area having special flood or mudflow, andlor flood-related erosion hazards, and shown on a Flood
Hazard Boundary Map or Flood Insurance
Rate Map as Zone A, AO. AlLA30, An!, A99,
A H , AR, AR/A, ARJAE, AMAH, AMAO, AR'
A1-A30, VlLV30, VE. or V.
27. Unit. A single-family unit you own i n a
condominium building.
28. Valued Polimj. A policy in which the insured and the insurer agree on the value of
the Property insured, t h a t value being payable in the event of a total loss. The Standard Flood Insurance Policy is not a valued
policy.

A. Coverage A-Building Properly
We insure against direct physical loss by
O r from flood to:
1. The dwelling a t the described location,
or for a period of 45 days a t 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 extension4 connected by any of these methods
may be separately insured. Additions and extensions attached to and i n contact with the
building by means of a common interior wall
t h a t i s not a solid load-bearing wall are always considered part of the dwelling and
cannot be separately insured.
3. A detached garage a t the described location. Coverage i s limited to no more than
10% of the limit of liability on the dwelling.
Use of this insurance i s a t your option but
reduces the building iimit 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 t o be used for
construction, alteration, or repair . of the

Pt. 61, App. Atl)

M CFR ch.1 (I 0-1 -04 Edition)

q. Pumps and machinery for operating
dwellillg or a detached garage while the mapumps;
terials and supplies are stored in a fully enr . Ranges, cooking stoves, and ovens;
closed building a t t h e described location or
s Refrigerators; and
on an adjacent property.
t Wall mirrors, permanently installed.
5. A building under construction, alter8. Items of property in a building enclosure
ation, or repair a t the described location.
below t h e lowest elevated floor of an elea. If the structure i s n o t yet walled or
roofed as described in t h e definition for vated post-FLRM building located in Zones
A1-430, AE, AH, AR, AWA, AWAE, AWAH,
building (see II.B.6.a.) then coverage applies:
AWA1-A30, V1-V30, or VE, or in a basement,
(1) Only while such work is inprogress; or
regardless of t h e zone. Coverage i s limited to
(2) If such work i s halted, only for a period
t h e following:
of up to YO continuous days thw-eafter.
a . Any of t h e following items; if installed
b. However, coverage does not apply until
t h e building i s walled and-roofed if the low- in their functioning locations and, if necessary
for operation, connected t o a power
est floor, including t h e basement floor, of a
non-elevated building or the- lowest elevated source:
(1) Central a i r conditioners;
floor of an elevated building is:
(2) Cisterns and the water in them;
(I) Below the base flood elevation in Zones
(3) Drywall for walls and ceilings in a baseAH, AE. Al-A30, AR, AWAE, AWAH, ARIA1ment and t h e cost of labor to nail i t , unfinA30, ARIA, ARJAO; or
ished and unfloated and n o t taped,. to t h e
(2) Below the base flood elevation adjusted
framing;
t-o include the effect of wave action in Zones
(4) Electrical junction and circuit breaker
VE or V1-V30.
The lowest floor levels are based on t h e boxes;
(5) Electrical outlets and switches;
bottom of the lowest horizontal structural
(6) Elevators, dumbwaiters and related
member of t h e floor i n Zones \iE or V1-V30
equipment, except for related equipment inand the top of tlle floor in Zones AH, AE. Alstalled below t h e base flood elevation after
A30. AR, AWAE, AWAH, AFVA1-A30, AWA,
September 30, 1987;
AWAO.
(7) Fuel t a n k s and the fuel in them:
6. A m.anufact;ured home or a travel trailer
(8) Furnaces and h o t water heaters:
as described i n the Definitions section (See
(9) Heat pumps,
II.B.6.b. and II.B.6.c.).
(10) Nonflammable insulation in a haseIf the manufactured home or travel trailer
ment;
is in a special flood hazard area, i t must be
(11) Pumps and t a n k s used in solar energy
anchored in the following manner a t the
systems;
time of t h e loss:
(12) Stairways and staircases attached t o
a . B:y over-the-top or frame ties t o ground t h e building, not separated from i t by eleanchors; or
vated walkways;
b. In accordance with the manufacturer's
(13) Sump pumps:
specifications; or
(14) Water softeners and t h e chemicals in
c. In compliance with t h e community's
them, water filters, and faucets installed as
floodplain management requirements unless
a n integral p a r t of t h e plumbing system;
i t has been continuously insured b y - the
(15) Well water t a n k s and pumps;
NFIP at' the same described location since
(16) Required utility connections for any
September 30, 1982.
item in this list; and
7. The following items of property which
(17) Footings, foundations, posts, pilings,
are covered under Coverage A only:
piers, or other foundation walls and anchora . Awnings and canopies;
age systems required t o support a building.
b. Blinds;
b. Clean-up.
c. Built-in dishwashers;
d. Built-in microwave ovens;
E. Coverage E-Pe~sonal Property
e. Carpet permanently installed over unfin1.
If
you have purchased personal property
ished flooring;
coverage, we insure against direct physical
f. Central air conditioners;
loss by or from flood t o personal property ing. E1ev:ator equipment;
side a building a t t h e described location, if:
h. Firesprinkler systems;
a. The property is owned by you or your
i. Walk-in freezers;
household
family members; and
j. Furnaces and radiators;
b. A t your option, t h e property i s owned by
k. Garbage disposal units;
guests or servants.
1. Hot water heaters, including solar water
Personal property i s also covered for a peheaters;
riod of 45 days a t another location as s e t
m. Light fixtures;
n. Outdoor antennas and aerials fastened f o r t h i n III.C.2.b.. Property Removed to Safety.
to buildings;
Personal property in a building t h a t i s not
o. Permanently installed cupboards, bookfully enclosed must be secured to prevent
cases, cabinets, paneling, and wallpaper;
flotation out of the building. If t h e personal
p. Plumbing fixtures;
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Federal Emergency Management Agency, DHS
property does float out during a flood, i t will
be conclusively presumed t h a t i t was n o t
reasonably secured. In t h a t 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 o v e n s - a i d portable
dishwashers.
3. Coverage for items of property in a
building enclosure below the lowest elevated
floor of a n elevated post-FIRM building located i n Zones A1-A30, AE, AH, AR, AWA,
ARJAE, AWAH, AWAI-A30, V1-V30, or VE, or
'..in a basement, regardless of t h e zone, i s limited t o the following items, if installed in
their functioning locations and, if necessary
for operation, connected t o a power source:
a. Air conditioning units, portable or window type;
b. Clothes washers and dryers; and
c. Food freezers, other t h a n walk-in, and
food i n any freezer.
4. If you a r e a tenant and have insured personal property under Coverage B in t h i s policy, we will cover such property, including
your cooking stove or range and refrigerator.
The policy will also cover improvements
made or acquired solely a t your expense III
t h e dwelling or apartment in which you reside, but for n o t more t h a n 10% of t h e l i m i t
of liability shown for personal property on
t h e Declarations Page. Use of t h i s insurance
i s a t your option but reduces t h e personal
property l i m i t of liability.
5. If you are the owner of a unit and have
insured personal property under Coverage B
i n 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
n o t more t h a n 10% of t h e limit of liability
shown for personal property on t h e .Declarations Page. Use of t h i s insurance is a t your
option but reduces the personal property
limit of liability.
6. Special Limits. We will pay no more
than $2,500 f o r any one loss t o one or more of
t h e 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 a n y article containing fur which
represents i t s principal value; or

Pt. 61, ~ p pA(1)
.

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 nonowned debris t h a t is on or in insured property and debris of insured property anywhere.
b. If you or a member of your household
perform t h e removal work, t h e value of your
work will be based on the Federal minimum
wage.
c. This coverage does h o t increase the Coverage A or Coverage B Limit of Liability.
2. Loss Avoidance Measures
a. Sandbags, Supplies, and Labor
(1) We will pay up t o $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 t o 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, a t t h e Federal minimum wage, t h a t you or a member of your
household perform.
(2) This coverage for Sandbags. Supplies
and Labor only applies if damage t o 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 t h e following must also occur:
(a) A general and temporary condition of
flooding i n the area near the described location m u s t 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
t h e community i n which the building is located calling for measures t o preserve life
and property from the peril of flood.
This coverage does n o t increase the Coverage A or Coverage B Limit of Liability.
b. Property Removed t o Safety
(1) We will pay up to f1,000 for the reasonable expenses you incur t o move insured
property t o a place other than the described
location t h a t contains t h e property i n order
to protect i t from flood or the imminent danger of flood.
Reasonable expenses include the value of
work, a t the Federal minimum wage, you or
a member of your household perform.
(2) If you move insured property to a location other than t h e described location that
contains t h e property, i n order to protect i t
from flood or the imminent danger of flood,
we will cover such property while a t t h a t location for a period of 45 consecutive days
from the date you begin to move i t there.
The personal property t h a t is moved must be

A4 CFR Ch. 1 (10-1-04 Edition)

Pt. 61, App. AIl)

pliance activities eligible for payment are:
elevation, floodproofing, relocation, or demolition (or any combination of these activities) of your structure. Eligible floodproofing
activities are limited to:
a . Non-residential structures.
b. Residential structures with basements
t h a t 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 t o policies with building
coverage (Coverage A). Our payment of
claims under Coverage D is in addition t o the
amount of coverage which you selected on
the application and which appears on the
Declarations Page. But t h e maximum You
can collect under this policy for both Coverage A-Building
Property and Coverage
D-Increased Cost of Compliance cannot exceed t h e maximum permitted unaer the Act.
We do n o t charge a separate deductible for a
claim under Coverage D.
3. Eligibility
a. A structure covered under Coverage ABuilding 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 t h a t meets t h e following conditions:
(a) The structure i s covered b y a contract
of flood insurance issued under t h e NFIP.
(b) The structure has suffered flood damage
on two occasions during a 10-year period
which ends on the date of t h e second loss.
(c) The cost t o repair the flood damage, on
average, equaled or exceeded 25% of the mark e t value of the structure a t - - t h e time of
each flood.loss.
(d) In addition t o the current claim, t h e
NBTP
m u s t have aid t h e previous qualifying
..-claim, and t h e S t a t e o r community must
have a cumulative, substzntial damage provision o r - repetitive loss provision in i t s
floodplain management law or ordinance
being enforced against the structure; or
(2) Be a structure t h a t has had flood damage in which the cost t o repair equals or exceeds 50% of the market value of t h e struct u r e a t t h e . time of t h e flood. The S t a t e . or
community must have a substantial damage
provision in i t s floodplain management law
or ordinance being enforced against the
structure.
b. This Coverage D pays you t o comply
with S t a t e or local floodplain management
laws or ordinances t h a t meet the minimum
standards of the National Flood Insurance
Program found in t h e Co.de of Federal ReguD. Coverage D-Increased Cost of Compliance
lations a t 44CFR 60.3. We pay for compliance
activities
t h a t exceed those standards under
1. General.
these
conditions:
This policy pays you t o comply with a
(1) 3.a.U) above.
S t a t e or local floodplain management law or
(2) Elevation or floodproofing i n a n y risk
ordinance affecting repair 01- reconstruction
zone t o preliminary or advisory base flood
of a structure suffering flood damage. Com-

placed In a fully enclosed building or otherwise reasonably protected from t h e elements.
Any property removed, Including a moveable home described in II.6.b.and c., must be
ulaced :,.hove around level or outside of the
special flood llazai-d area.
This <,overagedoes n o t increase t h e Coverage A or Coverage B Limit of Liability.
3. Condomlnlunz Loss Assessments.
a . If this policy insures a unit, we will pay,
up to Lhe 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 yoar deed.
The assessmellt must be made a s a result
of.direct physical loss by or from flood during t h e policy term, to the building's common elements.
b. We will not Day
- - any- loss assessment
charg.ed against you:
(1) And the condominium association by
a n y governmental body;
(2) T h a t results from a deductible under
t h e insurance purchased by t h e condominium association insuring common elements;
(3) T h a t results from a loss t o personal
property. including contents of a condominium building;
(4) T h a t results from a 1,oss sustained by
t h e condominium association t h a t was n o t
reimbursed under a flood insurance policy
written in the name of the association under
t h e Act because the building was n o t , a t t h e
t i m e of loss, insnred for a n amount equal t o
t h e lesser of:
(a) 80% or more of i t s full replacement
cost; or
(b) The maximum amount of insurance permitted under the Act;
(5) T o t h e extent t h a t payment under this
policy for a condominium building loss. in
combination with payments under any other
NFIP policies for the same building loss, exceeds t h e maximum amount of insurance
permitted under the Act for t h a t kind of
building; or
(6) To the extent t h a t payment under this
policy for a condominium building loss, i n
combination with a n y recovery available t o
you a s a :tenant in common under any NFIP
condominium association policies for t h e
same building loss, exceeds the amount of insurance permitted under the Act for a singlefamily dyelling.
Loss assessment coverage does not increase t h e Coverage A Limit of Liability.

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Federal Emergency Management Agency, DHS
elevations provided by FEMA which the
S t a t e 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 t o zones with base flood elevations.
This also includes compliance activities in
zones where base flood elevations are being
increased, and a flood-damaged structure
must comply with t h e higher advisory base
flood elevation.) Increased- Cost of Compliance coverage does not apply t o situations i n
B, C, X, or zones where the community has
derived i t s own elevations and is enforcing
elevation or floodproofing requirements for
flood-damaged structures t o elevations derived solely by t h e community.
(3) Elevation or floodproofing above the
base flood elevation t o meet S t a t e or local
"freeboard" requirements, i.e., t h a t a structure mpst be elevated above t h e base flood
elevation.
i' c. Under t h e minimum NFIP criteria a t 44
CFR 60.3(b)(4), States and communities must
require the elevation or floodproofing of
structures i n unnumbered A zones t o t h e
base flood elevation where elevation d a t a is
obtained from a Federal, S t a t e , or other
source. Such compliance activities are also
eligible for Coverage D.
d. This coverage will also pay for t h e incremental cost, a f t e r demolition or relocation,
of elevating or floodproofing.a structure during i t s rebuilding a t t h e same or another site
t o meet S t a t e or local floodplain management laws or ordinances, subject t o Exclusion D.5.g. below.
e. This coverage will also pay t o bring a
flood-damaged s t r u c t u r e i n t o compliance
with s t a t e or local floodplain management
laws or ordinances even if t h e structure had
received a variance before the present loss
from t h e applicable.floodplain management
requirements,
4. Conditions.
a. When a structure covered under Coverage A-Building Property sustalns a loss
caused by a flood, our payment :for t h e loss
under this Coverage D will be for t h e increased cost to- elevate, floodproof, relocate,
or demolish (or a n y combination of these activities) caused by the entorcement of curr e n t S t a t e or local floodplain management
ordinances or laws; Our payment for eligible
demolition activities will be for the cost t o
demolish and clear t h e site of the building
debris or a portion thereof caused by the enforcement of current S t a t e or local floodplain management ordinances or laws. Eligible activities for the cost of clearing the s i t e
will include those necessary t o discontinue
utility service t o t h e s i t e and ensure proper
abandonment of on-site utilities.
b. When the building is repaired or rebuilt,
i t must be intended for the same occupancy
a s t h e present building unless otherwise re-

Pt. 61, App. A(1)

quired by current floodplain management ordinances or laws.
5. Exclusions.
Under this Coverage D (Increased Cost of
Compliance) we will not pay for:
a. The cost t o comply with any floodplain
management law or ordinance in communities participating in t h e Emergency Program.
b. The cost associated with enforcement of
any ordinance or law t h a t 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 buildi~lg
or other structure due t o the requirements of
a n y ordinance or law.
d. The loss in residual value of the
undamaged portion of a building demolished
a s a consequence of enforcement of anv
S t a t e or local floodplain management law or
ordinance.
e. Any Increased Cost of Compliance under
this Coveraee D:
(1) Until the building is elevated.
floodproofed, demolished, or relocated on t h e
same or to another premises; and
(2) Unless the building is elevated,
floodproofed, demolished, or relocated a s
soon a s reasonably possible after the loss,
not to exceed two years.
f. Any code upgrade requirements. e . g . ,
plumbing or electrical wiring, n o t specifically related to the S t a t e 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 t o a n y ordinance or law t h a t
you were required t o comply with before the
current loss.
i. 4 n y rebuilding activity to standards
t h a t do not meet t h e NFIP's minimum requirements. This includes any situation
where the insured has received from the
S t a t e or community a variance in connection with t h e current flood loss to rebuild
the property to a n 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.
1. Assessments made by a condominium association on individual condominium uait
owners t o pay increased costs of repairing
commonly owned buildings after a flood in
compliance with S t a t e or local floodplain
management ordinances or laws.
6. Other Provisions.

44 CFR Ch. 1 (10-1-04 Edition)

Pt. 61, App. A(1)
a. Increased Cost of Compliance coverage
will not be included i n the calculation to determine whether coverage meets the 80% insurance-to-value requirement for replacement cost coverage as set forth in VII. General Conditions. V Loss Settlement.
b. All other conditions and provisions of
the po1i.c~apply.
IV. PROPERTY NOT COVERED

We (lo not cover any of the foll0Wing:
1. Psrsonal property not inside a building:
2. A building, and personal property in i t ,
located entirely i n , on, or over water or seaward of mean high tide if i t was constructed
or sul~stantiallyimproved after September
30. 1982;
3. Open structures, including a building
used as a boathouse or any structure or
building lnto 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 11B.6.c.) whether affixed t o a permanent
foundation or on wheels:
5. Self-propelled vehicles or machines, including their parts and equipment. However,
we do cover self-propelled vehicles or machines not licensed for use on public roads
t h a t are:
a. Used mainly t o service the described location or
b. Designed and used to assist hanlcapped
persons, while the vehicles or machines are
inside a building a t the described location;
6. La.nd, 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. Undergrotmd structures and equipment,
including wells, septic tanks, and septic systems;
9. Thoae 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
t h e insured building or the building in which
the insured unit i s located;
10. Containers, including related equipment, such as, b a t not limited to, tanks containing gases or liquids:
11. Buildings or units and all their cont e n t s i f more t h a n 49% of t h e actual cash
value of the building is below ground, unless
the lowest level is a t or above the base tlood
elevation, and is below ground by reason of
earth having been used as insulation material i n conjunction with energy efficient
building techniques;
12. Fences, retaining walls. seawalls, bulkheads, wh'arves, piers, bridges, and docks:
13. Aircraft or watercraft, or their furnishings and equipment;

14. Hot tubs and spas t h a t 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 floon insurance pursuant to the provisions of the Coaata1 Barrier Resources Act and the Coastal
Barrier Improvement Act and amendments
to these Acts;
16. Personal property you own i n common.
with
unit owners comprising the mem..- other
- .-bership of a condominium association
V. EXCLUSIONS

A. We only pay for direct physical loss by
or from flood, which means t h a t 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 i s 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 we describe in Coverage D-Increased Cost of Compliance; or
7. Any other economic loss you suffer.
B. We do not insure a loss directly or indirectly caused by a tlood t h a t i s already in
progress a t the time and date:
I. The policy term begins; or
2. Coverage is added a t 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 t h a t we do not
cover are:
1. Earthquake;
2. Landslide;
3. Land subsidence;
4. Sinkholes;
5. Destabilization or movement of land
t h a t 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 t h a t are specifically covered under our
definition of flood (see II.A.1.c. and TI.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;
~

Federal Emergency Management Agency, DHS
4. Water, moisture, mildew, or mold damage that results primarily from any condition:
a. Substantially confined to the dwelling;
or
b. T h a t is within your control, including
but not limited to:
(I) Design, structural, or mechanical defects:
(2) Failure, stoppage, or breakage of water
or sewer lines, drains, pumps, fixtures, or
equipment; or
(3) Failure t o inspect and maintain the
property after a nood recedes;
5. Water or water-borne material-that:
a. Backs up through sewers or drains;
b. Discharges or overflows from a sump,
sump Pump or related equipment: or
c. Seeps or leaks on or through the covered
property;
unless there is a 'flood in the area and. the
flood is the proximate cause of the sewer or
drain backup, sump pump discharge or overflow, o r t h e seepage of water;
6. The pressure or weight of watek unless
there is a flood in the area and tke flood is
the proximate cause of the damage from the
Pressure or weight of water;
7. Power, heating, or cooling failure unless
the failure results from direct physical loss
by or from flood to power, heating, or cooling equipment on the described location:
8. Theft, fire, explosion, wind, or windstorm;
9. Anything you or any member of your
household do or conspires t o do t o deliberately cause loss by flood: or
10. Alteration of the insured property t h a t
significantly increases the risk of flooding.
E. We do not insure. for loss t o 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 t h e 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 i s covered under this policy,

we will pay only t h a t part of the loss t h a t
exceeds your deductible amount, subject to
t h e limit of liability t h a t applies. The deductible amount is shown on the Declarations l'age.
However, when a building under construction, alteration, or repair does not have a t
least two rigid exterior walls and a fully secured roof a t the time of loss. your deductible amount will be two times the deductible
that would otherwise apply to a completed
building.

Pt. 61, App. h(1:

B. In each loss- from flood, sepnl ate
deductibles apply t o the building and ]leysonal 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 Assessme~~ts;
n
"-v

3.111.D. Increased Cost of Compliance

VII.GENERAL
CONDITIONS
A. Pair and Set Clause
In case of loss to an article that is part of
a pair or set, we will have the option of paying you:
1. An amount equal to the cost of replaci.:1
the lost, damaged, or destroyed article,
minus i t s depreciation, or
2. The amount that represents the fair proportion of the total value of the pair or s.:t
that the lost, damaged, or destroyed articte
bears to the pair or set.

B. Concealment or Fraud and Policy Voidancr!
1. With respect to all insureds under thjs
Policy, this policy:
a. I s void;
b. Has no legal force or effect;
c. Cannot be renewed; and
d. Cannot be replaced by a new NFIP poiicy, if, before or after a loss. you or an:r
other insured or your agent have a t antime:
(1) Intentionally concealed or misrepre
sented any material fact or circumstance;
(2) Engaged in fraudulent conduct; or
(3) Made false statements; relating to thi::
policy or any other NFIP insurance.
2. This policy will be void as of the d x t ~
wrongful acts described in B.l.abcve were
committed.
3. Fines, civil penalties, and imprisonment.
under applicable Federal laws ma.y 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 i s located in a community t h a t was not participating in the N F I P
on the policy's inception date and did not
join or reenter the program during the policy
t e r m 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. Lf a loss covered by this pollcy is also
covered by other insurance t h a t 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

44 CFR

Pt. 61, App. A(1)

reduction described in 0.1. above to the
destroyed property insured under this policy
amount you requested as follows:
subject to the following:
a , Discovery of Insufficient Premium Or hthe
.' W e mill
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= r o ~ o r t i o nof the
complete ~ a t i n gInformation Before a Loss:
loss that the amount of insurance that ap(1) If we discover before you have a flood
plies untler this policy bears $0 the total
loss
that your premiumpaymentwas not
amount
of insurance covering the loss, un...-.
..
less C l.b, or c. immediately below applies.
enough to buy the requested amount of covb. If the other policy has a provision staterage, we will send you and any mortgagee
or trustee known to us a bill for the required
ing that i t is excess insurance, this policy
will be primary.
additional premium for the current policy
c. This policy will be primary (but subject
term (or that portion of the current policy
to
.. its
. own deductible) up to the deductible in
term following any endorsement changing
the other flood policy (except another policy
the amount of coverage). If you or the mortas descrihed in C.1.b. above). When the other
gagee or trustee pay the additional premium
deductible amount is reached, this policy
within 30 days from the date of our bill. we
will participate in the same proportion that
will reform the policy to increase the
the amount of insurance under this policy
amount of coverage to the originally rebears to the total amount of both policies,
quested amount effective to the beginning of
for the i:emainder of the loss.
the current policy term (or subsequent date
2. If there is other insurance in the name of
of any endorsement changing the amount of
your condominium association covering the
coverage).
same property covered by this policy, then
(2) If we determine before you have a flood
this policy will be in excess over the other
loss that the rating information we have is
insurance.
inrnmnlnte and
mevents us from calculating
..
*
the additional premium, we will ask you to
D . Amendmelzts, Watvers, Assignment
send the required information. You must
This policy cannot be changed nor can any
submit the information within 60 days of our
of its provisions be waived without the exrequest. Once we determine the amount of
press written consent of the Federal Insuradditional premium for the current policy
ance Administrator. No action we take under
term, we will follow the procedure in
the terms of this policy constitutes a waiver
G.Z.a.(l) above.
of any of our rights. You may assign this pol(3) If we do not receive the additional preicy in writing when you transfer title of your
mium (or additional information) by the
property to someone else except under these
date i t is due, the amount of coverage can
conditions:
only be increased by endorsement subject to
1. When this policy covers only personal
any appropriate waiting period.
property; or
b. Discovery of Insufficient Premium or In2. When this policy covers a structure durcomplete Rating Information After a Loss:
ing the course of construction.
f,1-,
\ Tf
after you have a flood
.. W
. P. discover
- ..
E. Cancollataon of the Policy b y Y o u
loss that "vour
~ r e m i u m-~ a-y m e n twas not
enough t o buy the requested amount of cov1. Yon may cancel this policy in accorderage, we will send you and any mortgagee
ance with the applicable rules and regula--.
x
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n
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or
-.trustlee
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-.. known t o us a bill for the required
L I U I I S U l Lilt: L I P Ir .
additional premium for the current and the
2. If you cancel this policy, you may be enprior policy terms. If you or the mortgagee
titled t o a full or partial refund of premium
or trustee pay the additional premium withalso under the applicable rules and regulain
30 davs of the date of our bill, we will re+:"L"U,, -C eke XTWTP .
.form the policy to increase the amount of
F . Non-Renewal of the Policy b:J Us
coveraae to the originally requestea amount
effective to the beginning of the prior policy
Your policy will not be renewed:
term.
1. If the community where your covered
(2) If we discover after you have R flood
property is located stops participating in the
loss that the rating information we have is
NFIP, or
incomplete and prevents us from calculating
2. If your building has been declared inelithe additlonal premium, we will ask you to
gible under sect,ion 1316 of the Act.
send the required information. You must
G. Reduction and Reformation o f Coverage
the information before your claim
can be paid. Once we determine the amount
1. 1f the premium we received from you was
of additional premium for the current and
not enough t o buy the kind and amount of
prior policy terms, we will follow the procecoverage xou requested, we will provide only
dure in G.2.b.U) above.
the amount of coverage that can be pur(3) Lf we do not receive the additional prechased f o i the premium payment we remium by the date i t is due, your flood insurceived.
I
ance claim will be settled based on the re2. The policy can be reformed to increase
duced amount of coverage. The amount of
the amotmt of coverage resulting from the

..-

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.

.~

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Federal Emergency Management Agency, DWS

Ch.1 (10-1 -04 Edition)

~

H. Policy Renewal
1. This policy will expire a t 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 i t , we made a mistake, ex., we used a n 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 t h a t 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 a n 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.

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I , Conditions S ~ s p e n d z n g

Restricting

Insurance
We are not liable for loss t h a t occurs while
there is a hazard that is increased by any
means within Your control or knowledge..
I. Requirements i n Case o f Lass
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 i t ;
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;

Pt. 61, App. !,(I)

4. Within 60 days after the loss, send 1 s a
proof of loss, which is your statement of tile
amount you are claiming under the policy
signed and sworn to by you, and which :ul.nishes us with the following information:
a. The date and time of loss;
b. A brief explanation of how the loss h t p pened;
c. Your interest (for example, "owner") and
the interest, if any, of others in the damaeed
property;
d. Details of any other insurance that mzg
cover the loss;
e. Changes in title or occupancy of the cuvered property during the term of the policy;
f . Specifications of damaged buildings &:Id
detailed repair estimates;
g. Names of mortgagees or anyone eke
having a lien, charge, or claim against t11e
insured property;
h. Details about who occupied any insurt,tl
building a t the time of loss and for what pu..
pose: and
i. The inventory of damaged personal prollerty described in 5.3. above.
5. In completing the.proof of loss, you nmst
use your own judgment concerning th3
amount of loss and justify that amount.
6. You must cooperate with the adjuster orepresentative in the investigation of t h ~
claim.
7. The insurance adjuster whom we hire t o
investigate your claim may furnish you with
a proof of luss form, and she or he may help
you complete i t . However, this is a matter 01.
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 i t .
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 sien the
--" adjuster's rePort At Our Option. we may require YOU to
swear to the report.

---

K. Our Options d f t e r a Loss
Options we may, in our sole discretion, ex.
ercise after loss include the following:
1. At such reasonable times and places t h s t
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;

Pt. 61, App. A(1)
(2) Condominium association documents
including. the Declarations of the condominium, i t s Articles of Association or Incorporation, Bylaws, rules and regulations, and
other relevant documents if ycu 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, i n writing, t h a t you
furnish us with a complete inventory of t h e
lost, rbmaged or destroyed property, including:
a. Queantities 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 da.maged property t h a t you can
reasonably make available to us; and
e. Evidence t h a t 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 i t s functional equivalent: and
b. Take all or any part of the damaged
property a t the value t h a t we agree upon or
~ t appraised
s
value.
L. No Benefit to Barlee

No uerson or organization, other than you,
having custoual
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 t h e 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. T h e two
appraisers will choose an umpire. I f they
cannot agree upon an umpire within 15 days,
you or we may request t h a t the choice be
made-by a judge of a court of record in the
s t a t e where t h e covered property is located.
The appraisers will separately state the actual cash value, t h e replacement cost, and
the amount of loss to each item. If the appraisers submit a written report of an agreement t o us, t h e 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 i t
applies, t h e replacement cost and loss.
Each party will:
1. Pay i t s own appraiser; and
2. Bear the other expenses of the appraisal
and umpire equally.

R. S u ~ Against
t
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 s t a r t the suit within
one year after the date of the written denial
of all or part of t h e claim, and you must file
the suit in the United States District Court
of the district in which the covered property
was located a t the time of loss. This requirement applies to any claim t h a t you may
have under this policy and to any dispute
t h a t 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 t h i s policy, we are subrogated to your
right to recover for t h a t loss from any other
person. That means t h a t your right t o recover for a loss t h a t was partly or totally
caused by someone else is automatically
transferred t o us, t o the extent t h a t we iiave
paid you for the loss. We may require you t o
acknowledge this transfer in writing. After
the loss, you may not give up our right t o recover this money or do anything t h a t 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
t h a t money.

Q. Mortgage Clause

The word "mortgagee" includes trustee.
M. Loss Payment
Any loss payable under Coverage A-Building Property will be paid to any mortgagee
1. We will adjust all losses with you. We
of whom we have actual notice, as well a s
will pay y o u unless some other person or enany other mortgagee or loss payee detert i t y is named i n the policy or is legally entimined to exist a t the time of loss, and you,
tled to receive payment. Loss will be payable
as interests appear. If more than one mort60 days a f t e r we receive your proof of loss (Or
gagee is named, the order of payment will be
within 90 days after the insurance adjuster
the same a s t h e order of precedence of the
files the; adjuster's report signed and sworn
mortgages.
to by you ii lieu of a proof of loss) and:
If we deny your claim, t h a t denial will not
a. We reach an agreement with you;
apply to a valid claim of the mortgagee, if
b. There is an entry of a final judgment; or
the mortgagee:
c. here is a filing of an appraisal award
1. Notifies us of any change i n the ownerwith us, a s provided i n VII. P.
ship or occupancy, or substantial change i n
2. If we reject your proof of loss i n whole or
risk of which t h e mortgagee is aware;
in part y;ou may:
2. Pays any premium due under this policy
a. Accept our denial of your claim;
on demand if you have neglected to pay the
b. ~ x e r c i s eyour rights under t h i s policy;
premium; and
or
j
3. Submits a signed, sworn proof of loss
c. File; an amended proof of loss a s long a s
within 60 days after receiving notice from us
i t is filed within 60 days of the date of the
of your failure t o do so.
loss.
All of t h e terms of this policy apply t o the
1
N. Abandonment
mortgagee.
The mortgagee has the right to receive loss
You may not abandon to us damaged or
payment even i f t h e mortgagee has started
undamaged property insured under thls polforeclosure or similar action on the building.
ICY.
1

T. Continuous Lake Flooding
1. If an insured building has been flooded
by rising lake waters continuously for 90
days or more and i t appears reasonably certain t h a t a continuation of this flooding will
result in a covered loss to the insured building equal t o 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

1

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....I:

YUIIUY

.

b. Not to seek renewal of this policy;
c. Not t o apply for any flood insurance
under the Act for property a t the described
location, and

Pi. 61, App. A ( ] )

d. Not to seek a premium refund for cul..
rent or prior terms.
If the policy term ends before the insu;.ed
building'has been flooded continuously f o ~90
days, the provisions of this paragraph ' l ' . l .
will apply when the insured building suffi!rs
a covered loss before the policy term ends.
2. If Your insured building is subject to
continuous lake flooding from a closed ba::in
lake, you may elect to file a claim under :ither paragraph T.1. above or T.2. (A "clos?d
basin lake" is a natural lake from whi,:h
water leaves primarily through evaporation
and whose surface area now exceeds or h-ts
exceeded one square mile a t ally time in tile
recorded past. Most of the nation's c1os1:d
basin lakes are in the western half of tlie
United States where annual evaporation e t ceeds annual precipitation and where 1al:e
levels and surface areas are subject to comrsiderable fluctuation due to wide variatior~s
in the climate. These lakes may overtcp
their basins on rare occasions.) Under (;his
paragraph T.Z., we will pay your claim as if
t h e building is a total loss even though I t
has not been continuously inundated for $0
days, subject to the following conditions:
a . Lake flood waters must damage or imminently threaten t o damage your building.
b. Before approval of your claim, you must:
(1) Agree t o a claim payment that reflect;
your buying back the salvage on a negotiated basis; and
(2) Grant the conservation easement described in FEMA's "Policy Guidance fol.
Closed Basin Lakes" to be recorded i n the of-fice of the local recorder of deeds. FEMA, in
consultation with the community in which
the property is located, will identify on n
map an area or areas of special consideration
(-4SC) i n which there is a potential for flood
damage from continuous lake flooding.
BEMA will give the community the agreedupon map showing the ASC. This easement
will only apply to that portion of the property in the ASC. I t will allow certain agricultural and recreational uses of the land.
The only structures i t 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 proj,ect 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.l d. above

Pt. 61, App. A(1)

a CFR ch. I (10-1-04 Edition)
tions in paragraphs T.2.e. and T.2.f. above,
and
(2) The date by which you must have flood
insurance in effect.

c. Wlthin 90 days of approval of your claim,
you must move your building to a new locathe ASC. FEMA will give you a n
tion
additional 30 days to move if you show there
is sufficient reason to extend the time.
U. Duplicate Policies Not Allowed
d. Before the final payment of your claim.
1. We will not insure your property under
om,
rnmst, acnuire
elevation certificate
d u ------ .~ - - an
more than one NFIP policy.
and a floodplain development permit from
If we find t h a t the duplication was not
the local floodplain administrator for the
knowingly created, we will give you written
new locatiou of your building.
notice. The notice will advise you that You
e. Before the approval of your claim. the
may choose one of several options under the
community having jurisdiction over your
building must:
following procedures:
a . 1f you choose t o keep in effect the policy
(1) Adopt a permanent land use ordinance,
with the earlier effective date, you may also
or a temporary moratorium for a period not
choose to add the coverage limits of the later
to exceed 6 months to be followed immepolicy to the limits of the earlier policy. The
diately by a permanent land use ordinance,
change will become effective as of the effeckhak
is consistent with the provisions speci-..-.-tive date of the later policy.
fied in the easement required in paragraph
b. If you choose to keep in effect the policy
T.2.b. above.
with the later effective date, you may also
(2) Agree to declare and report any violachoose
to add the coverage limits of the eartions of this ordinance to FEMA So t h a t
lier policy to the limits of the later policy.
under Sectiou 1316 of the National Flood InThe change will be effective as of the effecsurance Act of 1968, as amended, flood insurtive date of the later policy.
ance to the building can be denied; and
~.neither case, you must pay the pro r a t a
(3) Agree I;o maintain as deed-restricted,
premium for the increased coverage limits
for purposes compatible with open space or
agricultural or recreational use only, any af- within 30 days of the written notice. In no
event will the resulting coverage limits exfected property the community acquires a n
ceed the permissible limits of coverage under
interest in. These deed restrictions must be
the ~ c ort your insurable interest, whichever
corlsistent with the provisions of paragraph
is less. We will make a refund to you, accordT.2.b. above, except t h a t , even if a certified
ing to applicable NFIP rules, of the premium
project protects the property, the land use
for the policy not being kept in effect.
restrictions continue to apply if the property
2. Your option under Condition U. Dupliwas acquired under the Hazard Mitigation
cate policies Not Allowed to elect which
Grant Program or the Flood Mitigation AsNFP policy to keep in effect does not apply
sistsnce Program. If a non-profit land trust
when duplicates have been knowingly creorganization receives the property as a donation. that organization must maintain the
ated. Losses occurring under such cirproperty as deed-restricted, consistent with
cumstances will be adjusted according to the
the provisions of paragraph T.2.b. above.
terms and conditions of the earlier policy.
f . Before the approval of yonr claim, the afThe policy with the later ,effective date must
be canceled.
fected State must take all action set forth i n
FEMA's "Policy Guidance for Closed Basin
V. Loss Settlement
Lakes."
g. You must have NFIP flood insurance
1. Introduction
coverage continuously in effect from a date
This
policy
provides
three methods of setestablished by FEMA until you file a claim
tling losses: Replacement Cost, Special Loss
under paragraph T.2. If a subsequent owner
Settlement, and Actual Cash Value. Each
buys NFIP insurance that goes into effect
method is used for a different type of propwithin 60 days of the date of transfer of title.
erty, as explained in a-c. below.
any, gap in coverage during that 60-day pea. Replacement Cost Loss Settlement, deriod will not be a violation of this continscribed in V.2. below, applies to a single-famuous coverage requirement. For the purpose
ily
dwelling provided:
of honoring a claim under this paragraph
(1) I t is your principal residence, which
T.2, we will not consider to be in effect any
increased coverage that became effective means t h a t , a t the time of loss, you or Your
spouse lived there for 80% of:
a f t e r the date established by FEMA. The ex(a) The 365 days immediately preceding the
cep,tion to this is any increased coverage in
loss' or
t.
h
.
.
e. amount suggested by your insurer as an
( b j The period of your ownership, if You
inflation ad~ustment.
owned the dwelling for less than 365 days;
h . This paragraph T.2. wlll be in effect for
and
a community when the FEMA Regional Di(2) At the time of loss. the amount of inrector for the'affected region provides to the
surance in this policy t h a t applies to the
community, in writing, the following:
dwelling is 80% or more of its full replace(1) Confirmation t h a t the community and
ment cost immediately before the loss, or is
the State are in compliance with the condi~

Federal Emergency Management Agency, DHS
the maximum amount of insurance available
under the NFIP.
b. Special Loss Settlement, described in
V.3. below, applies to a single-family dwelling t h a t is a manufactured or mobile home
or a travel trailer.
c. Actual Cash Value loss settlement applies to a single-family dwelling not subject
t o replacement cost or special loss settlement, and to the property listed in V.4.
below.
2. Replacement Cost Loss Settlement

Pt. 61, App. A ( I )

square feet within i t s perlmeter walls w lell
fully assembled, and
(3) is your principal residence as speclrieil
in V.l.a.(l) above.
b. If such a dwelling is totally destroyeo 01.
damaged to such an extent that. in our juclgment, i t is not economically Ieasible to rt.pair, a t least to its pre-damage condition, we
will, a t our discretion pay the least or the
following amounts:
(1) The lesser of the replacement cost of.
the dwelling or 1.5 times the actual ctsll
value, or
(2) The building limit of liability shown on
your Declarations Page.
c. If such a dwelling is partially dama,:.ed
and, in our judgment, i t is economically ie;lsible to repair i t to its pre-damage condition.
we will settle the loss according to the 3eplacement Cost conditions in V.2.above.

The following loss settlement conditions
apply to a single-family dwelling described
in V.1.a. above:
a. We will pay t o 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:
4. Actual Cash Value Loss Settlement
(1) The building limit of liability shown on
your Declarations Page;
The types of property noted below are sub(2) The replacement cost of that part of the
ject to actual cash value (or in the case 01
dwelling damaged, with materials of like
V.4.a.(2), below, proportional) loss settlekind and quality and for like use; or
ment.
(3) The necessary amount actually spent to
a. A dwelling, a t the time of loss, when ;he
repair or replace the damaged part of the
amount of insurance on the dwelling 1s both
dwelling for like use.
less than 80% of i t s full replacement cost imb. If the dwelling is rebuilt a t a new locamediately before the loss and less than ;he
tion, the cost described above is limited to
maximum amount of insurance available
the cost that would have been incurred if the
under the NFIP. In that case, we will pay ;;he
dwelling had been rebuilt a t its former locagreater of the following amounts, but not
tion.
more than the amount of insurance that ~ p c. When the full cost of repair or replaceplies to t h a t dwelling:
ment is more than $1,000, or more than 5% of.
(1) The actual cash value, as deIined In
the whole amount of insurance t h a t applies
II.B.2.. of the damaged part of the dwelling.:
to the dwelling, we will not be liable for any
or
loss under V.2.a. above or V.4.a.(2) below un(2) A proportion of the cost to repair or rsless and until actual repair or replacement is
place the damaged part of the dwelling, withcompleted.
out deduction for physical depreciation alld
after application of the deductible.
d. You may disregard the replacement cost
conditions above and make claim under this
This proportion is determined as follows: If
80% of the full replacement cost of the dwellpolicy for loss to dwellings on an actual cash
ing is less than the maximum-amount of invalue basis. You may then make claim for
any additional liability according to V.2.a., surance available under the NFIP, then the
proportion is determined by dividing the :kcb.. and c. above, provided you notify us of
tual amount of insurance on the dwelling by
your intent to do so within 180 days after the
the amount of insurance that represents 80°A
date of loss.
of i t s full replacement cost. But if 80% of {,he
e. Lf the community in which your dwelling
is located has been converted from the Emerf u l l replacement cost of the dwelling is
greater than the-maximum amount of insurgency Program to the Regular Program durance
available under the NFIP, then the proing the current policy term, then we will
portion is determined by dividing the actual
consider the maximum amount of available
amount of insurance on the dwelling by t.lle
NFIP insurance to be the amount t h a t was
maximum amount of insurance available
available a t the beginning of the current polunder the NFIP.
icy term.
b. A two-, three-, or four-family dwelling.
3. Special Loss Settlement
c. A unit that is not used exclusively for
single-family dwelling purposes.
a. The following loss settlement conditions
d. Detached garages.
apply to a single-family dwelling that:
e. Personal property.
(1) is a manufactured or mobile home or a
f. Appliances, carpets, and carpet pads.
travel trailer, as defined in II.B.6.b. and c.,
g. Outdoor awnings, outdoor antennas or
(2) Is a t least 16 feet wide when fully asaerials of any type, and other outdoor equipsembled and has a n area of a t least 600
ment.

4d CFR Ch. I (10-1-04 Edition)

Pt. 61, App. A(2)
h. Ally property covered under this policy
t h a t is abandoned after a loss and remains a s
debris anywhere on the described location.
i. A clwelling t h a t i s n o t your principal residence.

1. In a regular program community, for a
residential condominium building, as defined
in t h i s policy; and
2. Except for personal property coverage,
for a unit i n a condominium building.
I. AGREEMENT

5. Amount of Lnsurance Required

To dsl;ermine the amount of insurance required for a dwelling immediately before t h e
loss, we do not, include t h e value of:
a . Footings, foundations, piers, or any
other stluctures or devices t h a t are below
t h e untlersurfaoe of the lowest basement
floor and s u p p o ~ tall or part of t h e dwelling;
b. Those supports listed in V.5.a. above,
t h a t are below {;he surface of t h e ground inside t h e fouudation walls if there i s no basement; and
c. Excavations and underground flues,
pipes, wiring, and drains.
NOTE: The Coverage D-Increased Cost of
Compliance limit of liability is n o t included
in the determination of the amount of insurance required.

The Federal Emergency Management
Agency (FEMA) provides flood insurance
under t h e terms of the National Flood Insurance Act of 1968 and i t s Amendments, and
Title 44 of the Code of Federal Regulations.
We will pay you for direct physical loss by
or from flood t o your insured property if
you:
1. Have paid the correct premium;
2. Comply with all terms and conditions of
t h i s policy; and
3. Have furnished accurate information and
statements.
We have the right to review the information you give us a t any time and to revise
your policy based on our review.

VIII. LU3ERALIZATION CLAUSE
If we make a change t h a t broadens your
coverage under this edition of our policy, b u t
does n o t require any additional premium,
then t h a t change will automatically apply t o
your insurance as of t h e date we implement
t h e change, provided t h a t this implementation date falls within 60 days before or during t h e policy term stated on the Declarations Page.
M. WHAT LAW GOVERNS
This policy and all disputes arising from
t h e handling of any claim under the policy
are governed exclusively by the flood insurance regulations issued by FEMA, t h e National Flood Insurance Act of 1968, a s 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.
J O ANN HOWARD,
Administrator, Federal Insurance
Administration.
[65 FR 60769, Oct. 12, 2000, a s amended a t 68
F R 9897, M a r . 3, 20031
APPENDIX A(2) TO PART
61
FEDERdL J?,M~RC+ENCY
MANAGEMENTAGENCY,
FEDERAL
INSURANCE
ADMINISTRATION
STANDARD
FLOODINSURANCE POLICY
GENERAL PROPERTY FORM
pleasd read tile policy carefully. The flood
insucance coverage provided i s subject to
limitations, restrictions, and exclusions.
This policy provides no coverage:

11. DEFINITIONS
A. In this policy, "you" and "youi' refer t o
t h e insured(s) shown on t h e Declarations
Page of this policy. Insured(s) includes: Any
mortgagee and loss payee named in the APplicatlon and Declarations page, as well as
any other mortgagee or loss payee determined to exist a t the time of loss in t h e
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 t h i s flood insurance policy, means:
1. A general and temporary condition of
partial or complete inundation of two or
more acres of normally dry land a r e a or of
two or more properties (one of which i s 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. The collapse or subsidence of land along
t h e shore of a lake or similar body of water
0s I result
of erosion or undermining caused
-.by waves or currents of water exceeding ant i c i ~ a t e dcyclical levels which result in a
flood .as definedin A J . ~ above.
.
B. The following are t h e other key definit.ions
---- - we use in this policy:
1. Act. The National Flood Insurance Act of
1968 and any amendments to l t .
7 ---...
Art?~al
Cash
-,
~. Value. The cost to replace an
insured item of property a t t h e time of loss,
less the value of i t s physical depreciation.
3. Application. The statement made and
signed by you or your agent in applying for
~

~

Federal Emergency Management Agency, DHS
this policy. The application g i v e s information we use to determine the eligibility of
t h e risk, the kind of policy t o be issued, and
the correct premium payment. The application is part of t h i s flood insurance policy.
For us to issue you a pulicy, t h e correct premium p a y m e n t m u s t accompany the application.
4. Base Flood. A flood having a one percent
chance of being equaled or exceeded i n any
given year.
5. Basement. Any a r e a of t h e building, including any sunken room or sunken portion
of a room, having i t s floor below ground
level (subgrade) on all sides.
6. Building.
a. A structure with two or more outside
rigidwalls and a fully secured roof, t h a t i s
affixed t o 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 i t s site i n one or more sections, and affixed to a permanent foundation); or
c. A travel trailer without wheels, built on
a chassis and affixed t o a permanent ioundation, t h a t i s regulated under the cornmunity's floodplain management and building
ordinances or laws.
Building does not mean a gas or liquid storage t a n k or a recreational vehicle, park
trailer, o r other similar vehicle, except a s
described in B.6.c., above.
7. Cancellation. The ending of t h e insurance
coverage provided by t h i s policy before the
expiration date.
8. Condominium. T h a t form of ownership of
real property i n - w h i c h each unit owner has
a n undivided interest in common elements.
9. Condominium Association. The entity,
formed by 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 t h e unit
owners have use rights where membership i n
the entity i s a required condition of unit
ownership.
10. Declarations Page. A computer-generated summary of information you provided
in t h e application for insurance. The Declarations Page also describes t h e term of the
policy, limits of coverage, and displays the
premium and our name. The Declarations
Page is a part of t h i s flood insurance policy.
11. Described Location. T h e location where
the insured building or personal property i s
found. The described location i s shown on
the Declarations Page.
12. Direct Physical Loss By or From Flood.
Loss or damage t o insured property, directly
caused by a flood. There must be evidence of
physical changes to the property.
13. Elevated Building. A building t h a t has
no basement and t h a t has i t s lowest elevated
floor raised above ground level by foundation

Pt. 6 1, App. A (2)

walls, shear walls, posts, piers, pilings, or
columns.
14. Emergency Program. The initial phase of
a community's participation in the Natiollal
Flood Insurance Program.. During this pha::e,
only limited amounts of insurance are available under t h e Act.
15. Expense Constant. A flat charge y,u
must pay on each new or renewal policy to
defray the expenses of the Federal Govelnment related to flood insurance.
16. Federal Policy Fee. A flat charge yrlu
must pay on each new or renewal policy to
defray certain administrative expenses incurred in carrying o u t the National Flood I:1surance Program. This fee covers expensw
n o t covered by the expense constant.
17. Improuements. Fixtures, alterations, installations, or additions comprising a part , ) f
t h e insured building.
'
18. Mudflow. A river of liquid and flowing
mud on the surfaces of normally dry land
areas, a s when earth is carried by a current
of water. Other e a r t h movements, such as
landslide, slope failure, or a saturated sojl
mass moving by liquidity down a slope, a r ?
not mudflows.
19. National Flood Insurance P T O ~ ~ . U ? , I
(NFIP). The program of flood insurance coverage and floodplain management adminis
tered under t h e Act and applicable Federa.1
regulations i n Title 44 of the Codeof Fecterai
Regulations, Subchapter B.
20. Policy. The entire written contract between you and us. I t includes:
a . This printed form;
b. The application and Declarations Page;
c. Any endorsement(s) t h a t may be issued:
and,
d. Any renewal certificate indicating t h a t
coverage has been instituted for a new policy
and new policy term.
Only one building, which you specifically
described i n the application, may be insured
under this policy.
21. Pollutants. Substances t h a t include. but
t h a t are n o t limited to, any solid, liquid.
gaseous or thermal i r r i t a n t or contaminant,
including smoke, vapor, soot, fumes, acids,
alkalis, chemicals, and waste. "Waste" includes, but i s n o t limited t o , materials t,o be
recycled, reconditioned, or reclaimed.
22. Post-FIRM Building. A building for
which construction or substantial. improvement occurred after December 31, 1974, or on
or after- t h e effective date of a n initial Flood
Insurance R a t e Map (FIRM), whichever is
later.
23. Probation Premium. A flat charge you
must Pay on each new or renewal policy
issued covering property in a community
that has been placed on probation under the
provisions of 44 CFR 59.24.
24. Regular Program. The final phase of rt
community's participation in the National
Flood Insurance Program. In this phase, a
Flood Insurance Rate Map is in effect and

i

Pt. 61, App. A(2)

44 CFR Ch. 1 (1 0-1 -04 Edition)

4. The following fixtures, machinery, and
full limits of coverage are available under
equipment, which are covered under Covtho Act.
erage A only:
25. Residential Condomznium Building. A
a. Awnings and canopies;
building, owned and administered as a condob. Blinds;
minium, containing one or more family units
c. Carpet permanently installed over unfinand in which a t least 75% of the floor area is
ished flooring;
residential.
d. Central air conditioners;
26. Special Flood Hazard Area. An area have. Elevator equipment;
ing special flood or mudflow, andlor flood-ref . Fire extinguishing apparatus;
lalied erosion hazards, and shown on a Flood
g. Fire sprinkler systems;
Hazard Boundary Map or Flood Insurance
h. Walk-in freezers;
Rate Map as Zone A, AO, A1-A30, AE, A99,
i . Furnaces;
AI-I. AR, ARIA. ANAE, AWAH, ARIAO, AW
j. Light fixtures;
A1-A30, V1-V30, VE, V .
k. Outdoor antennas and aerials attached
27. Stock means merchandise held in storto buildings;
a g a or for sale, raw materials, and in-process
1. Permanently installed cupboards, bookor finished goods, including supplies used in
cases, paneling, and wallpaper;
their packing or shipping.
m. Pumps and machinery for operating
Stock does not include any property not
pumps;
covered under Section IV. Property Not
n. Ventilating equipment; and
Covered, except the following:
0. w a l l mirrors, permanently installed; .
a. p a r t s and equipment for self-propelled
n Tn the units withln the building, invehicles;
stalled:
b.
Furnishings
and
equipment
for
(1) Built-in dishwashers;
watercraft;
(2) Built-in microwave ovens;
c. Spas and hot-tubs, including their equip(3) Garbage disposal units;
ment; and
(4) Hot water heaters, including solar
water heaters;
d. Swimming pool equipment.
( 5 ) Kitchen cabinets;
28. Unit. A unit in a condominium building.
(6) Plumbing fixtures;
29. Valued Policy. A policy in which the in(7) Radiators;
sured and the insurer agree on the value of
(8) Ranges;
the property insured, t h a t value being Pay(9) Refrigerators; and
able in the event of a total loss. The StandFile Typeapplication/pdfFile Modified2007-05-24File Created2007-05-24