44cfr61.17 by wpr1947

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									                                                                   Federal Emergency Management Agency, DHS                                                            § 61.17

                                                                   § 61.14 Standard Flood Insurance Pol-                     tablished under section 408 of the Staf-
                                                                        icy Interpretations.                                 ford Act (42 U.S.C. 5174).
                                                                      (a) Definition. A Standard Flood In-                     (d) The term of the GFIP is for 36
                                                                   surance Policy Interpretation is a writ-                  months and begins 60 days after the
                                                                   ten determination by the Adminis-                         date of the disaster declaration.
                                                                   trator construing the scope of the flood                    (e) Coverage for individual grantees
                                                                   insurance coverage that has been and                      begins on the thirtieth day after the
                                                                   is provided under the policy.                             NFIP receives the required data for in-
                                                                      (b) Publication and requests for inter-                dividual grantees and their premium
                                                                   pretation. The Administrator shall, pur-                  payments.
                                                                   suant to these regulations from time to                     (f) We will send a Certificate of Flood
                                                                   time, issue interpretative rulings re-                    Insurance to each individual insured
                                                                   garding the provisions of the Standard                    under the GFIP.
                                                                   Flood Insurance Policy. Such Interpre-                      (g) The GFIP is the Standard Flood
                                                                   tations shall be published in the FED-                    Insurance Policy Dwelling Form (a
                                                                   ERAL REGISTER, made a part of appen-                      copy of which is included in Appendix
                                                                   dix C to these regulations, and incor-                    A(1) of this part), except that:
                                                                   porated by reference as part of these
                                                                                                                               (1) VI. DEDUCTIBLES does not apply
                                                                   regulations. Any policyholder or per-
                                                                                                                             to the GFIP. A special deductible of
                                                                   son in privity with a policyholder may
                                                                                                                             $200 (applicable separately to any
                                                                   file a request for an interpretation in
                                                                   writing with the Federal Insurance Ad-                    building loss and any contents loss) ap-
                                                                   ministration, Federal Emergency Man-                      plies to insured flood-damage losses
                                                                   agement Agency, Washington, DC                            sustained by the insured property in
                                                                   20472.                                                    the course of any subsequent flooding
                                                                                                                             event during the term of the GFIP. The
                                                                   [43 FR 2570, Jan. 17, 1978. Redesignated at 44            deductible does not apply to:
                                                                   FR 31177, May 31, 1979, as amended at 48 FR
                                                                   39072, Aug. 29, 1983]
                                                                                                                               (i) III.C.2. Loss Avoidance Measures;
                                                                                                                             or
                                                                   § 61.16     Probation additional premium.                   (ii) III. C.3. Condominium Loss As-
                                                                                                                             sessments coverage.
                                                                     The additional premium charged pur-
                                                                   suant to § 59.24(b) on each policy sold or                  (2) VII. GENERAL CONDITIONS, E.
                                                                   renewed within a community placed on                      Cancellation of Policy by You, does not
                                                                   probation prior to October 1, 1992, is                    apply to the GFIP.
                                                                   $25.00. Where the community was                             (3) VII. GENERAL CONDITIONS, H.
                                                                   placed on probation on or after October                   Policy Renewal, does not apply to the
                                                                   1, 1992, the additional premium charge                    GFIP.
                                                                   is $50.00.’’.                                               (h) We will send a notice to the GFIP
                                                                                                                             certificate holders approximately 60
                                                                   [50 FR 36026, Sept. 4, 1985, as amended at 57
                                                                   FR 19541, May 7, 1992]
                                                                                                                             days before the end of the thirty-six
                                                                                                                             month term of the GFIP. The notice
                                                                   § 61.17     Group Flood Insurance Policy.                 will encourage them to contact a local
                                                                                                                             insurance agent or producer or a pri-
                                                                     (a) A Group Flood Insurance Policy
                                                                                                                             vate insurance company selling NFIP
                                                                   (GFIP) is a policy covering all individ-
                                                                                                                             policies under the Write Your Own pro-
                                                                   uals named by a State as recipients
                                                                   under section 408 of the Stafford Act                     gram of the NFIP Standard Flood In-
                                                                   (42 U.S.C. 5174) of an Individuals and                    surance Policy, and advise them as to
                                                                   Households Program (IHP) award for                        the amount of coverage they must
                                                                   flood damage as a result of major dis-                    maintain in order not to jeopardize
                                                                   aster declaration by the President.                       their eligibility for future disaster as-
                                                                     (b) The premium for the GFIP is a                       sistance. The IHP program will provide
                                                                   flat fee of $600 per insured. We may ad-                  the NFIP the amount of flood insur-
                                                                   just the premium to reflect NFIP loss                     ance coverage to be maintained by cer-
                                                                   experience and any adjustment of bene-                    tificate holders.
                                                                   fits under the IHP program.                               [65 FR 60769, Oct. 12, 2000, as amended at 67
                                                                     (c) The amount of coverage is equiva-
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                                                                                                                             FR 61462, Sept. 30, 2002]
                                                                   lent to the maximum grant amount es-

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)

                                                                              APPENDIX A(1) TO PART 61                       waves or currents of water exceeding antici-
                                                                                                                             pated cyclical levels that result in a flood as
                                                                    FEDERAL EMERGENCY MANAGEMENT AGENCY,                     defined in A.1.a. above.
                                                                       FEDERAL INSURANCE ADMINISTRATION                        B. The following are the other key defini-
                                                                                                                             tions we use in this policy:
                                                                         STANDARD FLOOD INSURANCE POLICY                       1. Act. The National Flood Insurance Act of
                                                                                   DWELLING FORM                             1968 and any amendments to it.
                                                                                                                               2. Actual Cash Value. The cost to replace an
                                                                     Please read the policy carefully. The flood             insured item of property at the time of loss,
                                                                   insurance provided is subject to limitations,             less the value of its physical depreciation.
                                                                   restrictions, and exclusions. This policy cov-              3. 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 informa-
                                                                   designed 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 in a condo-            the correct premium payment. The applica-
                                                                   minium building.                                          tion is part of this flood insurance policy.
                                                                                                                             For us to issue you a policy, the correct pre-
                                                                                      I. AGREEMENT
                                                                                                                             mium payment must accompany the applica-
                                                                     The Federal Emergency Management                        tion.
                                                                   Agency (FEMA) provides flood insurance                      4. Base Flood. A flood having a one percent
                                                                   under the terms of the National Flood Insur-              chance of being equaled or exceeded in any
                                                                   ance Act of 1968 and its Amendments, and                  given year.
                                                                   Title 44 of the Code of Federal Regulations.                5. Basement. Any area of the building, in-
                                                                     We will pay you for direct physical loss by             cluding any sunken room or sunken portion
                                                                   or from flood to your insured property if                 of a room, having its floor below ground
                                                                   you:                                                      level (subgrade) on all sides.
                                                                     1. Have paid the correct premium;                         6. Building.
                                                                     2. Comply with all terms and conditions of                a. A structure with two or more outside
                                                                   this policy; and                                          rigid walls and a fully secured roof, that is
                                                                     3. Have furnished accurate information and              affixed to a permanent site;
                                                                   statements.                                                 b. A manufactured home (a ‘‘manufactured
                                                                     We have the right to review the informa-                home,’’ also known as a mobile home, is a
                                                                   tion you give us at any time and to revise                structure: built on a permanent chassis,
                                                                   your policy based on our review.                          transported to its site in one or more sec-
                                                                                                                             tions, and affixed to a permanent founda-
                                                                                      II. DEFINITIONS                        tion); or
                                                                     A. In this policy, ‘‘you’’ and ‘‘your’’ refer             c. A travel trailer without wheels, built on
                                                                   to the insured(s) shown on the Declarations               a chassis and affixed to a permanent founda-
                                                                   Page of this policy and your spouse, if a resi-           tion, that is regulated under the commu-
                                                                   dent of the same household. Insured(s) in-                nity’s floodplain management and building
                                                                   cludes: Any mortgagee and loss payee named                ordinances or laws.
                                                                   in the Application and Declarations Page, as                Building does not mean a gas or liquid stor-
                                                                   well as any other mortgagee or loss payee                 age tank or a recreational vehicle, park
                                                                   determined to exist at the time of loss in the            trailer or other similar vehicle, except as de-
                                                                   order of precedence. ‘‘We,’’ ‘‘us,’’ and ‘‘our’’          scribed in B.6.c. above.
                                                                   refer to the insurer.                                       7. Cancellation. The ending of the insurance
                                                                     Some definitions are complex because they               coverage provided by this policy before the
                                                                   are provided as they appear in the law or                 expiration date.
                                                                   regulations, or result from court cases. The                8. Condominium. That form of ownership of
                                                                   precise definitions are intended to protect               real property in which each unit owner has
                                                                   you.                                                      an undivided interest in common elements.
                                                                     Flood, as used in this flood insurance pol-               9. Condominium Association. The entity
                                                                   icy, means:                                               made up of the unit owners responsible for
                                                                     1. A general and temporary condition of                 the maintenance and operation of:
                                                                   partial or complete inundation of two or                    a. Common elements owned in undivided
                                                                   more acres of normally dry land area or of                shares by unit owners; and
                                                                   two or more properties (one of which is your                b. Other real property in which the unit
                                                                   property) from:                                           owners have use rights; where membership in
                                                                     a. Overflow of inland or tidal waters,                  the entity is a required condition of unit
                                                                     b. Unusual and rapid accumulation or run-               ownership.
                                                                   off of surface waters from any source,                      10. Declarations Page. A computer-gen-
                                                                     c. Mudflow.                                             erated summary of information you provided
                                                                     2. Collapse or subsidence of land along the             in the application for insurance. The Dec-
                                                                   shore of a lake or similar body of water as a             larations Page also describes the term of the
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                                                                   result of erosion or undermining caused by                policy, limits of coverage, and displays the

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                   premium and our name. The Declarations                    chemicals, and waste. ‘‘Waste’’ includes, but
                                                                   Page is a part of this flood insurance policy.            is not limited to, materials to be recycled,
                                                                     11. Described Location. The location where              reconditioned, or reclaimed.
                                                                   the insured building(s) or personal property                23. Post-FIRM Building. A building for
                                                                   are found. The described location is shown                which construction or substantial improve-
                                                                   on the Declarations Page.                                 ment occurred after December 31, 1974, or on
                                                                     12. Direct Physical Loss By or From Flood.              or after the effective date of an initial Flood
                                                                   Loss or damage to insured property, directly              Insurance Rate Map (FIRM), whichever is
                                                                   caused by a flood. There must be evidence of              later.
                                                                   physical changes to the property.                           24. Probation Premium. A flat charge you
                                                                     13. Dwelling. A building designed for use as            must pay on each new or renewal policy
                                                                   a residence for no more than four families or             issued covering property in a community the
                                                                   a single-family unit in a building under a                NFIP has placed on probation under the pro-
                                                                   condominium form of ownership.                            visions of 44 CFR 59.24.
                                                                     14. Elevated Building. A building that has                25. Regular Program. The final phase of a
                                                                   no basement and that has its lowest elevated              community’s participation in the National
                                                                   floor raised above ground level by foundation             Flood Insurance Program. In this phase, a
                                                                   walls, shear walls, posts, piers, pilings, or             Flood Insurance Rate Map is in effect and
                                                                   columns.                                                  full limits of coverage are available under
                                                                     15. Emergency Program. The initial phase of             the Act.
                                                                   a community’s participation in the National                 26. Special Flood Hazard Area. An area hav-
                                                                   Flood Insurance Program. During this phase,               ing special flood or mudflow, and/or flood-re-
                                                                   only limited amounts of insurance are avail-              lated erosion hazards, and shown on a Flood
                                                                   able under the Act.                                       Hazard Boundary Map or Flood Insurance
                                                                     16. Expense Constant. A flat charge you                 Rate Map as Zone A, AO, A1–A30, AE, A99,
                                                                   must pay on each new or renewal policy to                 AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/
                                                                   defray the expenses of the Federal Govern-                A1–A30, V1–V30, VE, or V.
                                                                   ment related to flood insurance.                            27. Unit. A single-family unit you own in a
                                                                     17. Federal Policy Fee. A flat charge you               condominium building.
                                                                   must pay on each new or renewal policy to                   28. Valued Policy. A policy in which the in-
                                                                   defray certain administrative expenses in-                sured and the insurer agree on the value of
                                                                   curred in carrying out the National Flood In-             the property insured, that value being pay-
                                                                   surance Program. This fee covers expenses                 able in the event of a total loss. The Stand-
                                                                   not covered by the Expense Constant.                      ard Flood Insurance Policy is not a valued
                                                                     18. Improvements. Fixtures, alterations, in-            policy.
                                                                   stallations, or additions comprising a part of
                                                                   the insured dwelling or the apartment in                               III. PROPERTY COVERED
                                                                   which you reside.                                                A. Coverage A—Building Property
                                                                     19. Mudflow. A river of liquid and flowing
                                                                   mud on the surface of normally dry land                     We insure against direct physical loss by
                                                                   areas, as when earth is carried by a current              or from flood to:
                                                                   of water. Other earth movements, such as                    1. The dwelling at the described location,
                                                                   landslide, slope failure, or a saturated soil             or for a period of 45 days at another location
                                                                   mass moving by liquidity down a slope, are                as set forth in III.C.2.b., Property Removed
                                                                   not mudflows.                                             to Safety.
                                                                     20. National Flood Insurance Program                      2. Additions and extensions attached to
                                                                   (NFIP). The program of flood insurance cov-               and in contact with the dwelling by means of
                                                                   erage and floodplain management adminis-                  a rigid exterior wall, a solid load-bearing in-
                                                                   tered under the Act and applicable Federal                terior wall, a stairway, an elevated walkway,
                                                                   regulations in Title 44 of the Code of Federal            or a roof. At your option, additions and ex-
                                                                   Regulations, Subchapter B.                                tensions connected by any of these methods
                                                                     21. Policy. The entire written contract be-             may be separately insured. Additions and ex-
                                                                   tween you and us. It includes:                            tensions attached to and in contact with the
                                                                     a. This printed form;                                   building by means of a common interior wall
                                                                     b. The application and Declarations Page;               that is not a solid load-bearing wall are al-
                                                                     c. Any endorsement(s) that may be issued;               ways considered part of the dwelling and
                                                                   and                                                       cannot be separately insured.
                                                                     d. Any renewal certificate indicating that                3. A detached garage at the described loca-
                                                                   coverage has been instituted for a new policy             tion. Coverage is limited to no more than
                                                                   and new policy term.                                      10% of the limit of liability on the dwelling.
                                                                     Only one dwelling, which you specifically               Use of this insurance is at your option but
                                                                   described in the application, may be insured              reduces the building limit of liability. We do
                                                                   under this policy.                                        not cover any detached garage used or held
                                                                     22. Pollutants. Substances that include, but            for use for residential (i.e., dwelling), busi-
                                                                   are not limited to, any solid, liquid, gaseous,           ness, or farming purposes.
                                                                   or thermal irritant or contaminant, includ-                 4. Materials and supplies to be used for
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                                                                   ing smoke, vapor, soot, fumes, acids, alkalis,            construction, alteration, or repair of the

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   dwelling or a detached garage while the ma-                 q. Pumps and machinery for operating
                                                                   terials and supplies are stored in a fully en-            pumps;
                                                                   closed building at the described location or                r. Ranges, cooking stoves, and ovens;
                                                                   on an adjacent property.                                    s. Refrigerators; and
                                                                     5. A building under construction, alter-                  t. Wall mirrors, permanently installed.
                                                                   ation, or repair at the described location.                 8. Items of property in a building enclosure
                                                                     a. If the structure is not yet walled or                below the lowest elevated floor of an ele-
                                                                   roofed as described in the definition for                 vated post-FIRM building located in Zones
                                                                   building (see II.B.6.a.) then coverage applies:           A1–A30, AE, AH, AR, AR/A, AR/AE, AR/AH,
                                                                     (1) Only while such work is in progress; or             AR/A1–A30, V1–V30, or VE, or in a basement,
                                                                     (2) If such work is halted, only for a period           regardless of the zone. Coverage is limited to
                                                                   of up to 90 continuous days thereafter.                   the following:
                                                                     b. However, coverage does not apply until                 a. Any of the following items, if installed
                                                                   the building is walled and roofed if the low-             in their functioning locations and, if nec-
                                                                   est floor, including the basement floor, of a             essary for operation, connected to a power
                                                                   non-elevated building or the lowest elevated              source:
                                                                   floor of an elevated building is:                           (1) Central air conditioners;
                                                                     (1) Below the base flood elevation in Zones               (2) Cisterns and the water in them;
                                                                   AH, AE, A1–A30, AR, AR/AE, AR/AH, AR/A1–                    (3) Drywall for walls and ceilings in a base-
                                                                   A30, AR/A, AR/AO; or                                      ment and the cost of labor to nail it, unfin-
                                                                     (2) Below the base flood elevation adjusted             ished and unfloated and not taped, to the
                                                                   to include the effect of wave action in Zones             framing;
                                                                   VE or V1–V30.                                               (4) Electrical junction and circuit breaker
                                                                     The lowest floor levels are based on the                boxes;
                                                                   bottom of the lowest horizontal structural                  (5) Electrical outlets and switches;
                                                                   member of the floor in Zones VE or V1–V30                   (6) Elevators, dumbwaiters and related
                                                                   and the top of the floor in Zones AH, AE, A1–             equipment, except for related equipment in-
                                                                   A30, AR, AR/AE, AR/AH, AR/A1–A30, AR/A,                   stalled below the base flood elevation after
                                                                   AR/AO.                                                    September 30, 1987;
                                                                     6. A manufactured home or a travel trailer                (7) Fuel tanks and the fuel in them;
                                                                   as described in the Definitions section (see                (8) Furnaces and hot water heaters;
                                                                   II.B.6.b. and II.B.6.c.).                                   (9) Heat pumps;
                                                                     If the manufactured home or travel trailer                (10) Nonflammable insulation in a base-
                                                                   is in a special flood hazard area, it must be             ment;
                                                                   anchored in the following manner at the                     (11) Pumps and tanks used in solar energy
                                                                   time of the loss:                                         systems;
                                                                     a. By over-the-top or frame ties to ground                (12) Stairways and staircases attached to
                                                                   anchors; or                                               the building, not separated from it by ele-
                                                                     b. In accordance with the manufacturer’s                vated walkways;
                                                                   specifications; or                                          (13) Sump pumps;
                                                                     c. In compliance with the community’s                     (14) Water softeners and the chemicals in
                                                                   floodplain management requirements unless                 them, water filters, and faucets installed as
                                                                   it has been continuously insured by the                   an integral part of the plumbing system;
                                                                   NFIP at the same described location since                   (15) Well water tanks and pumps;
                                                                   September 30, 1982.                                         (16) Required utility connections for any
                                                                     7. The following items of property which                item in this list; and
                                                                   are covered under Coverage A only:                          (17) Footings, foundations, posts, pilings,
                                                                     a. Awnings and canopies;                                piers, or other foundation walls and anchor-
                                                                     b. Blinds;                                              age systems required to support a building.
                                                                     c. Built-in dishwashers;                                  b. Clean-up.
                                                                     d. Built-in microwave ovens;
                                                                                                                                    B. Coverage B—Personal Property
                                                                     e. Carpet permanently installed over unfin-
                                                                   ished flooring;                                             1. If you have purchased personal property
                                                                     f. Central air conditioners;                            coverage, we insure against direct physical
                                                                     g. Elevator equipment;                                  loss by or from flood to personal property in-
                                                                     h. Fire sprinkler systems;                              side a building at the described location, if:
                                                                     i. Walk-in freezers;                                      a. The property is owned by you or your
                                                                     j. Furnaces and radiators;                              household family members; and
                                                                     k. Garbage disposal units;                                b. At your option, the property is owned by
                                                                     l. Hot water heaters, including solar water             guests or servants.
                                                                   heaters;                                                    Personal property is also covered for a pe-
                                                                     m. Light fixtures;                                      riod of 45 days at another location as set
                                                                     n. Outdoor antennas and aerials fastened                forth in III.C.2.b., Property Removed to Safe-
                                                                   to buildings;                                             ty.
                                                                     o. Permanently installed cupboards, book-                 Personal property in a building that is not
                                                                   cases, cabinets, paneling, and wallpaper;                 fully enclosed must be secured to prevent
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                                                                     p. Plumbing fixtures;                                   flotation out of the building. If the personal

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                   property does float out during a flood, it will             e. Personal property used in any business.
                                                                   be conclusively presumed that it was not                    7. We will pay only for the functional value
                                                                   reasonably secured. In that case there is no              of antiques.
                                                                   coverage for such property.
                                                                     2. Coverage for personal property includes                      C. Coverage C—Other Coverages
                                                                   the following property, subject to B.1. above,              1. Debris Removal.
                                                                   which is covered under Coverage B only:                     a. We will pay the expense to remove non-
                                                                     a. Air conditioning units, portable or win-             owned debris that is on or in insured prop-
                                                                   dow type;                                                 erty and debris of insured property any-
                                                                     b. Carpets, not permanently installed, over             where.
                                                                   unfinished flooring;                                        b. If you or a member of your household
                                                                     c. Carpets over finished flooring;                      perform the removal work, the value of your
                                                                     d. Clothes washers and dryers;                          work will be based on the Federal minimum
                                                                     e. ‘‘Cook-out’’ grills;                                 wage.
                                                                     f. Food freezers, other than walk-in, and                 c. This coverage does not increase the Cov-
                                                                   food in any freezer; and                                  erage A or Coverage B Limit of Liability.
                                                                     g. Portable microwave ovens and portable                  2. Loss Avoidance Measures
                                                                   dishwashers.                                                a. Sandbags, Supplies, and Labor
                                                                     3. Coverage for items of property in a                    (1) We will pay up to $1,000 for costs you
                                                                   building enclosure below the lowest elevated              incur to protect the insured building from a
                                                                   floor of an elevated post-FIRM building lo-               flood or imminent danger of flood, for the
                                                                   cated in Zones A1–A30, AE, AH, AR, AR/A,                  following:
                                                                   AR/AE, AR/AH, AR/A1–A30, V1–V30, or VE, or                  (a) Your reasonable expenses to buy:
                                                                   in a basement, regardless of the zone, is lim-              (i) Sandbags, including sand to fill them;
                                                                   ited to the following items, if installed in                (ii) Fill for temporary levees;
                                                                   their functioning locations and, if necessary               (iii) Pumps; and
                                                                   for operation, connected to a power source:                 (iv) Plastic sheeting and lumber used in
                                                                     a. Air conditioning units, portable or win-             connection with these items.
                                                                   dow type;                                                   (b) The value of work, at the Federal min-
                                                                     b. Clothes washers and dryers; and                      imum wage, that you or a member of your
                                                                     c. Food freezers, other than walk-in, and               household perform.
                                                                   food in any freezer.                                        (2) This coverage for Sandbags, Supplies
                                                                     4. If you are a tenant and have insured per-            and Labor only applies if damage to insured
                                                                   sonal property under Coverage B in this pol-              property by or from flood is imminent and
                                                                   icy, we will cover such property, including               the threat of flood damage is apparent
                                                                   your cooking stove or range and refrigerator.             enough to lead a person of common prudence
                                                                   The policy will also cover improvements                   to anticipate flood damage. One of the fol-
                                                                   made or acquired solely at your expense in                lowing must also occur:
                                                                   the dwelling or apartment in which you re-                  (a) A general and temporary condition of
                                                                   side, but for not more than 10% of the limit              flooding in the area near the described loca-
                                                                   of liability shown for personal property on               tion must occur, even if the flood does not
                                                                   the Declarations Page. Use of this insurance              reach the building; or
                                                                   is at your option but reduces the personal                  (b) A legally authorized official must issue
                                                                   property limit of liability.                              an evacuation order or other civil order for
                                                                     5. If you are the owner of a unit and have              the community in which the building is lo-
                                                                   insured personal property under Coverage B                cated calling for measures to preserve life
                                                                   in this policy, we will also cover your inte-             and property from the peril of flood.
                                                                   rior walls, floor, and ceiling (not otherwise               This coverage does not increase the Cov-
                                                                   covered under a flood insurance policy pur-               erage A or Coverage B Limit of Liability.
                                                                   chased by your condominium association) for                 b. Property Removed to Safety
                                                                   not more than 10% of the limit of liability                 (1) We will pay up to $1,000 for the reason-
                                                                   shown for personal property on the Declara-               able expenses you incur to move insured
                                                                   tions Page. Use of this insurance is at your              property to a place other than the described
                                                                   option but reduces the personal property                  location that contains the property in order
                                                                   limit of liability.                                       to protect it from flood or the imminent dan-
                                                                     6. Special Limits. We will pay no more                  ger of flood.
                                                                   than $2,500 for any one loss to one or more of              Reasonable expenses include the value of
                                                                   the following kinds of personal property:                 work, at the Federal minimum wage, you or
                                                                     a. Artwork, photographs, collectibles, or               a member of your household perform.
                                                                   memorabilia, including but not limited to,                  (2) If you move insured property to a loca-
                                                                   porcelain or other figures, and sports cards;             tion other than the described location that
                                                                     b. Rare books or autographed items;                     contains the property, in order to protect it
                                                                     c. Jewelry, watches, precious and semi-pre-             from flood or the imminent danger of flood,
                                                                   cious stones, or articles of gold, silver, or             we will cover such property while at that lo-
                                                                   platinum;                                                 cation for a period of 45 consecutive days
                                                                     d. Furs or any article containing fur which             from the date you begin to move it there.
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                                                                   represents its principal value; or                        The personal property that is moved must be

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   placed in a fully enclosed building or other-             pliance activities eligible for payment are:
                                                                   wise reasonably protected from the ele-                   elevation, floodproofing, relocation, or dem-
                                                                   ments.                                                    olition (or any combination of these activi-
                                                                     Any property removed, including a move-                 ties) of your structure. Eligible floodproofing
                                                                   able home described in II.6.b.and c., must be             activities are limited to:
                                                                   placed above ground level or outside of the                 a. Non-residential structures.
                                                                   special flood hazard area.                                  b. Residential structures with basements
                                                                     This coverage does not increase the Cov-                that satisfy FEMA’s standards published in
                                                                   erage A or Coverage B Limit of Liability.                 the Code of Federal Regulations [44 CFR 60.6
                                                                     3. Condominium Loss Assessments.                        (b) or (c)].
                                                                     a. If this policy insures a unit, we will pay,            2. Limit of Liability.
                                                                   up to the Coverage A limit of liability, your               We will pay you up to $30,000 under this
                                                                   share of loss assessments charged against                 Coverage D—Increased Cost of Compliance,
                                                                   you by the condominium association in ac-                 which only applies to policies with building
                                                                   cordance with the condominium associa-                    coverage (Coverage A). Our payment of
                                                                   tion’s articles of association, declarations              claims under Coverage D is in addition to the
                                                                   and your deed.                                            amount of coverage which you selected on
                                                                     The assessment must be made as a result                 the application and which appears on the
                                                                   of direct physical loss by or from flood dur-             Declarations Page. But the maximum you
                                                                   ing the policy term, to the building’s com-               can collect under this policy for both Cov-
                                                                   mon elements.                                             erage A—Building Property and Coverage
                                                                     b. We will not pay any loss assessment                  D—Increased Cost of Compliance cannot ex-
                                                                   charged against you:                                      ceed the maximum permitted under the Act.
                                                                     (1) And the condominium association by                  We do not charge a separate deductible for a
                                                                   any governmental body;                                    claim under Coverage D.
                                                                     (2) That results from a deductible under                  3. Eligibility
                                                                   the insurance purchased by the condo-                       a. A structure covered under Coverage A—
                                                                   minium association insuring common ele-                   Building Property sustaining a loss caused
                                                                   ments;                                                    by a flood as defined by this policy must:
                                                                     (3) That results from a loss to personal                  (1) Be a ‘‘repetitive loss structure.’’ A re-
                                                                   property, including contents of a condo-                  petitive loss structure is one that meets the
                                                                   minium building;                                          following conditions:
                                                                     (4) That results from a loss sustained by                 (a) The structure is covered by a contract
                                                                   the condominium association that was not                  of flood insurance issued under the NFIP.
                                                                   reimbursed under a flood insurance policy                   (b) The structure has suffered flood damage
                                                                   written in the name of the association under              on two occasions during a 10-year period
                                                                   the Act because the building was not, at the              which ends on the date of the second loss.
                                                                   time of loss, insured for an amount equal to                (c) The cost to repair the flood damage, on
                                                                   the lesser of:                                            average, equaled or exceeded 25% of the mar-
                                                                     (a) 80% or more of its full replacement                 ket value of the structure at the time of
                                                                   cost; or                                                  each flood loss.
                                                                     (b) The maximum amount of insurance per-                  (d) In addition to the current claim, the
                                                                   mitted under the Act;                                     NFIP must have paid the previous qualifying
                                                                     (5) To the extent that payment under this               claim, and the State or community must
                                                                   policy for a condominium building loss, in                have a cumulative, substantial damage pro-
                                                                   combination with payments under any other                 vision or repetitive loss provision in its
                                                                   NFIP policies for the same building loss, ex-             floodplain management law or ordinance
                                                                   ceeds the maximum amount of insurance                     being enforced against the structure; or
                                                                   permitted under the Act for that kind of                    (2) Be a structure that has had flood dam-
                                                                   building; or                                              age in which the cost to repair equals or ex-
                                                                     (6) To the extent that payment under this               ceeds 50% of the market value of the struc-
                                                                   policy for a condominium building loss, in                ture at the time of the flood. The State or
                                                                   combination with any recovery available to                community must have a substantial damage
                                                                   you as a tenant in common under any NFIP                  provision in its floodplain management law
                                                                   condominium association policies for the                  or ordinance being enforced against the
                                                                   same building loss, exceeds the amount of in-             structure.
                                                                   surance permitted under the Act for a single-               b. This Coverage D pays you to comply
                                                                   family dwelling.                                          with State or local floodplain management
                                                                     Loss assessment coverage does not in-                   laws or ordinances that meet the minimum
                                                                   crease the Coverage A Limit of Liability.                 standards of the National Flood Insurance
                                                                                                                             Program found in the Code of Federal Regu-
                                                                    D. Coverage D—Increased Cost of Compliance
                                                                                                                             lations at 44 CFR 60.3. We pay for compliance
                                                                     1. General.                                             activities that exceed those standards under
                                                                     This policy pays you to comply with a                   these conditions:
                                                                   State or local floodplain management law or                 (1) 3.a.(1) above.
                                                                   ordinance affecting repair or reconstruction                (2) Elevation or floodproofing in any risk
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                                                                   of a structure suffering flood damage. Com-               zone to preliminary or advisory base flood

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                   elevations provided by FEMA which the                     quired by current floodplain management or-
                                                                   State or local government has adopted and is              dinances or laws.
                                                                   enforcing for flood-damaged structures in                   5. Exclusions.
                                                                   such areas. (This includes compliance activi-               Under this Coverage D (Increased Cost of
                                                                   ties in B, C, X, or D zones which are being               Compliance) we will not pay for:
                                                                   changed to zones with base flood elevations.                a. The cost to comply with any floodplain
                                                                   This also includes compliance activities in               management law or ordinance in commu-
                                                                   zones where base flood elevations are being
                                                                                                                             nities participating in the Emergency Pro-
                                                                   increased, and a flood-damaged structure
                                                                                                                             gram.
                                                                   must comply with the higher advisory base
                                                                   flood elevation.) Increased Cost of Compli-                 b. The cost associated with enforcement of
                                                                   ance coverage does not apply to situations in             any ordinance or law that requires any in-
                                                                   B, C, X, or D zones where the community has               sured or others to test for, monitor, clean up,
                                                                   derived its own elevations and is enforcing               remove, contain, treat, detoxify or neu-
                                                                   elevation or floodproofing requirements for               tralize, or in any way respond to, or assess
                                                                   flood-damaged structures to elevations de-                the effects of pollutants.
                                                                   rived solely by the community.                              c. The loss in value to any insured building
                                                                      (3) Elevation or floodproofing above the               or other structure due to the requirements of
                                                                   base flood elevation to meet State or local               any ordinance or law.
                                                                   ‘‘freeboard’’ requirements, i.e., that a struc-             d. The loss in residual value of the
                                                                   ture must be elevated above the base flood                undamaged portion of a building demolished
                                                                   elevation.                                                as a consequence of enforcement of any
                                                                      c. Under the minimum NFIP criteria at 44               State or local floodplain management law or
                                                                   CFR 60.3(b)(4), States and communities must               ordinance.
                                                                   require the elevation or floodproofing of                   e. Any Increased Cost of Compliance under
                                                                   structures in unnumbered A zones to the                   this Coverage D:
                                                                   base flood elevation where elevation data is                (1) Until the building is elevated,
                                                                   obtained from a Federal, State, or other                  floodproofed, demolished, or relocated on the
                                                                   source. Such compliance activities are also               same or to another premises; and
                                                                   eligible for Coverage D.
                                                                                                                               (2) Unless the building is elevated,
                                                                      d. This coverage will also pay for the incre-
                                                                                                                             floodproofed, demolished, or relocated as
                                                                   mental cost, after demolition or relocation,
                                                                                                                             soon as reasonably possible after the loss,
                                                                   of elevating or floodproofing a structure dur-
                                                                                                                             not to exceed two years.
                                                                   ing its rebuilding at the same or another site
                                                                   to meet State or local floodplain manage-                   f. Any code upgrade requirements, e.g.,
                                                                   ment laws or ordinances, subject to Exclu-                plumbing or electrical wiring, not specifi-
                                                                   sion D.5.g. below.                                        cally related to the State or local floodplain
                                                                      e. This coverage will also pay to bring a              management law or ordinance.
                                                                   flood-damaged structure into compliance                     g. Any compliance activities needed to
                                                                   with state or local floodplain management                 bring additions or improvements made after
                                                                   laws or ordinances even if the structure had              the loss occurred into compliance with State
                                                                   received a variance before the present loss               or local floodplain management laws or ordi-
                                                                   from the applicable floodplain management                 nances.
                                                                   requirements.                                               h. Loss due to any ordinance or law that
                                                                      4. Conditions.                                         you were required to comply with before the
                                                                      a. When a structure covered under Cov-                 current loss.
                                                                   erage A—Building Property sustains a loss                   i. Any rebuilding activity to standards
                                                                   caused by a flood, our payment for the loss               that do not meet the NFIP’s minimum re-
                                                                   under this Coverage D will be for the in-                 quirements. This includes any situation
                                                                   creased cost to elevate, floodproof, relocate,            where the insured has received from the
                                                                   or demolish (or any combination of these ac-              State or community a variance in connec-
                                                                   tivities) caused by the enforcement of cur-               tion with the current flood loss to rebuild
                                                                   rent State or local floodplain management                 the property to an elevation below the base
                                                                   ordinances or laws. Our payment for eligible              flood elevation.
                                                                   demolition activities will be for the cost to
                                                                                                                               j. Increased Cost of Compliance for a ga-
                                                                   demolish and clear the site of the building
                                                                                                                             rage or carport.
                                                                   debris or a portion thereof caused by the en-
                                                                   forcement of current State or local flood-                  k. Any structure insured under an NFIP
                                                                   plain management ordinances or laws. Eligi-               Group Flood Insurance Policy.
                                                                   ble activities for the cost of clearing the site            l. Assessments made by a condominium as-
                                                                   will include those necessary to discontinue               sociation on individual condominium unit
                                                                   utility service to the site and ensure proper             owners to pay increased costs of repairing
                                                                   abandonment of on-site utilities.                         commonly owned buildings after a flood in
                                                                      b. When the building is repaired or rebuilt,           compliance with State or local floodplain
                                                                   it must be intended for the same occupancy                management ordinances or laws.
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                                                                   as the present building unless otherwise re-                6. Other Provisions.

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     a. Increased Cost of Compliance coverage                  14. Hot tubs and spas that are not bath-
                                                                   will not be included in the calculation to de-            room fixtures, and swimming pools, and
                                                                   termine whether coverage meets the 80% in-                their equipment, such as, but not limited to,
                                                                   surance-to-value requirement for replace-                 heaters, filters, pumps, and pipes, wherever
                                                                   ment cost coverage as set forth in VII. Gen-              located;
                                                                   eral Conditions, V. Loss Settlement.                        15. Property not eligible for flood insur-
                                                                     b. All other conditions and provisions of               ance pursuant to the provisions of the Coast-
                                                                   the policy apply.                                         al Barrier Resources Act and the Coastal
                                                                                                                             Barrier Improvement Act and amendments
                                                                              IV. PROPERTY NOT COVERED                       to these Acts;
                                                                     We do not cover any of the following:                     16. Personal property you own in common
                                                                     1. Personal property not inside a building;             with other unit owners comprising the mem-
                                                                     2. A building, and personal property in it,             bership of a condominium association.
                                                                   located entirely in, on, or over water or sea-
                                                                   ward of mean high tide if it was constructed                                V. EXCLUSIONS
                                                                   or substantially improved after September                   A. We only pay for direct physical loss by
                                                                   30, 1982;
                                                                                                                             or from flood, which means that we do not
                                                                     3. Open structures, including a building
                                                                                                                             pay you for:
                                                                   used as a boathouse or any structure or
                                                                                                                               1. Loss of revenue or profits;
                                                                   building into which boats are floated, and
                                                                   personal property located in, on, or over                   2. Loss of access to the insured property or
                                                                   water;                                                    described location;
                                                                     4. Recreational vehicles other than travel                3. Loss of use of the insured property or de-
                                                                   trailers described in the Definitions section             scribed location;
                                                                   (see II.B.6.c.) whether affixed to a permanent              4. Loss from interruption of business or
                                                                   foundation or on wheels;                                  production;
                                                                     5. Self-propelled vehicles or machines, in-               5. Any additional living expenses incurred
                                                                   cluding their parts and equipment. However,               while the insured building is being repaired
                                                                   we do cover self-propelled vehicles or ma-                or is unable to be occupied for any reason;
                                                                   chines not licensed for use on public roads                 6. The cost of complying with any ordi-
                                                                   that are:                                                 nance or law requiring or regulating the con-
                                                                     a. Used mainly to service the described lo-             struction, demolition, remodeling, renova-
                                                                   cation or                                                 tion, or repair of property, including removal
                                                                     b. Designed and used to assist handicapped              of any resulting debris. This exclusion does
                                                                   persons, while the vehicles or machines are               not apply to any eligible activities we de-
                                                                   inside a building at the described location;              scribe in Coverage D—Increased Cost of Com-
                                                                     6. Land, land values, lawns, trees, shrubs,             pliance; or
                                                                   plants, growing crops, or animals;                          7. Any other economic loss you suffer.
                                                                     7. Accounts, bills, coins, currency, deeds,               B. We do not insure a loss directly or indi-
                                                                   evidences of debt, medals, money, scrip,                  rectly caused by a flood that is already in
                                                                   stored value cards, postage stamps, securi-               progress at the time and date:
                                                                   ties, bullion, manuscripts, or other valuable               1. The policy term begins; or
                                                                   papers;                                                     2. Coverage is added at your request.
                                                                     8. Underground structures and equipment,                  C. We do not insure for loss to property
                                                                   including wells, septic tanks, and septic sys-            caused directly by earth movement even if
                                                                   tems;                                                     the earth movement is caused by flood. Some
                                                                     9. Those portions of walks, walkways,
                                                                                                                             examples of earth movement that we do not
                                                                   decks, driveways, patios and other surfaces,
                                                                                                                             cover are:
                                                                   all whether protected by a roof or not, lo-
                                                                                                                               1. Earthquake;
                                                                   cated outside the perimeter, exterior walls of
                                                                                                                               2. Landslide;
                                                                   the insured building or the building in which
                                                                   the insured unit is located;                                3. Land subsidence;
                                                                     10. Containers, including related equip-                  4. Sinkholes;
                                                                   ment, such as, but not limited to, tanks con-               5. Destabilization or movement of land
                                                                   taining gases or liquids;                                 that results from accumulation of water in
                                                                     11. Buildings or units and all their con-               subsurface land area; or
                                                                   tents if more than 49% of the actual cash                   6. Gradual erosion.
                                                                   value of the building is below ground, unless               We do, however, pay for losses from mud-
                                                                   the lowest level is at or above the base flood            flow and land subsidence as a result of ero-
                                                                   elevation and is below ground by reason of                sion that are specifically covered under our
                                                                   earth having been used as insulation mate-                definition of flood (see II.A.1.c. and II.A.2.).
                                                                   rial in conjunction with energy efficient                   D. We do not insure for direct physical loss
                                                                   building techniques;                                      caused directly or indirectly by any of the
                                                                     12. Fences, retaining walls, seawalls, bulk-            following:
                                                                   heads, wharves, piers, bridges, and docks;                  1. The pressure or weight of ice;
                                                                     13. Aircraft or watercraft, or their fur-                 2. Freezing or thawing;
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                                                                   nishings and equipment;                                     3. Rain, snow, sleet, hail, or water spray;

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                     4. Water, moisture, mildew, or mold dam-                  B. In each loss from flood, separate
                                                                   age that results primarily from any condi-                deductibles apply to the building and per-
                                                                   tion:                                                     sonal property insured by this policy.
                                                                     a. Substantially confined to the dwelling;                C. The deductible does NOT apply to:
                                                                   or                                                          1. III.C.2. Loss Avoidance Measures;
                                                                     b. That is within your control, including                 2. III.C.3. Condominium Loss Assessments;
                                                                   but not limited to:                                       or
                                                                     (1) Design, structural, or mechanical de-                 3. III.D. Increased Cost of Compliance.
                                                                   fects;
                                                                     (2) Failure, stoppage, or breakage of water                         VII. GENERAL CONDITIONS
                                                                   or sewer lines, drains, pumps, fixtures, or
                                                                                                                                           A. Pair and Set Clause
                                                                   equipment; or
                                                                     (3) Failure to inspect and maintain the                   In case of loss to an article that is part of
                                                                   property after a flood recedes;                           a pair or set, we will have the option of pay-
                                                                     5. Water or water-borne material that:                  ing you:
                                                                     a. Backs up through sewers or drains;                     1. An amount equal to the cost of replacing
                                                                     b. Discharges or overflows from a sump,                 the lost, damaged, or destroyed article,
                                                                   sump pump or related equipment; or                        minus its depreciation, or
                                                                     c. Seeps or leaks on or through the covered               2. The amount that represents the fair pro-
                                                                   property;                                                 portion of the total value of the pair or set
                                                                   unless there is a flood in the area and the               that the lost, damaged, or destroyed article
                                                                   flood is the proximate cause of the sewer or              bears to the pair or set.
                                                                   drain backup, sump pump discharge or over-
                                                                                                                              B. Concealment or Fraud and Policy Voidance
                                                                   flow, or the seepage of water;
                                                                     6. The pressure or weight of water unless                 1. With respect to all insureds under this
                                                                   there is a flood in the area and the flood is             policy, this policy:
                                                                   the proximate cause of the damage from the                  a. Is void;
                                                                   pressure or weight of water;                                b. Has no legal force or effect;
                                                                     7. Power, heating, or cooling failure unless              c. Cannot be renewed; and
                                                                   the failure results from direct physical loss               d. Cannot be replaced by a new NFIP pol-
                                                                   by or from flood to power, heating, or cool-              icy, if, before or after a loss, you or any
                                                                   ing equipment on the described location;                  other insured or your agent have at any
                                                                     8. Theft, fire, explosion, wind, or wind-               time:
                                                                   storm;                                                      (1) Intentionally concealed or misrepre-
                                                                     9. Anything you or any member of your                   sented any material fact or circumstance;
                                                                   household do or conspires to do to delib-                   (2) Engaged in fraudulent conduct; or
                                                                   erately cause loss by flood; or                             (3) Made false statements; relating to this
                                                                     10. Alteration of the insured property that             policy or any other NFIP insurance.
                                                                   significantly increases the risk of flooding.               2. This policy will be void as of the date
                                                                     E. We do not insure for loss to any building            wrongful acts described in B.1.above were
                                                                   or personal property located on land leased               committed.
                                                                   from the Federal Government, arising from                   3. Fines, civil penalties, and imprisonment
                                                                   or incident to the flooding of the land by the            under applicable Federal laws may also
                                                                   Federal Government, where the lease ex-                   apply to the acts of fraud or concealment de-
                                                                   pressly holds the Federal Government harm-                scribed above.
                                                                   less under flood insurance issued under any                 4. This policy is also void for reasons other
                                                                   Federal Government program.                               than fraud, misrepresentation, or wrongful
                                                                     F. We do not pay for the testing for or                 act. This policy is void from its inception
                                                                   monitoring of pollutants unless required by               and has no legal force under the following
                                                                   law or ordinance.                                         conditions:
                                                                                                                               a. If the property is located in a commu-
                                                                                     VI. DEDUCTIBLES                         nity that was not participating in the NFIP
                                                                     A. When a loss is covered under this policy,            on the policy’s inception date and did not
                                                                   we will pay only that part of the loss that               join or reenter the program during the policy
                                                                   exceeds your deductible amount, subject to                term and before the loss occurred; or
                                                                   the limit of liability that applies. The de-                b. If the property listed on the application
                                                                   ductible amount is shown on the Declara-                  is otherwise not eligible for coverage under
                                                                   tions Page.                                               the NFIP.
                                                                     However, when a building under construc-
                                                                                                                                             C. Other Insurance
                                                                   tion, alteration, or repair does not have at
                                                                   least two rigid exterior walls and a fully se-              1. If a loss covered by this policy is also
                                                                   cured roof at the time of loss, your deduct-              covered by other insurance that includes
                                                                   ible amount will be two times the deductible              flood coverage not issued under the Act, we
                                                                   that would otherwise apply to a completed                 will not pay more than the amount of insur-
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                                                                   building.                                                 ance you are entitled to for lost, damaged, or

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   destroyed property insured under this policy              reduction described in G.1. above to the
                                                                   subject to the following:                                 amount you requested as follows:
                                                                     a. We will pay only the proportion of the                 a. Discovery of Insufficient Premium or In-
                                                                   loss that the amount of insurance that ap-                complete Rating Information Before a Loss:
                                                                   plies under this policy bears to the total                  (1) If we discover before you have a flood
                                                                   amount of insurance covering the loss, un-                loss that your premium payment was not
                                                                   less C.1.b. or c. immediately below applies.              enough to buy the requested amount of cov-
                                                                     b. If the other policy has a provision stat-            erage, we will send you and any mortgagee
                                                                   ing that it is excess insurance, this policy              or trustee known to us a bill for the required
                                                                   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 mort-
                                                                   as described in C.1.b. above). When the other
                                                                                                                             gagee or trustee pay the additional premium
                                                                   deductible amount is reached, this policy
                                                                   will participate in the same proportion that              within 30 days from the date of our bill, we
                                                                   the amount of insurance under this policy                 will reform the policy to increase the
                                                                   bears to the total amount of both policies,               amount of coverage to the originally re-
                                                                   for the remainder of the loss.                            quested amount effective to the beginning of
                                                                     2. If there is other insurance in the name of           the current policy term (or subsequent date
                                                                   your condominium association covering the                 of any endorsement changing the amount of
                                                                   same property covered by this policy, then                coverage).
                                                                   this policy will be in excess over the other                (2) If we determine before you have a flood
                                                                   insurance.                                                loss that the rating information we have is
                                                                                                                             incomplete and prevents us from calculating
                                                                         D. Amendments, Waivers, Assignment                  the additional premium, we will ask you to
                                                                     This policy cannot be changed nor can any               send the required information. You must
                                                                   of its provisions be waived without the ex-               submit the information within 60 days of our
                                                                   press written consent of the Federal Insur-               request. Once we determine the amount of
                                                                   ance Administrator. No action we take under               additional premium for the current policy
                                                                   the terms of this policy constitutes a waiver             term, we will follow the procedure in
                                                                   of any of our rights. You may assign this pol-            G.2.a.(1) above.
                                                                   icy in writing when you transfer title of your              (3) If we do not receive the additional pre-
                                                                   property to someone else except under these               mium (or additional information) by the
                                                                   conditions:                                               date it is due, the amount of coverage can
                                                                     1. When this policy covers only personal                only be increased by endorsement subject to
                                                                   property; or                                              any appropriate waiting period.
                                                                     2. When this policy covers a structure dur-               b. Discovery of Insufficient Premium or In-
                                                                   ing the course of construction.                           complete Rating Information After a Loss:
                                                                                                                               (1) If we discover after you have a flood
                                                                          E. Cancellation of the Policy by You               loss that your premium payment was not
                                                                     1. You may cancel this policy in accord-                enough to buy the requested amount of cov-
                                                                   ance with the applicable rules and regula-                erage, we will send you and any mortgagee
                                                                   tions of the NFIP.                                        or trustee known to us a bill for the required
                                                                     2. If you cancel this policy, you may be en-            additional premium for the current and the
                                                                   titled to a full or partial refund of premium             prior policy terms. If you or the mortgagee
                                                                   also under the applicable rules and regula-               or trustee pay the additional premium with-
                                                                   tions of the NFIP.                                        in 30 days of the date of our bill, we will re-
                                                                                                                             form the policy to increase the amount of
                                                                          F. Non-Renewal of the Policy by Us                 coverage to the originally requested amount
                                                                     Your policy will not be renewed:                        effective to the beginning of the prior policy
                                                                     1. If the community where your covered                  term.
                                                                   property is located stops participating in the              (2) If we discover after you have a flood
                                                                   NFIP, or                                                  loss that the rating information we have is
                                                                     2. If your building has been declared ineli-            incomplete and prevents us from calculating
                                                                   gible under section 1316 of the Act.                      the additional premium, we will ask you to
                                                                                                                             send the required information. You must
                                                                      G. Reduction and Reformation of Coverage               submit the information before your claim
                                                                     1. If the premium we received from you was              can be paid. Once we determine the amount
                                                                   not enough to buy the kind and amount of                  of additional premium for the current and
                                                                   coverage you requested, we will provide only              prior policy terms, we will follow the proce-
                                                                   the amount of coverage that can be pur-                   dure in G.2.b.(1) above.
                                                                   chased for the premium payment we re-                       (3) If we do not receive the additional pre-
                                                                   ceived.                                                   mium by the date it is due, your flood insur-
                                                                     2. The policy can be reformed to increase               ance claim will be settled based on the re-
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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                   coverage can only be increased by endorse-                  4. Within 60 days after the loss, send us a
                                                                   ment subject to any appropriate waiting pe-               proof of loss, which is your statement of the
                                                                   riod.                                                     amount you are claiming under the policy
                                                                     3. However, if we find that you or your                 signed and sworn to by you, and which fur-
                                                                   agent intentionally did not tell us, or fal-              nishes us with the following information:
                                                                   sified, any important fact or circumstance or               a. The date and time of loss;
                                                                   did anything fraudulent relating to this in-                b. A brief explanation of how the loss hap-
                                                                   surance, the provisions of Condition B. Con-              pened;
                                                                   cealment or Fraud and Policy Voidance                       c. Your interest (for example, ‘‘owner’’)
                                                                   apply.                                                    and the interest, if any, of others in the dam-
                                                                                                                             aged property;
                                                                                    H. Policy Renewal                          d. Details of any other insurance that may
                                                                     1. This policy will expire at 12:01 a.m. on             cover the loss;
                                                                   the last day of the policy term.                            e. Changes in title or occupancy of the cov-
                                                                     2. We must receive the payment of the ap-               ered property during the term of the policy;
                                                                   propriate renewal premium within 30 days of                 f. Specifications of damaged buildings and
                                                                   the expiration date.                                      detailed repair estimates;
                                                                     3. If we find, however, that we did not place             g. Names of mortgagees or anyone else
                                                                   your renewal notice into the U.S. Postal                  having a lien, charge, or claim against the
                                                                   Service, or if we did mail it, we made a mis-             insured property;
                                                                   take, e.g., we used an incorrect, incomplete,               h. Details about who occupied any insured
                                                                   or illegible address, which delayed its deliv-            building at the time of loss and for what pur-
                                                                   ery to you before the due date for the re-                pose; and
                                                                   newal premium, then we will follow these                    i. The inventory of damaged personal prop-
                                                                   procedures:                                               erty described in J.3. above.
                                                                     a. If you or your agent notified us, not                  5. In completing the proof of loss, you must
                                                                   later than one year after the date on which               use your own judgment concerning the
                                                                   the payment of the renewal premium was                    amount of loss and justify that amount.
                                                                   due, of non-receipt of a renewal notice before              6. You must cooperate with the adjuster or
                                                                   the due date for the renewal premium, and                 representative in the investigation of the
                                                                   we determine that the circumstances in the                claim.
                                                                   preceding paragraph apply, we will mail a                   7. The insurance adjuster whom we hire to
                                                                   second bill providing a revised due date,                 investigate your claim may furnish you with
                                                                   which will be 30 days after the date on which             a proof of loss form, and she or he may help
                                                                   the bill is mailed.                                       you complete it. However, this is a matter of
                                                                     b. If we do not receive the premium re-                 courtesy only, and you must still send us a
                                                                   quested in the second bill by the revised due             proof of loss within 60 days after the loss
                                                                   date, then we will not renew the policy. In               even if the adjuster does not furnish the
                                                                   that case, the policy will remain an expired              form or help you complete it.
                                                                   policy as of the expiration date shown on the               8. We have not authorized the adjuster to
                                                                   Declarations Page.                                        approve or disapprove claims or to tell you
                                                                     4. In connection with the renewal of this               whether we will approve your claim.
                                                                   policy, we may ask you during the policy                    9. At our option, we may accept the adjust-
                                                                   term to recertify, on a Recertification Ques-             er’s report of the loss instead of your proof of
                                                                   tionnaire we will provide to you, the rating              loss. The adjuster’s report will include infor-
                                                                   information used to rate your most recent                 mation about your loss and the damages you
                                                                   application for or renewal of insurance.                  sustained. You must sign the adjuster’s re-
                                                                                                                             port. At our option, we may require you to
                                                                        I. Conditions Suspending or Restricting              swear to the report.
                                                                                       Insurance
                                                                     We are not liable for loss that occurs while                        K. Our Options After a Loss
                                                                   there is a hazard that is increased by any                  Options we may, in our sole discretion, ex-
                                                                   means within your control or knowledge.                   ercise after loss include the following:
                                                                                                                               1. At such reasonable times and places that
                                                                              J. Requirements in Case of Loss                we may designate, you must:
                                                                     In case of a flood loss to insured property,              a. Show us or our representative the dam-
                                                                   you must:                                                 aged property;
                                                                     1. Give prompt written notice to us;                      b. Submit to examination under oath,
                                                                     2. As soon as reasonably possible, separate             while not in the presence of another insured,
                                                                   the damaged and undamaged property, put-                  and sign the same; and
                                                                   ting it in the best possible order so that we               c. Permit us to examine and make extracts
                                                                   may examine it;                                           and copies of:
                                                                     3. Prepare an inventory of damaged prop-                  (1) Any policies of property insurance in-
                                                                   erty showing the quantity, description, ac-               suring you against loss and the deed estab-
                                                                   tual cash value, and amount of loss. Attach               lishing your ownership of the insured real
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                                                                   all bills, receipts, and related documents;               property;

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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     (2) Condominium association documents                                       O. Salvage
                                                                   including the Declarations of the condo-
                                                                   minium, its Articles of Association or Incor-               We may permit you to      keep damaged prop-
                                                                   poration, Bylaws, rules and regulations, and              erty insured under this     policy after a loss,
                                                                   other relevant documents if you are a unit                and we will reduce the      amount of the loss
                                                                   owner in a condominium building; and                      proceeds payable to you     under the policy by
                                                                     (3) All books of accounts, bills, invoices              the value of the salvage.
                                                                   and other vouchers, or certified copies per-                                 P. Appraisal
                                                                   taining to the damaged property if the origi-
                                                                   nals are lost.                                              If you and we fail to agree on the actual
                                                                     2. We may request, in writing, that you                 cash value or, if applicable, replacement cost
                                                                   furnish us with a complete inventory of the               of your damaged property to settle upon the
                                                                   lost, damaged or destroyed property, includ-              amount of loss, then either may demand an
                                                                   ing:                                                      appraisal of the loss. In this event, you and
                                                                     a. Quantities and costs;                                we will each choose a competent and impar-
                                                                     b. Actual cash values or replacement cost               tial appraiser within 20 days after receiving
                                                                   (whichever is appropriate);                               a written request from the other. The two
                                                                     c. Amounts of loss claimed;                             appraisers will choose an umpire. If they
                                                                     d. Any written plans and specifications for             cannot agree upon an umpire within 15 days,
                                                                   repair of the damaged property that you can               you or we may request that the choice be
                                                                   reasonably make available to us; and                      made by a judge of a court of record in the
                                                                     e. Evidence that prior flood damage has                 state where the covered property is located.
                                                                   been repaired.                                            The appraisers will separately state the ac-
                                                                     3. If we give you written notice within 30              tual cash value, the replacement cost, and
                                                                   days after we receive your signed, sworn                  the amount of loss to each item. If the ap-
                                                                   proof of loss, we may:                                    praisers submit a written report of an agree-
                                                                     a. Repair, rebuild, or replace any part of              ment to us, the amount agreed upon will be
                                                                   the lost, damaged, or destroyed property                  the amount of loss. If they fail to agree, they
                                                                   with material or property of like kind and                will submit their differences to the umpire.
                                                                   quality or its functional equivalent; and                 A decision agreed to by any two will set the
                                                                     b. Take all or any part of the damaged                  amount of actual cash value and loss, or if it
                                                                   property at the value that we agree upon or               applies, the replacement cost and loss.
                                                                   its appraised value.                                        Each party will:
                                                                                                                               1. Pay its own appraiser; and
                                                                                  L. No Benefit to Bailee                      2. Bear the other expenses of the appraisal
                                                                     No person or organization, other than you,              and umpire equally.
                                                                   having custody of covered property will ben-
                                                                   efit from this insurance.                                                 Q. Mortgage Clause
                                                                                                                               The word ‘‘mortgagee’’ includes trustee.
                                                                                     M. Loss Payment
                                                                                                                               Any loss payable under Coverage A—Build-
                                                                      1. We will adjust all losses with you. We              ing Property will be paid to any mortgagee
                                                                   will pay you unless some other person or en-              of whom we have actual notice, as well as
                                                                   tity is named in the policy or is legally enti-           any other mortgagee or loss payee deter-
                                                                   tled to receive payment. Loss will be payable             mined to exist at the time of loss, and you,
                                                                   60 days after we receive your proof of loss (or           as interests appear. If more than one mort-
                                                                   within 90 days after the insurance adjuster               gagee is named, the order of payment will be
                                                                   files the adjuster’s report signed and sworn              the same as the order of precedence of the
                                                                   to by you in lieu of a proof of loss) and:                mortgages.
                                                                      a. We reach an agreement with you;                       If we deny your claim, that denial will not
                                                                      b. There is an entry of a final judgment; or           apply to a valid claim of the mortgagee, if
                                                                      c. There is a filing of an appraisal award             the mortgagee:
                                                                   with us, as provided in VII. P.                             1. Notifies us of any change in the owner-
                                                                      2. If we reject your proof of loss in whole or         ship or occupancy, or substantial change in
                                                                   in part you may:                                          risk of which the mortgagee is aware;
                                                                      a. Accept our denial of your claim;                      2. Pays any premium due under this policy
                                                                      b. Exercise your rights under this policy;             on demand if you have neglected to pay the
                                                                   or                                                        premium; and
                                                                      c. File an amended proof of loss as long as              3. Submits a signed, sworn proof of loss
                                                                   it is filed within 60 days of the date of the             within 60 days after receiving notice from us
                                                                   loss.                                                     of your failure to do so.
                                                                                                                               All of the terms of this policy apply to the
                                                                                     N. Abandonment
                                                                                                                             mortgagee.
                                                                     You may not abandon to us damaged or                      The mortgagee has the right to receive loss
                                                                   undamaged property insured under this pol-                payment even if the mortgagee has started
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                                                                   icy.                                                      foreclosure or similar action on the building.

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                     If we decide to cancel or not renew this                  d. Not to seek a premium refund for cur-
                                                                   policy, it will continue in effect for the ben-           rent or prior terms.
                                                                   efit of the mortgagee only for 30 days after                If the policy term ends before the insured
                                                                   we notify the mortgagee of the cancellation               building has been flooded continuously for 90
                                                                   or non-renewal.                                           days, the provisions of this paragraph T.1.
                                                                     If we pay the mortgagee for any loss and                will apply when the insured building suffers
                                                                   deny payment to you, we are subrogated to                 a covered loss before the policy term ends.
                                                                   all the rights of the mortgagee granted                     2. If your insured building is subject to
                                                                   under the mortgage on the property. Sub-                  continuous lake flooding from a closed basin
                                                                   rogation will not impair the right of the                 lake, you may elect to file a claim under ei-
                                                                   mortgagee to recover the full amount of the               ther paragraph T.1. above or T.2. (A ‘‘closed
                                                                   mortgagee’s claim.                                        basin lake’’ is a natural lake from which
                                                                                                                             water leaves primarily through evaporation
                                                                                    R. Suit Against Us
                                                                                                                             and whose surface area now exceeds or has
                                                                     You may not sue us to recover money                     exceeded one square mile at any time in the
                                                                   under this policy unless you have complied                recorded past. Most of the nation’s closed
                                                                   with all the requirements of the policy. If               basin lakes are in the western half of the
                                                                   you do sue, you must start the suit within                United States where annual evaporation ex-
                                                                   one year after the date of the written denial             ceeds annual precipitation and where lake
                                                                   of all or part of the claim, and you must file            levels and surface areas are subject to con-
                                                                   the suit in the United States District Court              siderable fluctuation due to wide variations
                                                                   of the district in which the covered property             in the climate. These lakes may overtop
                                                                   was located at the time of loss. This require-            their basins on rare occasions.) Under this
                                                                   ment applies to any claim that you may                    paragraph T.2., we will pay your claim as if
                                                                   have under this policy and to any dispute                 the building is a total loss even though it
                                                                   that you may have arising out of the han-                 has not been continuously inundated for 90
                                                                   dling of any claim under the policy.                      days, subject to the following conditions:
                                                                                                                               a. Lake flood waters must damage or im-
                                                                                      S. Subrogation                         minently threaten to damage your building.
                                                                     Whenever we make a payment for a loss                     b. Before approval of your claim, you must:
                                                                   under this policy, we are subrogated to your                (1) Agree to a claim payment that reflects
                                                                   right to recover for that loss from any other             your buying back the salvage on a nego-
                                                                   person. That means that your right to re-                 tiated basis; and
                                                                   cover for a loss that was partly or totally                 (2) Grant the conservation easement de-
                                                                   caused by someone else is automatically                   scribed in FEMA’s ‘‘Policy Guidance for
                                                                   transferred to us, to the extent that we have             Closed Basin Lakes’’ to be recorded in the of-
                                                                   paid you for the loss. We may require you to              fice of the local recorder of deeds. FEMA, in
                                                                   acknowledge this transfer in writing. After               consultation with the community in which
                                                                   the loss, you may not give up our right to re-            the property is located, will identify on a
                                                                   cover this money or do anything that would                map an area or areas of special consideration
                                                                   prevent us from recovering it. If you make                (ASC) in which there is a potential for flood
                                                                   any claim against any person who caused                   damage from continuous lake flooding.
                                                                   your loss and recover any money, you must                 FEMA will give the community the agreed-
                                                                   pay us back first before you may keep any of              upon map showing the ASC. This easement
                                                                   that money.                                               will only apply to that portion of the prop-
                                                                                                                             erty in the ASC. It will allow certain agri-
                                                                              T. Continuous Lake Flooding
                                                                                                                             cultural and recreational uses of the land.
                                                                     1. If an insured building has been flooded              The only structures it will allow on any por-
                                                                   by rising lake waters continuously for 90                 tion of the property within the ASC are cer-
                                                                   days or more and it appears reasonably cer-               tain simple agricultural and recreational
                                                                   tain that a continuation of this flooding will            structures. If any of these allowable struc-
                                                                   result in a covered loss to the insured build-            tures are insurable buildings under the NFIP
                                                                   ing equal to or greater than the building pol-            and are insured under the NFIP, they will
                                                                   icy limits plus the deductible or the max-                not be eligible for the benefits of this para-
                                                                   imum payable under the policy for any one                 graph T.2. If a U.S. Army Corps of Engineers
                                                                   building loss, we will pay you the lesser of              certified flood control project or otherwise
                                                                   these two amounts without waiting for the                 certified flood control project later protects
                                                                   further damage to occur if you sign a release             the property, FEMA will, upon request,
                                                                   agreeing:                                                 amend the ASC to remove areas protected by
                                                                     a. To make no further claim under this                  those projects. The restrictions of the ease-
                                                                   policy;                                                   ment will then no longer apply to any por-
                                                                     b. Not to seek renewal of this policy;                  tion of the property removed from the ASC;
                                                                     c. Not to apply for any flood insurance                 and
                                                                   under the Act for property at the described                 (3) Comply with paragraphs T.1.a. through
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                                                                   Pt. 61, App. A(1)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     c. Within 90 days of approval of your claim,            tions in paragraphs T.2.e. and T.2.f. above,
                                                                   you must move your building to a new loca-                and
                                                                   tion outside the ASC. FEMA will give you an                 (2) The date by which you must have flood
                                                                   additional 30 days to move if you show there              insurance in effect.
                                                                   is sufficient reason to extend the time.
                                                                     d. Before the final payment of your claim,                      U. Duplicate Policies Not Allowed
                                                                   you must acquire an elevation certificate                   1. We will not insure your property under
                                                                   and a floodplain development permit from                  more than one NFIP policy.
                                                                   the local floodplain administrator for the                  If we find that the duplication was not
                                                                   new location of your building.                            knowingly created, we will give you written
                                                                     e. Before the approval of your claim, the               notice. The notice will advise you that you
                                                                   community having jurisdiction over your                   may choose one of several options under the
                                                                   building must:                                            following procedures:
                                                                     (1) Adopt a permanent land use ordinance,                 a. If you choose to keep in effect the policy
                                                                   or a temporary moratorium for a period not                with the earlier effective date, you may also
                                                                   to exceed 6 months to be followed imme-                   choose to add the coverage limits of the later
                                                                   diately by a permanent land use ordinance,                policy to the limits of the earlier policy. The
                                                                   that is consistent with the provisions speci-             change will become effective as of the effec-
                                                                   fied in the easement required in paragraph                tive date of the later policy.
                                                                   T.2.b. above.                                               b. If you choose to keep in effect the policy
                                                                     (2) Agree to declare and report any viola-              with the later effective date, you may also
                                                                   tions of this ordinance to FEMA so that                   choose to add the coverage limits of the ear-
                                                                   under Section 1316 of the National Flood In-              lier policy to the limits of the later policy.
                                                                   surance Act of 1968, as amended, flood insur-             The change will be effective as of the effec-
                                                                   ance to the building can be denied; and                   tive date of the later policy.
                                                                     (3) Agree to maintain as deed-restricted,                 In either case, you must pay the pro rata
                                                                   for purposes compatible with open space or                premium for the increased coverage limits
                                                                   agricultural or recreational use only, any af-            within 30 days of the written notice. In no
                                                                   fected property the community acquires an                 event will the resulting coverage limits ex-
                                                                   interest in. These deed restrictions must be              ceed the permissible limits of coverage under
                                                                   consistent with the provisions of paragraph               the Act or your insurable interest, whichever
                                                                   T.2.b. above, except that, even if a certified            is less. We will make a refund to you, accord-
                                                                   project protects the property, the land use               ing to applicable NFIP rules, of the premium
                                                                   restrictions continue to apply if the property            for the policy not being kept in effect.
                                                                   was acquired under the Hazard Mitigation                    2. Your option under Condition U. Dupli-
                                                                   Grant Program or the Flood Mitigation As-                 cate Policies Not Allowed to elect which
                                                                   sistance Program. If a non-profit land trust              NFIP policy to keep in effect does not apply
                                                                   organization receives the property as a dona-             when duplicates have been knowingly cre-
                                                                   tion, that organization must maintain the                 ated. Losses occurring under such cir-
                                                                   property 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 your claim, the af-           The policy with the later effective date must
                                                                   fected State must take all action set forth in            be canceled.
                                                                   FEMA’s ‘‘Policy Guidance for Closed Basin
                                                                   Lakes.’’                                                                  V. Loss Settlement
                                                                     g. You must have NFIP flood insurance
                                                                   coverage continuously in effect from a date                                1. Introduction
                                                                   established by FEMA until you file a claim                  This policy provides three methods of set-
                                                                   under paragraph T.2. If a subsequent owner                tling losses: Replacement Cost, Special Loss
                                                                   buys NFIP insurance that goes into effect                 Settlement, and Actual Cash Value. Each
                                                                   within 60 days of the date of transfer of title,          method is used for a different type of prop-
                                                                   any gap in coverage during that 60-day pe-                erty, as explained in a-c. below.
                                                                   riod will not be a violation of this contin-                a. Replacement Cost Loss Settlement, de-
                                                                   uous coverage requirement. For the purpose                scribed in V.2. below, applies to a single-fam-
                                                                   of honoring a claim under this paragraph                  ily dwelling provided:
                                                                   T.2, we will not consider to be in effect any               (1) It is your principal residence, which
                                                                   increased coverage that became effective                  means that, at the time of loss, you or your
                                                                   after the date established by FEMA. The ex-               spouse lived there for 80% of:
                                                                   ception to this is any increased coverage in                (a) The 365 days immediately preceding the
                                                                   the amount suggested by your insurer as an                loss; or
                                                                   inflation adjustment.                                       (b) The period of your ownership, if you
                                                                     h. This paragraph T.2. will be in effect for            owned the dwelling for less than 365 days;
                                                                   a community when the FEMA Regional Di-                    and
                                                                   rector for the affected region provides to the              (2) At the time of loss, the amount of in-
                                                                   community, in writing, the following:                     surance in this policy that applies to the
                                                                     (1) Confirmation that the community and                 dwelling is 80% or more of its full replace-
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                                                                   the State are in compliance with the condi-               ment cost immediately before the loss, or is

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(1)
                                                                   the maximum amount of insurance available                 square feet within its perimeter walls when
                                                                   under the NFIP.                                           fully assembled, and
                                                                     b. Special Loss Settlement, described in                  (3) is your principal residence as specified
                                                                   V.3. below, applies to a single-family dwell-             in V.1.a.(1) above.
                                                                   ing that is a manufactured or mobile home                   b. If such a dwelling is totally destroyed or
                                                                   or a travel trailer.                                      damaged to such an extent that, in our judg-
                                                                     c. Actual Cash Value loss settlement ap-                ment, it is not economically feasible to re-
                                                                   plies to a single-family dwelling not subject             pair, at least to its pre-damage condition, we
                                                                   to replacement cost or special loss settle-               will, at our discretion pay the least of the
                                                                   ment, and to the property listed in V.4.                  following amounts:
                                                                   below.                                                      (1) The lesser of the replacement cost of
                                                                                                                             the dwelling or 1.5 times the actual cash
                                                                        2. Replacement Cost Loss Settlement                  value, or
                                                                                                                               (2) The building limit of liability shown on
                                                                     The following loss settlement conditions
                                                                                                                             your Declarations Page.
                                                                   apply to a single-family dwelling described
                                                                   in V.1.a. above:                                            c. If such a dwelling is partially damaged
                                                                                                                             and, in our judgment, it is economically fea-
                                                                     a. We will pay to repair or replace the dam-
                                                                                                                             sible to repair it to its pre-damage condition,
                                                                   aged dwelling after application of the de-
                                                                                                                             we will settle the loss according to the Re-
                                                                   ductible and without deduction for deprecia-
                                                                                                                             placement Cost conditions in V.2.above.
                                                                   tion, but not more than the least of the fol-
                                                                   lowing 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 of
                                                                   dwelling damaged, with materials of like                  V.4.a.(2), below, proportional) loss settle-
                                                                   kind and quality and for like use; or                     ment.
                                                                     (3) The necessary amount actually spent to                a. A dwelling, at the time of loss, when the
                                                                   repair or replace the damaged part of the                 amount of insurance on the dwelling is both
                                                                   dwelling for like use.                                    less than 80% of its full replacement cost im-
                                                                     b. If the dwelling is rebuilt at a new loca-            mediately before the loss and less than the
                                                                   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 the
                                                                   dwelling had been rebuilt at its former loca-             greater of the following amounts, but not
                                                                   tion.                                                     more than the amount of insurance that ap-
                                                                                                                             plies to that dwelling:
                                                                     c. When the full cost of repair or replace-
                                                                                                                               (1) The actual cash value, as defined in
                                                                   ment is more than $1,000, or more than 5% of
                                                                                                                             II.B.2., of the damaged part of the dwelling;
                                                                   the whole amount of insurance that applies
                                                                                                                             or
                                                                   to the dwelling, we will not be liable for any
                                                                                                                               (2) A proportion of the cost to repair or re-
                                                                   loss under V.2.a. above or V.4.a.(2) below un-
                                                                                                                             place the damaged part of the dwelling, with-
                                                                   less and until actual repair or replacement is
                                                                                                                             out deduction for physical depreciation and
                                                                   completed.
                                                                                                                             after application of the deductible.
                                                                     d. You may disregard the replacement cost
                                                                                                                               This proportion is determined as follows: If
                                                                   conditions above and make claim under this
                                                                                                                             80% of the full replacement cost of the dwell-
                                                                   policy for loss to dwellings on an actual cash
                                                                                                                             ing is less than the maximum amount of in-
                                                                   value basis. You may then make claim for
                                                                                                                             surance available under the NFIP, then the
                                                                   any additional liability according to V.2.a.,
                                                                                                                             proportion is determined by dividing the ac-
                                                                   b., 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%
                                                                   date of loss.
                                                                                                                             of its full replacement cost. But if 80% of the
                                                                     e. If the community in which your dwelling
                                                                                                                             full replacement cost of the dwelling is
                                                                   is located has been converted from the Emer-
                                                                                                                             greater than the maximum amount of insur-
                                                                   gency Program to the Regular Program dur-
                                                                                                                             ance available under the NFIP, then the pro-
                                                                   ing 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 the
                                                                   NFIP insurance to be the amount that was
                                                                                                                             maximum amount of insurance available
                                                                   available at the beginning of the current pol-
                                                                                                                             under 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 at least 16 feet wide when fully as-             aerials of any type, and other outdoor equip-
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                                                                   sembled and has an area of at least 600                   ment.

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     h. Any property covered under this policy                 1. In a regular program community, for a
                                                                   that is abandoned after a loss and remains as             residential condominium building, as defined
                                                                   debris anywhere on the described location.                in this policy; and
                                                                     i. A dwelling that is not your principal res-             2. Except for personal property coverage,
                                                                   idence.                                                   for a unit in a condominium building.
                                                                          5. Amount of Insurance Required                                      I. AGREEMENT
                                                                     To determine the amount of insurance re-                  The Federal Emergency Management
                                                                   quired for a dwelling immediately before the              Agency (FEMA) provides flood insurance
                                                                   loss, we do not include the value of:                     under the terms of the National Flood Insur-
                                                                     a. Footings, foundations, piers, or any                 ance Act of 1968 and its Amendments, and
                                                                   other structures or devices that are below                Title 44 of the Code of Federal Regulations.
                                                                   the undersurface of the lowest basement                     We will pay you for direct physical loss by
                                                                   floor and support all or part of the dwelling;            or from flood to your insured property if
                                                                     b. Those supports listed in V.5.a. above,               you:
                                                                   that are below the surface of the ground in-                1. Have paid the correct premium;
                                                                   side the foundation walls if there is no base-              2. Comply with all terms and conditions of
                                                                   ment; and                                                 this policy; and
                                                                     c. Excavations and underground flues,                     3. Have furnished accurate information and
                                                                   pipes, wiring, and drains.                                statements.
                                                                     NOTE: The Coverage D—Increased Cost of                    We have the right to review the informa-
                                                                   Compliance limit of liability is not included             tion you give us at any time and to revise
                                                                   in the determination of the amount of insur-              your policy based on our review.
                                                                   ance required.
                                                                                                                                              II. DEFINITIONS
                                                                              VIII. LIBERALIZATION CLAUSE
                                                                                                                               A. In this policy, ‘‘you’’ and ‘‘your’’ refer
                                                                     If we make a change that broadens your                  to the insured(s) shown on the Declarations
                                                                   coverage under this edition of our policy, but            Page of this policy. Insured(s) includes: Any
                                                                   does not require any additional premium,                  mortgagee and loss payee named in the Ap-
                                                                   then that change will automatically apply to              plication and Declarations page, as well as
                                                                   your insurance as of the date we implement                any other mortgagee or loss payee deter-
                                                                   the change, provided that this implementa-                mined to exist at the time of loss in the
                                                                   tion date falls within 60 days before or dur-             order of precedence. ‘‘We,’’ ‘‘us,’’ and ‘‘our’’
                                                                   ing the policy term stated on the Declara-                refer to the insurer.
                                                                   tions Page.                                                 Some definitions are complex because they
                                                                                                                             are provided as they appear in the law or
                                                                                 IX. WHAT LAW GOVERNS                        regulations, or result from court cases. The
                                                                     This policy and all disputes arising from               precise definitions are intended to protect
                                                                   the handling of any claim under the policy                you.
                                                                   are governed exclusively by the flood insur-                Flood, as used in this flood insurance pol-
                                                                   ance regulations issued by FEMA, the Na-                  icy, means:
                                                                   tional Flood Insurance Act of 1968, as amend-               1. A general and temporary condition of
                                                                   ed (42 U.S.C. 4001, et seq.), and Federal com-            partial or complete inundation of two or
                                                                   mon law.                                                  more acres of normally dry land area or of
                                                                     In Witness Whereof, we have signed this pol-            two or more properties (one of which is your
                                                                   icy below and hereby enter into this Insur-               property) from:
                                                                   ance Agreement.                                             a. Overflow of inland or tidal waters;
                                                                                                JO ANN HOWARD,                 b. Unusual and rapid accumulation or run-
                                                                                Administrator, Federal Insurance             off of surface waters from any source;
                                                                                                  Administration.              c. Mudflow.
                                                                   [65 FR 60769, Oct. 12, 2000, as amended at 68               2. The collapse or subsidence of land along
                                                                   FR 9897, Mar. 3, 2003]                                    the shore of a lake or similar body of water
                                                                                                                             as a result of erosion or undermining caused
                                                                              APPENDIX A(2) TO PART 61                       by waves or currents of water exceeding an-
                                                                                                                             ticipated cyclical levels which result in a
                                                                    FEDERAL EMERGENCY MANAGEMENT AGENCY,                     flood as defined in A.1.a. above.
                                                                       FEDERAL INSURANCE ADMINISTRATION                        B. The following are the other key defini-
                                                                                                                             tions we use in this policy:
                                                                         STANDARD FLOOD INSURANCE POLICY                       1. Act. The National Flood Insurance Act of
                                                                                                                             1968 and any amendments to it.
                                                                              GENERAL PROPERTY FORM
                                                                                                                               2. Actual Cash Value. The cost to replace an
                                                                     Please read the policy carefully. The flood             insured item of property at the time of loss,
                                                                   insurance coverage provided is subject to                 less the value of its physical depreciation.
                                                                   limitations, restrictions, and exclusions.                  3. Application. The statement made and
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                                                                     This policy provides no coverage:                       signed by you or your agent in applying for

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(2)
                                                                   this policy. The application gives informa-               walls, shear walls, posts, piers, pilings, or
                                                                   tion we use to determine the eligibility of               columns.
                                                                   the risk, the kind of policy to be issued, and              14. Emergency Program. The initial phase of
                                                                   the correct premium payment. The applica-                 a community’s participation in the National
                                                                   tion is part of this flood insurance policy.              Flood Insurance Program. During this phase,
                                                                   For us to issue you a policy, the correct pre-            only limited amounts of insurance are avail-
                                                                   mium payment must accompany the applica-                  able under the Act.
                                                                   tion.                                                       15. Expense Constant. A flat charge you
                                                                     4. Base Flood. A flood having a one percent             must pay on each new or renewal policy to
                                                                   chance of being equaled or exceeded in any                defray the expenses of the Federal Govern-
                                                                   given year.                                               ment related to flood insurance.
                                                                     5. Basement. Any area of the building, in-                16. Federal Policy Fee. A flat charge you
                                                                   cluding any sunken room or sunken portion                 must pay on each new or renewal policy to
                                                                   of a room, having its floor below ground                  defray certain administrative expenses in-
                                                                   level (subgrade) on all sides.                            curred in carrying out the National Flood In-
                                                                     6. Building.                                            surance Program. This fee covers expenses
                                                                     a. A structure with two or more outside                 not covered by the expense constant.
                                                                   rigid walls and a fully secured roof, that is               17. Improvements. Fixtures, alterations, in-
                                                                   affixed to a permanent site;                              stallations, or additions comprising a part of
                                                                     b. A manufactured home (‘‘a manufactured                the insured building.
                                                                   home,’’ also known as a mobile home, is a                   18. Mudflow. A river of liquid and flowing
                                                                   structure: built on a permanent chassis,                  mud on the surfaces of normally dry land
                                                                   transported to its site in one or more sec-               areas, as when earth is carried by a current
                                                                   tions, and affixed to a permanent founda-                 of water. Other earth movements, such as
                                                                   tion); or                                                 landslide, slope failure, or a saturated soil
                                                                     c. A travel trailer without wheels, built on            mass moving by liquidity down a slope, are
                                                                   a chassis and affixed to a permanent founda-              not mudflows.
                                                                   tion, that is regulated under the commu-                    19. National Flood Insurance Program
                                                                   nity’s floodplain management and building                 (NFIP). The program of flood insurance cov-
                                                                   ordinances or laws.                                       erage and floodplain management adminis-
                                                                     Building does not mean a gas or liquid stor-            tered under the Act and applicable Federal
                                                                   age tank or a recreational vehicle, park                  regulations in Title 44 of the Code of Federal
                                                                   trailer, or other similar vehicle, except as              Regulations, Subchapter B.
                                                                   described in B.6.c., above.                                 20. Policy. The entire written contract be-
                                                                     7. Cancellation. The ending of the insurance            tween you and us. It includes:
                                                                   coverage provided by this policy before the                 a. This printed form;
                                                                   expiration date.                                            b. The application and Declarations Page;
                                                                     8. Condominium. That form of ownership of                 c. Any endorsement(s) that may be issued;
                                                                   real property in which each unit owner has                and,
                                                                   an undivided interest in common elements.                   d. Any renewal certificate indicating that
                                                                     9. Condominium Association. The entity,                 coverage has been instituted for a new policy
                                                                   formed by the unit owners, responsible for                and new policy term.
                                                                   the maintenance and operation of:                           Only one building, which you specifically
                                                                     a. Common elements owned in undivided                   described in the application, may be insured
                                                                   shares by unit owners; and                                under this policy.
                                                                     b. Other real property in which the unit                  21. Pollutants. Substances that include, but
                                                                   owners have use rights where membership in                that are not limited to, any solid, liquid,
                                                                   the entity is a required condition of unit                gaseous or thermal irritant or contaminant,
                                                                   ownership.                                                including smoke, vapor, soot, fumes, acids,
                                                                     10. Declarations Page. A computer-gen-                  alkalis, chemicals, and waste. ‘‘Waste’’ in-
                                                                   erated summary of information you provided                cludes, but is not limited to, materials to be
                                                                   in the application for insurance. The Dec-                recycled, reconditioned, or reclaimed.
                                                                   larations Page also describes the term of the               22. Post-FIRM Building. A building for
                                                                   policy, limits of coverage, and displays the              which construction or substantial improve-
                                                                   premium and our name. The Declarations                    ment occurred after December 31, 1974, or on
                                                                   Page is a part of this flood insurance policy.            or after the effective date of an initial Flood
                                                                     11. Described Location. The location where              Insurance Rate Map (FIRM), whichever is
                                                                   the insured building or personal property is              later.
                                                                   found. The described location is shown on                   23. Probation Premium. A flat charge you
                                                                   the Declarations Page.                                    must pay on each new or renewal policy
                                                                     12. Direct Physical Loss By or From Flood.              issued covering property in a community
                                                                   Loss or damage to insured property, directly              that has been placed on probation under the
                                                                   caused by a flood. There must be evidence of              provisions of 44 CFR 59.24.
                                                                   physical changes to the property.                           24. Regular Program. The final phase of a
                                                                     13. Elevated Building. A building that has              community’s participation in the National
                                                                   no basement and that has its lowest elevated              Flood Insurance Program. In this phase, a
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                                                                   floor raised above ground level by foundation             Flood Insurance Rate Map is in effect and

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                                                                   Pt. 61, App. A(2)                                                       44 CFR Ch. I (10–1–07 Edition)
                                                                   full limits of coverage are available under                  4. The following fixtures, machinery, and
                                                                   the Act.                                                   equipment, which are covered under Cov-
                                                                     25. Residential Condominium Building. A                  erage A only:
                                                                   building, owned and administered as a condo-                 a. Awnings and canopies;
                                                                   minium, containing one or more family units                  b. Blinds;
                                                                   and in which at least 75% of the floor area is               c. Carpet permanently installed over unfin-
                                                                   residential.                                               ished flooring;
                                                                     26. Special Flood Hazard Area. An area hav-                d. Central air conditioners;
                                                                   ing special flood or mudflow, and/or flood-re-               e. Elevator equipment;
                                                                   lated erosion hazards, and shown on a Flood                  f. Fire extinguishing apparatus;
                                                                   Hazard Boundary Map or Flood Insurance                       g. Fire sprinkler systems;
                                                                   Rate Map as Zone A, AO, A1–A30, AE, A99,                     h. Walk-in freezers;
                                                                   AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/                       i. Furnaces;
                                                                   A1–A30, V1–V30, VE, V.                                       j. Light fixtures;
                                                                     27. Stock means merchandise held in stor-                  k. Outdoor antennas and aerials attached
                                                                   age or for sale, raw materials, and in-process             to buildings;
                                                                   or finished goods, including supplies used in                l. Permanently installed cupboards, book-
                                                                   their packing or shipping.                                 cases, paneling, and wallpaper;
                                                                     Stock does not include any property not                    m. Pumps and machinery for operating
                                                                   covered under Section IV. Property Not                     pumps;
                                                                     Covered, except the following:                             n. Ventilating equipment; and
                                                                     a. Parts and equipment for self-propelled                  o. Wall mirrors, permanently installed;
                                                                   vehicles;                                                    p. In the units within the building, in-
                                                                     b.    Furnishings     and   equipment    for             stalled:
                                                                   watercraft;                                                  (1) Built-in dishwashers;
                                                                                                                                (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
                                                                     d. Swimming pool equipment.
                                                                                                                              water heaters;
                                                                     28. Unit. A unit in a condominium building.                (5) Kitchen cabinets;
                                                                     29. Valued Policy. A policy in which the in-               (6) Plumbing fixtures;
                                                                   sured and the insurer agree on the value of                  (7) Radiators;
                                                                   the property insured, that value being pay-                  (8) Ranges;
                                                                   able in the event of a total loss. The Stand-                (9) Refrigerators; and
                                                                   ard Flood Insurance Policy is not a valued                   (10) Stoves.
                                                                   policy.                                                      5. Materials and supplies to be used for
                                                                                  III. PROPERTY COVERED                       construction, alteration, or repair of the in-
                                                                                                                              sured building while the materials and sup-
                                                                              A. Coverage A—Building Property                 plies are stored in a fully enclosed building
                                                                                                                              at the described location or on an adjacent
                                                                     We insure against direct physical loss by                property.
                                                                   or from flood to:                                            6. A building under construction, alter-
                                                                     1. The building described on the Declara-                ation, or repair at the described location.
                                                                   tions Page at the described location. If the                 a. If the structure is not yet walled or
                                                                   building is a condominium building and the                 roofed as described in the definition for
                                                                   named insured is the condominium associa-                  building (see II. 6.a.), then coverage applies:
                                                                   tion, Coverage A includes all units within                   (1) Only while such work is in progress; or
                                                                   the building and the improvements within                     (2) If such work is halted, only for a period
                                                                   the units, provided the units are owned in                 of up to 90 continuous days thereafter.
                                                                   common by all unit owners.                                   b. However, coverage does not apply until
                                                                     2. We also insure building property for a                the building is walled and roofed if the low-
                                                                   period of 45 days at another location, as set              est floor, including the basement floor, of a
                                                                   forth in III.C.2.b., Property Removed to Safe-             non-elevated building or the lowest elevated
                                                                   ty.                                                        floor of an elevated building is:
                                                                     3. Additions and extensions attached to                    (1) Below the base flood elevation in Zones
                                                                   and in contact with the building by means of               AH, AE, A1–A30, AR, AR/AE, AR/AH, AR/A1–
                                                                   a rigid exterior wall, a solid load-bearing in-            A30, AR/A, AR/AO; or
                                                                   terior wall, a stairway, an elevated walkway,                (2) Below the base flood elevation adjusted
                                                                   or a roof. At your option, additions and ex-               to include the effect of wave action in Zones
                                                                   tensions connected by any of these methods                 VE or V1–V30.
                                                                   may be separately insured. Additions and ex-                 The lowest floor levels are based on the
                                                                   tensions attached to and in contact with the               bottom of the lowest horizontal structural
                                                                   building by means of a common interior wall                member of the floor in Zones VE or V1–V30
                                                                   that is not a solid load-bearing wall are al-              and the top of the floor in Zones AH, AE, A1–
                                                                   ways considered part of the building and can-              A30, AR, AR/AE, AR/AH, AR/A1–A30, AR/A,
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                                                                   not be separately insured.                                 AR/AO.

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                                                                   Federal Emergency Management Agency, DHS                                                Pt. 61, App. A(2)
                                                                     7. A manufactured home or a travel trailer               from flood to personal property inside the
                                                                   as described in the Definitions                            fully enclosed insured building:
                                                                     Section (see II.B.6.b.and II.B.6.c.).                      a. Owned solely by you, or in the case of a
                                                                     If the manufactured home or travel trailer               condominium, owned solely by the condo-
                                                                   is in a special flood hazard area, it must be              minium association and used exclusively in
                                                                   anchored in the following manner at the                    the conduct of the business affairs of the
                                                                   time of the loss:                                          condominium association; or
                                                                     a. By over-the-top or frame ties to ground                 b. Owned in common by the unit owners of
                                                                   anchors; or                                                the condominium association.
                                                                     b. In accordance with the manufacturer’s                   We also insure such personal property for
                                                                   specifications; or                                         45 days while stored at a temporary location,
                                                                     c. In compliance with the community’s                    as set forth in III.C.2.b., Property Removed
                                                                   floodplain management requirements unless                  to Safety.
                                                                   it has been continuously insured by the                      2. When this policy covers personal prop-
                                                                   NFIP at the same described location since                  erty, coverage will be either for household
                                                                   September 30, 1982.                                        personal property or other than household
                                                                     8. Items of property in a building enclosure             personal property, while within the insured
                                                                   below the lowest elevated floor of an ele-                 building, but not both.
                                                                   vated post-FIRM building located in zones                    a. If this policy covers household personal
                                                                   A1–A30, AE, AH, AR, AR/A, AR/AE, AR/AH,                    property, it will insure household personal
                                                                   AR/A1–A30, V1–V30, or VE, or in a basement,                property usual to a living quarters, that:
                                                                   regardless of the zone. Coverage is limited to               (1) Belongs to you, or a member of your
                                                                   the following:                                             household, or at your option:
                                                                     a. Any of the following items, if installed                (a) Your domestic worker;
                                                                   in their functioning locations and, if nec-                  (b) Your guest; or
                                                                   essary for operation, connected to a power                   (2) You may be legally liable for.
                                                                   source:                                                      b. If this policy covers other than house-
                                                                     (1) Central air conditioners;                            hold personal property, it will insure your:
                                                                     (2) Cisterns and the water in them;                        (1) Furniture and fixtures;
                                                                     (3) Drywall for walls and ceilings in a base-              (2) Machinery and equipment;
                                                                   ment and the cost of labor to nail it, unfin-                (3) Stock; and
                                                                   ished and unfloated and not taped, to the                    (4) Other personal property owned by you
                                                                   framing;                                                   and used in your business, subject to IV.
                                                                     (4) Electrical junction and circuit breaker              Property Not Covered.
                                                                   boxes;                                                       3. Coverage for personal property includes
                                                                     (5) Electrical outlets and switches;                     the following property, subject to B.1.a. and
                                                                     (6) Elevators, dumbwaiters, and related                  B.1.b. above, which is covered under Cov-
                                                                   equipment, except for related equipment in-                erage B. only:
                                                                   stalled below the base flood elevation after                 a. Air conditioning units installed in the
                                                                   September 30, 1987;                                        building;
                                                                     (7) Fuel tanks and the fuel in them;                       b. Carpet, not permanently installed, over
                                                                     (8) Furnaces and hot water heaters;                      unfinished flooring;
                                                                     (9) Heat pumps;                                            c. Carpets over finished flooring;
                                                                     (10) Nonflammable insulation in a base-                    d. Clothes washers and dryers;
                                                                   ment;                                                        e. ‘‘Cook-out’’ grills;
                                                                     (11) Pumps and tanks used in solar energy                  f. Food freezers, other than walk-in, and
                                                                   systems;                                                   the food in any freezer;
                                                                     (12) Stairways and staircases attached to                  g. Outdoor equipment and furniture stored
                                                                   the building, not separated from it by ele-                inside the insured building;
                                                                   vated walkways;                                              h. Ovens and the like; and
                                                                     (13) Sump pumps;                                           i. Portable microwave ovens and portable
                                                                     (14) Water softeners and the chemicals in                dishwashers.
                                                                   them, water filters, and faucets installed as                4. Items of property in a building enclosure
                                                                   an integral part of the plumbing system;                   below the lowest elevated floor of an ele-
                                                                     (15) Well water tanks and pumps;                         vated post-FIRM building located in zones
                                                                     (16) Required utility connections for any                A1–A30, AE, AH, AR, AR/A, AR/AE, AR/AH,
                                                                   item in this list; and                                     AR/A1–A30, V1–V30, or VE, or in a basement,
                                                                     (17) Footings, foundations, posts, pilings,              regardless of the zone, is limited to the fol-
                                                                   piers, or other foundation walls and anchor-               lowing items, if installed in their func-
                                                                   age systems required to support a building.                tioning locations and, if necessary for oper-
                                                                     b. Clean-up.                                             ation, connected to a power source:
                                                                                                                                a. Air conditioning units—portable or win-
                                                                              B. Coverage B—Personal Property
                                                                                                                              dow type;
                                                                     1. If you have purchased personal property                 b. Clothes washers and dryers; and
                                                                   coverage, we insure, subject to B. 2., 3., and               c. Food freezers, other than walk-in, and
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                                                                   4. below, against direct physical loss by or               food in any freezer.

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     5. Special Limits. We will pay no more                  property by or from flood is imminent and
                                                                   than $2,500 for any loss to one or more of the            the threat of flood damage is apparent
                                                                   following kinds of personal property:                     enough to lead a person of common prudence
                                                                     a. Artwork, photographs, collectibles, or               to anticipate flood damage. One of the fol-
                                                                   memorabilia, including but not limited to,                lowing must also occur:
                                                                   porcelain or other figures, and sports cards;                (a) A general and temporary condition of
                                                                     b. Rare books or autographed items;                     flooding in the area near the described loca-
                                                                     c. Jewelry, watches, precious and semi-pre-             tion must occur, even if the flood does not
                                                                   cious stones, articles of gold, silver, or plat-          reach the insured building; or
                                                                   inum;                                                        (b) A legally authorized official must issue
                                                                     d. Furs or any article containing fur which             an evacuation order or other civil order for
                                                                   represents its principal value; or                        the community in which the insured building
                                                                     6. We will pay only for the functional value            is located calling for measures to preserve
                                                                   of antiques.                                              life and property from the peril of flood.
                                                                     7. If you are a tenant, you may apply up to                This coverage does not increase the Cov-
                                                                   10% of the Coverage B limit to improve-                   erage A or Coverage B limit of liability.
                                                                   ments:                                                       b. Property Removed to Safety
                                                                     a. Made a part of the building you occupy;                 (1) We will pay up to $1,000 for the reason-
                                                                   and                                                       able expenses you incur to move insured
                                                                     b. You acquired, or made at your expense,               property to a place other than the described
                                                                   even though you cannot legally remove.                    location that contains the property in order
                                                                     This coverage does not increase the                     to protect it from flood or the imminent dan-
                                                                   amount of insurance that applies to insured               ger of flood.
                                                                   personal property.                                           Reasonable expenses include the value of
                                                                     8. If you are a condominium unit owner,                 work, at the Federal minimum wage, that
                                                                   you may apply up to 10% of the Coverage B                 you perform.
                                                                   limit to cover loss to interior:
                                                                                                                                (2) If you move insured property to a place
                                                                     a. walls,
                                                                                                                             other than the described location that con-
                                                                     b. floors, and
                                                                                                                             tains the property, in order to protect it
                                                                     c. ceilings,
                                                                                                                             from flood or the imminent danger of flood,
                                                                   that are not covered under a policy issued to
                                                                                                                             we will cover such property while at that lo-
                                                                   the condominium association insuring the
                                                                                                                             cation for a period of 45 consecutive days
                                                                   condominium building.
                                                                     This coverage does not increase the                     from the date you begin to move it there.
                                                                   amount of insurance that applies to insured               The personal property that is moved must be
                                                                   personal property.                                        placed in a fully enclosed building, or other-
                                                                     9. If you are a tenant, personal property               wise reasonably protected from the ele-
                                                                   must be inside the fully enclosed building.               ments.
                                                                                                                                Any property removed, including a move-
                                                                              C. Coverage C—Other Coverages                  able home described in II.6.b. and c., must be
                                                                                                                             placed above ground level or outside of the
                                                                     1. Debris Removal.                                      special flood hazard area.
                                                                     a. We will pay the expense to remove non-
                                                                                                                                This coverage does not increase the Cov-
                                                                   owned debris that is on or in insured prop-
                                                                                                                             erage A or Coverage B limit of liability.
                                                                   erty and debris of insured property any-
                                                                                                                                3. Pollution Damage.
                                                                   where.
                                                                                                                                We will pay for damage caused by pollut-
                                                                     b. If you or a member of your household
                                                                                                                             ants to covered property if the discharge,
                                                                   perform the removal work, the value of your
                                                                                                                             seepage, migration, release, or escape of the
                                                                   work will be based on the Federal minimum
                                                                                                                             pollutants is caused by or results from flood.
                                                                   wage.
                                                                                                                             The most we will pay under this coverage is
                                                                     c. This coverage does not increase the Cov-
                                                                                                                             $10,000. This coverage does not increase the
                                                                   erage A or Coverage B limit of liability.
                                                                                                                             Coverage A or Coverage B limits of liability.
                                                                     2. Loss Avoidance Measures.
                                                                                                                             Any payment under this provision when
                                                                     a. Sandbags, Supplies, and Labor
                                                                     (1) We will pay up to $1,000 for the costs              combined with all other payments for the
                                                                   you incur to protect the insured building                 same loss cannot exceed the replacement
                                                                   from a flood or imminent danger of flood, for             cost or actual cash value, as appropriate, of
                                                                   the following:                                            the covered property. This coverage does not
                                                                     (a) Your reasonable expenses to buy:                    include the testing for or monitoring of pol-
                                                                     (i) Sandbags, including sand to fill them;              lutants unless required by law or ordinance.
                                                                     (ii) Fill for temporary levees;                          D. Coverage D—Increased Cost of Compliance
                                                                     (iii) Pumps; and
                                                                     (iv) Plastic sheeting and lumber used in                  1. General.
                                                                   connection with these items; and                            This policy pays you to comply with a
                                                                     (b) The value of work, at the Federal min-              State or local floodplain management law or
                                                                   imum wage, that you perform.                              ordinance affecting repair or reconstruction
                                                                     (2) This coverage for Sandbags, Supplies,               of a structure suffering flood damage. Com-
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                                                                   and Labor only applies if damage to insured               pliance activities eligible for payment are:

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(2)
                                                                   elevation, floodproofing, relocation, or dem-             enforcing for flood-damaged structures in
                                                                   olition (or any combination of these activi-              such areas. (This includes compliance activi-
                                                                   ties) of your structure. Eligible floodproofing           ties in B, C, X, or D zones which are being
                                                                   activities are limited to:                                changed to zones with base flood elevations.
                                                                     a. Non-residential structures. b. Residen-              This also includes compliance activities in
                                                                   tial structures with basements that satisfy               zones where base flood elevations are being
                                                                   FEMA’s standards published in the Code of                 increased, and a flood-damaged structure
                                                                   Federal Regulations [44 CFR 60.6 (b) or (c)].             must comply with the higher advisory base
                                                                     2. Limit of Liability.                                  flood elevation.) Increased Cost of Compli-
                                                                     We will pay you up to $30,000 under this                ance coverage does not apply to situations in
                                                                   Coverage D—Increased Cost of Compliance,                  B, C, X, or D zones where the community has
                                                                   which only applies to policies with building              derived its own elevations and is enforcing
                                                                   coverage (Coverage A). Our payment of                     elevation or floodproofing requirements for
                                                                   claims under Coverage D is in addition to the             flood-damaged structures to elevations de-
                                                                   amount of coverage which you selected on                  rived solely by the community.
                                                                   the application and which appears on the                     (3) Elevation or floodproofing above the
                                                                   Declarations Page. But the maximum you                    base flood elevation to meet State or local
                                                                   can collect under this policy for both Cov-               ‘‘freeboard’’ requirements, i.e., that a struc-
                                                                   erage A (Building Property) and Coverage D                ture must be elevated above the base flood
                                                                   (Increased Cost of Compliance) cannot ex-                 elevation.
                                                                   ceed the maximum permitted under the Act.                    c. Under the minimum NFIP criteria at 44
                                                                   We do NOT charge a separate deductible for                CFR 60.3(b)(4), States and communities must
                                                                   a claim under Coverage D.                                 require the elevation or floodproofing of
                                                                     3. Eligibility.                                         structures in unnumbered A zones to the
                                                                     a. A structure covered under Coverage A—                base flood elevation where elevation data is
                                                                   Building Property sustaining a loss caused                obtained from a Federal, State, or other
                                                                   by a flood as defined by this policy must:                source. Such compliance activities are also
                                                                     (1) Be a ‘‘repetitive loss structure.’’ A ‘‘re-         eligible for Coverage D.
                                                                   petitive loss structure’’ is one that meets the              d. This coverage will also pay for the incre-
                                                                   following conditions:                                     mental cost, after demolition or relocation,
                                                                     (a) The structure is covered by a contract              of elevating or floodproofing a structure dur-
                                                                   of flood insurance issued under the NFIP.                 ing its rebuilding at the same or another site
                                                                     (b) The structure has suffered flood damage             to meet State or local floodplain manage-
                                                                   on 2 occasions during a 10-year period which              ment laws or ordinances, subject to Exclu-
                                                                   ends on the date of the second loss.                      sion D.5.g. below.
                                                                     (c) The cost to repair the flood damage, on                e. This coverage will also pay to bring a
                                                                   average, equaled or exceeded 25% of the mar-              flood-damaged structure into compliance
                                                                   ket value of the structure at the time of                 with State or local floodplain management
                                                                   each flood loss.                                          laws or ordinances even if the structure had
                                                                     (d) In addition to the current claim, the               received a variance before the present loss
                                                                   NFIP must have paid the previous qualifying               from the applicable floodplain management
                                                                   claim, and the State or community must                    requirements.
                                                                   have a cumulative, substantial damage pro-                   4. Conditions.
                                                                   vision or repetitive loss provision in its                   a. When a structure covered under Cov-
                                                                   floodplain management law or ordinance                    erage A—Building Property sustains a loss
                                                                   being enforced against the structure; or                  caused by a flood, our payment for the loss
                                                                     (2) Be a structure that has had flood dam-              under this Coverage D will be for the in-
                                                                   age in which the cost to repair equals or ex-             creased cost to elevate, floodproof, relocate,
                                                                   ceeds 50% of the market value of the struc-               or demolish (or any combination of these ac-
                                                                   ture at the time of the flood. The State or               tivities) caused by the enforcement of cur-
                                                                   community must have a substantial damage                  rent State or local floodplain management
                                                                   provision in its floodplain management law                ordinances or laws. Our payment for eligible
                                                                   or ordinance being enforced against the                   demolition activities will be for the cost to
                                                                   structure.                                                demolish and clear the site of the building
                                                                     b. This Coverage D pays you to comply                   debris or a portion thereof caused by the en-
                                                                   with State or local floodplain management                 forcement of current State or local flood-
                                                                   laws or ordinances that meet the minimum                  plain management ordinances or laws. Eligi-
                                                                   standards of the National Flood Insurance                 ble activities for the cost of clearing the site
                                                                   Program found in the Code of Federal Regu-                will include those necessary to discontinue
                                                                   lations at 44 CFR 60.3. We pay for compliance             utility service to the site and ensure proper
                                                                   activities that exceed those standards under              abandonment of on-site utilities.
                                                                   these conditions:                                            b. When the building is repaired or rebuilt,
                                                                     (1) 3.a.(1) above.                                      it must be intended for the same occupancy
                                                                     (2) Elevation or floodproofing in any risk              as the present building unless otherwise re-
                                                                   zone to preliminary or advisory base flood                quired by current floodplain management or-
                                                                   elevations provided by FEMA which the
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                                                                                                                             dinances or laws.
                                                                   State or local government has adopted and is                 5. Exclusions.

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     Under this Coverage D—Increased Cost of                   1. Personal property not inside the fully
                                                                   Compliance, we will not pay for:                          enclosed building;
                                                                     a. The cost to comply with any floodplain                 2. A building, and personal property in it,
                                                                   management law or ordinance in commu-                     located entirely in, on, or over water or sea-
                                                                   nities participating in the Emergency Pro-                ward of mean high tide, if it was constructed
                                                                   gram.                                                     or substantially improved after September
                                                                     b. The cost associated with enforcement of              30, 1982;
                                                                   any ordinance or law that requires any in-                  3. Open structures, including a building
                                                                   sured or others to test for, monitor, clean up,           used as a boathouse or any structure or
                                                                   remove, contain, treat, detoxify or neu-                  building into which boats are floated, and
                                                                   tralize, or in any way respond to, or assess              personal property located in, on, or over
                                                                   the effects of pollutants.                                water;
                                                                     c. The loss in value to any insured building              4. Recreational vehicles other than travel
                                                                   or other structure due to the requirements of             trailers described in the II.B.6.c., whether af-
                                                                   any ordinance or law.                                     fixed to a permanent foundation or on
                                                                     d. The loss in residual value of the                    wheels;
                                                                   undamaged portion of a building demolished                  5. Self-propelled vehicles or machines, in-
                                                                   as a consequence of enforcement of any                    cluding their parts and equipment. However,
                                                                   State or local floodplain management law or               we do cover self-propelled vehicles or ma-
                                                                   ordinance.                                                chines, provided they are not licensed for use
                                                                     e. Any Increased Cost of Compliance under               on public roads and are:
                                                                   this Coverage D:                                            a. Used mainly to service the described lo-
                                                                     (1) Until the building is elevated,                     cation; or
                                                                   floodproofed, demolished, or relocated on the               b. Designed and used to assist handicapped
                                                                   same or to another premises; and                          persons, while the vehicles or machines are
                                                                     (2) Unless the building is elevated,                    inside a building at the described location;
                                                                   floodproofed, demolished, or relocated as                   6. Land, land values, lawns, trees, shrubs,
                                                                   soon as reasonably possible after the loss,               plants, growing crops, or animals;
                                                                   not to exceed two years.                                    7. Accounts, bills, coins, currency, deeds,
                                                                     f. Any code upgrade requirements, e.g.,                 evidences of debt, medals, money, scrip,
                                                                   plumbing or electrical wiring, not specifi-               stored value cards, postage stamps, securi-
                                                                   cally related to the State or local floodplain            ties, bullion, manuscripts, or other valuable
                                                                   management law or ordinance.                              papers;
                                                                     g. Any compliance activities needed to                    8. Underground structures and equipment,
                                                                   bring additions or improvements made after                including wells, septic tanks, and septic sys-
                                                                   the loss occurred into compliance with State              tems;
                                                                   or local floodplain management laws or ordi-                9. Those portions of walks, walkways,
                                                                   nances.                                                   decks, driveways, patios, and other surfaces,
                                                                     h. Loss due to any ordinance or law that                all whether protected by a roof or not, lo-
                                                                   you were required to comply with before the               cated outside the perimeter, exterior walls of
                                                                   current loss.                                             the insured building;
                                                                     i. Any rebuilding activity to standards                   10. Containers including related equip-
                                                                   that do not meet the NFIP’s minimum re-                   ment, such as, but not limited to, tanks con-
                                                                   quirements. This includes any situation                   taining gases or liquids;
                                                                   where the insured has received from the                     11. Buildings or units and all their con-
                                                                   State or community a variance in connec-                  tents if more than 49% of the actual cash
                                                                   tion with the current flood loss to rebuild               value of the building or unit is below ground,
                                                                   the property to an elevation below the base               unless the lowest level is at or above the
                                                                   flood elevation.                                          base flood elevation and is below ground by
                                                                     j. Increased Cost of Compliance for a ga-               reason of earth having been used as insula-
                                                                   rage or carport.                                          tion material in conjunction with energy ef-
                                                                     k. Any structure insured under an NFIP                  ficient building techniques;
                                                                   Group Flood Insurance Policy.                               12. Fences, retaining walls, seawalls, bulk-
                                                                     l. Assessments made by a condominium as-                heads, wharves, piers, bridges, and docks;
                                                                   sociation on individual condominium unit                    13. Aircraft or watercraft, or their fur-
                                                                   owners to pay increased costs of repairing                nishings and equipment;
                                                                   commonly owned buildings after a flood in                   14. Hot tubs and spas that are not bath-
                                                                   compliance with State or local floodplain                 room fixtures, and swimming pools, and
                                                                   management ordinances or laws.                            their equipment such as, but not limited to,
                                                                     6. Other Provisions.                                    heaters, filters, pumps, and pipes, wherever
                                                                     All other conditions and provisions of the              located;
                                                                   policy apply.                                               15. Property not eligible for flood insur-
                                                                                                                             ance pursuant to the provisions of the Coast-
                                                                              IV. PROPERTY NOT COVERED
                                                                                                                             al Barrier Resources Act and the Coastal
                                                                     A. We do not cover any of the following                 Barrier Improvement Act of 1990 and amend-
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                                                                   property:                                                 ments to these Acts;

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(2)
                                                                     16. Personal property owned by or in the                  (2) Failures, stoppages, or breakage of
                                                                   care, custody or control of a unit owner, ex-             water or sewer lines, drains, pumps, fixtures,
                                                                   cept for property of the type and under the               or equipment; or
                                                                   circumstances set forth under III. Coverage                 (3) Failure to inspect and maintain the
                                                                   B—Personal Property of this policy;                       property after a flood recedes;
                                                                     17. A residential condominium building lo-                5. Water or water-borne material that:
                                                                   cated in a Regular Program community.                       a. Backs up through sewers or drains;
                                                                                                                               b. Discharges or overflows from a sump,
                                                                                      V. EXCLUSIONS                          sump pump, or related equipment; or
                                                                     A. We only provide coverage for direct                    c. Seeps or leaks on or through the covered
                                                                   physical loss by or from flood, which means               property;
                                                                   that we do not pay you for:                               unless there is a flood in the area and the
                                                                     1. Loss of revenue or profits;                          flood is the proximate cause of the sewer or
                                                                     2. Loss of access to the insured property or            drain backup, sump pump discharge or over-
                                                                   described location;                                       flow, or the seepage of water;
                                                                     3. Loss of use of the insured property or de-             6. The pressure or weight of water unless
                                                                   scribed location;                                         there is a flood in the area and the flood is
                                                                     4. Loss from interruption of business or                the proximate cause of the damage from the
                                                                   production;                                               pressure or weight of water;
                                                                     5. Any additional expenses incurred while                 7. Power, heating, or cooling failure unless
                                                                   the insured building is being repaired or is              the failure results from direct physical loss
                                                                   unable to be occupied for any reason;                     by or from flood to power, heating, or cool-
                                                                     6. The cost of complying with any ordi-                 ing equipment situated on the described lo-
                                                                   nance or law requiring or regulating the con-             cation;
                                                                   struction, demolition, remodeling, renova-                  8. Theft, fire, explosion, wind, or wind-
                                                                   tion or repair of property, including removal             storm;
                                                                   of any resulting debris. This exclusion does                9. Anything that you or your agents do or
                                                                   not apply to any eligible activities that we              conspire to do to cause loss by flood delib-
                                                                   describe in Coverage D—Increased Cost of                  erately; or
                                                                   Compliance; or                                              10. Alteration of the insured property that
                                                                     7. Any other economic loss you suffer.                  significantly increases the risk of flooding.
                                                                     B. We do not insure a loss directly or indi-              E. We do not insure for loss to any building
                                                                   rectly caused by a flood that is already in               or personal property located on land leased
                                                                   progress at the time and date:                            from the Federal Government, arising from
                                                                     1. The policy term begins; or                           or incident to the flooding of the land by the
                                                                     2. Coverage is added at your request.                   Federal Government, where the lease ex-
                                                                     C. We do not insure for loss to property                pressly holds the Federal Government harm-
                                                                   caused directly by earth movement even if                 less under flood insurance issued under any
                                                                   the earth movement is caused by flood. Some               Federal Government program.
                                                                   examples of earth movement that we do not                                  VI. DEDUCTIBLES
                                                                   cover are:
                                                                     1. Earthquake;                                            A. When a loss is covered under this policy,
                                                                     2. Landslide;                                           we will pay only that part of the loss that
                                                                     3. Land subsidence;                                     exceeds the applicable deductible amount,
                                                                     4. Sinkholes;                                           subject to the limit of liability that applies.
                                                                     5. Destabilization or movement of land                  The deductible amount is shown on the Dec-
                                                                   that results from accumulation of water in                larations Page.
                                                                   subsurface land areas; or                                   However, when a building under construc-
                                                                     6. Gradual erosion.                                     tion, alteration, or repair does not have at
                                                                     We do, however, pay for losses from mud-                least two rigid exterior walls and a fully se-
                                                                   flow and land subsidence as a result of ero-              cured roof at the time of loss, your deduct-
                                                                   sion that are specifically covered under our              ible amount will be two times the deductible
                                                                   definition of flood (see A.1.c. and II.A.2.).             that would otherwise apply to a completed
                                                                     D. We do not insure for direct physical loss            building.
                                                                   caused directly or indirectly by:                           B. In each loss from flood, separate
                                                                     1. The pressure or weight of ice;                       deductibles apply to the building and per-
                                                                     2. Freezing or thawing;                                 sonal property insured by this policy.
                                                                     3. Rain, snow, sleet, hail, or water spray;               C. No deductible applies to:
                                                                     4. Water, moisture, mildew, or mold dam-                  1. III.C.2. Loss Avoidance Measures; or
                                                                   age that results primarily from any condi-                  2. III.D. Increased Cost of Compliance.
                                                                   tion:
                                                                     a. Substantially confined to the insured                            VII. GENERAL CONDITIONS
                                                                   building; or
                                                                                                                                           A. Pair and Set Clause
                                                                     b. That is within your control including,
                                                                   but not limited to:                                         In case of loss to an article that is part of
                                                                     (1) Design, structural, or mechanical de-               a pair or set, we will have the option of pay-
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                                                                   fects;                                                    ing you:

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     1. An amount equal to the cost of replacing             the amount of insurance under this policy
                                                                   the lost, damaged, or destroyed article, less             bears to the total amount of both policies,
                                                                   depreciation, or                                          for the remainder of the loss.
                                                                     2. An amount which represents the fair                    2. Where this policy covers a condominium
                                                                   proportion of the total value of the pair or              association and there is a flood insurance
                                                                   set that the lost, damaged, or destroyed arti-            policy in the name of a unit owner that cov-
                                                                   cle bears to the pair or set.                             ers the same loss as this policy, then this
                                                                                                                             policy will be primary.
                                                                    B. Concealment or Fraud and Policy Voidance
                                                                                                                                   D. Amendments, Waivers, Assignment
                                                                     1. With respect to all insureds under this
                                                                   policy, this policy:                                        This policy cannot be changed nor can any
                                                                     a. Is void,                                             of its provisions be waived without the ex-
                                                                     b. Has no legal force or effect,                        press written consent of the Federal Insur-
                                                                     c. Cannot be renewed, and                               ance Administrator. No action that we take
                                                                     d. Cannot be replaced by a new NFIP pol-                under the terms of this policy can constitute
                                                                   icy, if, before or after a loss, you or any               a waiver of any of our rights. You may as-
                                                                   other insured or your agent have at any                   sign this policy in writing when you transfer
                                                                   time:                                                     title of your property to someone else except
                                                                     (1) Intentionally concealed or misrepre-                under these conditions:
                                                                   sented any material fact or circumstance,                   1. When this policy covers only personal
                                                                     (2) Engaged in fraudulent conduct, or                   property; or
                                                                     (3) Made false statements relating to this                2. When this policy covers a structure dur-
                                                                   policy or any other NFIP insurance.                       ing the course of construction.
                                                                     2. This policy will be void as of the date
                                                                                                                                     E. Cancellation of Policy by You
                                                                   wrongful acts described in B.1. above were
                                                                   committed.                                                  1. You may cancel this policy in accord-
                                                                     3. Fines, civil penalties, and imprisonment             ance with the applicable rules and regula-
                                                                   under applicable Federal laws may also                    tions of the NFIP.
                                                                   apply to the acts of fraud or concealment de-               2. If you cancel this policy, you may be en-
                                                                   scribed above.                                            titled to a full or partial refund of premium
                                                                     4. This policy is also void for reasons other           also under the applicable rules and regula-
                                                                   than fraud, misrepresentation, or wrongful                tions of the NFIP.
                                                                   act. This policy is void from its inception
                                                                   and has no legal force under the following                       F. Non-Renewal of the Policy by Us
                                                                   conditions:                                                 Your policy will not be renewed:
                                                                     a. If the property is located in a commu-                 1. If the community where your covered
                                                                   nity that was not participating in the NFIP               property is located stops participating in the
                                                                   on the policy’s inception date and did not                NFIP; or
                                                                   join or re-enter the program during the pol-                2. If your building has been declared ineli-
                                                                   icy term and before the loss occurred; or                 gible under section 1316 of the Act.
                                                                     b. If the property listed on the application
                                                                   is otherwise not eligible for coverage under                 G. Reduction and Reformation of Coverage
                                                                   the NFIP.                                                   1. If the premium we received from you was
                                                                                    C. Other Insurance                       not enough to buy the kind and amount of
                                                                                                                             coverage that you requested, we will provide
                                                                     1. If a loss covered by this policy is also             only the amount of coverage that can be pur-
                                                                   covered by other insurance that includes                  chased for the premium payment we re-
                                                                   flood coverage not issued under the Act, we               ceived.
                                                                   will not pay more than the amount of insur-                 2. The policy can be reformed to increase
                                                                   ance that you are entitled to for lost, dam-              the amount of coverage resulting from the
                                                                   aged, or destroyed property insured under                 reduction described in G.1. above to the
                                                                   this policy subject to the following:                     amount you requested as follows:
                                                                     a. We will pay only the proportion of the                 a. Discovery of Insufficient Premium or In-
                                                                   loss that the amount of insurance that ap-                complete Rating Information Before a Loss.
                                                                   plies under this policy bears to the total                  (1) If we discover before you have a flood
                                                                   amount of insurance covering the loss, un-                loss that your premium payment was not
                                                                   less C.1.b. or c. below applies.                          enough to buy the requested amount of cov-
                                                                     b. If the other policy has a provision stat-            erage, we will send you and any mortgagee
                                                                   ing that it is excess insurance, this policy              or trustee known to us a bill for the required
                                                                   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 mort-
                                                                   as described 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
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                                                                   will participate in the same proportion that              will reform the policy to increase the

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                                                                   Federal Emergency Management Agency, DHS                                                 Pt. 61, App. A(2)
                                                                   amount of coverage to the originally re-                  Service, or if we did mail it, we made a mis-
                                                                   quested amount effective to the beginning of              take, e.g., we used an incorrect, incomplete,
                                                                   the current policy term (or subsequent date               or illegible address, which delayed its deliv-
                                                                   of any endorsement changing the amount of                 ery to you before the due date for the re-
                                                                   coverage).                                                newal premium, then we will follow these
                                                                     (2) If we determine before you have a flood             procedures:
                                                                   loss that the rating information we have is                 a. If you or your agent notified us, not
                                                                   incomplete and prevents us from calculating               later than one year after the date on which
                                                                   the additional premium, we will ask you to                the payment of the renewal premium was
                                                                   send the required information. You must                   due, of nonreceipt of a renewal notice before
                                                                   submit the information within 60 days of our              the due date for the renewal premium, and
                                                                   request. Once we determine the amount of                  we determine that the circumstances in the
                                                                   additional premium for the current policy                 preceding paragraph apply, we will mail a
                                                                   term, we will follow the procedure in                     second bill providing a revised due date,
                                                                   G.2.a.(1) above.                                          which will be 30 days after the date on which
                                                                     (3) If we do not receive the additional pre-            the bill is mailed.
                                                                   mium (or additional information) by the                     b. If we do not receive the premium re-
                                                                   date it is due, the amount of coverage can                quested in the second bill by the revised due
                                                                   only be increased by endorsement subject to               date, then we will not renew the policy. In
                                                                   any appropriate waiting period.                           that case, the policy will remain as an ex-
                                                                     b. Discovery of Insufficient Premium or In-             pired policy as of the expiration date shown
                                                                   complete Rating Information After a Loss.                 on the Declarations Page.
                                                                     (1) If we discover after you have a flood
                                                                                                                               4. In connection with the renewal of this
                                                                   loss that your premium payment was not
                                                                                                                             policy, we may ask you during the policy
                                                                   enough to buy the requested amount of cov-
                                                                                                                             term to re-certify, on a Recertification Ques-
                                                                   erage, we will send you and any mortgagee
                                                                                                                             tionnaire that we will provide to you, the
                                                                   or trustee known to us a bill for the required
                                                                   additional premium for the current and the                rating information used to rate your most
                                                                   prior policy terms. If you or the mortgagee               recent application for or renewal of insur-
                                                                   or trustee pay the additional premium with-               ance.
                                                                   in 30 days of the date of our bill, we will re-                I. Conditions Suspending or Restricting
                                                                   form the policy to increase the amount of                                     Insurance
                                                                   coverage to the originally requested amount
                                                                   effective to the beginning of the prior policy              We are not liable for loss that occurs while
                                                                   term.                                                     there is a hazard that is increased by any
                                                                     (2) If we discover after you have a flood               means within your control or knowledge.
                                                                   loss that the rating information we have is
                                                                   incomplete and prevents us from calculating                           J. Requirements in Case of Loss
                                                                   the additional premium, we will ask you to                  In case of a flood loss to insured property,
                                                                   send the required information. You must                   you must:
                                                                   submit the information before your claim
                                                                                                                               1. Give prompt written notice to us;
                                                                   can be paid. Once we determine the amount
                                                                   of additional premium for the current and                   2. As soon as reasonably possible, separate
                                                                   prior policy terms, we will follow the proce-             the damaged and undamaged property, put-
                                                                   dure in G.2.b.(1) above.                                  ting it in the best possible order so that we
                                                                     (3) If we do not receive the additional pre-            may examine it;
                                                                   mium by the date it is due, your flood insur-               3. Prepare an inventory of damaged prop-
                                                                   ance claim will be settled based on the re-               erty showing the quantity, description, ac-
                                                                   duced amount of coverage. The amount of                   tual cash value, and amount of loss. Attach
                                                                   coverage can only be increased by endorse-                all bills, receipts, and related documents;
                                                                   ment subject to any appropriate waiting pe-                 4. Within 60 days after the loss, send us a
                                                                   riod.                                                     proof of loss, which is your statement of the
                                                                     3. However, if we find that you or your                 amount you are claiming under the policy
                                                                   agent intentionally did not tell us, or fal-              signed and sworn to by you, and which fur-
                                                                   sified, any important fact or circumstance or             nishes us with the following information:
                                                                   did anything fraudulent relating to this in-                a. The date and time of loss;
                                                                   surance, the provisions of Condition B. above               b. A brief explanation of how the loss hap-
                                                                   apply.                                                    pened;
                                                                                                                               c. Your interest (for example, ‘‘owner’’)
                                                                                    H. Policy Renewal                        and the interest, if any, of others in the dam-
                                                                     1. This policy will expire at 12:01 a.m. on             aged property;
                                                                   the last day of the policy term.                            d. Details of any other insurance that may
                                                                     2. We must receive the payment of the ap-               cover the loss;
                                                                   propriate renewal premium within 30 days of                 e. Changes in title or occupancy of the in-
                                                                   the expiration date.                                      sured property during the term of the policy;
                                                                     3. If we find, however, that we did not place             f. Specifications of damaged buildings and
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                                                                   your renewal notice into the U.S. Postal                  detailed repair estimates;

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     g. Names of mortgagees or anyone else                     d. Any written plans and specifications for
                                                                   having a lien, charge, or claim against the               repair of the damaged property that you can
                                                                   insured property;                                         reasonably make available to us; and
                                                                     h. Details about who occupied any insured                 e. Evidence that prior flood damage has
                                                                   building at the time of loss and for what pur-            been repaired.
                                                                   pose; and                                                   3. If we give you written notice within 30
                                                                     i. The inventory of damaged property de-                days after we receive your signed, sworn
                                                                   scribed in J.3. above.                                    proof of loss, we may:
                                                                     5. In completing the proof of loss, you must              a. Repair, rebuild, or replace any part of
                                                                   use your own judgment concerning the                      the lost, damaged, or destroyed property
                                                                   amount of loss and justify that amount.                   with material or property of like kind and
                                                                     6. You must cooperate with the adjuster or              quality or its functional equivalent; and
                                                                                                                               b. Take all or any part of the damaged
                                                                   representative in the investigation of the
                                                                                                                             property at the value that we agree upon or
                                                                   claim.
                                                                                                                             its appraised value.
                                                                     7. The insurance adjuster whom we hire to
                                                                   investigate your claim may furnish you with                             L. No Benefit to Bailee
                                                                   a proof of loss form, and she or he may help
                                                                   you complete it. However, this is a matter of               No person or organization, other than you,
                                                                   courtesy only, and you must still send us a               having custody of covered property will ben-
                                                                   proof of loss within sixty days after the loss            efit from this insurance.
                                                                   even if the adjuster does not furnish the                                  M. Loss Payment
                                                                   form or help you complete it.
                                                                     8. We have not authorized the adjuster to                  1. We will adjust all losses with you. We
                                                                   approve or disapprove claims or to tell you               will pay you unless some other person or en-
                                                                   whether we will approve your claim.                       tity is named in the policy or is legally enti-
                                                                     9. At our option, we may accept the adjust-             tled to receive payment. Loss will be payable
                                                                   er’s report of the loss instead of your proof of          60 days after we receive your proof of loss (or
                                                                   loss. The adjuster’s report will include infor-           within 90 days after the insurance adjuster
                                                                   mation about your loss and the damages you                files an adjuster’s report signed and sworn to
                                                                   sustained. You must sign the adjuster’s re-               by you in lieu of a proof of loss) and:
                                                                   port. At our option, we may require you to                   a. We reach an agreement with you;
                                                                   swear to the report.                                         b. There is an entry of a final judgment; or
                                                                                                                                c. There is a filing of an appraisal award
                                                                               K. Our Options After a Loss                   with us, as provided in VII. P.
                                                                                                                                2. If we reject your proof of loss in whole or
                                                                     Options we may, in our sole discretion, ex-             in part you may:
                                                                   ercise after loss include the following:                     a. Accept such denial of your claim;
                                                                     1. At such reasonable times and places that                b. Exercise your rights under this policy;
                                                                   we may designate, you must:                               or
                                                                     a. Show us or our representative the dam-                  c. File an amended proof of loss as long as
                                                                   aged property;                                            it is filed within 60 days of the date of the
                                                                     b. Submit to examination under oath,                    loss.
                                                                   while not in the presence of another insured,
                                                                   and sign the same; and                                                     N. Abandonment
                                                                     c. Permit us to examine and make extracts                You may not abandon damaged                  or
                                                                   and copies of:                                            undamaged insured property to us.
                                                                     (1) Any policies of property insurance in-
                                                                   suring you against loss and the deed estab-                                   O. Salvage
                                                                   lishing your ownership of the insured real                  We may permit you to keep damaged in-
                                                                   property;                                                 sured property after a loss, and we will re-
                                                                     (2) Condominium association documents                   duce the amount of the loss proceeds payable
                                                                   including the Declarations of the condo-                  to you under the policy by the value of the
                                                                   minium, its Articles of Association or Incor-             salvage.
                                                                   poration, Bylaws, and rules and regulations;
                                                                   and                                                                          P. Appraisal
                                                                     (3) All books of accounts, bills, invoices,               If you and we fail to agree on the actual
                                                                   and other vouchers, or certified copies per-              cash value of the damaged property so as to
                                                                   taining to the damaged property if the origi-             determine the amount of loss, either may de-
                                                                   nals are lost.                                            mand an appraisal of the loss. In this event,
                                                                     2. We may request, in writing, that you                 you and we will each choose a competent and
                                                                   furnish us with a complete inventory of the               impartial appraiser within 20 days after re-
                                                                   lost, damaged, or destroyed property, includ-             ceiving a written request from the other.
                                                                   ing:                                                      The two appraisers will choose an umpire. If
                                                                     a. Quantities and costs;                                they cannot agree upon an umpire within 15
                                                                     b. Actual cash values;                                  days, you or we may request that the choice
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                                                                     c. Amounts of loss claimed;                             be made by a judge of a court of record in the

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(2)
                                                                   state where the insured property is located.              have under this policy and to any dispute
                                                                   The appraisers will separately state the ac-              that you may have arising out of the han-
                                                                   tual cash value and the amount of loss to                 dling of any claim under the policy.
                                                                   each item. If the appraisers submit a written
                                                                   report of an agreement to us, the amount                                    S. Subrogation
                                                                   agreed upon will be the amount of loss. If                  Whenever we make a payment for a loss
                                                                   they fail to agree, they will submit their dif-           under this policy, we are subrogated to your
                                                                   ferences to the umpire. A decision agreed to              right to recover for that loss from any other
                                                                   by any two will set the amount of actual                  person. That means that your right to re-
                                                                   cash value and loss.                                      cover for a loss that was partly or totally
                                                                     Each party will:                                        caused by someone else is automatically
                                                                     1. Pay its own appraiser; and                           transferred to us, to the extent that we have
                                                                     2. Bear the other expenses of the appraisal             paid you for the loss. We may require you to
                                                                   and umpire equally.                                       acknowledge this transfer in writing. After
                                                                                                                             the loss, you may not give up our right to re-
                                                                                    Q. Mortgage Clause
                                                                                                                             cover this money or do anything that would
                                                                     The word ‘‘mortgagee’’ includes trustee.                prevent us from recovering it. If you make
                                                                     Any loss payable under Coverage A—Build-                any claim against any person who caused
                                                                   ing Property will be paid to any mortgagee                your loss and recover any money, you must
                                                                   of whom we have actual notice, as well as                 pay us back first before you may keep any of
                                                                   any other mortgagee or loss payee deter-                  that money.
                                                                   mined to exist at the time of loss, and you,
                                                                   as interests appear. If more than one mort-                           T. Continuous Lake Flooding
                                                                   gagee is named, the order of payment will be                1. If an insured building has been flooded
                                                                   the same as the order of precedence of the                by rising lake waters continuously for 90
                                                                   mortgages. If we deny your claim, that de-                days or more and it appears reasonably cer-
                                                                   nial will not apply to a valid claim of the               tain that a continuation of this flooding will
                                                                   mortgagee, if the mortgagee:                              result in a covered loss to the insured build-
                                                                     1. Notifies us of any change in the owner-              ing equal to or greater than the building pol-
                                                                   ship or occupancy, or substantial change in               icy limits plus the deductible or the max-
                                                                   risk of which the mortgagee is aware;                     imum payable under the policy for any one
                                                                     2. Pays any premium due under this policy               building loss, we will pay you the lesser of
                                                                   on demand if you have neglected to pay the                these two amounts without waiting for the
                                                                   premium; and                                              further damage to occur if you sign a release
                                                                     3. Submits a signed, sworn proof of loss                agreeing:
                                                                   within 60 days after receiving notice from us               a. To make no further claim under this
                                                                   of your failure to do so.                                 policy;
                                                                     All terms of this policy apply to the mort-               b. Not to seek renewal of this policy;
                                                                   gagee.                                                      c. Not to apply for any flood insurance
                                                                     The mortgagee has the right to receive loss             under the Act for property at the described
                                                                   payment even if the mortgagee has started                 location; and
                                                                   foreclosure or similar action on the building.              d. Not to seek a premium refund for cur-
                                                                     If we decide to cancel or not renew this                rent or prior terms.
                                                                   policy, it will continue in effect for the ben-             If the policy term ends before the insured
                                                                   efit of the mortgagee only for 30 days after              building has been flooded continuously for 90
                                                                   we notify the mortgagee of the cancellation               days, the provisions of this paragraph T.1.
                                                                   or non-renewal.                                           will apply when as the insured building suf-
                                                                     If we pay the mortgagee for any loss and                fers a covered loss before the policy term
                                                                   deny payment to you, we are subrogated to                 ends.
                                                                   all the rights of the mortgagee granted                     2. If your insured building is subject to
                                                                   under the mortgage on the property. Sub-                  continuous lake flooding from a closed basin
                                                                   rogation will not impair the right of the                 lake, you may elect to file a claim under ei-
                                                                   mortgagee to recover the full amount of the               ther paragraph T.1. above or this paragraph
                                                                   mortgagee’s claim.                                        T.2. (A ‘‘closed basin lake’’ is a natural lake
                                                                                                                             from which water leaves primarily through
                                                                                    R. Suit Against Us
                                                                                                                             evaporation and whose surface area now ex-
                                                                     You may not sue us to recover money                     ceeds or has exceeded one square mile at any
                                                                   under this policy unless you have complied                time in the recorded past. Most of the na-
                                                                   with all the requirements of the policy. If               tion’s closed basin lakes are in the western
                                                                   you do sue, you must start the suit within                half of the United States, where annual evap-
                                                                   one year of the date of the written denial of             oration exceeds annual precipitation and
                                                                   all or part of the claim, and you must file               where lake levels and surface areas are sub-
                                                                   the suit in the United States District Court              ject to considerable fluctuation due to wide
                                                                   of the district in which the insured property             variations in the climate. These lakes may
                                                                   was located at the time of loss. This require-            overtop their basins on rare occasions.)
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                                                                   ment applies to any claim that you may                    Under this paragraph T.2 we will pay your

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                                                                   Pt. 61, App. A(2)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   claim as if the building is a total loss even               (3) Agree to maintain as deed-restricted,
                                                                   though it has not been continuously inun-                 for purposes compatible with open space or
                                                                   dated for 90 days, subject to the following               agricultural or recreational use only, any af-
                                                                   conditions:                                               fected property the community acquires an
                                                                     a. Lake flood waters must damage or im-                 interest in. These deed restrictions must be
                                                                   minently threaten to damage your building.                consistent with the provisions of paragraph
                                                                     b. Before approval of your claim, you must:             T.2.b. above except that even if a certified
                                                                     (1) Agree to a claim payment that reflects              project protects the property, the land use
                                                                   your buying back the salvage on a nego-                   restrictions continue to apply if the property
                                                                   tiated basis; and                                         was acquired under the Hazard Mitigation
                                                                     (2) Grant the conservation easement de-                 Grant Program or the Flood Mitigation As-
                                                                   scribed in FEMA’s ‘‘Policy Guidance for                   sistance Program. If a non-profit land trust
                                                                   Closed Basin Lakes,’’ to be recorded in the               organization receives the property as a dona-
                                                                   office of the local recorder of deeds. FEMA,              tion, that organization must maintain the
                                                                   in consultation with the community in                     property as deed-restricted, consistent with
                                                                   which the property is located, will identify              the provisions of paragraph T.2.b. above.
                                                                   on a map an area or areas of special consid-                f. Before the approval of your claim, the af-
                                                                   eration (ASC) in which there is a potential               fected State must take all action set forth in
                                                                   for flood damage from continuous lake flood-              FEMA’s ‘‘Policy Guidance for Closed Basin
                                                                   ing. FEMA will give the community the                     Lakes.’’
                                                                   agreed-upon map showing the ASC. This                       g. You must have NFIP flood insurance
                                                                   easement will only apply to that portion of               coverage continuously in effect from a date
                                                                   the property in the ASC. It will allow certain            established by FEMA until you file a claim
                                                                   agricultural and recreational uses of the                 under this paragraph T.2. If a subsequent
                                                                   land. The only structures that it will allow              owner buys NFIP insurance that goes into
                                                                   on any portion of the property within the                 effect within 60 days of the date of transfer
                                                                   ASC are certain, simple agricultural and rec-             of title, any gap in coverage during that 60-
                                                                   reational structures. If any of these allow-              day period will not be a violation of this con-
                                                                   able structures are insurable buildings under             tinuous coverage requirement. For the pur-
                                                                   the NFIP and are insured under the NFIP,                  pose of honoring a claim under this para-
                                                                   they will not be eligible for the benefits of             graph T.2, we will not consider to be in effect
                                                                   this paragraph T.2. If a U.S. Army Corps of               any increased coverage that became effective
                                                                   Engineers certified flood control project or              after the date established by FEMA. The ex-
                                                                   otherwise certified flood control project                 ception to this is any increased coverage in
                                                                   later protects the property, FEMA will, upon              the amount suggested by your insurer as an
                                                                   request, amend the ASC to remove areas pro-               inflation adjustment.
                                                                   tected by those projects. The restrictions of               h. This paragraph T.2. will be in effect for
                                                                   the easement will then no longer apply to                 a community when the FEMA Regional Di-
                                                                   any portion of the property removed from                  rector for the affected region provides to the
                                                                   the ASC; and                                              community, in writing, the following:
                                                                     (3) Comply with paragraphs T.1.a. through                 (1) Confirmation that the community and
                                                                   T.1.d. above.                                             the State are in compliance with the condi-
                                                                     c. Within 90 days of approval of your claim,            tions in paragraphs T.2.e. and T.2.f. above,
                                                                   you must move your building to a new loca-                and
                                                                   tion outside the ASC. FEMA will give you an                 (2) The date by which you must have flood
                                                                   additional 30 days to move if you show that               insurance in effect.
                                                                   there is sufficient reason to extend the time.
                                                                     d. Before the final payment of your claim,                      U. Duplicate Policies Not Allowed
                                                                   you must acquire an elevation certificate                   1. Property may not be insured under more
                                                                   and a floodplain development permit from                  than one NFIP policy.
                                                                   the local floodplain administrator for the                  If we find that the duplication was not
                                                                   new location of your building.                            knowingly created, we will give you written
                                                                     e. Before the approval of your claim, the               notice. The notice will advise you that you
                                                                   community having jurisdiction over your                   may choose one of several options under the
                                                                   building must:                                            following procedures:
                                                                     (1) Adopt a permanent land use ordinance,                 a. If you choose to keep in effect the policy
                                                                   or a temporary moratorium for a period not                with the earlier effective date, you may also
                                                                   to exceed 6 months to be followed imme-                   choose to add the coverage limits of the later
                                                                   diately by a permanent land use ordinance,                policy to the limits of the earlier policy. The
                                                                   that is consistent with the provisions speci-             change will become effective as of the effec-
                                                                   fied in the easement required in paragraph                tive date of the later policy.
                                                                   T.2.b. above.                                               b. If you choose to keep in effect the policy
                                                                     (2) Agree to declare and report any viola-              with the later effective date, you may also
                                                                   tions of this ordinance to FEMA so that                   choose to add the coverage limits of the ear-
                                                                   under Sec. 1316 of the National Flood Insur-              lier policy to the limits of the later policy.
                                                                   ance Act of 1968, as amended, flood insurance             The change will be effective as of the effec-
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                                                                   to the building can be denied; and                        tive date of the later policy.

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                                                                   Federal Emergency Management Agency, DHS                                                Pt. 61, App. A(3)
                                                                     In either case, you must pay the pro rata                           APPENDIX A(3) TO PART 61
                                                                   premium for the increased coverage limits
                                                                   within 30 days of the written notice. In no                FEDERAL EMERGENCY MANAGEMENT AGENCY
                                                                   event will the resulting coverage limits ex-                 FEDERAL INSURANCE ADMINISTRATION
                                                                   ceed the permissible limits of coverage under                  STANDARD FLOOD INSURANCE POLICY
                                                                   the Act or your insurable interest, whichever
                                                                   is less. We will make a refund to you, accord-             RESIDENTIAL CONDOMINIUM BUILDING
                                                                   ing to applicable NFIP rules, of the premium                      ASSOCIATION POLICY
                                                                   for the policy not being kept in effect.
                                                                                                                                                I. AGREEMENT
                                                                     2. Your option under this Condition U. Du-
                                                                   plicate Policies Not Allowed to elect which                 Please read the policy carefully. The flood
                                                                   NFIP policy to keep in effect does not apply              insurance provided is subject to limitations,
                                                                   when duplicates have been knowingly cre-                  restrictions, and exclusions.
                                                                   ated. Losses occurring under such cir-                      This policy covers only a residential con-
                                                                   cumstances will be adjusted according to the              dominium building in a regular program
                                                                   terms and conditions of the earlier policy.               community. If the community reverts to
                                                                   The policy with the later effective date must             emergency program status during the policy
                                                                   be canceled.                                              term and remains as an emergency program
                                                                                                                             community at time of renewal, this policy
                                                                                    V. Loss Settlement                       cannot be renewed.
                                                                                                                               The Federal Emergency Management
                                                                     We will pay the least of the following                  Agency (FEMA) provides flood insurance
                                                                   amounts after application of the deductible:              under the terms of the National Flood Insur-
                                                                     1. The applicable amount of insurance                   ance Act of 1968 and its Amendments, and
                                                                   under this policy;                                        Title 44 of the Code of Federal Regulations.
                                                                     2. The actual cash value; or                              We will pay you for direct physical loss by
                                                                     3. The amount it would cost to repair or re-            or from flood to your insured property if
                                                                   place the property with material of like kind             you:
                                                                                                                               1. Have paid the correct premium;
                                                                   and quality within a reasonable time after
                                                                                                                               2. Comply with all terms and conditions of
                                                                   the loss.
                                                                                                                             this policy; and
                                                                              VIII. LIBERALIZATION CLAUSE                      3. Have furnished accurate information and
                                                                                                                             statements.
                                                                     If we make a change that broadens your                    We have the right to review the informa-
                                                                   coverage under this edition of our policy, but            tion you give us at any time and to revise
                                                                   does not require any additional premium,                  your policy based on our review.
                                                                   then that change will automatically apply to
                                                                                                                                               II. DEFINITIONS
                                                                   your insurance as of the date we implement
                                                                   the change, provided that this implementa-                  A. In this policy, ‘‘you’’ and ‘‘your’’ refer
                                                                   tion date falls within 60 days before or dur-             to the insured(s) shown on the Declarations
                                                                   ing the policy term stated on the Declara-                Page of this policy. Insured(s) includes: any
                                                                   tions Page.                                               mortgagee and loss payee named in the Ap-
                                                                                                                             plication and Declarations Page, as well as
                                                                                 IX. WHAT LAW GOVERNS                        any other mortgagee or loss payee deter-
                                                                                                                             mined to exist at the time of loss in the
                                                                     This policy and all disputes arising from               order of precedence. ‘‘We,’’ ‘‘us,’’ and ‘‘our’’
                                                                   the handling of any claim under the policy                refer to the insurer.
                                                                   are governed exclusively by the flood insur-                Some definitions are complex because they
                                                                   ance regulations issued by FEMA, the Na-                  are provided as they appear in the law or
                                                                   tional Flood Insurance Act of 1968, as amend-             regulations, or result from court cases. The
                                                                   ed (42 U.S.C. 4001, et seq.), and Federal com-            precise definitions are intended to protect
                                                                   mon law.                                                  you.
                                                                     In Witness Whereof, we have signed this pol-              ‘‘Flood’’, as used in this flood insurance
                                                                   icy below and hereby enter into this Insur-               policy, means:
                                                                   ance Agreement.                                             1. A general and temporary condition of
                                                                                                JO ANN HOWARD,               partial or complete inundation of two or
                                                                                                                             more acres of normally dry land area or of
                                                                                Administrator, Federal Insurance
                                                                                                                             two or more properties (one of which is your
                                                                                                  Administration.
                                                                                                                             property) from:
                                                                   [65 FR 60778, Oct. 12, 2000, as amended at 68               a. Overflow of inland or tidal waters;
                                                                   FR 9897, Mar. 3, 2003]                                      b. Unusual and rapid accumulation or run-
                                                                                                                             off of surface waters from any source;
                                                                                                                               c. Mudflow.
                                                                                                                               2. Collapse or subsidence of land along the
                                                                                                                             shore of a lake or similar body of water as a
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                                                                                                                             result of erosion or undermining caused by

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   waves or currents of water exceeding antici-              premium and our name. The Declarations
                                                                   pated cyclical levels which result in a flood             Page is a part of this flood insurance policy.
                                                                   as defined in A.1.a above.                                  11. Described Location. The location where
                                                                     B. The following are the other key defini-              the insured building or personal property is
                                                                   tions we use in this policy:                              found. The described location is shown on
                                                                     1. Act. The National Flood Insurance Act of             the Declarations Page.
                                                                   1968 and any amendments to it.                              12. Direct Physical Loss By or From Flood.
                                                                     2. Actual Cash Value. The cost to replace an            Loss or damage to insured property, directly
                                                                   insured item of property at the time of loss,             caused by a flood. There must be evidence of
                                                                   less the value of its physical depreciation.              physical changes to the property.
                                                                     3. Application. The statement made and                    13. Elevated Building. A building that has
                                                                   signed by you or your agent in applying for               no basement and that has its lowest elevated
                                                                   this policy. The application gives informa-               floor raised above ground level by foundation
                                                                   tion we use to determine the eligibility of               walls, shear walls, posts, piers, pilings, or
                                                                   the risk, the kind of policy to be issued, and            columns.
                                                                   the correct premium payment. The applica-                   14. Emergency Program. The initial phase of
                                                                   tion is part of this flood insurance policy.              a community’s participation in the National
                                                                   For us to issue you a policy, the correct pre-            Flood Insurance Program. During this phase,
                                                                   mium payment must accompany the applica-                  only limited amounts of insurance are avail-
                                                                   tion.                                                     able under the Act.
                                                                     4. Base Flood. A flood having a one percent               15. Expense Constant. A flat charge you
                                                                   chance of being equaled or exceeded in any                must pay on each new or renewal policy to
                                                                   given year.                                               defray the expenses of the Federal Govern-
                                                                     5. Basement. Any area of the building, in-              ment related to flood insurance.
                                                                   cluding any sunken room or sunken portion                   16. Federal Policy Fee. A flat charge you
                                                                   of a room, having its floor below ground                  must pay on each new or renewal policy to
                                                                   level (subgrade) on all sides.                            defray certain administrative expenses in-
                                                                     6. Building.                                            curred in carrying out the National Flood In-
                                                                     a. A structure with two or more outside                 surance Program. This fee covers expenses
                                                                   rigid walls and a fully secured roof, that is             not covered by the expense constant.
                                                                   affixed to a permanent site;                                17. Improvements. Fixtures, alterations, in-
                                                                     b. A manufactured home (‘‘a manufactured                stallations, or additions comprising a part of
                                                                   home,’’ also known as a mobile home, is a                 the residential condominium building, in-
                                                                   structure: built on a permanent chassis,                  cluding improvements in the units.
                                                                   transported to its site in one or more sec-                 18. Mudflow. A river of liquid and flowing
                                                                   tions, and affixed to a permanent founda-                 mud on the surfaces of normally dry land
                                                                   tion); or                                                 areas, as when earth is carried by a current
                                                                     c. A travel trailer without wheels, built on            of water. Other earth movements, such as
                                                                   a chassis and affixed to a permanent founda-              landslide, slope failure, or a saturated soil
                                                                   tion, that is regulated under the commu-                  mass moving by liquidity down a slope, are
                                                                   nity’s floodplain management and building                 not mudflows.
                                                                   ordinances or laws.                                         19. National Flood Insurance Program
                                                                     Building does not mean a gas or liquid stor-            (NFIP). The program of flood insurance cov-
                                                                   age tank or a recreational vehicle, park                  erage and floodplain management adminis-
                                                                   trailer or other similar vehicle, except as de-           tered under the Act and applicable Federal
                                                                   scribed in B.6.c., above.                                 regulations in Title 44 of the Code of Federal
                                                                     7. Cancellation. The ending of the insurance            Regulations, Subchapter B.
                                                                   coverage provided by this policy before the                 20. Policy. The entire written contract be-
                                                                   expiration date.                                          tween you and us. It includes:
                                                                     8. Condominium. That form of ownership of                 a. This printed form;
                                                                   real property in which each unit owner has                  b. The application and Declarations Page;
                                                                   an undivided interest in common elements.                   c. Any endorsement(s) that may be issued;
                                                                     9. Condominium Association. The entity,                 and
                                                                   formed by the unit owners, responsible for                  d. Any renewal certificate indicating that
                                                                   the maintenance and operation of:                         coverage has been instituted for a new policy
                                                                     a. Common elements owned in undivided                   and new policy term.
                                                                   shares by unit owners; and                                  Only one building, which you specifically
                                                                     b. Other real property in which the unit                described in the application, may be insured
                                                                   owners have use rights; where membership in               under this policy.
                                                                   the entity is a required condition of unit                  21. Pollutants. Substances that include, but
                                                                   ownership.                                                are not limited to, any solid, liquid, gaseous,
                                                                     10. Declarations Page. A computer-gen-                  or thermal irritant or contaminant, includ-
                                                                   erated summary of information you provided                ing smoke, vapor, soot, fumes, acids, alkalis,
                                                                   in the application for insurance. The Dec-                chemicals, and waste. Waste includes, but is
                                                                   larations Page also describes the term of the             not limited to, materials to be recycled, re-
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                                                                   policy, limits of coverage, and displays the              conditioned, or reclaimed.

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                                                                   Federal Emergency Management Agency, DHS                                                Pt. 61, App. A(3)
                                                                     22. Post-FIRM Building. A building for                     a. Awnings and canopies;
                                                                   which construction or substantial improve-                   b. Blinds;
                                                                   ment occurred after December 31, 1974, or on                 c. Carpet permanently installed over unfin-
                                                                   or after the effective date of an initial Flood            ished flooring;
                                                                   Insurance Rate Map (FIRM), whichever is                      d. Central air conditioners;
                                                                   later.                                                       e. Elevator equipment;
                                                                     23. Probation Premium. A flat charge you                   f. Fire extinguishing apparatus;
                                                                   must pay on each new or renewal policy                       g. Fire sprinkler systems;
                                                                   issued covering property in a community                      h. Walk-in freezers;
                                                                   that the NFIP has placed on probation under                  i. Furnaces;
                                                                   the provisions of 44 CFR 59.24.                              j. Light fixtures;
                                                                     24. Regular Program. The final phase of a                  k. Outdoor antennas and aerials fastened
                                                                   community’s participation in the National                  to buildings;
                                                                   Flood Insurance Program. In this phase, a                    l. Permanently installed cupboards, book-
                                                                   Flood Insurance Rate Map is in effect and                  cases, paneling, and wallpaper;
                                                                   full limits of coverage are available under                  m. Pumps and machinery for operating
                                                                   the Act.                                                   pumps;
                                                                     25. Residential Condominium Building. A                    n. Ventilating equipment;
                                                                   building, owned and administered as a condo-
                                                                                                                                o. Wall mirrors, permanently installed; and
                                                                   minium, containing one or more family units
                                                                                                                                p. In the units within the building, in-
                                                                   and in which at least 75% of the floor area is
                                                                                                                              stalled:
                                                                   residential.
                                                                                                                                (1) Built-in dishwashers;
                                                                     26. Special Flood Hazard Area. An area hav-
                                                                                                                                (2) Built-in microwave ovens;
                                                                   ing special flood or mudflow, and/or flood-re-
                                                                   lated erosion hazards, and shown on a Flood                  (3) Garbage disposal units;
                                                                   Hazard Boundary Map or Flood Insurance                       (4) Hot water heaters, including solar
                                                                   Rate Map as Zone A, AO, A1–A30, AE, A99,                   water heaters;
                                                                   AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/                       (5) Kitchen cabinets;
                                                                   A1–A30, V1–V30, VE, or V.                                    (6) Plumbing fixtures;
                                                                     27. Unit. A single-family unit in a residen-               (7) Radiators;
                                                                   tial condominium building.                                   (8) Ranges;
                                                                     28. Valued Policy. A policy in which the in-               (9) Refrigerators; and
                                                                   sured and the insurer agree on the value of                  (10) Stoves.
                                                                   the property insured, that value being pay-                  5. Materials and supplies to be used for
                                                                   able in the event of a total loss. The Stand-              construction, alteration or repair of the in-
                                                                   ard Flood Insurance Policy is not a valued                 sured building while the materials and sup-
                                                                   policy.                                                    plies are stored in a fully enclosed building
                                                                                                                              at the described location or on an adjacent
                                                                                  III. PROPERTY COVERED                       property.
                                                                                                                                6. A building under construction, alter-
                                                                              A. Coverage A—Building Property                 ation or repair at the described location.
                                                                     We insure against direct physical loss by                  a. If the structure is not yet walled or
                                                                   or from flood to:                                          roofed as described in the definition for
                                                                     1. The residential condominium building                  building (see II.B.6.a.), then coverage applies:
                                                                   described on the Declarations Page at the de-                (1) Only while such work is in progress; or
                                                                   scribed location, including all units within                 (2) If such work is halted, only for a period
                                                                   the building and the improvements within                   of up to 90 continuous days thereafter.
                                                                   the units.                                                   b. However, coverage does not apply until
                                                                     2. We also insure such building property for             the building is walled and roofed if the low-
                                                                   a period of 45 days at another location, as set            est floor, including the basement floor, of a
                                                                   forth in III.C.2.b., Property Removed to Safe-             non-elevated building or the lowest elevated
                                                                   ty.                                                        floor of an elevated building is:
                                                                     3. Additions and extensions attached to                    (1) Below the base flood elevation in Zones
                                                                   and in contact with the building by means of               AH, AE, A1–30, AR, AR/AE, AR/AH, AR/A1–
                                                                   a rigid exterior wall, a solid load-bearing in-            30, AR/A, AR/AO; or
                                                                   terior wall, a stairway, an elevated walkway,                (2) Below the base flood elevation adjusted
                                                                   or a roof. At your option, additions and ex-               to include the effect of wave action in Zones
                                                                   tensions connected by any of these methods                 VE or V1–30.
                                                                   may be separately insured. Additions and ex-                 The lowest floor levels are based on the
                                                                   tensions attached to and in contact with the               bottom of the lowest horizontal structural
                                                                   building by means of a common interior wall                member of the floor in Zones VE or V1–V30
                                                                   that is not a solid load-bearing wall are al-              and the top of the floor in Zones AH, AE, A1–
                                                                   ways considered part of the building and can-              A30, AR, AR/AE, AR/AH, AR/A1–A30, AR/A,
                                                                   not be separately insured.                                 AR/AO.
                                                                     4. The following fixtures, machinery and                   7. A manufactured home or a travel trailer
                                                                   equipment, including its units, which are                  as described in the Definitions Section (See
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                                                                   covered under Coverage A only:                             II.B.b. and c.).

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                                                                   Pt. 61, App. A(3)                                                       44 CFR Ch. I (10–1–07 Edition)
                                                                     If the manufactured home is in a special                 property in which each unit owner has an un-
                                                                   flood hazard area, it must be anchored in the              divided ownership interest; or
                                                                   following manner at the time of the loss:                    b. Owned solely by the condominium asso-
                                                                     a. By over-the-top or frame ties to ground               ciation and used exclusively in the conduct
                                                                   anchors; or                                                of the business affairs of the condominium
                                                                     b. In accordance with the manufacturer’s                 association.
                                                                   specifications; or                                           We also insure such personal property for
                                                                     c. In compliance with the community’s                    45 days while stored at a temporary location,
                                                                   floodplain management requirements unless                  as set forth in III.C.2.b., Property Removed
                                                                   it has been continuously insured by the                    to Safety.
                                                                   NFIP at the same described location since                    2. Coverage for personal property includes
                                                                   September 30, 1982.                                        the following property, subject to B.1. above,
                                                                     8. Items of property in a building enclosure             which is covered under Coverage B only:
                                                                   below the lowest elevated floor of an ele-                   a. Air conditioning units—portable or win-
                                                                   vated post-FIRM building located in zones                  dow type;
                                                                   A1–A30, AE, AH, AR, AR/A, AR/AE, AR/AH,                      b. Carpet, not permanently installed, over
                                                                   AR/A1–A30, V1–V30, or VE, or in a basement,                unfinished flooring;
                                                                   regardless of the zone. Coverage is limited to               c. Carpets over finished flooring;
                                                                   the following:                                               d. Clothes washers and dryers;
                                                                     a. Any of the following items, if installed                e. ‘‘Cook-out’’ grills;
                                                                   in their functioning locations and, if nec-                  f. Food freezers, other than walk-in, and
                                                                   essary for operation, connected to a power                 the food in any freezer;
                                                                   source:                                                      g. Outdoor equipment and furniture stored
                                                                     (1) Central air conditioners;                            inside the insured building;
                                                                     (2) Cisterns and the water in them;                        h. Ovens and the like; and
                                                                     (3) Drywall for walls and ceilings in a base-              i. Portable microwave ovens and portable
                                                                   ment and the cost of labor to nail it, unfin-              dishwashers.
                                                                   ished and unfloated and not taped, to the                    3. Coverage for items of property in a
                                                                   framing;                                                   building enclosure below the lowest elevated
                                                                     (4) Electrical junction and circuit breaker              floor of an elevated post-FIRM building lo-
                                                                   boxes;                                                     cated in zones A1–A30, AE, AH, AR, AR/A,
                                                                     (5) Electrical outlets and switches;                     AR/AE, AR/AH, AR/A1–A30, V1–V30, or VE, or
                                                                     (6) Elevators, dumbwaiters, and related                  in a basement, regardless of the zone, is lim-
                                                                   equipment, except for related equipment in-                ited to the following items, if installed in
                                                                   stalled below the base flood elevation after               their functioning locations and, if necessary
                                                                   September 30, 1987;                                        for operation, connected to a power source:
                                                                     (7) Fuel tanks and the fuel in them;                       a. Air conditioning units—portable or win-
                                                                     (8) Furnaces and hot water heaters;                      dow type;
                                                                     (9) Heat pumps;                                            b. Clothes washers and dryers; and
                                                                     (10) Nonflammable insulation in a base-                    c. Food freezers, other than walk-in, and
                                                                   ment;                                                      food in any freezer.
                                                                     (11) Pumps and tanks used in solar energy                  4. Special Limits. We will pay no more
                                                                   systems;                                                   than $2,500 for any one loss to one or more of
                                                                     (12) Stairways and staircases attached to                the following kinds of personal property:
                                                                   the building, not separated from it by ele-                  a. Artwork, photographs, collectibles, or
                                                                   vated walkways;                                            memorabilia, including but not limited to,
                                                                     (13) Sump pumps;                                         porcelain or other figures, and sports cards;
                                                                     (14) Water softeners and the chemicals in                  b. Rare books or autographed items;
                                                                   them, water filters and faucets installed as                 c. Jewelry, watches, precious and semi-pre-
                                                                   an integral part of the plumbing system;                   cious stones, or articles of gold, silver, or
                                                                     (15) Well water tanks and pumps;                         platinum;
                                                                     (16) Required utility connections for any                  d. Furs or any article containing fur which
                                                                   item in this list; and                                     represents its principal value.
                                                                     (17) Footings, foundations, posts, pilings,                5. We will pay only for the functional value
                                                                   piers, or other foundation walls and anchor-               of antiques.
                                                                   age systems required to support a building.
                                                                     b. Clean-up.                                                     C. Coverage C—Other Coverages
                                                                                                                                1. Debris Removal
                                                                              B. Coverage B—Personal Property
                                                                                                                                a. We will pay the expense to remove non-
                                                                     1. If you have purchased personal property               owned debris that is on or in insured prop-
                                                                   coverage, we insure, subject to B.2. and B.3.              erty and debris of insured property any-
                                                                   below, against direct physical loss by or                  where.
                                                                   from flood to personal property that is inside               b. If you or a member of your household
                                                                   the fully enclosed insured building and is:                perform the removal work, the value of your
                                                                     a. Owned by the unit owners of the condo-                work will be based on the Federal minimum
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                                                                   minium association in common, meaning                      wage.

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(3)
                                                                      c. This coverage does not increase the Cov-            of a structure suffering flood damage. Com-
                                                                   erage A or Coverage B limit of liability.                 pliance activities eligible for payment are:
                                                                      2. Loss Avoidance Measures                             elevation, floodproofing, relocation, or dem-
                                                                      a. Sandbags, Supplies, and Labor                       olition (or any combination of these activi-
                                                                      (1) We will pay up to $1,000 for the costs             ties) of your structure. Eligible floodproofing
                                                                   you incur to protect the insured building                 activities are limited to:
                                                                   from a flood or imminent danger of flood, for               a. Non-residential structures.
                                                                   the following:                                              b. Residential structures with basements
                                                                      (a) Your reasonable expenses to buy:                   that satisfy FEMA’s standards published in
                                                                      (i) Sandbags, including sand to fill them;             the Code of Federal Regulations [44 CFR 60.6
                                                                      (ii) Fill for temporary levees;                        (b) or (c)].
                                                                      (iii) Pumps; and                                         2. Limit of Liability.
                                                                      (iv) Plastic sheeting and lumber used in                 We will pay you up to $30,000 under this
                                                                   connection with these items; and                          Coverage D—Increased Cost of Compliance,
                                                                      (b) The value of work, at the Federal min-             which only applies to policies with building
                                                                   imum wage, that you perform.                              coverage (Coverage A). Our payment of
                                                                      (2) This coverage for Sandbags, Supplies,
                                                                                                                             claims under Coverage D is in addition to the
                                                                   and Labor applies only if damage to insured
                                                                                                                             amount of coverage which you selected on
                                                                   property by or from flood is imminent and
                                                                                                                             the application and which appears on the
                                                                   the threat of flood damage is apparent
                                                                                                                             Declarations Page. But the maximum you
                                                                   enough to lead a person of common prudence
                                                                                                                             can collect under this policy for both Cov-
                                                                   to anticipate flood damage. One of the fol-
                                                                                                                             erage A—Building Property and Coverage
                                                                   lowing must also occur:
                                                                                                                             D—Increased Cost of Compliance cannot ex-
                                                                      (a) A general and temporary condition of
                                                                   flooding in the area near the described loca-             ceed the maximum permitted under the Act.
                                                                   tion must occur, even if the flood does not               We do not charge a separate deductible for a
                                                                   reach the insured building; or                            claim under Coverage D.
                                                                      (b) A legally authorized official must issue             3. Eligibility.
                                                                   an evacuation order or other civil order for                a. A structure covered under Coverage A—
                                                                   the community in which the insured building               Building Property sustaining a loss caused
                                                                   is located calling for measures to preserve               by a flood as defined by this policy must:
                                                                   life and property from the peril of flood. This             (1) Be a ‘‘repetitive loss structure.’’ A ‘‘re-
                                                                   coverage does not increase the Coverage A or              petitive loss structure’’ is one that meets the
                                                                   Coverage B limit of liability.                            following conditions:
                                                                      b. Property Removed to Safety                            (a) The structure is covered by a contract
                                                                      (1) We will pay up to $1,000 for the reason-           of flood insurance issued under the NFIP.
                                                                   able expenses you incur to move insured                     (b) The structure has suffered flood damage
                                                                   property to a place other than the described              on 2 occasions during a 10-year period which
                                                                   location that contains the property in order              ends on the date of the second loss.
                                                                   to protect it from flood or the imminent dan-               (c) The cost to repair the flood damage, on
                                                                   ger of flood.                                             average, equaled or exceeded 25% of the mar-
                                                                      Reasonable expenses include the value of               ket value of the structure at the time of
                                                                   work, at the Federal minimum wage, that                   each flood loss.
                                                                   you perform.                                                (d) In addition to the current claim, the
                                                                      (2) If you move insured property to a loca-            NFIP must have paid the previous qualifying
                                                                   tion other than the described location that               claim, and the State or community must
                                                                   contains the property, in order to protect it             have a cumulative, substantial damage pro-
                                                                   from flood or the imminent danger of flood,               vision or repetitive loss provision in its
                                                                   we will cover such property while at that lo-             floodplain management law or ordinance
                                                                   cation for a period of 45 consecutive days                being enforced against the structure; or
                                                                   from the date you begin to move it there.                   (2) Be a structure that has had flood dam-
                                                                   The personal property that is moved must be               age in which the cost to repair equals or ex-
                                                                   placed in a fully enclosed building, or other-            ceeds 50% of the market value of the struc-
                                                                   wise reasonably protected from the ele-                   ture at the time of the flood. The State or
                                                                   ments.                                                    community must have a substantial damage
                                                                      Any property removed, including a move-                provision in its floodplain management law
                                                                   able home described in II.6.b. and c., must be            or ordinance being enforced against the
                                                                   placed above ground level or outside of the               structure.
                                                                   special flood hazard area.                                  b. This Coverage D pays you to comply
                                                                      This coverage does not increase the Cov-               with State or local floodplain management
                                                                   erage A or Coverage B limit of liability.                 laws or ordinances that meet the minimum
                                                                                                                             standards of the National Flood Insurance
                                                                    D. Coverage D—Increased Cost of Compliance               Program found in the Code of Federal Regu-
                                                                     1. General.                                             lations at 44 CFR 60.3. We pay for compliance
                                                                     This policy pays you to comply with a                   activities that exceed those standards under
                                                                   State or local floodplain management law or               these conditions:
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                                                                   ordinance affecting repair or reconstruction                (1) 3.a.(1) above.

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                      (2) Elevation or floodproofing in any risk             as the present building unless otherwise re-
                                                                   zone to preliminary or advisory base flood                quired by current floodplain management or-
                                                                   elevations provided by FEMA which the                     dinances or laws.
                                                                   State or local government has adopted and is                5. Exclusions.
                                                                   enforcing for flood-damaged structures in                   Under this Coverage D—Increased Cost of
                                                                   such areas. (This includes compliance activi-             Compliance, we will not pay for:
                                                                   ties in B, C, X, or D zones which are being
                                                                                                                               a. The cost to comply with any floodplain
                                                                   changed to zones with base flood elevations.
                                                                                                                             management law or ordinance in commu-
                                                                   This also includes compliance activities in
                                                                                                                             nities participating in the Emergency Pro-
                                                                   zones where base flood elevations are being
                                                                   increased, and a flood-damaged structure                  gram.
                                                                   must comply with the higher advisory base                   b. The cost associated with enforcement of
                                                                   flood elevation.) Increased Cost of Compli-               any ordinance or law that requires any in-
                                                                   ance coverage does not apply to situations in             sured or others to test for, monitor, clean up,
                                                                   B, C, X, or D zones where the community has               remove, contain, treat, detoxify or neu-
                                                                   derived its own elevations and is enforcing               tralize, or in any way respond to, or assess
                                                                   elevation or floodproofing requirements for               the effects of pollutants.
                                                                   flood-damaged structures to elevations de-                  c. The loss in value to any insured building
                                                                   rived solely by the community.                            or other structure due to the requirements of
                                                                      (3) Elevation or floodproofing above the               any ordinance or law.
                                                                   base flood elevation to meet State or local                 d. The loss in residual value of the
                                                                   ‘‘freeboard’’ requirements, i.e., that a struc-           undamaged portion of a building demolished
                                                                   ture must be elevated above the base flood                as a consequence of enforcement of any
                                                                   elevation.                                                State or local floodplain management law or
                                                                      c. Under the minimum NFIP criteria at 44               ordinance.
                                                                   CFR 60.3(b)(4), States and communities must                 e. Any Increased Cost of Compliance under
                                                                   require the elevation or floodproofing of                 this Coverage D:
                                                                   structures in unnumbered A zones to the
                                                                                                                               (1) Until the building is elevated,
                                                                   base flood elevation where elevation data is
                                                                                                                             floodproofed, demolished, or relocated on the
                                                                   obtained from a Federal, State, or other
                                                                                                                             same or to another premises; and
                                                                   source. Such compliance activities are also
                                                                   eligible for Coverage D.                                    (2) Unless the building is elevated,
                                                                      d. This coverage will also pay for the incre-          floodproofed, demolished, or relocated as
                                                                   mental cost, after demolition or relocation,              soon as reasonably possible after the loss,
                                                                   of elevating or floodproofing a structure dur-            not to exceed two years.
                                                                   ing its rebuilding at the same or another site              f. Any code upgrade requirements, e.g.,
                                                                   to meet State or local floodplain manage-                 plumbing or electrical wiring, not specifi-
                                                                   ment laws or ordinances, subject to Exclu-                cally related to the State or local floodplain
                                                                   sion D.5.g.below relating to improvements.                management law or ordinance.
                                                                      e. This coverage will also pay to bring a                g. Any compliance activities needed to
                                                                   flood-damaged structure into compliance                   bring additions or improvements made after
                                                                   with State or local floodplain management                 the loss occurred into compliance with State
                                                                   laws or ordinances even if the structure had              or local floodplain management laws or ordi-
                                                                   received a variance before the present loss               nances.
                                                                   from the applicable floodplain management                   h. Loss due to any ordinance or law that
                                                                   requirements.                                             you were required to comply with before the
                                                                      4. Conditions.                                         current loss.
                                                                      a. When a structure covered under Cov-                   i. Any rebuilding activity to standards
                                                                   erage A—Building Property sustains a loss                 that do not meet the NFIP’s minimum re-
                                                                   caused by a flood, our payment for the loss               quirements. This includes any situation
                                                                   under this Coverage D will be for the in-                 where the insured has received from the
                                                                   creased cost to elevate, floodproof, relocate,
                                                                                                                             State or community a variance in connec-
                                                                   or demolish (or any combination of these ac-
                                                                                                                             tion with the current flood loss to rebuild
                                                                   tivities) caused by the enforcement of cur-
                                                                                                                             the property to an elevation below the base
                                                                   rent State or local floodplain management
                                                                                                                             flood elevation.
                                                                   ordinances or laws. Our payment for eligible
                                                                   demolition activities will be for the cost to               j. Increased Cost of Compliance for a ga-
                                                                   demolish and clear the site of the building               rage or carport.
                                                                   debris or a portion thereof caused by the en-               k. Any structure insured under an NFIP
                                                                   forcement of current State or local flood-                Group Flood Insurance Policy.
                                                                   plain management ordinances or laws. Eligi-                 l. Assessments made by a condominium as-
                                                                   ble activities for the cost of clearing the site          sociation on individual condominium unit
                                                                   will include those necessary to discontinue               owners to pay increased costs of repairing
                                                                   utility service to the site and ensure proper             commonly owned buildings after a flood in
                                                                   abandonment of on-site utilities.                         compliance with State or local floodplain
                                                                      b. When the building is repaired or rebuilt,           management ordinances or laws.
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                                                                   it must be intended for the same occupancy                  6. Other Provisions.

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(3)
                                                                     a. Increased Cost of Compliance coverage                  14. Hot tubs and spas that are not bath-
                                                                   will not be included in the calculation to de-            room fixtures, and swimming pools, and
                                                                   termine whether coverage meets the coinsur-               their equipment such as, but not limited to,
                                                                   ance requirement for replacement cost cov-                heaters, filters, pumps, and pipes, wherever
                                                                   erage under VIII. General Conditions, V.                  located;
                                                                   Loss Settlement.                                            15. Property not eligible for flood insur-
                                                                     b. All other conditions and provisions of               ance pursuant to the provisions of the Coast-
                                                                   this policy apply.                                        al Barrier Resources Act and the Coastal
                                                                                                                             Barrier Improvements Act of 1990 and
                                                                              IV. PROPERTY NOT COVERED                       amendments to these Acts;
                                                                     We do not cover any of the following:                     16. Personal property used in connection
                                                                     1. Personal property not inside the fully               with any incidental commercial occupancy
                                                                   enclosed building;                                        or use of the building.
                                                                     2. A building, and personal property in it,
                                                                                                                                               V. EXCLUSIONS
                                                                   located entirely in, on, or over water or sea-
                                                                   ward of mean high tide, if constructed or                   A. We only pay for direct physical loss by
                                                                   substantially improved after September 30,                or from flood, which means that we do not
                                                                   1982;                                                     pay you for:
                                                                     3. Open structures, including a building                  1. Loss of revenue or profits;
                                                                   used as a boathouse or any structure or                     2. Loss of access to the insured property or
                                                                   building into which boats are floated, and                described location;
                                                                   personal property located in, on, or over                   3. Loss of use of the insured property or de-
                                                                   water;                                                    scribed location;
                                                                     4. Recreational vehicles other than travel                4. Loss from interruption of business or
                                                                   trailers described in the Definitions Section             production;
                                                                   (see II.B.6.c.) whether affixed to a permanent              5. Any additional living expenses incurred
                                                                   foundation or on wheels;                                  while the insured building is being repaired
                                                                     5. Self-propelled vehicles or machines, in-             or is unable to be occupied for any reason;
                                                                   cluding their parts and equipment.                          6. The cost of complying with any ordi-
                                                                     However, we do cover self-propelled vehi-               nance or law requiring or regulating the con-
                                                                   cles or machines, provided they are not li-               struction, demolition, remodeling, renova-
                                                                   censed for use on public roads and are:                   tion, or repair of property, including removal
                                                                     a. Used mainly to service the described lo-             of any resulting debris. This exclusion does
                                                                   cation, or                                                not apply to any eligible activities that we
                                                                     b. Designed and used to assist handicapped              describe in Coverage D—Increased Cost of
                                                                   persons, while the vehicles or machines are               Compliance; or
                                                                   inside a building at the described location;                7. Any other economic loss.
                                                                     6. Land, land values, lawns, trees, shrubs,               B. We do not insure a loss directly or indi-
                                                                   plants, growing crops, or animals;                        rectly caused by a flood that is already in
                                                                     7. Accounts, bills, coins, currency, deeds,             progress at the time and date:
                                                                   evidences of debt, medals, money, scrip,                    1. The policy term begins; or
                                                                   stored value cards, postage stamps, securi-                 2. Coverage is added at your request.
                                                                   ties, bullion, manuscripts, or other valuable               C. We do not insure for loss to property
                                                                   papers;                                                   caused directly by earth movement even if
                                                                     8. Underground structures and equipment,                the earth movement is caused by flood. Some
                                                                   including wells, septic tanks, and septic sys-            examples of earth movement that we do not
                                                                   tems;                                                     cover are:
                                                                     9. Those portions of walks, walkways,                     1. Earthquake;
                                                                   decks, driveways, patios, and other surfaces,               2. Landslide;
                                                                   all whether protected by a roof or not, lo-                 3. Land subsidence;
                                                                   cated outside the perimeter, exterior walls of              4. Sinkholes;
                                                                   the insured building;                                       5. Destabilization or movement of land
                                                                     10. Containers, including related equip-                that results from accumulation of water in
                                                                   ment, such as, but not limited to, tanks con-             subsurface land areas; or
                                                                   taining gases or liquids;                                   6. Gradual erosion.
                                                                     11. Buildings and all their contents if more              We do, however, pay for losses from mud-
                                                                   than 49% of the actual cash value of the                  flow and land subsidence as a result of ero-
                                                                   building is below ground, unless the lowest               sion that are specifically covered under our
                                                                   level is at or above the base flood elevation             definition of flood (see II.A.1.c. and II.A.2.).
                                                                   and is below ground by reason of earth hav-                 D. We do not insure for direct physical loss
                                                                   ing been used as insulation material in con-              caused directly or indirectly by:
                                                                   junction with energy efficient building tech-               1. The pressure or weight of ice;
                                                                   niques;                                                     2. Freezing or thawing;
                                                                     12. Fences, retaining walls, seawalls, bulk-              3. Rain, snow, sleet, hail, or water spray;
                                                                   heads, wharves, piers, bridges, and docks;                  4. Water, moisture, mildew, or mold dam-
                                                                     13. Aircraft or watercraft, or their fur-               age that results primarily from any condi-
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                                                                   nishings and equipment;                                   tion:

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                     a. Substantially confined to the insured                  1. III.C.2. Loss Avoidance Measures; or
                                                                   building; or                                                2. III.D. Increased Cost of Compliance.
                                                                     b. That is within your control including,
                                                                   but not limited to:                                                       VII. COINSURANCE
                                                                     (1) Design, structural, or mechanical de-                 A. This Coinsurance Section applies only
                                                                   fects;                                                    to coverage on the building.
                                                                     (2) Failures, stoppages, or breakage of                   B. We will impose a penalty on loss pay-
                                                                   water or sewer lines, drains, pumps, fixtures,            ment unless the amount of insurance appli-
                                                                   or equipment; or                                          cable to the damaged building is:
                                                                     (3) Failure to inspect and maintain the                   1. At least 80% of its replacement cost; or
                                                                   property after a flood recedes;                             2. The maximum amount of insurance
                                                                     5. Water or water-borne material that:                  available for that building under the NFIP,
                                                                     a. Backs up through sewers or drains;                   whichever is less.
                                                                     b. Discharges or overflows from a sump,                   C. If the actual amount of insurance on the
                                                                   sump pump, or related equipment; or                       building is less than the required amount in
                                                                     c. Seeps or leaks on or through insured                 accordance with the terms of VII. B. above,
                                                                   property;                                                 then loss payment is determined as follows
                                                                   unless there is a flood in the area and the               (subject to all other relevant conditions in
                                                                   flood is the proximate cause of the sewer,                this policy, including those pertaining to
                                                                   drain, or sump pump discharge or overflow,                valuation, adjustment, settlement, and pay-
                                                                   or the seepage of water;                                  ment of loss):
                                                                     6. The pressure or weight of water unless                 1. Divide the actual amount of insurance
                                                                   there is a flood in the area and the flood is
                                                                                                                             carried on the building by the required
                                                                   the proximate cause of the damage from the
                                                                                                                             amount of insurance.
                                                                   pressure or weight of water.
                                                                                                                               2. Multiply the amount of loss, before ap-
                                                                     7. Power, heating, or cooling failure unless
                                                                                                                             plication of the deductible, by the figure de-
                                                                   the failure results from direct physical loss
                                                                                                                             termined in C.1. above.
                                                                   by or from flood to power, heating or cooling
                                                                                                                               3. Subtract the deductible from the figure
                                                                   equipment situated on the described loca-
                                                                                                                             determined in C.2. above.
                                                                   tion;
                                                                                                                               We will pay the amount determined in C.3.
                                                                     8. Theft, fire, explosion, wind, or wind-
                                                                                                                             above, or the amount of insurance carried,
                                                                   storm;
                                                                                                                             whichever is less. The amount of insurance
                                                                     9. Anything you or your agents do or con-
                                                                                                                             carried, if in excess of the applicable max-
                                                                   spire to do to cause loss by flood delib-
                                                                   erately; or                                               imum amount of insurance available under
                                                                     10. Alteration of the insured property that             the NFIP, is reduced accordingly.
                                                                   significantly increases the risk of flooding.                                  Examples
                                                                     E. We do not insure for loss to any building
                                                                   or personal property located on land leased                     Example #1 (Inadequate Insurance)
                                                                   from the Federal Government, arising from
                                                                   or incident to the flooding of the land by the            Replacement value of the building—$250,000
                                                                   Federal Government, where the lease ex-                   Required amount of insurance—$200,000
                                                                                                                               (80% of replacement value of $250,000)
                                                                   pressly holds the Federal Government harm-
                                                                                                                             Actual amount of insurance carried—$180,000
                                                                   less under flood insurance issued under any
                                                                                                                             Amount of the loss—$150,000
                                                                   Federal Government program.
                                                                                                                             Deductible—$500
                                                                     F. We do not pay for the testing for or
                                                                                                                             Step 1:180,000 ÷ 200,000 = .90
                                                                   monitoring of pollutants unless required by
                                                                                                                               (90% of what should be carried.)
                                                                   law or ordinance.
                                                                                                                             Step 2: 150,000 × .90 = 135,000
                                                                                     VI. DEDUCTIBLES                         Step 3: 135,000 ¥ 500 = 134,500
                                                                                                                               We will pay no more than $134,500. The re-
                                                                     A. When a loss is covered under this policy,
                                                                                                                             maining $15,500 is not covered due to the co-
                                                                   we will pay only that part of the loss that
                                                                                                                             insurance penalty ($15,000) and application of
                                                                   exceeds the applicable deductible amount,
                                                                                                                             the deductible ($500).
                                                                   subject to the limit of insurance that ap-
                                                                   plies. The deductible amount is shown on the                     Example #2 (Adequate Insurance)
                                                                   Declarations Page.
                                                                     However, when a building under construc-                Replacement value of the building—$500,000
                                                                   tion, alteration, or repair does not have at              Required amount of insurance—$400,000
                                                                   least two rigid exterior walls and a fully se-              (80% of replacement value of $500,000)
                                                                   cured roof at the time of loss, your deduct-              Actual amount of insurance carried—$400,000
                                                                   ible amount will be two times the deductible              Amount of the loss—$200,000
                                                                   that would otherwise apply to a completed                 Deductible—$500
                                                                   building.                                                   In this example there is no coinsurance
                                                                     B. In each loss from flood, separate                    penalty, because the actual amount of insur-
                                                                   deductibles apply to the building and per-                ance carried meets the required amount. We
                                                                                                                             will pay no more than $199,500 ($200,000
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                                                                   sonal property insured by this policy.
                                                                     C. No deductible applies to:                            amount of loss minus the $500 deductible).

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(3)
                                                                     D. In calculating the full replacement cost             aged or destroyed property insured under
                                                                   of a building:                                            this policy subject to the following:
                                                                     1. The replacement cost value of any cov-                 a. We will pay only the proportion of the
                                                                   ered building property will be included;                  loss that the amount of insurance that ap-
                                                                     2. The replacement cost value of any build-             plies under this policy bears to the total
                                                                   ing property not covered under this policy                amount of insurance covering the loss, un-
                                                                   will not be included; and                                 less C.1.b. or c. immediately below applies.
                                                                     3. Only the replacement cost value of im-                 b. If the other policy has a provision stat-
                                                                   provements installed by the condominium                   ing that it is excess insurance, this policy
                                                                   association will be included.                             will be primary.
                                                                                                                               c. This policy will be primary (but subject
                                                                               VIII. GENERAL CONDITIONS                      to its own deductible) up to the deductible in
                                                                                                                             the other flood policy (except another policy
                                                                     A. Pair and Set Clause.
                                                                                                                             as described in C.1.b. above). When the other
                                                                     In case of loss to an article that is part of
                                                                                                                             deductible amount is reached, this policy
                                                                   a pair or set, we will have the option of pay-
                                                                                                                             will participate in the same proportion that
                                                                   ing you:
                                                                                                                             the amount of insurance under this policy
                                                                     1. An amount equal to the cost of replacing
                                                                                                                             bears to the total amount of both policies,
                                                                   the lost, damaged, or destroyed article, less
                                                                                                                             for the remainder of the loss.
                                                                   depreciation; or
                                                                                                                               2. If there is a flood insurance policy in the
                                                                     2. An amount which represents the fair                  name of a unit owner that covers the same
                                                                   proportion of the total value of the pair or              loss as this policy, then this policy will be
                                                                   set that the lost, damaged, or destroyed arti-            primary.
                                                                   cle bears to the pair or set.                               D. Amendments, Waivers, Assignment.
                                                                     B. Concealment or Fraud and Policy Void-                  This policy cannot be changed nor can any
                                                                   ance.                                                     of its provisions be waived without the ex-
                                                                     1. With respect to all insureds under this              press written consent of the Federal Insur-
                                                                   policy, this policy:                                      ance Administrator. No action that we take
                                                                     a. Is void,                                             under the terms of this policy constitutes a
                                                                     b. Has no legal force or effect,                        waiver of any of our rights. You may assign
                                                                     c. Cannot be renewed, and                               this policy in writing when you transfer title
                                                                     d. Cannot be replaced by a new NFIP pol-                of your property to someone else except
                                                                   icy, if, before or after a loss, you or any               under these conditions:
                                                                   other insured or your agent have at any                     1. When this policy covers only personal
                                                                   time:                                                     property; or
                                                                     (1) Intentionally concealed or misrepre-                  2. When this policy covers a structure dur-
                                                                   sented any material fact or circumstance,                 ing the course of construction.
                                                                     (2) Engaged in fraudulent conduct, or                     E. Cancellation of Policy by You.
                                                                     (3) Made false statements,                                1. You may cancel this policy in accord-
                                                                   relating to this policy or any other NFIP in-             ance with the applicable rules and regula-
                                                                   surance.                                                  tions of the NFIP.
                                                                     2. This policy will be void as of the date                2. If you cancel this policy, you may be en-
                                                                   the wrongful acts described in B.1. above                 titled to a full or partial refund of premium
                                                                   were committed.                                           also under the applicable rules and regula-
                                                                     3. Fines, civil penalties, and imprisonment             tions of the NFIP.
                                                                   under applicable Federal laws may also                      F. Non-Renewal of the Policy by Us.
                                                                   apply to the acts of fraud or concealment de-               Your policy will not be renewed:
                                                                   scribed above.                                              1. If the community where your covered
                                                                     4. This policy is also void for reasons other           property is located stops participating in the
                                                                   than fraud, misrepresentation, or wrongful                NFIP, or
                                                                   act. This policy is void from its inception                 2. Your building has been declared ineli-
                                                                   and has no legal force under the following                gible under section 1316 of the Act.
                                                                   conditions:                                                 G. Reduction and Reformation of Coverage.
                                                                     a. If the property is located in a commu-                 1. If the premium we received from you was
                                                                   nity that was not participating in the NFIP               not enough to buy the kind and amount of
                                                                   on the policy’s inception date and did not                coverage you requested, we will provide only
                                                                   join or re-enter the program during the pol-              the amount of coverage that can be pur-
                                                                   icy term and before the loss occurred; or                 chased for the premium payment we re-
                                                                     b. If the property listed on the application            ceived.
                                                                   is not otherwise eligible for coverage under                2. The policy can be reformed to increase
                                                                   the NFIP.                                                 the amount of coverage resulting from the
                                                                     C. Other Insurance.                                     reduction described in G.1. above the amount
                                                                     1. If a loss covered by this policy is also             that you requested as follows:
                                                                   covered by other insurance that includes                    a. Discovery of Insufficient Premium or In-
                                                                   flood coverage not issued under the Act, we               complete Rating Information Before a Loss.
                                                                   will not pay more than the amount of insur-                 (1) If we discover before you have a flood
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                                                                   ance that you are entitled to for lost, dam-              loss that your premium payment was not

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   enough to buy the requested amount of cov-                cealment or Fraud and Policy Voidance
                                                                   erage, we will send you and any mortgagee                 above apply.
                                                                   or trustee known to us a bill for the required              H. Policy Renewal.
                                                                   additional premium for the current policy                   1. This policy will expire at 12:01 a.m. on
                                                                   term (or that portion of the current policy               the last day of the policy term.
                                                                   term following any endorsement changing                     2. We must receive the payment of the ap-
                                                                   the amount of coverage). If you or the mort-              propriate renewal premium within 30 days of
                                                                   gagee or trustee pay the additional premium               the expiration date.
                                                                   within 30 days from the date of our bill, we                3. If we find, however, that we did not place
                                                                   will reform the policy to increase the                    your renewal notice into the U.S. Postal
                                                                   amount of coverage to the originally re-                  Service, or if we did mail it, we made a mis-
                                                                   quested amount effective to the beginning of              take, e.g., we used an incorrect, incomplete,
                                                                   the current policy term (or subsequent date               or illegible address, which delayed its deliv-
                                                                   of any endorsement changing the amount of                 ery to you before the due date for the re-
                                                                   coverage).                                                newal premium, then we will follow these
                                                                     (2) If we determine before you have a flood             procedures:
                                                                   loss that the rating information we have is                 a. If you or your agent notified us, not
                                                                   incomplete and prevents us from calculating               later than one year after the date on which
                                                                   the additional premium, we will ask you to                the payment of the renewal premium was
                                                                   send the required information. You must                   due, of nonreceipt of a renewal notice before
                                                                   submit the information within 60 days of our              the due date for the renewal premium, and
                                                                   request. Once we determine the amount of                  we determine that the circumstances in the
                                                                   additional premium for the current policy                 preceding paragraph apply, we will mail a
                                                                   term, we will follow the procedure in                     second bill providing a revised due date,
                                                                   G.2.a.(1) above.                                          which will be 30 days after the date on which
                                                                     (3) If we do not receive the additional pre-            the bill is mailed.
                                                                   mium (or additional information) by the                     b. If we do not receive the premium re-
                                                                   date it is due, the amount of coverage can                quested in the second bill by the revised due
                                                                   only be increased by endorsement subject to               date, then we will not renew the policy. In
                                                                   any appropriate waiting period.                           that case, the policy will remain as an ex-
                                                                     b. Discovery of Insufficient Premium or In-             pired policy as of the expiration date shown
                                                                   complete Rating Information After a Loss.                 on the Declarations Page.
                                                                     (1) If we discover after you have a flood                 4. In connection with the renewal of this
                                                                   loss that your premium payment was not                    policy, we may ask you during the policy
                                                                   enough to buy the requested amount of cov-                term to re-certify, on a Recertification Ques-
                                                                   erage, we will send you and any mortgagee                 tionnaire that we will provide you, the rat-
                                                                   or trustee known to us a bill for the required            ing information used to rate your most re-
                                                                   additional premium for the current and the                cent application for or renewal of insurance.
                                                                   prior policy terms. If you or the mortgagee                 I. Conditions Suspending or Restricting Insur-
                                                                   or trustee pay the additional premium with-               ance.
                                                                   in 30 days of the date of our bill, we will re-             We are not liable for loss that occurs while
                                                                   form the policy to increase the amount of                 there is a hazard that is increased by any
                                                                   coverage to the originally requested amount               means within your control or knowledge.
                                                                   effective to the beginning of the prior policy              J. Requirements in Case of Loss.
                                                                   term.                                                       In case of a flood loss to insured property,
                                                                     (2) If we discover after you have a flood               you must:
                                                                   loss that the rating information we have is                 1. Give prompt written notice to us;
                                                                   incomplete and prevents us from calculating                 2. As soon as reasonably possible, separate
                                                                   the additional premium, we will ask you to                the damaged and undamaged property, put-
                                                                   send the required information. You must                   ting it in the best possible order so that we
                                                                   submit the information before your claim                  may examine it;
                                                                   can be paid. Once we determine the amount                   3. Prepare an inventory of damaged per-
                                                                   of additional premium for the current and                 sonal property showing the quantity, de-
                                                                   prior policy terms, we will follow the proce-             scription, actual cash value, and amount of
                                                                   dure in G.2.b.(1) above.                                  loss. Attach all bills, receipts and related
                                                                     (3) If we do not receive the additional pre-            documents;
                                                                   mium by the date it is due, your flood insur-               4. Within 60 days after the loss, send us a
                                                                   ance claim will be settled based on the re-               proof of loss, which is your statement of the
                                                                   duced amount of coverage. The amount of                   amount you are claiming under the policy
                                                                   coverage can only be increased by endorse-                signed and sworn to by you, and which fur-
                                                                   ment subject to any appropriate waiting pe-               nishes us with the following information:
                                                                   riod.                                                       a. The date and time of loss;
                                                                     3. However, if we find that you or your                   b. A brief explanation of how the loss hap-
                                                                   agent intentionally did not tell us, or fal-              pened;
                                                                   sified, any important fact or circumstance or               c. Your interest (for example, ‘‘owner’’)
                                                                   did anything fraudulent relating to this in-              and the interest, if any, of others in the dam-
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                                                                   surance, the provisions of Condition B. Con-              aged property;

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(3)
                                                                     d. Details of any other insurance that may              lost, damaged, or destroyed property, includ-
                                                                   cover the loss;                                           ing:
                                                                     e. Changes in title or occupancy of the in-                a. Quantities and costs;
                                                                   sured property during the term of the policy;                b. Actual cash values or replacement cost
                                                                     f. Specifications of damaged insured build-             (whichever is appropriate);
                                                                   ings and detailed repair estimates;                          c. Amounts of loss claimed;
                                                                     g. Names of mortgagees or anyone else                      d. Any written plans and specifications for
                                                                   having a lien, charge, or claim against the               repair of the damaged property that you can
                                                                   insured property;                                         make reasonably available to us; and
                                                                     h. Details about who occupied any insured                  e. Evidence that prior flood damage has
                                                                   building at the time of loss and for what pur-            been repaired.
                                                                   pose; and                                                    3. If we give you written notice within 30
                                                                     i. The inventory of damaged personal prop-              days after we receive your signed, sworn
                                                                   erty described in J.3. above.                             proof of loss, we may:
                                                                     5. In completing the proof of loss, you must               a. Repair, rebuild, or replace any part of
                                                                   use your own judgment concerning the                      the lost, damaged, or destroyed property
                                                                   amount of loss and justify that amount.                   with material or property of like kind and
                                                                     6. You must cooperate with the adjuster or              quality or its functional equivalent; and
                                                                   representative in the investigation of the                   b. Take all or any part of the damaged
                                                                   claim.                                                    property at the value we agree upon or its
                                                                     7. The insurance adjuster whom we hire to               appraised value.
                                                                   investigate your claim may furnish you with                  L. No Benefit to Bailee.
                                                                                                                                No person or organization, other than you,
                                                                   a proof of loss form, and she or he may help
                                                                                                                             having custody of covered property will ben-
                                                                   you complete it. However, this is a matter of
                                                                                                                             efit from this insurance.
                                                                   courtesy only, and you must still send us a
                                                                                                                                M. Loss Payment.
                                                                   proof of loss within sixty days after the loss
                                                                                                                                1. We will adjust all losses with you. We
                                                                   even if the adjuster does not furnish the
                                                                                                                             will pay you unless some other person or en-
                                                                   form or help you complete it.
                                                                                                                             tity is named in the policy or is legally enti-
                                                                     8. We have not authorized the adjuster to
                                                                                                                             tled to receive payment. Loss will be payable
                                                                   approve or disapprove claims or to tell you
                                                                                                                             60 days after we receive your proof of loss (or
                                                                   whether we will approve your claim.
                                                                                                                             within 90 days after the insurance adjuster
                                                                     9. At our option, we may accept the adjust-
                                                                                                                             files an adjuster’s report signed and sworn to
                                                                   er’s report of the loss instead of your proof of
                                                                                                                             by you in lieu of a proof of loss) and:
                                                                   loss. The adjuster’s report will include infor-              a. We reach an agreement with you;
                                                                   mation about your loss and the damages you                   b. There is an entry of a final judgment; or
                                                                   sustained. You must sign the adjuster’s re-                  c. There is a filing of an appraisal award
                                                                   port. At our option, we may require you to                with us, as provided in VIII. P.
                                                                   swear to the report.                                         2. If we reject your proof of loss in whole or
                                                                     K. Our Options After a Loss.                            in part you may:
                                                                     Options that we may, in our sole discre-                   a. Accept such denial of your claim;
                                                                   tion, exercise after loss include the fol-                   b. Exercise your rights under this policy;
                                                                   lowing:                                                   or
                                                                     1. At such reasonable times and places that                c. File an amended proof of loss as long as
                                                                   we may designate, you must:                               it is filed within 60 days of the date of the
                                                                     a. Show us or our representative the dam-               loss.
                                                                   aged property;                                               N. Abandonment.
                                                                     b. Submit to examination under oath,                       You may not abandon damaged or
                                                                   while not in the presence of another insured,             undamaged insured property to us.
                                                                   and sign the same; and                                       O. Salvage.
                                                                     c. Permit us to examine and make extracts                  We may permit you to keep damaged in-
                                                                   and copies of:                                            sured property after a loss, and we will re-
                                                                     (1) Any policies of property insurance in-              duce the amount of the loss proceeds payable
                                                                   suring you against loss and the deed estab-               to you under the policy by the value of the
                                                                   lishing your ownership of the insured real                salvage.
                                                                   property;                                                    P. Appraisal.
                                                                     (2) Condominium association documents                      If you and we fail to agree on the actual
                                                                   including the Declarations of the condo-                  cash value or, if applicable, replacement cost
                                                                   minium, its Articles of Association or Incor-             of the damaged property so as to determine
                                                                   poration, Bylaws, and rules and regulations;              the amount of loss, then either may demand
                                                                   and                                                       an appraisal of the loss. In this event, you
                                                                     (3) All books of accounts, bills, invoices              and we will each choose a competent and im-
                                                                   and other vouchers, or certified copies per-              partial appraiser within 20 days after receiv-
                                                                   taining to the damaged property if the origi-             ing a written request from the other. The
                                                                   nals are lost.                                            two appraisers will choose an umpire. If they
                                                                     2. We may request, in writing, that you                 cannot agree upon an umpire within 15 days,
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                                                                   furnish us with a complete inventory of the               you or we may request that the choice be

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   made by a judge of a court of record in the               that you may have arising out of the han-
                                                                   state where the insured property is located.              dling of any claim under the policy.
                                                                   The appraisers will separately state the ac-                S. Subrogation.
                                                                   tual cash value, the replacement cost, and                  Whenever we make a payment for a loss
                                                                   the amount of loss to each item. If the ap-               under this policy, we are subrogated to your
                                                                   praisers submit a written report of an agree-             right to recover for that loss from any other
                                                                   ment to us, the amount agreed upon will be                person. That means that your right to re-
                                                                   the amount of loss. If they fail to agree, they           cover for a loss that was partly or totally
                                                                   will submit their differences to the umpire.              caused by someone else is automatically
                                                                   A decision agreed to by any two will set the              transferred to us, to the extent that we have
                                                                   amount of actual cash value and loss, or if it            paid you for the loss. We may require you to
                                                                   applies, the replacement cost and loss.                   acknowledge this transfer in writing. After
                                                                     Each party will:                                        the loss, you may not give up our right to re-
                                                                     1. Pay its own appraiser; and                           cover this money or do anything that would
                                                                     2. Bear the other expenses of the appraisal             prevent us from recovering it. If you make
                                                                   and umpire equally.                                       any claim against any person who caused
                                                                     Q. Mortgage Clause.                                     your loss and recover any money, you must
                                                                     The word ‘‘mortgagee’’ includes trustee.                pay us back first before you may keep any of
                                                                     Any loss payable under Coverage A—Build-                that money.
                                                                   ing will be paid to any mortgagee of whom                   T. Continuous Lake Flooding.
                                                                   we have actual notice, as well as any other                 1. If an insured building has been flooded
                                                                   mortgagee or loss payee determined to exist               by rising lake waters continuously for 90
                                                                   at the time of loss, and you, as interests ap-            days or more and it appears reasonably cer-
                                                                   pear. If more than one mortgagee is named,                tain that a continuation of this flooding will
                                                                   the order of payment will be the same as the              result in a covered loss to the insured build-
                                                                   order of precedence of the mortgages.                     ing equal to or greater than the building pol-
                                                                     If we deny your claim, that denial will not             icy limits plus the deductible or the max-
                                                                   apply to a valid claim of the mortgagee, if               imum payable under the policy for any one
                                                                   the mortgagee:                                            building loss, we will pay you the lesser of
                                                                     1. Notifies us of any change in the owner-              these two amounts without waiting for the
                                                                   ship or occupancy, or substantial change in               further damage to occur if you sign a release
                                                                   risk, of which the mortgagee is aware;                    agreeing:
                                                                     2. Pays any premium due under this policy                 a. To make no further claim under this
                                                                   on demand if you have neglected to pay the                policy;
                                                                   premium; and                                                b. Not to seek renewal of this policy;
                                                                     3. Submits a signed, sworn proof of loss                  c. Not to apply for any flood insurance
                                                                   within 60 days after receiving notice from us             under the Act for property at the described
                                                                   of your failure to do so.                                 location; and
                                                                     All of the terms of this policy apply to the              d. Not to seek a premium refund for cur-
                                                                   mortgagee.                                                rent or prior terms.
                                                                     The mortgagee has the right to receive loss               If the policy term ends before the insured
                                                                   payment even if the mortgagee has started                 building has been flooded continuously for 90
                                                                   foreclosure or similar action on the building.            days, the provisions of this paragraph T.1.
                                                                     If we decide to cancel or not renew this                will apply as long as the insured building
                                                                   policy, it will continue in effect for the ben-           suffers a covered loss before the policy term
                                                                   efit of the mortgagee only for 30 days after              ends.
                                                                   we notify the mortgagee of the cancellation                 2. If your insured building is subject to
                                                                   or non-renewal.                                           continuous lake flooding from a closed basin
                                                                     If we pay the mortgagee for any loss and                lake, you may elect to file a claim under ei-
                                                                   deny payment to you, we are subrogated to                 ther paragraph T.1. above or this paragraph
                                                                   all the rights of the mortgagee granted                   T.2. (A ‘‘closed basin lake’’ is a natural lake
                                                                   under the mortgage on the property. Sub-                  from which water leaves primarily through
                                                                   rogation will not impair the right of the                 evaporation and whose surface area now ex-
                                                                   mortgagee to recover the full amount of the               ceeds or has exceeded one square mile at any
                                                                   mortgagee’s claim.                                        time in the recorded past. Most of the na-
                                                                     R. Suit Against Us.                                     tion’s closed basin lakes are in the western
                                                                     You may not sue us to recover money                     half of the United States where annual evap-
                                                                   under this policy unless you have complied                oration exceeds annual precipitation and
                                                                   with all the requirements of the policy. If               where lake levels and surface areas are sub-
                                                                   you do sue, you must start the suit within                ject to considerable fluctuation due to wide
                                                                   one year of the date of the written denial of             variations in the climate. These lakes may
                                                                   all or part of the claim and you must file the            overtop their basins on rare occasions.)
                                                                   suit in the United States District Court of               Under this paragraph T.2, we will pay your
                                                                   the district in which the insured property                claim as if the building is a total loss even
                                                                   was located at the time of loss. This require-            though it has not been continuously inun-
                                                                   ment applies to any claim that you may                    dated for 90 days, subject to the following
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                                                                   have under this policy and to any dispute                 conditions:

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                                                                   Federal Emergency Management Agency, DHS                                               Pt. 61, App. A(3)
                                                                     a. Lake flood waters must damage or im-                 interest in. These deed restrictions must be
                                                                   minently threaten to damage your building.                consistent with the provisions of paragraph
                                                                     b. Before approval of your claim, you must:             T.2.b. above, except that even if a certified
                                                                     (1) Agree to a claim payment that reflects              project protects the property, the land use
                                                                   your buying back the salvage on a nego-                   restrictions continue to apply if the property
                                                                   tiated basis; and                                         was acquired under the Hazard Mitigation
                                                                     (2) Grant the conservation easement con-                Grant Program or the Flood Mitigation As-
                                                                   tained in FEMA’s ‘‘Policy Guidance for                    sistance Program. If a non-profit land trust
                                                                   Closed Basin Lakes,’’ to be recorded in the               organization receives the property as a dona-
                                                                   office of the local recorder of deeds. FEMA,              tion, that organization must maintain the
                                                                   in consultation with the community in                     property as deed-restricted, consistent with
                                                                   which the property is located, will identify              the provisions of paragraph T.2.b. above.
                                                                   on a map an area or areas of special consid-                f. Before the approval of your claim, the af-
                                                                   eration (ASC) in which there is a potential               fected State must take all action set forth in
                                                                   for flood damage from continuous lake flood-              FEMA’s ‘‘Policy Guidance for Closed Basin
                                                                   ing. FEMA will give the community the                     Lakes.’’
                                                                   agreed-upon map showing the ASC. This                       g. You must have NFIP flood insurance
                                                                   easement will only apply to that portion of               coverage continuously in effect from a date
                                                                   the property in the ASC. It will allow certain            established by FEMA until you file a claim
                                                                   agricultural and recreational uses of the                 under this paragraph T.2. If a subsequent
                                                                   land. The only structures that it will allow              owner buys NFIP insurance that goes into
                                                                   on any portion of the property within the                 effect within 60 days of the date of transfer
                                                                   ASC are certain simple agricultural and rec-              of title, any gap in coverage during that 60-
                                                                   reational structures. If any of these allow-              day period will not be a violation of this con-
                                                                   able structures are insurable buildings under             tinuous coverage requirement. For the pur-
                                                                   the NFIP and are insured under the NFIP,                  pose of honoring a claim under this para-
                                                                   they will not be eligible for the benefits of             graph T.2., we will not consider to be in ef-
                                                                   this paragraph T.2. If a U.S. Army Corps of               fect any increased coverage that became ef-
                                                                   Engineers certified flood control project or              fective after the date established by FEMA.
                                                                   otherwise certified flood control project                 The exception to this is any increased cov-
                                                                   later protects the property, FEMA will, upon              erage in the amount suggested by your in-
                                                                   request, amend the ASC to remove areas pro-               surer as an inflation adjustment.
                                                                   tected by those projects. The restrictions of               h. This paragraph T.2. will be in effect for
                                                                   the easement will then no longer apply to                 a community when the FEMA Regional Di-
                                                                   any portion of the property removed from                  rector for the affected region provides to the
                                                                   the ASC; and                                              community, in writing, the following:
                                                                     (3) Comply with paragraphs T.1.a. through                 (1) Confirmation that the community and
                                                                   T.1.d. above.                                             the State are in compliance with the condi-
                                                                     c. Within 90 days of approval of your claim,            tions in paragraphs T.2.e. and T.2.f. above,
                                                                   you must move your building to a new loca-                and
                                                                   tion outside the ASC. FEMA will give you an                 (2) The date by which you must have flood
                                                                   additional 30 days to move if you show there              insurance in effect.
                                                                   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
                                                                   you must acquire an elevation certificate                 more than one NFIP policy.
                                                                   and a floodplain development permit from                    If we find that the duplication was not
                                                                   the local floodplain administrator for the                knowingly created, we will give you written
                                                                   new location 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                   following procedures:
                                                                   building must:                                              a. If you choose to 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 imme-                   policy to the limits of the earlier policy. The
                                                                   diately by a permanent land use ordinance,                change will become effective as of the effec-
                                                                   that 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 viola-              choose to add the coverage limits of the ear-
                                                                   tions of this ordinance to FEMA so that                   lier policy to the limits of the later policy.
                                                                   under Sec. 1316 of the National Flood Insur-              The change will be effective as of the effec-
                                                                   ance Act of 1968, as amended, flood insurance             tive date of the later policy.
                                                                   to the building can be denied; and                          In either case, you must pay the pro rata
                                                                     (3) Agree to maintain as deed-restricted,               premium for the increased coverage limits
                                                                   for purposes compatible with open space or                within 30 days of the written notice. In no
                                                                   agricultural or recreational use only, any af-            event will the resulting coverage limits ex-
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                                                                   fected property the community acquires an                 ceed the permissible limits of coverage under

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                                                                   Pt. 61, App. A(3)                                                      44 CFR Ch. I (10–1–07 Edition)
                                                                   the Act or your insurable interest, whichever             and has at least 600 square feet within its pe-
                                                                   is less. We will make a refund to you, accord-            rimeter walls when fully assembled.
                                                                   ing to applicable NFIP rules, of the premium                b. If such a building is totally destroyed or
                                                                   for the policy not being kept in effect.                  damaged to such an extent that, in our judg-
                                                                     2. The insured’s option under this condi-               ment, it is not economically feasible to re-
                                                                   tion U. Duplicate Policies Not Allowed to                 pair, at least to its pre-damaged condition,
                                                                   elect which NFIP policy to keep in effect                 we will, at our discretion, pay the least of
                                                                   does not apply when duplicates have been                  the following amounts:
                                                                   knowingly created. Losses occurring under                   (1) The lesser of the replacement cost of
                                                                   such circumstances will be adjusted accord-               the manufactured home or travel trailer or
                                                                   ing to the terms and conditions of the earlier            1.5 times the actual cash value; or
                                                                   policy. The policy with the later effective                 (2) The Building Limit of liability shown
                                                                   date must be canceled.                                    on your Declarations Page.
                                                                     V. Loss Settlement.                                       c. If such a manufactured home or travel
                                                                                                                             trailer is partially damaged and, in our judg-
                                                                                      1. Introduction
                                                                                                                             ment, it is economically feasible to repair it
                                                                     This policy provides three methods of set-              to its pre-damaged condition, we will settle
                                                                   tling losses: Replacement Cost, Special Loss              the loss according to the Replacement Cost
                                                                   Settlement, and Actual Cash Value. Each                   Loss Settlement conditions in V.2. above.
                                                                   method is used for a different type of prop-
                                                                   erty, as explained in a.-c. below.                            4. Actual Cash Value Loss Settlement
                                                                     a. Replacement Cost Loss Settlement de-                   a. The types of property noted below are
                                                                   scribed in V.2. below applies to buildings                subject to actual cash value loss settlement:
                                                                   other than manufactured homes or travel                     (1) Personal property;
                                                                   trailers.                                                   (2) Insured property abandoned after a loss
                                                                     b. Special Loss Settlement described in
                                                                                                                             and that remains as debris at the described
                                                                   V.3. below applies to a residential condo-
                                                                                                                             location;
                                                                   minium building that is a travel trailer or a
                                                                                                                               (3) Outside antennas and aerials, awning,
                                                                   manufactured home.
                                                                                                                             and other outdoor equipment;
                                                                     c. Actual Cash Value loss settlement ap-
                                                                                                                               (4) Carpeting and pads;
                                                                   plies to all other property covered under this
                                                                   policy, as outlined in V.4. below.                          (5) Appliances; and
                                                                                                                               (6) A manufactured home or mobile home
                                                                        2. Replacement Cost Loss Settlement                  or a travel trailer as defined in II.B.6.b. or c.
                                                                                                                             that does not meet the conditions for special
                                                                     a. We will pay to repair or replace a dam-              loss settlement in V.3. above.
                                                                   aged or destroyed building, after application               b. We will pay the least of the following
                                                                   of the deductible and without deduction for               amounts:
                                                                   depreciation, but not more than the least of
                                                                                                                               (1) The applicable amount of insurance
                                                                   the following amounts:
                                                                                                                             under this policy;
                                                                     (1) The amount of insurance in this policy
                                                                                                                               (2) The actual cash value (as defined in
                                                                   that applies to the building;
                                                                                                                             II.B.2.); or
                                                                     (2) The replacement cost of that part of the
                                                                                                                               (3) The amount it would cost to repair or
                                                                   building damaged, with materials of like
                                                                                                                             replace the property with material of like
                                                                   kind and quality, and for like occupancy and
                                                                                                                             kind and quality within a reasonable time
                                                                   use; or
                                                                     (3) The necessary amount actually spent to              after the loss.
                                                                   repair or replace the damaged part of the                             IX. LIBERALIZATION CLAUSE
                                                                   building for like occupancy and use.
                                                                     b. We will not be liable for any loss on a                If we make a change that broadens your
                                                                   Replacement Cost Coverage basis unless and                coverage under this edition of our policy, but
                                                                   until actual repair or replacement of the                 does not require any additional premium,
                                                                   damaged building or parts thereof, is com-                then that change will automatically apply to
                                                                   pleted.                                                   your insurance as of the date we implement
                                                                     c. If a building is rebuilt at a location               the change, provided that this implementa-
                                                                   other than the described location, we will                tion date falls within 60 days before or dur-
                                                                   pay no more than it would have cost to re-                ing the policy term stated on the Declara-
                                                                   pair or rebuild at the described location, sub-           tions Page.
                                                                   ject to all other terms of Replacement Cost
                                                                   Loss Settlement.                                                        X. WHAT LAW GOVERNS
                                                                                                                               This policy and all disputes arising from
                                                                               3. Special Loss Settlement
                                                                                                                             the handling of any claim under the policy
                                                                     a. The following loss settlement conditions             are governed exclusively by the flood insur-
                                                                   apply to a residential condominium building               ance regulations issued by FEMA, the Na-
                                                                   that is: (1) a manufactured home or travel                tional Flood Insurance Act of 1968, as amend-
                                                                   trailer, as defined in II.B.6.b. and c., and (2)          ed (42 U.S.C. 4001, et seq.), and Federal com-
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                                                                   at least 16 feet wide when fully assembled                mon law.

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                                                                   Federal Emergency Management Agency, DHS                                                Pt. 61, App. A(5)
                                                                     In Witness Whereof, we have signed this pol-            before a renewal date and again at the time
                                                                   icy below and hereby enter into this Insur-               your renewal bill is sent.
                                                                   ance Agreement.
                                                                                                                             [65 FR 60793, Oct. 12, 2000, as amended at 67
                                                                                               JO ANN HOWARD,
                                                                                                                             FR 10634, Mar. 8, 2002]
                                                                                Administrator, Federal Insurance
                                                                                                 Administration.
                                                                                                                                         APPENDIX A(5) TO PART 61
                                                                   [65 FR 60785, Oct. 12, 2000, as amended at 68
                                                                   FR 9897, Mar. 3, 2003]                                     FEDERAL EMERGENCY MANAGEMENT AGENCY,
                                                                                                                                 FEDERAL INSURANCE ADMINISTRATION
                                                                              APPENDIX A(4) TO PART 61                        Standard Flood Insurance Policy Endorsement
                                                                    FEDERAL EMERGENCY MANAGEMENT AGENCY,                               to General Property Form
                                                                       FEDERAL INSURANCE ADMINISTRATION                        This endorsement replaces the provisions
                                                                                                                             of VII.B.4 and VII.H.2, and also adds a new
                                                                    Standard Flood Insurance Policy Endorsement              paragraph, VII.H.5. This endorsement applies
                                                                                 to Dwelling Form                            in Monroe County and the Village of
                                                                     This endorsement replaces the provisions                Islamorada, Florida. This endorsement also
                                                                   of VII.B.4 and VII.H.2, and also adds a new               applies to communities within Monroe Coun-
                                                                   paragraph, VII.H.5. This endorsement applies              ty, Florida that incorporate on or after Jan-
                                                                   in Monroe County and the Village of                       uary 1, 1999, agree to participate in the in-
                                                                   Islamorada, Florida, This endorsement also                spection procedure, and become eligible for
                                                                   applies to communities within Monroe Coun-                the sale of flood insurance.
                                                                   ty, Florida that incorporate on or after Jan-               VII.B.4. This policy is also void for reasons
                                                                   uary 1, 1999, agree to participate in the in-             other than fraud, misrepresentation, or
                                                                   spection procedure, and become eligible for               wrongful act. This policy is void from its in-
                                                                   the sale of flood insurance.                              ception and has no legal force under the fol-
                                                                     VII.B.4. This policy is also void for reasons           lowing conditions:
                                                                   other than fraud, misrepresentation, or                     a. If the property is located in a commu-
                                                                   wrongful act. This policy is void from its in-            nity that was not participating in the NFIP
                                                                   ception and has no legal force under the fol-             on the policy’s inception date and did not
                                                                   lowing conditions:                                        join or re-enter the program during the pol-
                                                                     a. If the property is located in a commu-               icy term and before the loss occurred.
                                                                   nity that was not participating in the NFIP                 b. If you have not submitted a community
                                                                   on the policy’s inception date and did not                inspection report, referred to in ‘‘H. Policy
                                                                   join or re-enter the program during the pol-              Renewal’’ below, that was required in a no-
                                                                   icy term and before the loss occurred.                    tice sent to you in conjunction with the
                                                                     b. If you have not submitted a community                community inspection procedure established
                                                                   inspection report, referred to in ‘‘H. Policy             under 44 CFR 59.30.
                                                                   Renewal’’ below, that was required in a no-                 c. If the property listed on the application
                                                                   tice sent to you in conjunction with the                  is not otherwise eligible for coverage under
                                                                   community inspection procedure established                the NFIP
                                                                   under 44 CFR 59.30.                                         VII.H.2. We must receive the payment of
                                                                     c. If the property listed on the application            the appropriate renewal premium and when
                                                                   is not otherwise eligible for coverage under              applicable, the community inspection report
                                                                   the NFIP                                                  referred to in H.5 below within 30 days of the
                                                                     VII.H.2. We must receive the payment of                 expiration date.
                                                                   the appropriate renewal premium and when                    VII.H.5. Your community has been ap-
                                                                   applicable, the community inspection report               proved by the Federal Emergency Manage-
                                                                   referred to in H.5 below within 30 days of the            ment Agency to participate in an inspection
                                                                   expiration date.                                          procedure set forth in National Flood Insur-
                                                                                                                             ance Program Regulations (44 CFR 59.30).
                                                                     VII.H.5. Your community has been ap-
                                                                                                                             During the several years that this inspection
                                                                   proved by the Federal Emergency Manage-
                                                                                                                             procedure will be in place, you may be re-
                                                                   ment Agency to participate in an inspection
                                                                                                                             quired to obtain and submit an inspection re-
                                                                   procedure set forth in National Flood Insur-
                                                                                                                             port from your community certifying wheth-
                                                                   ance Program Regulations (44 CFR 59.30).
                                                                                                                             er or not your insured property is in compli-
                                                                   During the several years that this inspection
                                                                                                                             ance with the community’s floodplain man-
                                                                   procedure will be in place, you may be re-
                                                                                                                             agement ordinance before you can renew
                                                                   quired to obtain and submit an inspection re-
                                                                                                                             your policy. You will be notified in writing
                                                                   port from your community certifying wheth-
                                                                                                                             of this requirement approximately 6 months
                                                                   er or not your insured property is in compli-
                                                                                                                             before a renewal date and again at the time
                                                                   ance with the community’s floodplain man-                 your renewal bill is sent.
                                                                   agement ordinance before you can renew
                                                                   your policy. You will be notified in writing              [65 FR 60793, Oct. 12, 2000, as amended at 67
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                                                                   of this requirement approximately 6 months                FR 10634, Mar. 8, 2002]

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                                                                   Pt. 61, App. A(6)                                                       44 CFR Ch. I (10–1–07 Edition)

                                                                              APPENDIX A(6) TO PART 61                          PART 62—SALE OF INSURANCE
                                                                    FEDERAL EMERGENCY MANAGEMENT AGENCY,                        AND ADJUSTMENT OF CLAIMS
                                                                       FEDERAL INSURANCE ADMINISTRATION
                                                                                                                                      Subpart A—Issuance of Policies
                                                                   Standard Flood Insurance Policy Endorsement
                                                                     to Residential Condominium Building Associa-            Sec.
                                                                     tion Policy                                             62.1    Purpose of part.
                                                                                                                             62.2    Definitions.
                                                                     This endorsement replaces the provisions
                                                                                                                             62.3    Servicing agent.
                                                                   of VIII.B.4 and VIII.H.2, and also adds a new
                                                                   paragraph, VIII.H.5. This endorsement ap-                 62.4    Limitations on sale of policies.
                                                                   plies in Monroe County and the Village of                 62.5    Premium refund.
                                                                   Islamorada, Florida. This endorsement also                62.6    Minimum commissions.
                                                                   applies to communities within Monroe Coun-
                                                                   ty, Florida and incorporate on or after Janu-                Subpart B—Claims Adjustment, Claims
                                                                   ary 1, 1999, agree to participate in the inspec-                Appeals, and Judicial Review
                                                                   tion procedure, and become eligible for the
                                                                                                                             62.20    Claims appeals.
                                                                   sale of flood insurance.
                                                                                                                             62.21    Claims adjustment.
                                                                     VIII.B.4. This policy is also void for rea-
                                                                   sons other than fraud, misrepresentation, or              62.22    Judicial review.
                                                                   wrongful act. This policy is void from its in-
                                                                   ception and has no legal force under the fol-                 Subpart C—Write-Your-Own (WYO)
                                                                   lowing conditions:                                                      Companies
                                                                     a. If the property is located in a commu-               62.23    WYO Companies authorized.
                                                                   nity that was not participating in the NFIP
                                                                                                                             62.24    WYO participation criteria.
                                                                   on the policy’s inception date and did not
                                                                   join or re-enter the program during the pol-              APPENDIX A TO PART 62—FEDERAL EMER-
                                                                   icy term and before the loss occurred.                       GENCY MANAGEMENT AGENCY, FEDERAL
                                                                     b. If you have not submitted a community                   INSURANCE ADMINISTRATION, FINANCIAL
                                                                   inspection report, referred to in ‘‘H. Policy                ASSISTANCE/SUBSIDY ARRANGEMENT
                                                                   Renewal’’ below, that was required in a no-               APPENDIX B TO PART 62—NATIONAL FLOOD IN-
                                                                   tice sent to you in conjunction with the                     SURANCE PROGRAM
                                                                   community inspection procedure established                  AUTHORITY: 42 U.S.C.      4001 et seq,; Reorga-
                                                                   under 44 CFR 59.30.                                       nization Plan No. 3 of       1978, 43 FR 41943, 3
                                                                     c. If the property listed on the application            CFR, 1978 Comp., p. 329;    E.O. 12127 of Mar. 31,
                                                                   is not otherwise eligible for coverage under              1979, 44 FR 19367, 3 CFR,   1979 Comp., p. 376.
                                                                   the NFIP
                                                                     VIII.H.2. We must receive the payment of                  SOURCE: 43 FR 2573, Jan. 17, 1978, unless
                                                                   the appropriate renewal premium and when                  otherwise noted. Redesignated at 44 FR 31177,
                                                                   applicable, the community inspection report               May 31, 1979.
                                                                   referred to in H.5 below within 30 days of the
                                                                   expiration date.                                            Subpart A—Issuance of Policies
                                                                     VIII.H.5. Your community has been ap-
                                                                   proved by the Federal Emergency Manage-                   § 62.1      Purpose of part.
                                                                   ment Agency to participate in an inspection
                                                                   procedure set forth in National Flood Insur-                The purpose of this part is to set
                                                                   ance Program Regulations (44 CFR 59.30).                  forth the manner in which flood insur-
                                                                   During the several years that this inspection             ance under the Program is made avail-
                                                                   procedure will be in place, you may be re-                able to the general public in those com-
                                                                   quired to obtain and submit an inspection re-             munities designated as eligible for the
                                                                   port from your community certifying wheth-                sale of insurance under part 64 of this
                                                                   er or not your insured property is in compli-             subchapter, and to prescribe the gen-
                                                                   ance with the community’s floodplain man-
                                                                                                                             eral method by which the Adminis-
                                                                   agement ordinance before you can renew
                                                                   your policy. You will be notified in writing
                                                                                                                             trator exercises his/her responsibility
                                                                   of this requirement approximately 6 months                regarding the manner in which claims
                                                                   before a renewal date and again at the time               for losses are paid.
                                                                   your renewal bill is sent.
                                                                                                                             § 62.2      Definitions.
                                                                   [65 FR 60794, Oct. 12, 2000, as amended at 67
                                                                   FR 10634, Mar. 8, 2002]                                     The definitions set forth in part 59 of
                                                                                                                             this subchapter are applicable to this
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