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<br />
<br />CHAPTER 13
<br />FLOOD INSURANCE
<br />
<br />Description
<br />Flood insurance is unique among all other measures considered in this study in that it does
<br />not directly reduce flood damage to either existing or future development, but rather
<br />indemnifies a policy holder for financial losses suffered during afiood. A clear distinction is
<br />being drawn here between flood insurance as it is available to individual property owners, much
<br />as fire insurance is available, and the National Flood Insurance Program. The latter is a multiple
<br />purpose program which contributes in many ways to reducing damage potential in our nation's
<br />flood plains. The objectives and regulations of this program are described fully in the
<br />authorizing legislation (1,2,3) and in subsequent regulations (4). In the context of this Chapter,
<br />flood insurance is viewed as a measure which an individual property owner may use to "solve" a
<br />flood problem. It may be the preferred alternative - preferred over temporary closures, raising
<br />in-place, relocation, or any other measure.As such it should be considered in plan formulation
<br />and evaluation.
<br />
<br />Physical Feasibility
<br />Flood insurance is available to all persons in communities designated by the Federal
<br />Insurance Administration as participating communities in accordance with the rules and
<br />regulations of the Program. Persons in communities not in the program are not eligible for
<br />insurance. As of March 1977, there were 15,413 communities out of a possible. 20,000,
<br />participating in the program. Of those participating, 14,459 were in the Emergency Program, 954
<br />in the Regular Program. This represented a total of 905,313 policies in force.
<br />
<br />Insurance is available for both structure and contents. Damageable residential property not
<br />covered by insurance includes,
<br />
<br />· Fences, retaining walls, seawalls, outdoor swimming pools, bulkheads, wharves, piers,
<br />bridges, docks; other open structures located on or partially over water; or personal
<br />property in the open.
<br />
<br />· land values; lawns, trees shrubs or plants, growing crops, or livestock; underground
<br />structures or underground equipment, and those portions of walks, driveways and other
<br />paved surfaces outside the foundation walls of the structure.
<br />
<br />· Accounts, bills, currency, deeds, evidences of debt, money, securities, bullion,
<br />manuscripts or other valuable papers or records, numismatic or philatelic property.
<br />
<br />· Animals, birds, fish, aircraft, motor vehicles (other than motorized equipment pertaining
<br />to the service of the premises and not licensed for highway use), trailers on wheels,
<br />watercraft including their furnishings and equipment.
<br />
<br />The exceptions noted above identify property not covered by flood insurance. Property
<br />eligible for insurance has its limits in the form of limits to the amount of coverage. These limits
<br />are not generally restrictive and most property can be adequately covered. In some situations,
<br />however, these limits may impose restrictions which limit the feasibility of insurance as a
<br />measure. As of March 1977 the average flood insurance policy was for $28,900 for a residential
<br />dwelling and $42,000 for other structures.
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