FLOOD07997

• County: Statewide
• Basin: Statewide
• Title: Flood Insurance Manual
• Date: 10/1/1992
• Prepared For: US
• Prepared By: National Flood Insurance Program
• Floodplain - Doc Type: Project

a. The insured property must be in imminent danger of sustaining flood damage;

b. The threat of flood damage must be of such imminence as to lead a person of
common sense to anticipate flood damage; and

c. A genera] and temporary condition of flooding in the area must occur, even if the
flooding does not reach the insured property, or a ]egally authorized official must
issue an evacuation order or other civil order for the community in which the
insured property is located calling for measures to preserve life and property from
the peril of flood.

Removal Expenses--Reasonable expenses incurred for the removal away from the
premises of an insured building or insured contents to protect them from an imminent
flood, and the expenses to return them to the premises, including the cost of
reinstallation and required utility connections, are covered up to the amount of the
minimum building or contents deductible. The policy deductible does not apply to
these expenses.

Special Limitation--Under coverage for household contents the policy will not pay more
than $250 in the aggregate for all loss to items such as: jewelry, works of art, precious
metals, and furs. The functional value of antique items will be covered, but not the
antique value itself.

Other Insurance--N; long as the insured carries the maximum insurance available under
the program phase in which the community is participating, the SFIP will be primary
to any other flood insurance carried. If less than the maximum available coverage is
carried, the SFIP will only pay that proportion of any loss which the amount of the
SFIP coverage bears to the smaller of (a) the total amount of flood coverage carried,
or (b) the maximum coverage available to the insured under the program, Purchasing
a policy to cover a large deductible in any other policy exposes the insured to the risk
of potentially large retained losses in the event a loss occurs. For example, assume a
commercial risk in the Regu]ar Program. Building coverage availab]e under the NFIP
is $200,000.

The insured sustains a $15,000 building loss. The application of the Other Insurance
clause is illustrated by these three different coverage situations:

e

.

e

.

.
A. NFIP policy $ 15,000 $ 500 Deductib]e
DIC* policy $100,000 $15,000 Deductib]e
NFIP pays 15.000 X (15,000) = $1,956.52
115,000 (]ess deductib]e)
DIC pays $ 0

POL 10

October 1992

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