Coverage Traps in Flood Insurance Forms

1. Coverage Traps in Flood Insurance Forms Jim Gavin

2. Dwelling Policy Form Single Family Home Unit in Residential Condo Residential Townhouse Mobile Home Tool Sheds/Storage Buildings not Covered. Limited Coverage for a Detached Garage

3. Insuring Agreement “We have the right to review the information you give us at any time and revise your policy based on our review.”

4. Key Definitions Flood Two or More Acres or Two or More Properties Application “The statement made and signed by you oryour agent…” “The application is part of this flood policy”

5. Key Definitions Basement Includes any Sunken Room or Sunken Portionof a Room with Floor Below Ground Level Valued Policy “A policy in which the insured and insurer agree on the value…that value payable in the event of a total loss. The Standard Flood Insurance Policy is not a valued policy.”

6. Property Coverages - Dwelling Detached Garage Coverage is 10% of the Dwelling Limit Not Additional Insurance No Coverage if Used for Residential, Business or Farming Purposes

7. Property Coverages - Dwelling Additional Building Property Blinds Carpet Permanently Installed Over Unfinished Flooring Ranges, Cooking Stoves, Ovens Refrigerators Valuation Problem

8. Building Property in Basement Drywall The cost of Labor to Nail it Unfinished and Unfloated and Not Taped Floor Coverings are Not Included

9. Personal Property Carpets over Finished Flooring Clothes Washers and Dryers “Cook-Out” Grills Food Freezers Food in Freezer

10. Personal Property in Basement Limited to Washers, Dryers, Freezers and Portable Air Conditioning Units Washers, Dryers & Freezers Must be Installed and Connected to a Power Source

11. Personal Property - Condo Interior Walls, Floor, Ceiling Included if Not Insured by the Condo Association 10% of the Personal Property Limit Not Additional Insurance

12. Personal Property – Special Limits Artwork, Photos, Collectibles, Memorabilia Rare Books Jewelry, Watches, Stones, Articles of Gold, Silver of Platinum Furs Total Limit for All of the Above:$2,500 Pays Only Functional Value of Antiques

13. Other Coverages Debris Removal No Limit Loss Avoidance $1,000 Property Removed $1,000 Pollution $10,000 Not Additional Insurance

14. Property Not Covered Property not in the fully enclosed building Self Propelled Vehicles unless not licensed and used mainly to service the premises Fences, Retaining Walls Hot Tubs, Spas, Swimming Pools

15. Selected Exclusions Additional Living Expense Flood in Progress at the Policy Inception Earth Movement Anything the Insured does to Deliberately Cause a Flood (?) Alteration that Increases Risk of Flooding

16. Deductibles “In each loss from flood, separate deductibles apply to the building and personal property insured by this policy.”

17. Policy Conditions Concealment Fraud and Policy Voidance If You or Your Agent have at any time Intentionally Concealed or Misrepresented Engaged in Fraudulent Conduct Made False Statements Relating to this policy or any other NFIP Insurance

18. Reformation of Coverage If Discovered before Loss, Insured can Pay Additional Premium If Discovered after a Loss, Must Pay Additional Premium for all Prior NFIP Policies

19. Loss Settlement Replacement Cost Dwelling Coverage Only Must Insure to 80% of Replacement or NFIP Maximum Amount

20. Loss Settlement Actual Cash Value Detached Garages Personal Property Appliances, Carpets and Pads Dwelling that is Not a Principal Residence

21. General Property FormBuilding Described Building at Described Location Additions and Extensions Attached to Building No Extension to Any Other Building on Premises. Each Building Must be Separately Insured.

22. Building Property Condo Association Following Installed in Units: Kitchen Cabinets Ranges Refrigerators Stoves

23. General Property FormPersonal Property “When this policy covers personal property, coverage will be either for household personal property or other than household personal property but not both.”

24. Tenant Improvements & Betterments If a tenant, you may apply 10% of your personal property limit for improvements, but it is notadditional insurance

25. Property Not Covered A residential Condominium Building Located in a Regular Program Community

26. Deductibles Building Under Construction When a Building under Construction, Alteration or Repair does Not have Two Rigid Exterior Walls and a Fully Secured Roof, the Deductible Amount will be Two Times the Deductible that Would Otherwise Apply to the Building

27. Loss Settlement The Least of: Policy Limit Actual Cash Value Amount to Repair or Replace with like Kind and Quality

28. Dwelling Summary Application Part of Policy Definition of Flood Definition of Basement Blinds, Refrigerators, Stoves, Ovens Freezers – Personal Property Detached Garage Carpeting

29. Dwelling Summary Special Limit for Art, Jewelry, Collectibles Debris Removal Condo Coverage for Interior Walls Fences, Pools, Walkways No Additional Living Expense Coverage for ATVs Two Deductibles

30. Dwelling Summary Concealment, Fraud Voids Coverage Reformation after a Loss Replacement Cost – Dwelling Only (80% Required) ACV – Garages, Carpets, Appliances & Secondary Residences

31. General Property Form Same Limitations as Dwelling Form No Extension to Outbuildings Personal Property must Be Either Household Goods or Other, Not Both Tenants Improvements & Betterments Reformation Applies ACV – Building and Personal Property

32. Coverage Traps in Flood Insurance Forms Jim Gavin