Flooding: Everyone is Exposed, Few are Insured, But New Options Entice
10 ADJUSTINGTODAY.COM Definition of flood Coverage for damage to principal dwelling Coverage for damage to related private structures (e.g., detached garages) Coverage for loss to personal property (contents) Coverage for additional living expenses/loss of rents Increased cost of compliance (covers costs to demolish or move structures to comply with flood regulations) Increased cost—ordinance or law (covers additional costs to bring undamaged parts of building property up to code) Inundation of two or more acres of normally dry land area, or of two or more properties, including the insured’s, due to: • Overflow of inland or tidal waters, • Unusual and rapid accumulation of surface waters, and • Mudflow. Extends to collapse of land on a lakeshore eroded by a flood. Buildings and fixtures covered on a replacement cost or actual cash value basis under a building property limit up to $250,000. Covered within the building property limit, up to 10% of the limit. Contents and unattached furnishings covered up to $100,000 on an actual cash value basis. Contents must be within an enclosed building or secured to prevent flotation. Not available Covered to $30,000 for “repetitive loss structures” that have sustained damage of at least half their value. Not available Reads much the same as the NFIP definition except that there is no qualification that the flooding affect a two-acre area or two properties. Buildings and fixtures covered on a replacement cost or actual cash value basis under a single Cov. A— Dwelling and Cov. B—Detached Garage limit established per company underwriting. Cov. B pays up to 10% of the building limit and depletes that limit; full coverage for detached garages available by endorsement. Covered on an actual cash value basis under a limit determined by the insurer; option available for replacement cost coverage. Available under a separate limit determined by the insurer; extends to situations where public authorities prevent access due to flood loss at other locations. Excluded in the form, but available by endorsement on terms equivalent to those in the NFIP form. Available by endorsement Reads much the same as the NFIP and ISO definitions, without the two-acre/two-property qualification, and states explicitly that inland floods do not include tsunamis. Pays up to per-occurrence and aggregate limits under a single separate inland flood limit. Loss settlement terms (replacement cost or actual cash value) determined in the base policy. Same as above Same as above. Separate per-occurrence and aggregate sublimits established for property in basements. Available under its own per- occurrence and aggregate sublimits under the applicable inland flood limit. Not addressed No coverage. Endorsement explicitly excludes coverage for increased cost—ordinance or law due to flood. The increased cost— ordinance or law coverage in the base policy applies only to loss by perils insured under that policy. MSO-Munich Re Inland Flood endorsement Topic NFIP Dwelling Policy ISO Personal Flood Program Comparing Potential Personal Flood Options NOTE: For purposes of simplicity, all entries in the table are abridgements and/or paraphrases of policy provisions. Consult the actual policy provisions for definitive statements of coverage.
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