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Flooding: Everyone is Exposed, Few are Insured, But New Options Entice

ADJUSTERSINTERNATIONAL.COM 3 • Stand-alone flood insurance written more or less on the basis of flood policy forms developed by the Insurance Services Office (ISO), 7 the largest advisory organization serving the U.S. property/ casualty industry; and • Flood coverage endorsements added to property policies, often in conjunction with major reinsurers able to spread their risk internationally. Not all property owners will have all of these options, as private flood insurance is being most aggressively marketed in low-risk areas where private insurers believe they can charge a more competitive premium than the NFIP. Nonetheless, there are enough players and variations in the private flood insurance market for property owners to consider how different approaches can address their needs. NFIP and ISO Forms The NFIP offers three different policies, for different types of property: 8 • A Dwelling Form for covering a primary residence, detached garage and personal property; • A General Property Form for covering a commercial structure and business personal property (which can also be used to cover residential property); and • A Residential Condominium Building Association Policy for covering a residential condominium building and its units, including personal property within the units. Under the NFIP, each location must be insured under a separate policy and no location can be insured under more than one policy. The NFIP cannot turn down an applicant in a participating community, and still offers subsidized rates for properties at high risk.