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

ADJUSTERSINTERNATIONAL.COM 7 Of great importance to some property owners is the fact that DIC policies may automatically extend coverage for a specified period of time, typically 30-90 days, to additional structures the policyholder has purchased or constructed. This coverage for “newly acquired buildings” gives the insured property owner a “grace period” between the acquisition of a new location and the deadline for reporting the added exposure to the insurance company. This coverage is not available under the NFIP or ISO flood programs. A New Approach Something new has emerged in personal lines where carriers and advisory organizations are introducing flood coverage endorsements with limits and conditions distinct from the underlying homeowners or dwelling policy. International reinsurers have taken the lead in promoting private residential flood insurance in the U.S. One example of their efforts is the Inland Flood Coverage endorsement provided by MSO, Inc., DIC policies typically have their own limits and coverage conditions, so that a flood loss does not trigger all the limits provided under a commercial property policy.

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