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Ethics and the Insurance Industry

  • 100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

  • The webinar will begin shortly.

  • There is no audio at this time.

  • This presentation is being recorded for your viewing pleasure at a future date.

  • The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.

  • The PowerPoint presentation is also available under ‘Materials’.

  • You will receive the course number for your state near the end of class.

  • Use the ‘chat’ window for questions on the content.


Background on flood insurance

Background on Flood Insurance

Today’s Instructor:

Casey Roberts, President

Laurus Insurance Consulting

www.laurusinsuranceconsulting.com


Http www floodsmart gov floodsmart pages media resources stats jsp
http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsphttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Floods are the #1 most common natural disaster in the United States.

  • Over the past 10 years (2001-2010) the average flood insurance claim paid in the US was nearly $48,000 per year.

  • Over the past 10 years (2001-2010), flood insurance claims averaged just over $2.6 billion.


Http www floodsmart gov floodsmart pages media resources stats jsp1
http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsphttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • The average flood insurance policy is about $600 per year.

  • People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding.

  • The NFIP paid $709 million in flood insurance claims to homeowners, business owners, and renters in 2010


Facts for you and your customer
Facts For You And Your Customerhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Floods and flash floods happen in all 50 states

    • Everyone lives in a flood zone

    • Flash floods often bring walls of water 10 to 20 feet high

  • Just an inch of water can cause costly damage

  • Each homeowners has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.


Flood facts
Flood Factshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • If home is in a Special Flood Hazard Area (SFHA) or high-risk area and have a Federally backed mortgage, the mortgage lender requires you to have flood insurance


Covansyshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

Vender (NFS, IMSG, ETC)

Policyholder

Adjuster

Policyholder

Adjuster


How to access coverage
How To Access Coveragehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Nfip legislation
NFIP LEGISLATIONhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • National Flood Insurance Act Of 1968

  • Flood Disaster Protection Act Of 1973

  • National Flood Insurance Reform Act Of 1994


Flood facts1
FLOOD FACTShttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • NFIP program is self-funded

  • 5 million policies in force countrywide

  • $1 Trillion in insurance coverage

  • 70-80% of all natural disasters are flood related


Myths about the nfip
Myths about the NFIPhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • You can’t buy flood insurance if you are located in a high-flood risk area.

  • You can’t buy flood insurance immediately before or during a flood.

  • Homeowner’s policies cover flooding.


Myths about the nfip1
Myths about the NFIPhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • You can’t buy flood insurance if your property has flooded.

  • Only residents of high-risk flood zones need to insure their property.

    .

  • Federal disaster assistance will pay for flood damage.


Flood policy verses disaster assistance
Flood Policy verses Disaster Assistancehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

Flood Insurance

  • Policyholder

  • Contractual basis for claims

  • High policy limits

  • Policy to pay claim

  • Victim

Disaster Assistance

  • Application for aid

  • Lower limits

  • Disaster must be declared by the President

  • If eligible - loan or grant


Why is flood insurance needed

Why is Flood Insurance Needed?http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Policy exclusions
Policy Exclusionshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Flood is a catastrophic exposure,

  • Standard Commercial Property, Business Income, Homeowner’s, Renters and Condo policies exclude flood,

  • A few non-standard policies, such as HPR and High-Value Homeowner’s include flood, but that is the exception rather than the rule,


Ho 00 03 flood exclusion
HO 00 03 Flood Exclusionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

3. Water Damage

Water Damage means:

a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind;

b. Water or water-borne material which backs

up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or


Ho 00 03 flood exclusion1
HO 00 03 Flood Exclusionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

c. Water or water-borne material below the

surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure;

caused by or resulting from human or animal forces or any act of nature.

Direct loss by fire, explosion or theft resulting from water damage is covered.


How the nfip operates

How the NFIP Operateshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Community participation
Community Participationhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • How does a community participate?

    • Submit application to FEMA

    • Meet minimum floodplain management requirements

  • What does non-participating mean?

    • No flood insurance available

    • No disaster assistance

    • No federal mortgage assistance in SFHA


What is a community
What is a Community?http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Any political subdivision or entity that has the authority to adopt & enforce floodplain ordinances.

  • Such as: Towns, Cities, Counties & Tribes


Eligibility
Eligibilityhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Non participating communities
Non-Participating Communitieshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Nfip programs emergency and regular programs

NFIP Programshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspEmergency and Regular Programs


Two programs
Two Programshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Amount of insurance available emergency program
Amount Of Insurance Available – Emergency Programhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Program phases regular

Full Participationhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

Actuarial Rates

Higher Limits Available

Flood Insurance Rate Map (FIRM)

PROGRAM PHASES Regular


Amount of insurance available regular program
Amount Of Insurance Available – Regular Programhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Community rating system
Community Rating Systemhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Provides incentive for doing activities above the minimum requirements

  • To promote awareness of flood insurance

  • Recognition in the form of discounts –

    from 5% to 45%


Community probation
Community Probationhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Non-compliance means $50 surcharge on all new and renewal policies

  • Probation lasts for 1 year


Community suspension
Community Suspensionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • No new or renewal policies

  • No federal mortgage assistance in SFHA

  • No disaster assistance in SFHA


Underwriting information needed maps and zones

Underwriting Information Neededhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspMaps and Zones


Community status list how to obtain
Community Status Listhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspHow to Obtain

  • http://www.fema.gov/community status book

  • http://www.fema.gov/csb.shtm

  • Map Service Center

    1-800-358-9616


Definitions
Definitionshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

Pre-firm:

Built prior to 12/31/1974 or before the effective date of the initial FIRM for the community whichever is later

Post-firm:

Built on or after the effective date of the initial FIRM for the community


Flood zones special flood hazard areas
Flood Zoneshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspSpecial Flood Hazard Areas

  • Zones beginning with A or V

  • A, A1-A-30, AE, AO, AH, A99, AR

  • V, V1-V-30, VE

  • Mandatory purchase applies

  • New maps will show A1-A30 as AE and V1-V-30 as VE


Flood zones minimal to moderate flood hazard areas
Flood Zoneshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspMinimal to Moderate Flood Hazard Areas

  • B, C or X

  • 25-30% of NFIP Claims come from these areas

  • New maps will show B or C as an X


Base flood
Base Floodhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Common engineering standards

  • NFIP adopted baseline probability

  • 1% chance flood

  • One out of 100 chance of occurring in any given year (100 year flood)


Flood zone determinations
Flood Zone Determinationshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Flood Insurance Rate Map

  • Zone Determination Company

  • Lender - Standard Flood Hazard Determination Form


Base flood elevation bfe
Base Flood Elevation (BFE)http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • The computed elevation in which floodwaters are anticipated to rise during the base flood.

  • Not a measure of time


Identifying flood prone areas
Identifying Flood Prone Areashttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • National Flood Insurance Act of 1968 directed FEMA to:

  • Identify all flood prone areas within the US

  • Establish flood-risk zones within flood prone areas


Special flood hazard area
Special Flood Hazard Areahttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Land area which is covered by floodwaters from the Base Flood

  • SFHA area where Floodplain Management Regulations must be enforced by the community

  • Mandatory flood insurance purchase requirement

  • Zones Beginning with “A” or “V”


NATIONAL FLOOD INSURANCE PROGRAMhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

NATIONAL FLOOD INSURANCE PROGRAM

FIRM

FLOOD INSURANCE RATE MAP

FIRM

FLOOD INSURANCE RATE MAP

CITY OF

FLOODVILLE,

California

PANEL 0001 OF 0004

CITY OF

FLOODVILLE,

California

MAP INDEX

COMMUNITY-PANEL NUMBERS

060001 001 C

MAP REVISED

MAY 16, 1994

Federal Emergency Management Agency

COMMUNITY-PANEL NUMBERS

060001 0001-0004

MAP REVISED

JUNE 5, 1996

Federal Emergency Management Agency


Basic Elements of Flood Maps: The Panelhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Sample Map Indexhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

0001C

0002B

0004D

0003B

General Area

of Property


FIRM Panel 0001Chttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp - General Location

Sutter Blvd.

Fort Ross Ave.

ZONE AE

Monterey Ave.

532

X

RM1

531

ZONE X

E

D

Vallejo Ave.

Sonoma Ave.

Green River

CORPORATE LIMITS

LIMIT OF

DETAILED STUDY

530

ZONE X

529

Fremont St.

C

Larkin St.

Bidwell St.

528

ZONE

A

Alvarado Ave.

B

A


Coastal barrier resources system

Coastal Barrier Resources Systemhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

The CBRS is a system of protected coastal areas that includes ocean-front land, the Great Lakes and Other Protected Areas.

These barriers serve as important buffers between coastal storms and inland areas, often protecting properties from flood damage.

Structures built after 10/1/1983 are not insurable.


Letters of map change
Letters Of Map Changehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Letter of Map Amendment (LOMA)

  • Letter of Map Revision (LOMR)

  • If eligible, structure removed from SFHA, mandatory purchase requirement lifted subject to lender approval


Map changes
Map Changeshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Letter of Map Amendment (LOMA)

    To Correct Errors in Mapping

    • Adjacent grade higher than BFE


Map changes1
Map Changeshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Letter of Map Revision (LOMR)

    • To revise the map as a result a change

      • Flood control project

    • Elevation above the BFE based on fill


Letters of map change1
Letters Of Map Changehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • 1-877-336-2627

  • www.fema.gov/mit/tsd

  • Mandatory Purchase Requirement Removed Subject to Lenders Approval


Map grandfathering rule
Map Grandfathering Rulehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • For Rating Purposes Only


Map grandfathering rule1
Map Grandfathering Rulehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Pre-firm: Buy before effective date of the new map

  • Post-firm: Option to buy before or after effective date of new map

    • Must show structure was built in compliance at the time it was constructed


Flood requirements

Flood Requirementshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Flood insurance required
Flood Insurance Requiredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Must Cover The Lesser Of:

  • The Loan Amount (less land)

  • The Maximum Limit of Coverage Available

  • The Replacement Cost of the Structure


Residential example
Residential Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Loan Amount: $800,000

  • Structure Value: $500,000

  • Land Value: $300,000

  • What is the minimum required?


Residential example1
Residential Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

$250,000


Commercial example
Commercial Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Loan Amount: $2,000,000

  • Structure Value: $ 800,000

  • Land Value: $1,200,000

  • What is the minimum required?


Commercial example1
Commercial Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

$500,000


Condominium example
Condominium Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Loan Amount: $1,000,000

  • 1 Bldg w/ 4 units Value: $ 800,000

  • Land Value: $ 200,000

  • Hint: Replacement Cost or the number of units x $250,000. Whichever is less

  • What is the minimum required?


Condominium example1
Condominium Examplehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

$800,000


Acceptable proof of insurance at closing
Acceptable Proof Of Insurance At Closing http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • New Policy:

    • Copy of NFIP/WYO flood insurance application plus receipt of payment

  • Assigned Policy:

    • Copy of general change endorsement

    • Copy of Declarations Page of previous owner


Flood defined and coverage

Flood Defined and Coveragehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


What is a flood
What is a Flood?http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

1. A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:

  • A) Overflow of inland or tidal waters

  • B) Unusual and rapid accumulation or runoff of surface waters from any source

  • C) Mudflow


Mudflow
Mudflowhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.

  • Other earth movements, such as landslide, slope failure, or a saturated soil mass moving by liquidity down a slope, are not mudflows.


Rio Linda, CA Mudslidehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


What is a flood1
What is a Flood?http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

#2. Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined in A.1.a


Seepage sewer backup
Seepage & Sewer Backuphttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Now only covered if there is a general condition of flooding in the area

  • Flood proximate cause


Property covered coverage a building
Property Covered—Coverage A Buildinghttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Five Additions and Extensions

    • Rigid Exterior Wall

    • Solid Load Bearing Wall

    • Stairway

    • Elevated Walkway

    • Roof


Standard flood policies

Standard Flood Policieshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Standard flood policies1
Standard Flood Policieshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Each Building Must Be Insured On A Separate Policy.

  • Separate Deductible for Building & Contents

  • No Blanket Coverage


Standard flood policies2
Standard Flood Policieshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Dwelling Policy

  • General Property Policy

  • Residential Condominium Building Association Policy

  • Preferred Risk Policy

  • Mortgage Portfolio Protection Policy


Dwelling policy
Dwelling Policyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Residential building 1-4 family

  • Single Family dwelling unit in a condo building

  • Provides: Replacement Cost on Building and Actual Cash Value on Contents


Dwelling policy1
Dwelling Policyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Replacement Cost Provisions:

  • - 80% replacement cost insured or the maximum available under the NFIP

  • - Single Family

  • - Principal residence - must live there 80% of the year.

  • Manufacture home - 16ft wide and 600 square feet


Building definition
Building Definitionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • A structure with two or more outside rigid walls and fully secured roof, that is affixed to a permanent site;

  • A manufactured home ( a “manufactured home,” also known as a mobile home, is a structure: built on a permanent chassis, transported to its site in one or more sections, and affixed to a permanent foundation);


Building definition1
Building Definitionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • A travel trailer without wheels, built on a chassis and affixed to a permanent foundation, that is regulated under the community’s floodplain management and building ordinances or laws


Building definition2
Building Definitionhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Buildings do not mean a gas or liquid storage tank or a recreation vehicle, park trailer or similar vehicle, except as described above


Lll property covered 2
lll. Property Covered #2http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Common wall rules iii property covered 2
Common Wall Ruleshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspIII. Property Covered #2

  • Additions and extensions attached to and in contact with thedwellingby means of a rigid exterior wall ,a solid load-bearing interior wall, a stairway, an elevated walkway, or a roof may be separately insured.


Common Wallhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


General property policy
General Property Policyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Other Residential

  • Non Residential - Commercial

  • Contents Only Policies

  • Actual Cash Value on Building & Contents


Preferred risk policy
Preferred Risk Policyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • One-to-four family dwellings

  • Zones B, C and X only

  • Pre-packaged coverage combinations

  • Loss eligibility requirements

  • $1000 Standard Deductible

  • No rating necessary

  • Easy to complete application


Residential condominium building association policy
Residential Condominium Building Association Policyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Covers the common elements & all structural items of the units within a building.

  • Covers contents in common

  • Replacement Cost on Building - subject to replacement cost provisions

  • ACV on Contents


Iii property covered a coverage a building coverage page a 5
III. Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspA. Coverage A – Building CoveragePage A-5

  • Key points of A. 1. Thru A. 8


Property coverage
Property Coveragehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Coverage A Building Property #3

  • Detached Garages and Carports

    • No Coverage for carports

    • Coverage for detached garages


Dwelling and general property buildings under construction
Dwelling and General Propertyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspBuildings Under Construction

  • Insurable as long as construction is actively ongoing

  • If construction ceases or is interrupted for more than 90 continuous days coverage also ceases.

  • Walled and roofed

  • Work in progress

  • Lowest floor below BFE in SFHA


Iii property covered a coverage a building page a 6 dwelling policy form
III. PROPERTY COVEREDhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspA. COVERAGE A – BUILDING Page A-6 Dwelling Policy Form

#7. Reads : The following fixtures, machinery, and equipment, which are covered under Coverage A only:

A) Awnings & canopies

B) Blinds

C) Built-in dishwashers

D) Built-in microwaves

E) Carpet permanently installed over unfinished flooring

F) Central air conditioners

G) Elevator equipment

H) Fire sprinkler systems


Property covered coverage a building property
Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspCoverage A Building Property

  • Walk in freezers

  • Furnaces and radiators

  • Garbage disposal units

  • Hot water heaters, including solar water heaters

  • Light fixtures

  • Outdoor antennas & aerials fasted to bldgs

  • Permanently installed cupboards, bookcases, cabinets, paneling and wallpaper

  • Plumbing fixtures


Property covered coverage a building property1
Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspCoverage A Building Property

  • Pumps and machinery for operating pumps

  • Ranges, cooking stoves and ovens

  • Refrigerators

  • Wall mirrors, permanently installed.


Coverage a building property item 8
Coverage A. Building Propertyhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspItem #8

  • LIMITED COVERAGE FOR:

  • Basements

  • Post Firm Elevated Buildings in SFHA


Definition of a basement
Definition of a Basementhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Any area of the building including any sunken room or sunken portion of a room, having its floor below ground level (subgrade) on all sides.


Basements property covered
Basements - Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Any of the following items if installed in their functioning locations:

  • Central Air conditioners

  • Cisterns & the water in them

  • Unfinished Dry wall for walls & ceilings

  • Electrical junction & circuit breaker boxes

  • Electrical outlet & switches


Basements property covered1
Basements - Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Elevators, dumbwaiters & related equipment- except if installed: below the BFE after Sept. 30, 1987

  • Fuel Tanks & the fuel in them

  • Furnaces & hot water heaters

  • Heat pumps

  • Nonflammable insulation

  • Pumps & tanks used in solar energy systems


Basements property covered2
Basements - Property Coveredhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Stairways & staircases attached to the building (not separated from it by an elevated walkway)

  • Sump Pumps

  • Water softeners & the chemicals in them

  • Well water tanks

  • Required utility connections

  • Footings, foundations, posts, pilings, piers or other foundation walls & anchorage systems required to support a building


Basements elements not covered
Basements http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspElements Not Covered

  • Contents

  • Improvements such as finished walls, floors & ceilings

  • Building equipment & fixtures not specifically covered

  • Elevators relevant equipment installed after Sept. 30, 1987, if located below the BFE


B coverage b personal property items 1 thru 7
B. Coverage B. Personal Property http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp(Items #1 thru #7)

  • PERSONAL PROPERTY COVERED :

    • Owned by you or your household family members

    • Owned by guests or servants

    • In enclosed building on property

    • At temporary authorized location -45 days- *$1,000. limit


B coverage b personal property items 1 thru 71
B. Coverage B. Personal Property http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp(Items #1 thru #7)

  • Item #4

  • 10% of Personal Property Limit for improvements

  • Item #5

  • No more than 10% for interior walls, floor and ceilings (not otherwise covered)


Coverage c other coverages items 1 3
Coverage C. Other Coverageshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspItems #1 - #3

#1. Debris Removal

  • Draws from building limit

  • Of, on or from insured property

  • Non-owned debris removal from insured premises

  • Insured property anywhere

  • You or your family members reimbursed for time computed at Federal Minimum wage.


Coverage c other coverages
Coverage C – Other Coverageshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

#2. Sand Bag Coverage:

  • $1,000 Limit (does not draw from bldg. limit)

  • Sandbags

  • Sand

  • Wood

  • No Deductible


Deductibles fees
Deductibles & Feeshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Deductibles

  • $1,000. standard Deductible *Pre-Firm in SFHA *Emergency Program

  • Optional Higher Deductibles available

  • Applies separately to Bldg. & Contents

  • Fees

  • Expense Constant $50.00 Annually

  • Federal Policy Fee $30.00 Annually

  • ICC Mandatory Endorsement $4.00 to $75.00


Increased cost of compliance endorsement icc
Increased Cost of Compliance Endorsement (ICC)http://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • $30,000. Limit separate from Coverage A

    • No separate deductible

    • For elevation, flood proofing, relocation & demolition

    • Mandatory charge for Pre-Firm/Post Firm

    • Not available on Emergency Program


New Elevation Certificatehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jspAs January 1, 2007 all new EC must be submitted on this new form and must include to photographs these EC expire in 2012


The elevation certificate
The Elevation Certificatehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Its Role in Mitigation

  • Its Role in Policy Rating

  • Its Role in Map Revisions and Amendments


Section a building diagrams
Section A – Building Diagramshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Non elevated buildings
Non Elevated Buildingshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Breakaway wall
Breakaway Wallhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Is Not Part of the Structural Support of the Building

  • Designed to Collapse Under Specific Lateral Loading Forces without Causing Damage to the Elevated Portion of the Building or Foundation System


Enclosure
Enclosurehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • That Portion of an Elevated Building Below the Lowest Elevated Floor that is Either Partially or Fully Shut-in by Rigid Walls


Reasons to market flood insurance

Reasons to Market Flood Insurancehttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp


Reasons to market flood
Reasons to Market Floodhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • Errors & Omissions Protection

  • Increase commissions

  • Help retain accounts

  • Helps develop new accounts


Insured s responsibility
Insured’s Responsibilityhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • File Notice of Loss

    • Immediate Written Notice

  • Exhibit all remains of the property

  • If requested, submit an examination under oath

  • Provide evidence and documentation to substantiate the loss

  • File a Proof of Loss within 60 days

    • Unless waved by FEMA

  • Adjusters do not have the ability to approve or deny a claim. Recommendation for payment or denial are not binding & subject to approval


Single adjustor program
Single Adjustor Programhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • FEMA & Various Coastal Plans will determine if necessary

  • 48 Hours from landfall FEMA will initiate SAP response

  • Adjusters will be deployed to strategic areas

  • No later than 24 hours after landfall the WYO will be advised of their SAP liaison

  • WYO Companies will advise agents to involve both wind and flood to the State Coastal Plans (Windpool, Fairplan, Beachplan)


Single adjustor program1
Single Adjustor Programhttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

  • NFIP will notify all SAP Liaisons of the Claims Coordination Office(CCO)

  • CCO will notified the WYO of all assigned claims

  • WYO Company will manage its own loss adjustment, but CCO will ensure adjuster receives a copy of the loss assignments.


Upcoming Dates University Classeshttp://www.floodsmart.gov/floodsmart/pages/media_resources/stats.jsp

FREE Community Classes

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www.insurancecommunitycenter.com


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