Friday, February 3, 2012

National Flood Insurance Program May Pay for Flood Prevention Supplies

A little-known clause in NFIP flood insurance policies may reimburse up to $1,000 for loss avoidance measures taken as a result of impending flooding or flooding conditions. Individuals that carry flood insurance may take advantage of this benefit even if their home or business did not actually flood.

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There are some specific terms and conditions that must apply first and only certain items qualify for reimbursement. Some of these items are sandbags, sand, pumps, plastic sheeting, lumber and labor.

Please check with your insurance provider to see if your flood prevention expenses are eligible for reimbursement.

Language taken from the NFIP Dwelling Policy is shown below for more details.

NFIP Dewlling Policy Language:

2. Loss Avoidance Measures

a. Sandbags, Supplies, and Labor

(1) We will pay up to $1,000 for costs you incur to protect the insured building from a flood or imminent danger of flood, for the following:

(a) Your reasonable expenses to buy:

(i) Sandbags, including sand to fill them;

(ii) Fill for temporary levees;

(iii) Pumps; and

(iv) Plastic sheeting and lumber used in connection with these items.

(b) The value of work, at the Federal minimum wage, that you or a member of your household perform.

(2) This coverage for Sandbags, Supplies, and Labor applies only if damage to insured property by or from flood is imminent, and the threat of flood damage is apparent enough to lead a person of common prudence to anticipate flood damage. One of the following must also occur:

(a) A general and temporary condition of flooding in the area near the described location must occur, even if the flood does not reach the insured building; or

(b) A legally authorized official must issue an evacuation order or other civil order for the community in which the insured building is located calling for measures to preserve life and property from the peril of flood.

This coverage does not increase the Coverage A or Coverage B limit of liability.

b. Property Removed to Safety

(1) We will pay up to $1,000 for the reasonable expenses you incur to move insured property to a place other than the described location that contains the property in order to protect it from flood or the imminent danger of flood.