FEDERAL EMERGENCY MANAGEMENT AGENCY

FEDERAL INSURANCE ADMINISTRATION

GENERAL PROPERTY

POLICY

NATIONAL FLOOD

INSURANCE PROGRAM

STANDARD FLOOD

INSURANCE POLICY

[Issued Pursuant to the National Flood Insurance

Act of 1968, or Any Acts Amendatory Thereof

(Hereinafter Called the Act), and Applicable

Federal Regulations in Title 44 of

the Code of Federal Regulations, Subchapter B]

STANDARD FLOOD INSURANCE POLICY

GENERAL PROPERTY FORM

IMPORTANT CHANGES

1. Article 4 – Property Covered: Coverage D –Increased Cost of Compliance, formerly provided by a mandatory endorsement (Endorsement Number One), has now been incorporated into the policy. This coverage is for consequential loss brought on by a floodplain management ordinance or law affecting repair and reconstruction that involves elevation, flood proofing, relocation, or demolition (or any combination thereof) of a structure, after a direct loss caused by a “flood” as defined by this policy.

2. Article 7 – Deductibles: The standard deductibles for building and contents coverages for subsidized policies (risks in an Emergency Program community or in a Special Flood Hazard Area using Pre-FIRM rates) have been increased from $750 to $1,000 (as formerly provided for in mandatory Endorsement Number Two). All new and renewal subsidized policies effective on or after May 1, 1998, are subject to the new standard deductibles. Policyholders who wish to reduce their deductibles may opt to purchase a $500 deductible separately for building and contents coverages for an additional premium.

POLICY CONDITIONS OF SPECIAL NOTE

1. Coverage for losses caused by land subsidence, sewer backup, or seepage of water is subject to additional deductibles of $250.00 (applied separately to each building and contents loss) as provided for in Article 7 and subject to the following conditions:

A. There is a general and temporary condition of flooding in the area.

B. The flooding is the proximate cause of the land subsidence, sewer backup, or seepage of water.

C. The land subsidence, sewer backup, or seepage damage occurs no later than 72 hours after the flood has receded.

D. The insured building must be insured, at the time of the loss, for at least 80% of its replacement cost or the maximum amount of insurance available under the National Flood Insurance Program. (See Article 3, Paragraph B.3., Losses Not Covered.)

2. Coverage for additions and extensions is restricted to those attached to the building by means of a common wall. (Article 4, Coverage A, Paragraph 2.) This is further clarified in regard to decks in Article 6, Paragraph D.2., which has been revised to specifically exclude coverage for decks.

3. The General Property Policy form is used to insure residential condominium buildings located in Emergency Program communities and/or residential condominium buildings located in Regular Program communities where less than 75% of the total floor area within the building is residential.

SCOPE OF BASEMENT AND ELEVATED BUILDING ENCLOSURE COVERAGE

NOTICE: This policy provides only LIMITED COVERAGE in basements and for the enclosed areas below elevated Post-FIRM buildings, as set forth below.		ELEMENTS COVERED IN BASEMENTS ONLY:
(See Article 6, Paragraph F.)		·	UNPAINTED DRYWALLS AND SHEETROCK WALLS, INCLUDING FIBERGLASS INSULATION, AND CEILINGS (COVERAGE OF BASEMENT WALLS IS LIMITED TO REPLACING THEM IN AN UNFINISHED, UNPAINTED CONDITION)
BUILDING AND CONTENTS ELEMENTS COVERED:		ELEMENTS NOT COVERED IN BASEMENTS AND ELEVATED BUILDING ENCLOSURES (SEE NOTE):
·	FOUNDATION ELEMENTS	·	CONTENTS
·	PUMPS AND/OR TANKS USED IN CONJUNCTION WITH SOLAR ENERGY	·	IMPROVEMENTS SUCH AS FINISHED WALLS, FLOORS, AND CEILINGS
·	ELECTRICAL JUNCTION AND CIRCUIT BREAKER BOXES	·	BUILDING EQUIPMENT AND FIXTURES NOT SPECIFICALLY COVERED
·	WELL WATER TANKS AND PUMPS
·	ELEVATORS, DUMBWAITERS, AND EQUIPMENT, EXCEPT FOR SUCH EQUIPMENT LOCATED BELOW	NOTE: IN THE CASE OF ELEVATED BUILDINGS, COVERAGE LIMITATION APPLIES ONLY TO POST- FIRM ELEVATED BUILDINGS IN SPECIAL HAZARD AREAS DESIGNATED AS ZONES A1-30 (AE), AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-30, AND V1-30(VE).
·	CISTERNS AND THE WATER IN THEM
·	NATURAL GAS TANKS AND THE GAS IN THEM
·	REQUIRED UTILITY CONNECTIONS
·	SUMP PUMPS
·	FURNACES
·	HOT WATER HEATERS	·	OIL TANKS AND THE OIL IN THEM
·	CLOTHES WASHERS AND DRYERS
·	FOOD FREEZERS AND THE FOOD IN THEM
·	AIR CONDITIONERS
·	HEAT PUMPS
·	CLEAN-UP


	THE BASE FLOOD LEVEL, IF SUCH EQUIPMENT WAS INSTALLED ON OR AFTER OCTOBER 1, 1987

FEDERAL EMERGENCY MANAGEMENT AGENCY

FEDERAL INSURANCE ADMINISTRATION

STANDARD FLOOD INSURANCE POLICY

[Issued Pursuant to the National Flood Insurance Act of 1968, or Any Acts Amendatory Thereof (Hereinafter Called the Act), and Applicable Federal Regulations in Title 44 of the Code of Federal Regulations, Subchapter B]

GENERAL PROPERTY FORM

READ THE POLICY CAREFULLY. THE COVERAGE PROVIDED IS SUBJECT TO LIMITATIONS, RESTRICTIONS AND EXCLUSIONS.

THIS POLICY PROVIDES NO COVERAGE:

1. IN A REGULAR PROGRAM COMMUNITY, FOR A RESIDENTIAL CONDOMINIUM BUILDING, AS DEFINED IN THIS POLICY; AND

2. EXCEPT FOR PERSONAL PROPERTY COVERAGE, FOR A UNIT IN A CONDOMINIUM BUILDING.

INSURING AGREEMENT

AGREEMENT OF INSURANCE between the Federal Emergency Management Agency (FEMA), as Insurer, and the Insured.

The Insurer insures the Insured against all DIRECT PHYSICAL LOSS BY OR FROM FLOOD to the insured property, based upon:

1. The Insured having paid the correct amount of premium; and

2 The Insurer's reliance on the accuracy of the information and statements the Insured has furnished; and

3. All the terms of this policy, the National Flood Insurance Act of 1968, as amended, and Title 44 of the Code of Federal Regulations.

On this basis, the Insured is insured up to the lesser of:

1. The actual cash value, not including any antique value, of the property at the time of loss; or

2. The amount it would cost to repair or replace the property with material of like kind and quality within a reasonable time after the loss.

ARTICLE 1 - PERSONS INSURED

The following are insured under this policy:

A. The named Insured and legal representatives;

B. Any mortgagee and trustee named in the application and declarations page, as well as any other mortgagee or loss payee determined to exist at the time of a loss (See Article 8, paragraph L.), in the order of precedence and to the extent of their interest but for no more, in the aggregate, than the interest of the named Insured.

ARTICLE 2 - DEFINITIONS

AS USED IN THIS POLICY:

"Act" means the National Flood Insurance Act of 1968 and any acts amendatory thereof.

"Actual Cash Value" means the replacement cost of an insured item of property at the time of loss, less the value of physical depreciation as to the item damaged.

"Application" means the statement made and signed by the Insured, or the Insured's agent, and giving information on the basis of which the Insurer determines the acceptability of the risk, the policy to be issued and the correct premium payment, which must accompany the application in order for the policy to be issued. The application is a part of this flood insurance policy.

"Association" means the group of unit owners, which manages the described Condominium Building.

"Base flood" means the flood having a one percent chance of being equaled or exceeded in any given year.

"Basement" means any area of the building, including any sunken room or sunken portion of a room, having its floor sub grade (below ground level) on all sides.

"Building" means a walled and roofed structure, other than a gas or liquid storage tank, that is principally above ground and affixed to a permanent site, including a walled and roofed building in the course of construction, alteration or repair and a manufactured (i.e., mobile) home on a permanent foundation, subject to Article 6, paragraph H.

"Cancellation" means that ending of the insurance coverage provided by this policy prior to the expiration date.

"Coastal High Hazard Area" means an area subject to high velocity waters, including hurricane wave wash and tsunamis.

"Condominium" means a system of individual ownership of units in a multi-unit building or buildings or in single-unit buildings as to which each unit owner in the condominium has an undivided interest in the common areas of the building(s) and facilities that serve the building(s).

"Declarations Page" is a computer generated summary of information furnished by the Insured in the application for insurance. The declarations page also describes the term of the policy, limits of coverage, and displays the premium and the name of the Insurer. The declarations page is a part of this flood insurance policy.

"Direct Physical Loss By or From Flood" means any loss in the nature of actual loss of or physical damage, evidenced by physical changes, to the insured property (building or personal property) which is directly and proximately caused by a "flood" (as defined in this policy).

"Elevated Building" means a non-basement building, which has its lowest elevated floor, raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns.

"Emergency Program Community" means a community wherein a Flood Hazard Boundary Map (FHBM) is in effect and only limited amounts of insurance are available under the Act.

"Expense Constant" means a flat charge per policy term, paid by the Insured to defray the Federal Government's policy writing and other expenses.

"Expiration Date" means the ending of the insurance coverage provided by this policy on the expiration date shown on the declarations page.

"Federal policy fee" means a flat charge per policy term, paid by the Insured to defray certain administrative expenses incurred in carrying out the National Flood Insurance Program not covered by the expense constant. This fee was established by section 1307(a)(1)(B)(iii) of the National Flood Insurance Act of 1968, as amended, and is not subject to producers' commissions, expense allowances, or state or local premium taxes.

"Flood" means:

A. A general and temporary condition of partial or complete inundation of normally dry land areas from:

1. The overflow of inland or tidal waters.

2. The unusual and rapid accumulation or runoff of surface waters from any source.

3. Mudslides (i.e., mudflows) which are proximately caused by flooding as defined in subparagraph A-2 above and are akin to 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 and deposited along the path of the current.

B. The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding the cyclical levels, which result in flooding, as defined in subparagraph A-1 above.

"Improvements" means fixtures, alterations, or additions comprising a part of the insured building.

"Manufactured home" means a building transportable in one or more sections, which is built on a permanent chassis and designed to be used with or without a permanent foundation when connected to the required utilities. The term "manufactured home" does not include park trailers, and other similar vehicles. To be eligible for coverage under this policy, a manufactured home must be on a permanent foundation and, if located in a FEMA designated Special Hazard Area, must meet the requirements of paragraph H. of Article 6.

"Mobile Home" means a manufactured home.

"National Flood Insurance Program” means the program of flood insurance coverage and floodplain management administered under the Act and applicable Federal regulations in Title 44 of the Code of Federal Regulations, Subchapter B.

"Policy" means the entire written contract between the Insured and the Insurer, including this printed form, the application, and declarations page, any endorsements, which may be issued, and any renewal certificates indicating that coverage has been instituted for a new policy and policy term. Only one building, specifically described by the Insured in the application, may be insured under this policy, unless application to cover more than one building is made on a form or in a format approved for that purpose by the Federal Insurance Administrator.

"Post-FIRM building" means a building for which the start of construction or substantial improvement occurred after December 31, 1974, or on or after the effective date of the initial Flood Insurance Rate Map (FIRM) for the community in which the building is located, whichever is later.

"Pre-FIRM rated building" means a building for which the start of construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of the initial FIRM for the community in which the building is located, whichever is later.

"Probation Additional Premium" means a flat charge per policy term paid by the Insured on all new and renewal policies issued covering property in a community that has been placed on probation under the provisions of 44 CFR 59.24.

"Regular Program Community" means a community wherein a FIRM is in effect and full limits of coverage are available under the Act.

"Residential Condominium Building" means a building owned by the members of a condominium association containing one or more residential units and in which at least 75% of the floor area within the building is residential.

"Special hazard area" means an area having special flood, mudslide (i.e., mudflow), and/or flood-related erosion hazards, and shown on a FHBM or FIRM as Zone A, AO, A1-30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-30, VO, V1-30, VE, V, M or E.

"Unit" means a unit in the insured Condominium Building.

"Valued policy" means a policy contract in which the Insurer and the Insured agree on the value of the property insured, that value being payable in event of total loss.

"Walled and Roofed" means the building has in place two or more exterior, rigid walls and the roof is fully secured so that the building will resist flotation, collapse and lateral movement.

ARTICLE 3 - LOSSES NOT COVERED

The Insurer only provides coverage for direct physical loss by or from flood which means the following are not covered:

A. Compensation, reimbursement or allowance for:

1. Loss of use of the insured property or premises.

2. Loss of access to the insured property or premises.

3. Loss of profits.

4. Loss resulting from interruption of business, profession, or manufacture.

5. Any additional expenses incurred while the insured building is being repaired or is uninhabitable for any reason.

6. Any increased cost of repair or reconstruction as a result of any ordinance regulating reconstruction or repair except as provided in Coverage D - Increased Cost of Compliance.

7. Any other economic loss.

B. Losses from other casualties, including loss caused by:

1. Theft, fire, windstorm, wind, explosion, earthquake, land sinkage, landslide, destabilization or movement of land resulting from the accumulation of water in subsurface land areas, gradual erosion, or any other earth movement except such mudslides (i.e., mudflows) or erosion as is covered under the peril of flood.

2. Rain, snow, sleet, hail or water spray.

3. Land subsidence, sewer backup, or seepage of water unless, subject to additional deductibles as provided for at Article 7, (a) there is a general and temporary condition of flooding in the area, (b) the flooding is the proximate cause of the land subsidence, sewer backup, or seepage of water, (c) the land subsidence, sewer backup, or seepage of water damage occurs no later than 72 hours after the flood has receded, and (d) the insured building must be insured, at the time of the loss, for at least 80 percent of its replacement cost or the maximum amount of insurance available under the National Flood Insurance Program.

4. Freezing, thawing, or the pressure or weight of ice or water.

5. Water, moisture, mildew, mold or mudslide (i.e., mudflow) damage resulting primarily from any condition substantially confined to the insured building or from any condition which is within the Insured's control (including but not limited to design, structural or mechanical defects, failures, stoppages or breakages of water or sewer lines, drains, pumps, fixtures or equipment).

C. Losses of the following nature:

1. A loss which is already in progress as of 12:01 A.M. of the first day of the policy term, or, as to any increase in the limits of coverage which is requested by the Insured, a loss which is already in progress as of 12:01 A.M. on the date when the additional coverage becomes effective.

2. A loss from a flood, which is confined to the premises on which the insured property is located unless the flood is, displaced over two acres of the premises.

3. A loss caused by the Insured's modification to the insured property, which materially increases the risk of flooding.

4. A loss caused intentionally by the Insured.

5. A loss caused by or resulting from power, heating or cooling failure, unless such failure results from physical damage to power, heating or cooling equipment situated on the premises where the described building or unit is located, caused by a flood.

6. A loss to any building or contents located on property leased from the Federal Government, arising from or incident to the flooding of the property by the Federal Government where the lease expressly holds the Federal Government harmless, under flood insurance issued under any Federal Government program, from loss arising from or incident to the flooding of the property by the Federal Government.

ARTICLE 4 - PROPERTY COVERED

(Subject to ARTICLES 3, 5 and 6 Provisions,

Which Also Apply to the Other Articles, Terms,

and Conditions of This Policy,

Including the Insuring Agreement)

COVERAGE A - BUILDING PROPERTY

This policy covers a building (the "building") at the premises which is described in the application, and includes:

1. The entire building, for its real property elements, including, if owned in common by a Condominium Association, as named Insured, all units within the building and the improvements within the units.

2. Additions and extensions attached to and in contact with the building by means of a common wall (but see Article 6, paragraph D.2.).

3. Fixtures, machinery and equipment, including the following property, all while within the building and owned by the named Insured, as to which coverage is not provided under "Coverage B - PERSONAL PROPERTY":

· Furnaces

· Wall Mirrors Permanently Installed

· Permanently Installed Corner Cupboards, Bookcases, Paneling, and Wallpaper

· Ventilating Equipment

· Fire Extinguishing Apparatus

· Venetian Blinds

· Central Air Conditioners

· Awnings and Canopies

· Elevator Equipment

· Fire Sprinkler Systems

· Outdoor Antennas and Aerials

· Pumps and Machinery for Operating them

· Carpet Permanently Installed Over Unfinished Flooring

· In the Units Within the Building, Installed:

o Built-in Dishwashers

o Garbage Disposal Units

o Hot Water Heaters

o Kitchen Cabinets

o Built-in Microwave Ovens

o Plumbing Fixtures

o Radiators

o Ranges

o Refrigerators

o Stoves

4. Materials and supplies to be used in constructing, altering or repairing the building while stored inside a fully enclosed building:

a. At the property address; or

b. On an adjacent property at the time of loss; or

c. In case of another building at the property address which does not have walls on all sides, while stored and secured to prevent flotation out of the building during flooding (the flotation out of the building shall be deemed to establish the conclusive presumption that the materials and supplies were not reasonably secured to prevent flotation, in which case no coverage is provided for such materials and supplies under this policy).

5. A building in the course of construction before it is walled and roofed subject to the following conditions:

a. The amount of the deductible for each loss occurrence before the building is walled and roofed is two times the deductible which is selected to apply after the building is walled and roofed;

b. Coverage is provided before the building is walled and roofed only while construction is in progress, or if construction is halted, only for a period of up to 90 continuous days thereafter, until construction is resumed; and

c. There is no coverage before the building is walled and roofed where the lowest floor, including basement floor, of a non-elevated building or the lowest elevated floor of an elevated building is below the base flood elevation in Zones AH, AE or A1-30 or is below the base flood elevation adjusted to include the effect of wave action in Zones VE or V1-30. The lowest floor levels are based on the bottom of the lowest horizontal structural member of the floor in Zones VE or V1-30 and the top of the floor in Zones AH, AE or A1-30.

COVERAGE B - PERSONAL PROPERTY

A. Subject to paragraphs B, C, and D, below, this policy covers personal property, which is in or on the insured, fully enclosed building and is:

1. Owned solely by the Insured, or in common by the unit owners of a condominium, i.e., as to which each unit owner has an undivided ownership interest; or

2. In the case of a condominium owned solely by a condominium association and used exclusively in the conduct of the business affairs of the condominium.

3. Such personal property is also covered while stored at a temporary location, as expressly authorized under this policy (see Article 5, paragraph B.2.).

B. When the insurance under this policy covers personal property (contents), coverage shall be for either household contents or other than household contents, but not for both.

1. When the insurance under this policy covers other than household contents, such insurance shall cover, subject to "COVERAGE A - BUILDING PROPERTY," paragraph 3.: merchandise and stock, materials and stock supplies of every description, furniture, fixtures, machinery and equipment of every description all owned by the Insured and all while within the described enclosed building. Bailees' goods are specifically excluded from coverage under this policy.

2. When the insurance under this policy covers household contents, such insurance shall cover, subject to "COVERAGE A - BUILDING PROPERTY," paragraph 3.: all household and personal property usual or incidental to the occupancy of the premises as a residence, except any property more specifically covered in whole or in part by other insurance including the peril insured against in this policy, belonging to the Insured or members of the Insured's family of the same household, or for which the Insured may be liable, or, at the option of the Insured, belonging to a servant or guest of the Insured -- all while within the described enclosed building.

C. Coverage for personal property includes the following property, subject to paragraph A. 1. and 2., above, for which coverage is not provided (irrespective of the manner in which the property is installed in or adapted to the building) under "COVERAGE A - BUILDING PROPERTY":

o Clothes Washers o Clothes Dryers

o Food Freezers o Air Conditioning Units Installed in the Building

o Portable Dishwashers

o Carpet, including wall-to-wall carpet, over finished flooring and whether or not it is permanently installed

o Carpet not permanently installed over unfinished flooring

o Outdoor equipment and furniture stored inside the dwelling or another fully enclosed building at the property address

o Portable microwave ovens and "cook-out" grills, ovens and the like

D. Limitations. Under this "COVERAGE B - PERSONAL PROPERTY," the Insured shall not be reimbursed for loss as to the following personal property to the extent the loss to any one or more of such property exceeds, individually or in total, $250.00:

o Artwork, including but not limited to, paintings, etchings, pictures, tapestries, art glass windows including their frames, statuary, marbles, and bronzes;

o Rare books;

o Necklaces, bracelets, gems, precious or semiprecious stones, watches, articles of gold, silver, or platinum; or

o Furs or any article containing fur which represents its principal value.

E. The Insured, if not an owner of the described building, may apply up to 10% of the amount of insurance applicable to the personal property covered under this item, not as an additional amount of insurance, to cover loss to improvements to the described building which have been made, or acquired, at the expense of the Insured exclusive of rent paid by the Insured, even though the improvements are not legally subject to removal by the Insured.

F. The Insured, if a condominium unit owner in the described building, may apply up to 10% of the amount of insurance on personal property covered under this policy, not as an additional amount of insurance, to cover loss to the interior walls, floors, and ceilings that are not otherwise covered under a condominium association policy insuring the described non-residential condominium building.

G. In the case of personal property owned by the Insured in a condominium building, as a condominium unit owner, as well as in common with other condominium unit owners, should the amount of insurance collectible under this policy for a loss, when combined with any recovery available to the Insured as a tenant in common under any condominium association flood insurance coverage provided under the Act for the same loss, exceed the statutorily permissible limits of personal property coverage available under the Act for the insuring of the personal property, then the limits of personal property coverage under this policy shall be reduced in regard to that loss by the amount of such excess.

The insurance under this policy shall be excess over any insurance in the name of the Condominium Association covering the same property. Loss shall not be paid under this policy until the Insurer has verified the extent to which such loss is covered by any insurance in the name of a condominium association.

COVERAGE C - DEBRIS REMOVAL

This insurance covers expense incurred in the removal of debris of, or on, or from the building or personal property covered hereunder, which may be occasioned by loss caused by a flood. Under these provisions coverage extends to:

1. Non-owned debris from beyond the boundaries of the described premises, which is physically on the insured property (i.e., on the building or the personal property).

2. Parts of the insured property anywhere: a. On the described premises; and

b. On property beyond the boundaries of the described premises.

The total liability under this policy for both loss to property and debris removal expense shall not exceed the amount of insurance applying under this policy to the property covered.

COVERAGE D – INCREASED COST OF COMPLIANCE

Increased Cost of Compliance coverage (Coverage D) is for the consequential loss brought on by a floodplain management ordinance or law affecting repair and reconstruction involving elevation, floodproofing, relocation, or demolition (or any combination thereof) of a structure, after a direct loss caused by a "flood" as defined by this policy. {Floodproofing activities eligible for Coverage D and referred to hereafter in this policy are limited to residential structures with basements that satisfy the criteria of 44 CFR 60.6 (b) or (c) and to non-residential structures.}

The limit of liability under this Coverage D (Increased Cost of Compliance) is $15,000. This coverage is only applicable to policies with building coverage (Coverage A) and is in addition to the building limit you selected on your application and appears on the Declarations Page. No separate deductible applies.

The maximum amount collectible under this policy for both Coverage A (Building Property) and Coverage D

(Increased Cost of Compliance), however, cannot exceed the maximum permitted under the Act.

ELIGIBILITY

A structure covered under Coverage A - Building Property sustaining a loss caused by a "flood" as defined by this policy must:

1. be a structure that is a repetitive loss structure. A "repetitive loss structure" means a structure, covered by a contract for flood insurance issued pursuant to the Act, that has incurred flood-related damage on 2 occasions during a 10-year period ending on the date of the event for which a second claim is made, in which the cost of repairing the flood damage, on the average, equaled or exceeded 25% of the market value of the structure at the time of each such flood event. In addition to the current claim, the National Flood Insurance Program (NFIP) must have paid the previous qualifying claim, and the State or community must have a cumulative, substantial damage provision or repetitive loss provision in its floodplain management law or ordinance being enforced against the structure, or

2. be a structure that has had flood damage in which the cost to repair equals or exceeds 50% of the market value of the structure at the time of the flood event. The State or community must have a substantial damage provision in its floodplain management law or ordinance being enforced against the structure.

This Coverage D will not pay for Increased Cost of Compliance to meet State or community floodplain management laws or ordinances which exceed the minimum criteria at 44 CFR 60.3, except as provided in 1. above or a. or b. as follows:

a. elevation or floodproofing in any risk zone to preliminary or advisory base flood elevations provided by FEMA which the State or local government has adopted and is enforcing for flood-damaged structures in such areas. (This includes compliance activities in B, C, X, or D zones which are being changed to zones with base flood elevations. This also includes compliance activities in zones where base flood elevations are being increased, and a flood-damaged structure must comply with the higher advisory base flood elevation.) Increased Cost of Compliance coverage does not respond to situations in B, C, X, or D zones where the community has derived its own elevations and is enforcing elevation or floodproofing requirements for flood-damaged structures to elevations derived solely by the community.

b. elevation or floodproofing above the base flood elevation to meet State or local “freeboard” requirements, i.e., that a structure must be elevated above the base flood elevation.

Under the minimum NFIP criteria at 44 CFR 60.3 (b)(4), States and communities must require the elevation or floodproofing of structures in unnumbered A zones to the base flood elevation where elevation data is obtained from a Federal, State, or other source. Such compliance activities are also eligible for this Coverage D.

This coverage will also pay for the incremental cost, after demolition or relocation, of elevating or floodproofing a structure during its rebuilding at the same or another site to meet State or local floodplain management laws or ordinances, subject to Exclusion (7).

This coverage will also pay to bring a flood-damaged structure into compliance with State or local floodplain management laws or ordinances even if the structure had received a variance prior to the present loss from the applicable floodplain management requirements.

CONDITIONS

1. When a structure covered under Coverage A -Building Property sustains a loss caused by a "flood" as defined by this policy, our payment for the loss under this Coverage D will be for the increased cost to elevate, floodproof, relocate, demolish, or any combination thereof, caused by enforcement of current State or local floodplain management ordinances or laws. Our payment for eligible demolition activities will be for the cost to demolish and clear the site of the building or a portion thereof caused by enforcement of current State or local floodplain management ordinances or laws. Eligible activities for the cost of clearing the site will include those necessary to discontinue utility service to the site and ensure proper abandonment of on-site utilities.

2. When the building is repaired or rebuilt, it must be intended for the same occupancy as the present building unless otherwise required by current floodplain management ordinances or laws.

EXCLUSIONS

Under this Coverage D (Increased Cost of Compliance) we will not pay for:

(1) The cost associated with enforcement of any floodplain management ordinance or law in communities participating in the Emergency Program.

(2) The cost associated with enforcement of any ordinance or law that requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants. Pollutants include but are not limited to any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acid, alkalis, chemicals, and waste. Waste includes but is not limited to materials to be recycled, reconditioned, or reclaimed.

(3) The loss in value to any covered building or other structure due to the requirements of any ordinance or law.

(4) The loss in residual value of the undamaged portion of a building demolished as a consequence of enforcement of any State or local floodplain management law or ordinance.

(5) Any Increased Cost of Compliance under this Coverage D:

(a) Until the covered building is actually elevated, floodproofed, demolished, or relocated on the same or to another premises; and

(b) Unless the covered building is elevated, floodproofed, demolished, or relocated as soon as reasonably possible after the loss, not to exceed two years.

(6) Any code upgrade requirements, e.g., plumbing or electrical wiring, not specifically related to the State or local floodplain management law or ordinance.

(7) Any compliance activities needed to bring additions or improvements made after the loss occurred into compliance with State or local floodplain management laws or ordinances.

(8) Loss due to any ordinance or law that you were required to comply with before the current loss.

(9) Any rebuilding activity to standards that do not meet the NFIP’s minimum requirements. This includes any situation where the insured has received from the State or community a variance in connection with the current flood loss to rebuild the property to an elevation below the base flood elevation.

(10) Any structure insured under a Group Flood Insurance Policy issued pursuant to 44 CFR 61.17.

OTHER PROVISIONS

(1) Increased Cost of Compliance coverage will not be included in the calculation to determine whether coverage meets the 80% insurance-to-value requirement or for payment under Article 3.B.3 for loss from land subsidence, sewer backup, or seepage of water.

(2) All other conditions and provisions of the policy apply.

ARTICLE 5 - SPECIAL PROVISIONS

APPLICABLE TO COVERAGES A, B, AND C

A. This policy is not a valued policy. Loss will be paid, provided the Insured has purchased a sufficient amount of coverage, i.e., in an amount equal to the lesser of the value of the damaged property under the terms and conditions of this policy (and regardless of whether the amount of insurance purchased is greater than such value) or the limit of coverage permitted under the Act.

B. Insured Property, Covered Locations. The building and personal property are covered while the property is located:

1. At the property address shown on the application; and

2. For 45 days at another place above ground level or outside of the special hazard area, to which any of the insured property shall necessarily be removed in order to protect and preserve it from flood, due to the imminent danger of flood (provided, personal property so removed must be placed in a fully enclosed building or otherwise reasonably protected from the elements to be insured against loss), in which case the reasonable expenses incurred by the Insured, including the value of its own labor at prevailing Federal minimum wage rates, in moving any of the insured property temporarily away from the peril of flood shall be reimbursed in an amount not to exceed $500.00.

This policy's deductible amounts, as provided for at Article 7, shall not be applied to this reimbursement, but shall be applied to any other benefits under this policy's coverage.

C. Coverage For Certain Loss Mitigation Measures.

When the insurance under this policy covers a building, reasonable expenses incurred by the Insured for the purchase of the following items are also covered, in an aggregate amount not to exceed $750.00:

1. Sandbags, including sand to fill them and plastic sheeting and lumber used in connection with them;

2. Fill for temporary levees;

3. Pumps; and

4. Wood;

all for the purpose of saving the building due to the imminent danger of a flood loss, including the value of the Insured's own labor at prevailing Federal minimum wage rates.

For reimbursement under this paragraph C. to apply, the following conditions must be met:

a. The insured property must be in imminent danger of sustaining flood damage; and b. The threat of flood damage must be of such imminence as to lead a person of common prudence to apprehend flood damage; and

c. A general and temporary condition of flooding in the area must occur, even if the flooding does not reach the insured property, or a legally authorized official must issue an evacuation order or other civil order for the community in which the insured property is located calling for measures to preserve life and property from the peril of flood.

The policy's building deductible amount, as provided for at Article 7, shall not be applied to this reimbursement, but shall be applied to any other benefits under the policy's building coverage.

ARTICLE 6 - PROPERTY NOT COVERED

This policy shall not cover any of the following:

A. Valuables and commercial property, meaning:

1. Accounts, bills, currency, deeds, evidences of debt, money, coins, medals, postage stamps, securities, bullion, manuscripts, other valuable papers or records, and personal property used in a business.

2. Personal property used in connection with any incidental commercial occupancy or use of the building.

B. Property over water or in the open, meaning:

1. A building and personal property in the building located entirely in, on, or over water or seaward of mean high tide, if the building was newly constructed or substantially improved on or after October 1, 1982.

2. Personal property in the open.

C. Structures other than buildings, including:

1. Fences, retaining walls, seawalls, bulkheads, wharves, piers, bridges, and docks.

2. Indoor and outdoor swimming pools.

3. Open structures and personal property located in, on, or over water, including boat houses or any structure or building into which boats are floated.

4. Underground structures and equipment, including wells, septic tanks and septic systems.

D. Other real property, including:

1. Land, land values, lawns, trees, shrubs, plants, and growing crops.

2. Those portions of walks, walkways, decks, driveways, patios, and other surfaces, all whether covered or not and all of whatever kind of construction, located outside the perimeter, exterior walls of the insured building.

E. Other personal property, meaning:

1. Animals, livestock, birds, and fish.

2. Aircraft.

3. Any self-propelled vehicle or machine and motor vehicle (other than motorized equipment pertaining to the service of the described unit or building, operated principally on the premises of the Insured, and not licensed for highway use) including their parts and equipment.

4. Trailers on wheels and other recreational vehicles whether affixed to a permanent foundation or on wheels.

5. Watercraft including their furnishings and equipment.

6. Personal property owned by or in the care, custody or control of a unit owner, except for the property described in Article 4 under “COVERAGE B - PERSONAL PROPERTY,” paragraph B. of this policy.

F. Basements, building enclosures lower than the elevated floors of elevated buildings, and personal property, as follows:

1. In a special hazard area, at an elevation lower than the lowest elevated floor of an elevated Post-FIRM building, including a manufactured (i.e., mobile) home:

a. Personal property.

b. Building enclosures, equipment, machinery, fixtures and components, except for the required utility connections and the footings, foundation, posts, pilings, piers or other foundation walls and anchorage system as required for the support of the building.

2. In a basement as defined in Article 2: a. Personal property.

b. Building equipment, machinery, fixtures and components, including finished walls, floors, ceilings and other improvements, except for the required utility connections, fiberglass insulation, drywalls and sheetrock walls, and ceilings but only to the extent of replacing drywalls and sheetrock walls in an unfinished manner (i.e., nailed to framing but not taped, painted, or covered).

3. Provided, with regard to both 1. and 2., above, the following building and personal property items connected to a power source and installed in their functioning location are covered so long as the Insured has purchased building and personal property coverage, as appropriate:

o Sump pumps

o Well water tanks and pumps

o Oil tanks and the oil in them

o Cisterns and the water in them

o Natural gas tanks and the gas in them

o Pumps and/or tanks used in conjunction with solar energy

o Furnaces

o Hot water heaters

o Clothes washers and dryers

o Food freezers and the food in them

o Air conditioners

o Heat pumps

o Electrical junction and circuit breaker boxes

o Stairways and staircases attached to the building which are not separated from the building by elevated walkways

o Clean-up

o Elevators, dumbwaiters, and relevant equipment, except for such relevant equipment located below the base flood elevation if such relevant equipment was installed on or after October 1, 1987.

G. Property below ground, meaning a building or unit and its contents, including personal property and machinery and equipment, which are part of the building or unit, where more than 49 percent of the actual cash value of such building or unit is below ground, unless the lowest level is at or above the base flood elevation (in the Regular Program) or the adjacent ground level (in the Emergency Program) by reason of earth having been used as an insulation material in conjunction with energy efficient building techniques.

H. Certain manufactured homes, meaning a manufactured (i.e., mobile) home located or placed within a FEMA designated Special Hazard Area that is not anchored to a permanent foundation to resist flotation, collapse, or lateral movement:

1. By over-the-top or frame ties to ground anchors; or

2. In accordance with manufacturer's specifications; or

3. In compliance with the community's floodplain management requirements;

unless it is a manufactured (i.e., mobile) home on a permanent foundation continuously insured by the

National Flood Insurance Program at the same site at least since September 30, 1982.

I. Containers such as but not limited to gas tanks or liquid tanks.

J. Buildings and their contents made ineligible for flood insurance pursuant to the provisions of the Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq., and the Coastal Barrier Improvement Act of 1990, Pub. L. 101-591, 16 U.S.C. 3501 et seq.

K. Residential condominium buildings and their contents owned by the Insured as a tenant in common with others under a condominium form of ownership and any building components and contents owned solely by the Insured in connection with a residential condominium building in a Regular Program community.

ARTICLE 7 – DEDUCTIBLES

A. Each loss to the insured property is subject to a deductible provision under which the Insured bears a portion of the loss before payment is made under the policy.

B. The loss deductible shall apply separately to each building and personal property coverage loss including, as to each, any appurtenant structure loss and debris removal expense.

C. For any flood insurance policy issued or renewed for a property located in an Emergency Program community or for any property located in a Regular Program community in Zones A, AO, AH, A1-30, AE, AR, AR/AE, AR/AH, AR/AO, AR/A1-30, AR/A, VO, V1-30,

VE, or V where the rates available for buildings built before the effective date of the initial Flood Insurance Rate Map or December 31, 1974, whichever is later, are used to compute the premium, the amount of the deductible for each loss occurrence is determined as follows: The Insurer shall be liable only when such loss exceeds $1,000.00, or the amount of any other deductible that the Insured selected when it applied for this policy or subsequently by endorsement.

D. For policies other than those described in paragraph C. above, the amount of the deductible for each loss occurrence is determined as follows: The Insurer shall be liable only when such loss exceeds $500.00, or the amount of any higher deductible which the Insured selected when it applied for this policy or subsequently by endorsement.

E. Notwithstanding the applicable deductible in paragraphs C. or D. above, an additional deductible in the sum of $250.00 shall apply separately to each building and contents loss before payment is made under the policy for land subsidence, sewer backup, or seepage of water as provided for in Article 3, paragraph B.3.

ARTICLE 8 - GENERAL CONDITIONS

AND PROVISIONS

A. Pair and Set Clause: If there is loss of an article which is part of a pair or set, the measure of loss shall be a reasonable and fair proportion of the total value of the pair or set, giving consideration to the importance of said article, but such loss shall not be construed to mean total loss of the pair or set.

B. Concealment, Fraud: This policy shall be void, nor can this policy be renewed or any new flood insurance coverage be issued to the Insured if any person insured under Article 1, paragraph A., whether before or after a loss, has:

1. Sworn falsely, or willfully concealed or misrepresented any material fact; or

2. Done any fraudulent act concerning this insurance (see paragraph E.1.d. below); or

3. Willfully concealed or misrepresented any fact on a "Recertification Questionnaire," which causes the Insurer to issue a policy based on a premium amount which is less than the premium amount which would have been payable were it not for the misstatement of fact (see paragraph F. below).

C. Other Insurance: If a loss covered by this policy is also covered by other insurance, whether collectible or not, the Insurer will pay only the proportion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss, provided, if at the time of loss, there is other insurance made available under the Act, in the name of a unit owner which provides coverage for the same loss covered by this policy, this policy’s coverage shall be primary and not contributing with such other insurance.

D. Amendments and Waivers, Assignment: Standard

Flood Insurance Policy cannot be amended nor can any of its provisions be waived without the express written consent of the Federal Insurance Administrator. No action the Insurer takes under the terms of this policy can constitute a waiver of any of its rights. Except in the case of 1. a contents only policy and 2. a policy issued to cover a building in the course of construction, assignment of this policy, in writing, is allowed upon transfer of title.

E. Voidance, Reduction or Reformation of the Coverage:

1. Voidance: This policy shall be void and of no legal force and effect in the event that any one of the following conditions occurs:

a. The property listed on the application is not eligible for coverage, in which case the policy is void from its inception;

b. The community in which the property is located was not participating in the National Flood Insurance Program on the policy's inception date and did not qualify as a participating community during the policy's term and before the occurrence of any loss;

c. If, during the term of the policy, the participation in the National Flood Insurance Program of the community in which the property is located ceases, in which case the policy shall be deemed void effective at the end of the last day of the policy year in which such cessation occurred and shall not be renewed.

In the event the voided policy included 3 policy years in a contract term of 3 years, the Insured shall be entitled to a pro-rata refund of any premium applicable to the remainder of the policy's term;

d. In the event any Insured or its agent has:

(1) sworn falsely; or

(2) fraudulently or willfully concealed or misrepresented any material fact including facts relevant to the rating of this policy in the application for coverage, or upon any renewal of coverage, or in connection with the submission of any claim brought under the policy, in which case this entire policy shall be void as of the date the wrongful act was committed or from its inception if this policy is a renewal policy and the wrongful act occurred in connection with an application for or renewal or endorsement of a policy issued to the Insured in a prior year and affects the rating of or premium amount received for this policy. Refunds of premiums, if any, shall be subject to offsets for the Insurer's administrative expenses (including the payment of agent's commissions for any voided policy year) in connection with the issuance of the policy;

e. The premium submitted is less than the minimum set forth in 44 CFR 61.10 in connection with any application for a new policy or policy renewal, in which case the policy is void from its inception date.

2. Reduction of Coverage Limits or Reformation: In the event that the premium payment is not sufficient (whether evident or not) to purchase the amount of coverage requested by an application, renewal, endorsement, or other form and paragraph E.1.d. does not apply, then the policy shall be deemed to provide only such coverage as can be purchased for the entire term of the policy, for the amount of premium received, subject to increasing the amount of coverage pursuant to 44 CFR 61.11; provided, however:

a. If the insufficient premium is discovered by the Insurer prior to a loss and the Insurer can determine the amount of insufficient premium from information in its possession at the time of its discovery of the insufficient premium, the Insurer shall give a notice of additional premium due, and if the Insured remits and the Insurer receives the additional premium required to purchase the limits of coverage for each kind of coverage as was initially requested by the Insured within 30 days from the date the Insurer gives the Insured written notice of additional premium due, the policy shall be reformed, from its inception date, or, in the case of an endorsement, from the effective date of the endorsement, to provide flood insurance coverage in the amount of coverage initially requested.

b. If the insufficient premium is discovered by the Insurer at the time of a loss under the policy, the Insurer shall give a notice of premium due, and if the Insured remits and the Insurer receives the additional premium required to purchase (for the current policy term and the previous policy term, if then insured) the limits of coverage for each kind of coverage as was initially requested by the Insured within 30 days from the date the Insurer gives the Insured written notice of additional premium due, the policy shall be reformed, from its inception date, or, in the case of an endorsement, from the effective date of the endorsement, to provide flood insurance coverage in the amount of coverage initially requested.

c. Under subparagraphs a. and b. as to any mortgagee or trustee named in the policy, the Insurer shall give a notice of additional premium due and the right of reformation shall continue in force for the benefit only of the mortgagee or trustee, up to the amount of the Insured's indebtedness, for 30 days after written notice to the mortgagee or trustee.

F. Policy Renewal: The term of this policy commences on its inception date and ends on its expiration date, as shown on the "declarations page" which is attached to the policy. The Insurer is under no obligation to:

1. Send the Insured any renewal notice or other notice that the policy term is coming to an end and the receipt of any such notice by the Insured shall not be deemed to be a waiver of this provision on the Insurer's part.

2. Assure that policy changes reflected in endorsements submitted during the policy term are included in any renewal notice or new policy sent to the Insured. "Policy changes" includes the addition of any increases in the amounts of coverage.

This policy shall not be renewed and the coverage provided by it shall not continue into any successive policy term unless the renewal premium payment is received by the Insurer at the office of the National Flood Insurance Program within 30 days of the expiration date of this policy, subject to paragraph E. above. If the renewal premium payment is mailed by certified mail to the Insurer prior to the expiration date, it shall be deemed to have been received within the required 30 days. The coverage provided by the renewal policy is in effect for any loss occurring during this 30-day period even if the loss occurs before the renewal premium payment is received, so long as the renewal premium payment is received within the required 30 days. In all other cases, this policy shall terminate as of the expiration date of the last policy term for which the premium payment was timely received and in that event, the Insurer shall not be obligated to provide the Insured with any cancellation, termination, policy lapse, or policy renewal notice.

In connection with the renewal of this policy, the Insured may be requested during the policy term to recertify, on a Recertification Questionnaire the Insurer will provide, the rating information used to rate the most recent application for or renewal of insurance.

Notwithstanding the Insured's responsibility to submit the appropriate renewal premium in sufficient time to permit its receipt by the Insurer prior to the expiration of the policy being renewed, the Insurer has established a business procedure for mailing renewal notices to assist Insureds in meeting their responsibility. Regarding the business procedure, evidence of the placing of any such notices into the U.S. Postal Service, addressed to the Insured at the address appearing on its most recent application or other appropriate form (received by the Insurer prior to the mailing of the renewal notice), does, in all respects, for purposes of the National Flood Insurance Program, presumptively establish delivery to the Insured for all purposes irrespective of whether the Insured actually received the notice.

However, in the event the Insurer determines that, through any circumstances, any renewal notice was not placed into the U.S. Postal Service, or, if placed, was prepared or addressed in a manner which the Insurer determines could preclude the likelihood of its being actually and timely received by the Insured prior to the due date for the renewal premium, the following procedures shall be followed:

In the event that the Insured or its agent notified the Insurer, not later than 1 year after the date on which the payment of the renewal premium was due, of a nonreceipt of a renewal notice prior to the due date for the renewal premium, which the Insurer determines was attributable to the above circumstance, the Insurer shall mail a second bill providing a revised due date, which shall be 30 days after the date on which the bill is mailed.

If the renewal payment requested by reason of the second bill is not received by the revised due date, no renewal shall occur and the policy shall remain as an expired policy as of the expiration date prescribed on the policy.

G. Conditions Suspending or Restricting Insurance:

Unless otherwise provided in writing added hereto, the Insurer shall not be liable for loss occurring while the hazard is increased by any means within the control or knowledge of the Insured.

H. Liberalization clause: If during the period that insurance is in force under this policy or within 45 days prior to the inception date thereof, should the Insurer have adopted under the Act, any forms, endorsements, rules or regulations by which this policy could be extended or broadened, without additional premium charge, by endorsement or substitution of form, then, such extended or broadened insurance shall inure to the benefit of the Insured as though such endorsement or substitution of form had been made. Any broadening or extension of this policy to the Insured's benefit shall only apply to losses occurring on or after the effective date of the adoption of any forms, endorsements, rules or regulations affecting this policy.

I. Alterations and Repairs: The Insured may, at the Insured's own expense, make alterations, additions and repairs, and complete structures in the course of construction.

J. Cancellation of Policy By Insured: The Insured may cancel this policy at any time but a refund of premium money will only be made when:

1. Except with respect to a condominium building or a building, which has a condominium form of ownership, the Insured cancels because the Insured has transferred ownership of the insured property to someone else. In this case, the Insurer will refund to the Insured, once the Insurer receives the Insured's written request for cancellation (signed by the Insured) the excess of premiums paid by the Insured which apply to the unused portion of the policy's term, pro rata but with retention of the expense constant and the Federal policy fee.

2. The Insured cancels a policy having a term of 3 years, on an anniversary date, and the reason for the cancellation is that:

a. A policy of flood insurance has been obtained or is being obtained in substitution for this policy and the Insurer has received a written concurrence in the cancellation from any mortgagee of which the Insurer has actual notice, or

b. The Insured has extinguished the insured mortgage debt and is