Examples of Eligible Flood Risks! - Insurance may be written only on buildings that are walled and roofed with two or more rigid exterior walls in place. Buildings must resist flotation, collapse, and lateral movement. At least 51 percent of the actual cash value of buildings, including machinery and equipment, which is part of the building, must be above ground level.

Since the question of coverage eligibility has frequently been raised, here are some major examples of risks which are eligible for flood coverage: 1) Appurtenant Structures- Under the dwelling form, coverage will extend only to detached garages or carports that service the dwelling described in the policy and which are located on the described premises. Ten percent of the total building coverage limits applies to appurtenant structures and is not an additional amount of insurance. 2) Course of Construction- Buildings in the course of construction that have yet to be walled and roofed are eligible for flood coverage except when construction has been halted for more than 90 days and/or if the lowest floor used for rating purposes is below the Base Flood Elevation (BFE). Building materials and supplies intended for use in such construction, alteration, or repair are not insurable unless they are contained within an enclosed building on the premises or adjacent to the premises. 3) Common Wall Rule- Structures will be considered single buildings if attached by a common wall. (Note: Common rooflines, common slabs, or common platforms, in themselves, do not render structures eligible as a single building.) Buildings attached by an enclosed walkway are considered one building provided that the enclosed walkway is enclosed with rigid walls.

Submitting Preferred Risk Policies! - We are now being required by the insurers South Carolina Insurance Company and American Reliable to provided proof that a property is in a low risk flood zone at the time America's Flood submits the policy to them on your behalf. Proof must be submitted on a Standard Flood Hazard Determination Form or on bank letterhead. When you do not have the documentation on the proper form, we will verify the flood zone and put it on the proper form for you. We apologize for the delay this may cause in getting a quote back to your customer, but this way we are also assuring that all policies are being rated accurately.

Repetitive Loss Properties (RLP)! - The monthly transfer of RLP policies to the Special Direct Facility (SDF) started May 1, 2000. Following is how the process is going to work: 1) The NFIP sends us the RLP list 120 days prior to the effective date of the policy. 2) We mail non-renewal letters to the insured, agent and mortgage company 90 days (some states require additional days) prior to the effective date of the policy. The letters inform them that the property has been identified as one with repetitive losses and that the policy will be renewed with the SDF program established by FEMA. Also attached to the non-renewal letter will be a copy of the FEMA letter, which provides details about the Repetitive Loss strategy and the role of SDF. These letters provide the SDF's 800 number, commission information for the servicing agent, as well as a statement regarding the provision of an appeals process.

In the Next Flood Express! - What homeowners can do to reduce their risk from disasters and protect their home from future damage. Have a great month!