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National Flood Insurance Program

Summary: There are three standard policies used for writing flood insurance under the National Flood Insurance Program (NFIP). These are the dwelling, general property, and residential condominium building association policies. Since much of the general property form is identical to the dwelling and the residential condominium association forms, the following discussion is limited to highlights of the general property form.

The general property form is the only one of the forms that may be used to insure commercial enterprises, such as a nonresidential condominium building or a mercantile or manufacturing concern. It may also be used to insure a residential condominium not qualifying for the regular program, or personal property in a unit in a nonresidential condominium building.

Coverage is on an actual cash value basis with no applicable coinsurance. Replacement cost is not available.

Topics covered: Introduction Insuring agreement Definitions Covered building property Covered personal property Other coverages Property not covered Exclusions Deductibles General conditions Loss settlement provisions Liberalization clause; what law governs

Introduction

The general property form gpp127 12 00 may be used to insure residential or non-residential buildings and/or contents. Cooperative buildings—where the entire building is in the name of the cooperative—time sharing buildings not in the condominium form of ownership, and condominiums that do not meet RCBAP (Residential Condominium Building Association Policy) requirements, may be written on the general property form. Condominiums eligible for the general property form include those buildings in emergency program communities and those without at least 75 percent floor area used for residential purposes. The general property form may also be used for commercial condominiums and their commonly owned contents, and for commercial condominium unit owners. The limit of coverage available for a condo, timeshare, or other commercial building insured on the general property form is $500,000 ($500,000 contents) in the regular program, and for buildings in the emergency program the limit is $100,000 ($100,000 contents). Nonresidential unit owners’ contents may be insured for $500,000 in the regular program, and $100,000 in the emergency program.

This form can also be used to insure such property as silos and grain storage buildings, cisterns, and buildings built entirely over water, if constructed prior to October 1, 1982. (These must be submitted for a rate.) Boathouses built partially over water—the portions of the building not used for boathouse purposes—may be insured, so long as the building is partially over land and also used for residential, commercial, or municipal purposes, and is eligible for flood coverage.

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