Interpreting a Flood Insurance Policy: Unit 8

November 12, 2012 by

General Guidance on Flood Insurance Coverage

General Guidance on Flood Insurance Coverage Limitations in areas below the lowest elevated floor and basements
 Flood insurance coverage is limited in areas below the lowest elevated floor (including crawlspaces) depending on the flood zone and date of construction and in basements regardless of zone, or date of construction.  These areas include:

  1. Basements
  2. Crawlspaces under an elevated building
  3. Enclosed areas beneath buildings elevated on full story foundation walls that are sometimes referred to as “walkout basements,” and
  4. Enclosed areas under other types of elevated buildings.

Glossary

  1. Basements – Coverage limitations apply to “basements,” which are any area of the building, including a sunken room or sunken portion of a room, having its floor below ground level on all sides.
  2. Crawlspace – When a building is elevated on foundation walls, coverage limitations apply to the “crawlspace” below.
  3. Elevated Building on the full story foundation walls – Coverage limitations apply to the enclosed areas (lower floor) even when a building is constructed with what is sometimes called a “walkout basement.”
  4. Elevated Building with enclosure – Coverage limitations apply to “enclosed areas” at ground level under an “elevated building”. An elevated building allows water to flow freely under the living quarters, thus putting less strain on the building in the event of flooding. An “enclosure” is the area below the lowest elevated floor that is fully shut in by rigid walls.

 

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Filed Under: Interpreting a Flood Insurance Policy