§ 61.5 - Deductibles.

§ 61.5 Special terms and conditions.

Cross Reference

Link to an amendment published at 85 FR 43958, July 20, 2020.

(a) No new flood insurance or renewal of flood insurance policies shall be written for properties declared by a duly constituted State or local zoning or other authority to be in violation of any flood plain, mudslide (i.e., mudflow) or flood-related erosion area management or control law, regulation, or ordinance.

(b) In order to reduce the administrative costs of the Program, of which the Federal Government pays a major share, payment of the full policyholder premium must be made at the time of application.

(c) Because of the seasonal nature of flooding, refunds of premiums upon cancellation of coverage by the insured are permitted only if the insurer ceases to have an ownership interest in the covered property at the location described in the policy. Refunds of premiums for any other reason are subject to the conditions set forth in § 62.5 of this subchapter.

(d) Optional Deductibles, All Zones, are available as follows:

Category One - 1 to 4 Family Building and Contents Coverage Policies

Options Building/contents $500/$500 1,000/1,000 2,000/1,000 3,000/1,000 4,000/2,000 5,000/2,000

Category Two - 1 to 4 Family Building Coverage Only or Contents Coverage Only Policies

Options Building Contents¹ $500$500 1,0001,000 2,0002,000 3,0003,000 4,0004,000 5,0005,000

¹ Also applies to residential unit contents in other residential building or in multi-unit condominium building.

Category Three - Other Residential and Nonresidential Policies

Options Policy combining building and contents Single coverage only policy (either building or contents) $500/$500$500 1,000/1,0001,000 2,000/2,0002,000 3,000/3,0003,000 4,000/4,0004,000 5,000/5,0005,000

Category Four - Residential Condominium Building Policies

Options Policy combining building and contents Single coverage only policy (either building or contents) $10,000/$10,000$10,000 25,000/10,00025,000

Note:

Any other combination may be submitted for rating to the NFIP.

(e) The standard flood insurance policy is authorized only under terms and conditions established by Federal statute, the program's regulations, the Administrator's interpretations and the express terms of the policy itself. Accordingly, representations regarding the extent and scope of coverage which are not consistent with the National Flood Insurance Act of 1968, as amended, or the Program's regulations, are void, and the duly licensed property or casualty agent acts for the insured and does not act as agent for the Federal Government, the Federal Emergency Management Agency, or the servicing agent.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, as amended at 47 FR 19140, May 4, 1982; 48 FR 39068, Aug. 29, 1983; 49 FR 33656, Aug. 23, 1984; 50 FR 36025, Sept. 4, 1985; 51 FR 30309, Aug. 25, 1986; 53 FR 16277, May 6, 1988; 53 FR 27991, July 26, 1988; 57 FR 19541, May 7, 1992; 58 FR 62424, Nov. 26, 1993

Deductibles.

FEMA must provide policyholders with deductible options in various amounts, up to and including $10,000, subject to the following minimum deductible amounts:

(a) The minimum deductible for policies covering pre-FIRM buildings charged less than full-risk rates with building coverage amounts less than or equal to $100,000 is $1,500.

(b) The minimum deductible for policies covering pre-FIRM buildings charged less than full-risk rates with building coverage amounts greater than $100,000 is $2,000.

(c) The minimum deductible for policies covering post-FIRM buildings and pre-FIRM buildings charged full risk rates, with building coverage amounts equal to or less than $100,000 is $1,000.

(d) The minimum deductible for policies covering post-FIRM buildings and pre-FIRM buildings charged full risk rates, with building coverage amounts greater than $100,000 is $1,250.

[85 FR 43958, July 20, 2020]