Hollidaysburg

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National Flood Insurance Summary of Coverage

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Overview

This document is a summary of coverage for the National Flood Insurance Program (NFIP), prepared by FEMA. It explains how flood insurance works, what is covered, and important limitations for residents in Hollidaysburg, PA.

What is a Flood?

A flood is defined as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area, or two or more properties (at least one being yours). Causes include:

  • Overflow of inland or tidal waters.
  • Unusual and rapid accumulation of runoff from surface waters.
  • Mudflow (defined as a river of liquid and flowing mud on normally dry land areas).
  • Collapse or subsidence of land along the shore of a lake due to erosion from waves exceeding anticipated cyclical levels.

Coverage Limits and Types

The NFIP Dwelling Form offers two types of coverage:

  • Building Property: Up to $250,000.
  • Personal Property (Contents): Up to $100,000.

Mortgage companies may require specific amounts of coverage. You can choose different deductibles for building and personal property; a higher deductible lowers your premium but reduces claim payments.

What is Covered?

Building Property Coverage includes:

  • The building and foundation.
  • Electrical and plumbing systems.
  • Central AC, furnaces, water heaters.
  • Built-in appliances (dishwashers, cooking stoves).
  • Permanently installed carpeting over unfinished floors.
  • Paneling, wallboard, bookcases, cabinets.
  • Window blinds.
  • Detached garages (up to 10% of building coverage).
  • Debris removal.

Personal Property Coverage includes:

  • Clothing, furniture, electronics.
  • Curtains.
  • Portable/window air conditioners.
  • Portable microwaves and dishwashers.

What is NOT Covered?

Exclusions for both Building and Personal Property:

  • Damage caused by moisture, mildew, or mold that could have been avoided by the owner.
  • Currency, precious metals, and valuable papers (e.g., stock certificates).
  • Outdoor property (trees, plants, wells, septic systems, walks, decks, fences, seawalls, hot tubs, pools).
  • Living expenses (temporary housing).
  • Financial losses from business interruption.
  • Self-propelled vehicles (cars, etc.).

Specific Exclusions for Building Property:

  • Carpets not included in building coverage.
  • Clothes washers and dryers.
  • Food freezers and food inside them.
  • Valuable items like original artwork and furs (limited to $2,500).

Basement and Lower Level Limitations

Coverage is limited in areas below the lowest elevated floor (including basements, crawlspaces, and enclosed areas beneath elevated buildings).

  • Insured: Foundation walls, anchorage systems, staircases, central AC, cisterns, drywall (basements only), nonflammable insulation (basements only), electrical outlets/switches, fuel tanks/solar equipment/well pumps, furnaces/hot water heaters/heat pumps/sump pumps.
  • Personal Property Insured: Washers/dryers, food freezers (not refrigerators), portable/window AC units.
  • Not Insured: Paneling, bookcases, window treatments (curtains/blinds), carpeting/tile, drywall (below lowest elevated floor), walls/ceilings not made of drywall, most personal property (clothing, electronics, kitchen supplies, furniture).

How Damages Are Valued

  • Replacement Cost Value (RCV): The cost to replace damaged parts without depreciation. To be eligible, the building must be a single-family dwelling, your principal residence (lived in at least 80% of the year), and insured for at least 80% of its full replacement cost.
  • Actual Cash Value (ACV): Replacement cost minus depreciation. Some items like carpeting are always adjusted on an ACV basis (losing 10-14% value per year). Personal property is always valued at ACV.

Increased Cost of Compliance (ICC)

Most policies include ICC coverage up to $30,000. This helps pay to elevate, demolish, or relocate your home if it is "substantially damaged" or "repetitively damaged" by a flood, requiring you to bring it up to current community standards.

  • The total of building and ICC claims cannot exceed the maximum limit for Building Property coverage ($250,000).
  • ICC claims do not affect Personal Property claims (up to $100,000).

Severe Repetitive Loss Properties

Properties may be defined as "severe repetitive loss" if:

  1. Four or more separate flood claim payments have been made, each exceeding $5,000.
  2. At least two flood claim payments have been made, and cumulative payments exceed the value of the property.

Owners of such properties may be eligible for FEMA mitigation grants to reduce future damage. Refusing grant money could result in increased flood insurance premiums.

Important Reminders

  • Keep Receipts: While not required for every item, keep receipts for electronics, carpeting, major appliances, and high-cost items to help adjusters process claims quickly.
  • Policy Contract: Your Standard Flood Insurance Policy, application, and endorsements (including the Declarations Page) make up your official contract. Any differences between this summary and your policy will be resolved in favor of your policy.
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