Our client has several buildings located in different parts of the country. One group of buildings had a flood loss last summer that damaged three buildings, personal property, and grounds. There were two policies in force: one, an NFIP flood policy with a $1,000 deductible, and the other a difference in conditions (DIC) policy, which has a $25,000 deductible. The flood adjuster applied the $1000 deductible separately to building and personal property, and paid a total of $14,593.78 ($20,593.78 ACV less $6,000 deductible). There was no coverage for much of the loss, which consisted of damage to the grounds including pumping creek water out of the outdoor swimming pool, and which amounted to nearly $30,000.

The adjuster for the DIC policy now seems to be applying the $25,000 deductible after he makes a deduction for both depreciation and the amount paid by the flood policy. But last year, when there was a package policy on the buildings with a $25,000 limit for flood, and the same DIC policy, the adjuster for a similar loss took into account the expenses not covered by the flood policy, like repair of grounds and cleanup of the pool, and did not adjust on an ACV basis. Are we missing something?

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