It is important to note that, while the general property form does not contain a coinsurance provision, neither does it provide replacement cost coverage for either building or contents. Loss settlement is strictly on an actual cash value (replacement less depreciation, not including any antique value) basis.

Insuring Agreement

Before the insuring agreement, the general property form states “This policy provides no coverage: 1. in a regular program community, for a residential condominium building, as defined in this policy; and 2. except for personal property coverage, for a unit in a condominium building.”

The general property form covers all direct physical loss by or from flood to the insured property. The insurer is the Federal Emergency Management Agency (FEMA). Coverage is contingent upon the insured's having paid the correct premium, and the accuracy of the information furnished to the insurer. The insuring agreement is the same as that of the dwelling and the residential condominium association forms. See “NFIP Dwelling Form,” Companies & Coverages, Specialty Lines.

Definitions

Since the general property form lends itself to a variety of properties to be insured, the entities insured are the named insured and legal representatives, and any mortgagee and trustee named in the application and declarations page. In common with the RCBAP, the general property form makes no reference to “your spouse.” Any other entity with an interest in the insured property at the time of loss is also covered, but in order of precedence.

The definition of dwelling is omitted. The remainder of the definitions, with three exceptions, are the same as those in the dwelling form. The exceptions are:

25.Residential Condominium Building. A building, owned and administered as a condominium, containing one or more family units and in which at least 75 percent of the floor area is residential.

27.Stock. Merchandise held in storage or for sale, raw materials, and in-process or finished goods, including supplies used in their packing or shipping. Stock does not include any property not covered under Section IV. Property Not Covered, except for the following:

a.Parts and equipment for self-propelled vehicles;

b.Furnishings and equipment for watercraft;

c.Spas and hot-tubs, including their equipment; and

d.Swimming pool equipment.

28. Unit. A unit in a condominium building.

Two of the definitions reflect the use of the general property form to insure residential condos not eligible for the RCBAP. A residential condo building in which at least 75 percent of the floor area is residential normally would qualify for the RCBAP; however, if the building is in the emergency program then the general property form must be used. Unit as used here refers either to a unit in a commercial condo, or a unit in a residential condo.

Because the general property form is often used to insure coastal businesses such as boating stores, note that the definition of stock includes this type of property, even though coverage for other boating-related businesses such asa boat repair dock over water is not available.

Covered Building Property

The general property form covers the entire building, including, if they are owned in common by a condominium association as named insured, all the units within the building and all improvements contained within the units. This does not mean that an individual cannot own a unit. The unit owner, however, owns (in old terminology) from the plaster out—air space, if you will. Additions and extensions attached to and in contact with the building by means of a rigid exterior wall, a solid load-bearing interior wall, a stairway, an elevated walkway, or a roof are covered. (These additions may be insured separately.) There is no coverage, however, for decks, walkways, patios, or drives located outside the perimeter, exterior walls of the building. So, for example, if a building is built partially over water—containing, say, shops and a restaurant—the building is covered but the deck built to take advantage of an ocean view is not.

In common with the other two flood coverage forms, a building in the course of construction may be insured on the general property form; the deductible per occurrence before a building is walled and roofed is twice the deductible selected to apply after the building is walled and roofed. Construction must be in progress. If halted for longer than ninety days, there is no coverage until construction is resumed. Materials and supplies used in construction are covered while stored inside a fully enclosed building at either the property address or on an adjacent property at the time of loss.

Like the residential condominium form (RCBAP), the general property form covers equipment and machinery such as elevator equipment, sprinkler systems, pumps and machinery for operating pumps, and ventilating equipment. Property within the units—built-in dishwashers, ranges, and water heaters, for example—is covered. Like the other coverage forms, there is limited coverage for property below the lowest elevated floor or within a basement. For a complete listing of the property, see “NFIP Dwelling Form,” Companies & Coverages, Specialty Lines.

Covered Personal Property

The coverage for personal property of necessity differs significantly under the general property form from the RCBAP or dwelling form. The general property form may be used for a residential or commercial condominium building, or for a commercial building and/or contents exposure, and the coverage for personal property reflects this. The form covers personal property owned solely by the insured, which may be a condominium association or an individual, and personal property owned in common by the unit owners if a condominium is the named insured, so long as it is within the fully enclosed building or stored at a temporary location as authorized by the policy. Property in a temporary location is covered for 45 days.

When coverage is provided for personal property, the coverage will apply to either household contents or to other than household contents, but not both. In other words, if a person both resides in and owns a business located in the insured building and uses the form to cover his or her own household contents, he or she cannot look for coverage for stock. Another policy must be purchased.

When the form is used for household contents, then there is coverage for personal property “usual to a living quarters” that belongs to the named insured, a household member, a domestic employee, a guest, or that the insured may be legally liable for. If the form is used to cover other than household personal property, then it insures furniture and fixtures, machinery and equipment, stock, and other business personal property. The form does not cover personal property owned by or in the control of a unit owner, other than the type of property described in the form's section B. coverage B—personal property. Coverage applies only while the property is within a fully enclosed building.

Personal property such as clothes washers and dryers, food freezers, air conditioning units installed in the building, carpet not permanently installed over unfinished flooring, carpets over finished flooring, etc., are covered so long as they are owned by the insured, or in common by the unit owners of a condominium, or owned by the condominium association and used in the conduct of the association's business affairs. The list of property covered under coverage B—personal property is identical to that in the RCBAP. Both the RCBAP and general property form cover outdoor equipment and furniture stored inside the insured building, and ovens. The dwelling form does not specifically mention this property.

There is a limitation of $2,500 for any loss to artwork, jewelry, furs, and rare books. Antiques are valued at their functional value. This is important for any antique dealer seeking coverage for stock. A $3,000 escritoire could be valued as a $25 desk.

If the insured is a tenant in the described building, then he or she can apply up to 10 percent of the limit of liability for contents coverage to improvements made or acquired at the insured's expense. This is not an additional amount of insurance. If the insured is a condominium unit owner, he or she can apply up to 10 percent of the limit of liability for contents coverage to cover loss to interior walls, floors, and ceilings not otherwise covered by a condominium association policy that insures the described building. Again, this is not an additional amount of insurance.

Other Coverages

The debris removal provision is identical to that found in the dwelling and the RCBAP forms. Expense incurred in the removal of debris of, on, or from the building or personal property covered under the general property form is reimbursed. This expense is included in the limit of liability applying to the covered property. If the insured or a member of the household does the work, the value of the work is based on the Federal minimum wage.

Coverage for loss avoidance measures, such as sandbags, pumps, and labor, is limited to $1,000. This expense is included in the limit of liability. In order for this coverage to apply, damage to insured property by flood must be imminent and the threat of flood damage must be apparent enough so that a reasonable person would anticipate flood damage. One of two conditions must apply; a general and temporary condition of flooding near the described location even it the flood does not reach the building, or a legally authorized person must issue an evacuation order for the community in which the building is located calling for measures to preserve life and protect property.

Reasonable expense to move insured property to protect it from flood is limited to $1,000. Again, this is not an additional amount of insurance.

The current general property form, however, limits coverage to $10,000 for damage caused by pollutants, if the escape, release, or migration of the pollutants was caused by a flood. The coverage falls within the limits applying to coverages A or B. Any payment made under this provision, when combined with other payments for the same loss, cannot exceed the replacement cost or actual cash value, as appropriate, of covered property. The coverage does not include testing for or monitoring pollutants unless required by law. However, the cost of compliance with any ordinance or law requiring the testing, monitoring, removal, containment, treatment, detoxification or neutralization of pollutants is not covered.

Finally, the general property form includes coverage for up to $30,000 (up from $20,000) for increased costs of compliance. As with the other forms, eligibility requirements must be met and conditions fulfilled. See “NFIP Dwelling Form,” Companies & Coverages, Specialty Lines. Because the general property form settles loss strictly on an actual cash value basis, there is no clause stating that the coverage will not be included in calculations to see if the coinsurance or insurance to value provisions have been met.

Property Not Covered

The general property form does not cover any personal property not within a fully enclosed building. Accounts, currency, postage stamps, securities, land, trees, shrubs, growing crops, animals, aircraft or watercraft, and containers (tanks containing gas, for example) are not covered.

With one exception, the property not covered section essentially is the same as the RCBAP. A residential condominium building located in a regular program community is not covered. This is properly insured under the RCBAP.

Exclusions

The form covers only direct physical loss by or from flood. There is no coverage for loss of use or for loss of profits when the damaged building cannot be used. Nor is there compensation if a flood renders the building inaccessible, whether or not the building sustains damage. There is no coverage for any additional expenses while the insured building is being repaired or is uninhabitable for any reason.

Water, moisture, mildew or mold damage resulting from any condition substantially confined to the insured building, or that is within the insured's control, including failure to maintain and inspect the property after a flood recedes, is not covered. This is not to say mold remediation is not covered. The exclusion addresses occurrences such as a plumbing leak that results in mold, not mold resulting from a flood.

The form excludes coverage for any theft, fire, wind, earthquake, rain, snow, sleet, hail, water spray, freezing, thawing, and the pressure or weight of ice. Note, however, that the commercial property forms, while excluding damage caused by flood, cover any resulting damage by fire, explosion, or sprinkler leakage. Other perils (such as hail and wind) are covered under the commercial forms depending upon which form is chosen. Like the other flood forms, the general property form now covers loss from the pressure or weight of water if there is a flood in the area and the flood is the proximate cause of the damage from the pressure or weight.

Sewer or drain back up or sump discharge is covered if a flood is the proximate cause of the sewer or drain backup or the sump discharge.

Deductibles

In common with the other flood forms, the deductible applies separately to building and contents, so that different deductibles may be written for building and personal property. The minimum deductible is $2000 for any property located in an emergency program community or in certain flood hazard zones; higher deductibles may be selected for the appropriate reduction in premium. Otherwise, the standard deductible is $1000. Deductibles may not be reduced mid-term unless it is required by the mortgagee and the mortgagee provides written authorization. Deductible changes may be made at renewal, and the request must be received 30 days before the renewal date.

General Conditions

The general conditions (A. through U.) are like those in the dwelling form. See “NFIP Dwelling Form,” Companies & Coverages, Specialty Lines. The general property form does not contain a coinsurance provision as does the RCBAP.

Loss Settlement Provisions

The loss settlement provision of the general property form states that the insurer will pay “the least of the following amounts after application of the deductible:

1.The applicable amount of insurance under this policy;

2.The actual cash value; or

3.The amount it would cost to repair or replace the property with material of like kind and quality within a reasonable time after the loss.”

Unlike the dwelling form's or the RCBAP's replacement cost, the general property form pays on an actual cash value basis.

Liberalization Clause; What Law Governs

Like the other flood forms, the general property form states that a change made under this edition of the policy that does not require any additional premium will automatically apply if the implementation falls within sixty days before, or during the policy term.

The policy is governed by the flood insurance regulations issued by FEMA (the Federal Emergency Management Agency), the National Flood Insurance Act of 1968, as amended (42 U.S.C. 4001, et seq.) and Federal common law.