FLOOD
applies to direct loss or damage by flood to buildings and their contents on either a replacement cost or an actual cash value basis. Coverage for flood damage is available in four different ways. The flood cause of loss may be included by using a flood cause of loss form. A difference in conditions (DIC) policy may be purchased with flood as a covered cause of loss or a separate flood policy may be purchased from a nonstandard insurance company. In areas declared eligible by the Federal Insurance and Mitigation Administration, agents and brokers may arrange for insurance directly with the National Flood Insurance Program (NFIP) or with participating insurance companies. When properties are located in NFIP eligible flood zone areas, most carriers will require that a NFIP policy be purchased for its maximum limit before they will provide excess flood coverage.