POLICY

POL 1 May 1, 2011

The Standard Flood Insurance Policy (SFIP), issued by

the Federal Emergency Management Agency (FEMA),

specifies the terms and conditions of the agreement of

insurance between FEMA as the Insurer and the Named

Insureds. Named Insureds in participating communities

include owners, renters, builders of buildings that are in

the course of construction, condominium associations,

owners of residential condominium units, and

mortgagees/trustees (applicable for building coverage

only). Certain terms and conditions of flood insurance

(e.g., Mortgage Clause, Reformation of Coverage) are

unique to this policy.

For information on Group Flood Insurance, see the

Definitions section.

There are 3 policy forms – the Dwelling Form, the General

Property Form, and the Residential Condominium

Building Association Policy Form. Selection of the

applicable form to be used is dependent on the type of

insurable property to be covered.

Please refer to the SFIP contracts for detailed

information on the contractual rights and duties of the

Insurer and Insured(s).

POLICY

Previous Section Next Section

Main Menu Table of Contents

Previous Section Next Section

Main Menu Table of Contents

POL 2 May 1, 2011

This page is intentionally left blank.

POL 3 May 1, 2011

National Flood Insurance Program

Dwelling Form

Standard Flood Insurance Policy

 POL 4 May 1, 2011

DWELLINGFORM

SummaryofSignificantChanges,December31,2000

1. Section III. Property Covered, A. Coverage A -

BuildingProperty,2.

Additions and extensions to buildings that are connected

by a rigid exterior wall, a solid load-bearing interior wall, a

stairway, an elevated walkway, or a roof may be insured

as part of the dwelling. At the option of the insured, these

extensions and additions may be insured separately.

Additions and extensions that are attached to and in

contact with the building by means of a common interior

wall that is not a solid load-bearing wall are always

considered part of the dwelling and cannot be insured

separately.

2. Section III. Property Covered, A. Coverage A -

BuildingProperty,3.

Coverage for detached carports has been eliminated.

3. Section III. Property Covered, B. Coverage B -

PersonalProperty4.

Coverage has been extended to include coverage for

cooking stoves, ranges, or refrigerators belonging to the

renter, as well as 10 percent of contents coverage for

improvements made by the renter to the building.

4. Section III. Property Covered, B. Coverage B -

PersonalProperty,5.

Coverage for condominium unit owners has been

extended to apply up to 10 percent of the contents

coverage for losses to interior walls, floors, and ceilings

not covered by the condominium association’s master

policy.

5. Section III. Property Covered, B. Coverage B -

PersonalProperty,6.SpecialLimits

Coverage for fine arts, collectibles, jewelry, and furs, etc.

has been increased to $2500. Also, personal property

used in a business has been added under this extension

of coverage.

6. Section III. Property Covered, C. Coverage C -

OtherCoverages,2.a.&b.

Coverage for the two loss avoidance measures

(sandbagging and relocation of property to protect it from

flood or the imminent danger of flood) has been increased

to $1,000 for each.

7. SectionIV.PropertyNotCovered,5.a.&b.

Coverage has been changed to pay for losses to self-

propelled vehicles used to service the described location

or designed to assist handicapped persons provided that

the vehicles are in a building at the described location.

8. SectionIV.PropertyNotCovered,7.

Coverage is now specifically excluded for scrip and stored

value cards.

9. SectionIV.PropertyNotCovered,14.

Coverage for swimming pools, hot tubs and spas (that are

not bathroom hot tubs or spas), and their equipment is

now excluded.

10.SectionV.Exclusions,B.1.&2

The explanation of when coverage begins as it relates to a

loss in progress has been simplified.

11.SectionV.Exclusions,C.

Coverage has been clarified to pay for losses from land

subsidence under certain circumstances. Subsidence of

land along a lake shore or similar body of water which

results from the erosion or undermining of the shoreline

caused by waves or currents of water exceeding cyclical

levels that result in a flood continues to be covered. All

other land subsidence is now excluded.

12.SectionV.Exclusions,D.4.b.(3)

Coverage is now excluded for water, moisture, mildew, or

mold damage caused by the policyholder’s failure to

inspect and maintain the insured property after the flood

waters recede.

13.SectionV.Exclusions,D.6.

Coverage is now added for damage from the pressure of

water against the insured structure with the requirement

that there be a flood in the area and the flood is the

proximate cause of damage from the pressure of water

against the insured structure.

14.SectionV.Exclusions,F.

An exclusion for the cost of testing for or monitoring of

pollutants unless it is required by law or ordinance has

been added.

15.SectionVII.GeneralConditions,G.Reductionand

ReformationofCoverage,2.a.(2)

If it is discovered before a claim occurs that there is

incomplete rating information, the policyholder has 60

days to submit the missing rating information. Otherwise,

the coverage is limited to the amount of coverage that can

be purchased for the premium originally received and can

only be increased by an endorsement that is subject to the

appropriate waiting period (currently 30 days).

16.Section VII. General Conditions, V. Loss

Settlement,3.SpecialLossSettlement,b.(1)

Coverage for a manufactured or mobile home or a travel

trailer eligible for replacement cost coverage is limited to

1.5 times its actual cash value.

 POL 5 May 1, 2011

FEDERAL EMERGENCY MANAGEMENT AGENCY

NATIONAL FLOOD INSURANCE PROGRAM

STANDARD FLOOD INSURANCE POLICY

DWELLINGFORM

PLEASE READ THE POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS SUBJECT TO LIMITATIONS,

RESTRICTIONS, AND EXCLUSIONS.

THIS POLICY COVERS ONLY:

1. A NON-CONDOMINIUM RESIDENTIAL BUILDING DESIGNED FOR PRINCIPAL USE AS A DWELLING PLACE FOR

ONE TO FOUR FAMILIES, OR

2. A SINGLE-FAMILY DWELLING UNIT IN A CONDOMINIUM BUILDING.

I.AGREEMENT

The Federal Emergency Management Agency (FEMA)

provides flood insurance under the terms of the National

Flood Insurance Act of 1968 and its amendments, and

Title 44 of the Code of Federal Regulations (CFR).

We will pay you for

directphysicallossbyorfromflood

to your insured property if you:

1. Have paid the correct premium;

2. Comply with all terms and conditions of this policy;

and

3. Have furnished accurate information and statements.

We have the right to review the information you give us at

any time and to revise your

policy based on our review.

II.DEFINITIONS

A. In this policy, “you” and “your” refer to the insured(s)

shown on the DeclarationsPage of this policy and

your spouse, if a resident of the same household.

“Insured(s)” includes: Any mortgagee and loss payee

named in the

Application and DeclarationsPage,

as well as any other mortgagee or loss payee

determined to exist at the time of loss in the order of

precedence. “We,” “us,” and “our” refer to the insurer.

Some definitions are complex because they are provided

as they appear in the law or regulations, or result from

court cases. The precise definitions are intended to protect

you.

Flood, as used in this flood insurance policy, means:

1. A general and temporary condition of partial or

complete inundation of two or more acres of normally

dry land area or of two or more properties (at least

one of which is your property) from:

a. Overflow of inland or tidal waters;

b. Unusual and rapid accumulation or runoff of

surface waters from any source;

c. Mudflow.

2. Collapse or subsidence of land along the shore of a

lake or similar body of water as a result of erosion or

undermining caused by waves or currents of water

exceeding anticipated cyclical levels that result in a

flood as defined in

A.1.a. above.

B. The following are the other key definitions that we use

in this policy:

1. Act. The National Flood Insurance Act of 1968 and

any amendments to it.

2. ActualCashValue. The cost to replace an insured

item of property at the time of loss, less the value of

its physical depreciation.

3. Application. The statement made and signed by you

or your agent in applying for this policy. The

application gives information we use to determine

the eligibility of the risk, the kind of policy to be

issued, and the correct premium payment. The

application is part of this flood insurance policy. For

us to issue you a policy, the correct premium

payment must accompany the application.

4. BaseFlood.A floodhaving a one percent chance of

being equaled or exceeded in any given year.

Page1of19

 POL 6 May 1, 2011

5. Basement. Any area of the building, including any

sunken room or sunken portion of a room, having its

floor below ground level (subgrade) on all sides.

6. Building.

A structure with two or more outside rigid walls

and a fully secured roof, that is affixed to a

permanent site;

b. A manufactured home (a “manufactured home,”

also known as a mobile home, is a structure: built

on a permanent chassis, transported to its site in

one or more sections, and affixed to a permanent

foundation); or

c. A travel trailer without wheels, built on a chassis

and affixed to a permanent foundation, that is

regulated under the community’s floodplain

management and building ordinances or laws.

Building does not mean a gas or liquid storage tank

or a recreational vehicle, park trailer, or other similar

vehicle, except as described in B.6.c. above.

7. Cancellation. The ending of the insurance coverage

provided by this policy before the expiration date.

8. Condominium. That form of ownership of real

property in which each unit owner has an undivided

interest in common elements.

9. CondominiumAssociation. The entity made up of

the unit owners responsible for the maintenance and

operation of:

Common elements owned in undivided shares by

unit owners; and

b. Other real property in which the unit owners

have use rights;

where membership in the entity is a required condition

unitownership.

10. DeclarationsPage. A computer-generated summary

of information you provided in the

application for

insurance. The

DeclarationsPage also describes the

term of the

policy, limits of coverage, and displays

the premium and our name. The

DeclarationsPage

is a part of this flood insurance

policy.

11. DescribedLocation. The location where the insured

building(s) or personal property are found. The

described location is shown on the Declarations

Page

12. Direct Physical Loss By or From Flood. Loss or

damage to insured property, directly caused by a

flood. There must be evidence of physical changes

to the property.

13. Dwelling. A building designed for use as a residence

for no more than four families or a single-family

unit

in a

building under a condominium form of

ownership.

14. ElevatedBuilding. A building that has no basement

and that has its lowest elevated floor raised above

ground level by foundation walls, shear walls, posts,

piers, pilings, or columns.

15. Emergency Program. The initial phase of a

community’s participation in the

National Flood

InsuranceProgram

. During this phase, only limited

amounts of insurance are available under the

Act.

16. Expense Constant. A flat charge you must pay on

each new or renewal

policy to defray the expenses of

the Federal Government related to flood insurance.

17. FederalPolicy Fee. A flat charge you must pay on

each new or renewal

policy to defray certain

administrative expenses incurred in carrying out the

NationalFloodInsuranceProgram. This fee covers

expenses not covered by the

expenseconstant.

18. Improvements. Fixtures, alterations, installations, or

additions comprising a part of the insured

dwelling or

the apartment in which you reside.

19. Mudflow. A river of liquid and flowing mud on the

surfaces of normally dry land areas, as when earth is

carried by a current of water. Other earth movements,

such as landslide, slope failure, or a saturated soil

mass moving by liquidity down a slope, are not

mudflows.

20. National Flood Insurance Program (NFIP). The

program of flood insurance coverage and floodplain

management administered under the

Act and

applicable Federal regulations in Title 44 of the Code

of Federal Regulations, Subchapter B.

21. Policy. The entire written contract between you and

us. It includes:

a. This printed form;

b. The application and DeclarationsPage;

c. Any endorsement(s) that may be issued; and

d. Any renewal certificate indicating that coverage

has been instituted for a new policy and new

policy term.

Only one dwelling, which you specifically described

in the

application, may be insured under this policy.

22.

Pollutants. Substances that include, but are not

limited to, any solid, liquid, gaseous, or thermal irritant

or contaminant, including smoke, vapor, soot, fumes,

acids, alkalis, chemicals, and waste. “Waste”

includes, but is not limited to, materials to be recycled,

reconditioned, or reclaimed.

Page2of19

 POL 7 May 1, 2011

23. Post-FIRM Building. A building for which

construction or substantial improvement occurred

after December 31, 1974, or on or after the effective

date of an initial Flood Insurance Rate Map (FIRM),

whichever is later.

24. ProbationPremium. A flat charge you must pay on

each new or renewal

policy issued covering property

in a community that the NFIP has placed on probation

under the provisions of 44 CFR 59.24.

25. RegularProgram. The final phase of a community’s

participation in the

National Flood Insurance

Program.

In this phase, a Flood Insurance Rate Map

is in effect and full limits of coverage are available

under the

Act.

26. SpecialFloodHazardArea.

An area having special

flood, or mudflow, and/or flood-related erosion

hazards, and shown on a Flood Hazard Boundary

Map or Flood Insurance Rate Map as Zone A, AO,

A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH,

AR/AO, AR/A1-A30, V1-V30, VE, or V.

27. Unit.A single-familyunit you own in a condominium

building.

28. ValuedPolicy. A policy in which the insured and the

insurer agree on the value of the property insured,

that value being payable in the event of a total loss.

The Standard Flood Insurance Policy is not a valued

policy.

III.PROPERTYCOVERED

A. COVERAGEA-BUILDINGPROPERTY

We insure against directphysicallossbyorfromflood

to:

1. The dwelling at the described location, or for a

period of 45 days at another location as set forth in

III.C.2.b., Property Removed to Safety.

2. Additions and extensions attached to and in contact

with the

dwelling by means of a rigid exterior wall, a

solid load-bearing interior wall, a stairway, an

elevated walkway, or a roof. At your option, additions

and extensions connected by any of these methods

may be separately insured. Additions and extensions

attached to and in contact with the

building by means

of a common interior wall that is not a solid load-

bearing wall are always considered part of the

dwelling and cannot be separately insured.

3. A detached garage at the described location.

Coverage is limited to no more than 10 percent of the

limit of liability on the

dwelling. Use of this insurance

is at your option but reduces the

building limit of

liability. We do not cover any detached garage used

or held for use for residential (i.e.,

dwelling),

business, or farming purposes.

4. Materials and supplies to be used for construction,

alteration, or repair of the

dwelling or a detached

garage while the materials and supplies are stored in

a fully enclosed

building at the describedlocation

or on an adjacent property.

5. A building under construction, alteration, or repair at

the

describedlocation.

a. If the structure is not yet walled or roofed as

described in the definition for building (see II.B.

6.a.) then coverage applies:

(1) Only while such work is in progress; or

(2) If such work is halted, only for a period of up

to 90 continuous days thereafter.

b. However, coverage does not apply until the

building is walled and roofed if the lowest floor,

including the basement floor, of a non-elevated

building or the lowest elevated floor of an

elevatedbuilding is:

(1) Below the base flood elevation in Zones

AH, AE, A1-A30, AR, AR/AE, AR/AH,

AR/A1-A30, AR/A, AR/AO; or

(2) Below the base floodelevation adjusted to

include the effect of wave action in Zones VE

or V1-V30.

The lowest floor levels are based on the bottom

of the lowest horizontal structural member of the

floor in Zones VE or V1-V30 and the top of the

floor in Zones AH, AE, A1-A30, AR, AR/AE,

AR/AH, AR/A1-A30, AR/A, AR/AO.

6. A manufactured home or a travel trailer as described

in the Definitions section (see

II.B.6.b. and II.B.6.c.).

If the manufactured home or travel trailer is in a

specialflood hazard area, it must be anchored in

the following manner at the time of the loss:

a. By over-the-top or frame ties to ground anchors;

b. In accordance with the manufacturer’s speci-

fications; or

In compliance with the community’s floodplain

management requirements;

Page3of19

 POL 8 May 1, 2011

unless it has been continuously insured by the NFIP

at the same

describedlocation since September 30,

1982.

7. The following items of property which are covered

under Coverage

A only:

a. Awnings and canopies;

b. Blinds;

c. Built-in dishwashers;

d. Built-in microwave ovens;

e. Carpet permanently installed over unfinished

flooring;

f. Central air conditioners;

g. Elevator equipment;

h. Fire sprinkler systems;

i. Walk-in freezers;

j. Furnaces and radiators;

k. Garbage disposal units;

l. Hot water heaters, including solar water heaters;

m. Light fixtures;

n. Outdoor antennas and aerials fastened to

buildings;

o. Permanently installed cupboards, bookcases,

cabinets, paneling, and wallpaper;

p. Plumbing fixtures;

q. Pumps and machinery for operating pumps;

r. Ranges, cooking stoves, and ovens;

s. Refrigerators; and

t. Wall mirrors, permanently installed.

8. Items of property in a building enclosure below the

lowest elevated floor of an

elevated post-FIRM

building

located in Zones A1-A30, AE, AH, AR,

AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or

in a

basement, regardless of the zone. Coverage is

limited to the following:

a. Any of the following items, if installed in their

functioning locations and, if necessary for

operation, connected to a power source:

(1) Central air conditioners;

(2) Cisterns and the water in them;

(3) Drywall for walls and ceilings in a basement

and the cost of labor to nail it, unfinished and

unfloated and not taped, to the framing;

(4) Electrical junction and circuit breaker boxes;

(5) Electrical outlets and switches;

(6) Elevators, dumbwaiters, and related equip-

ment, except for related equipment installed

below the

base flood elevation after

September 30, 1987;

(7) Fuel tanks and the fuel in them;

(8) Furnaces and hot water heaters;

(9) Heat pumps;

(10) Nonflammable insulation in abasement;

(11) Pumps and tanks used in solar energy

systems;

(12) Stairways and staircases attached to the

building, not separated from it by elevated

walkways;

(13) Sump pumps;

(14) Water softeners and the chemicals in them,

water filters, and faucets installed as an

integral part of the plumbing system;

(15) Well water tanks and pumps;

(16) Required utility connections for any item in

this list; and

(17) Footings, foundations, posts, pilings, piers,

or other foundation walls and anchorage

systems required to support a

building.

b. Clean-up.

B. COVERAGEB-PERSONALPROPERTY

If you have purchased personal property coverage,

we insure against

 direct physicalloss by orfrom

flood

to personal property inside a building at the

describedlocation, if:

a. The property is owned by you or your household

family members; and

b. At your option, the property is owned by guests

or servants.

Personal property is also covered for a period of 45

days at another location as set forth in

III.C.2.b.,

Property Removed to Safety.

Personal property in a

building that is not fully

enclosed must be secured to prevent flotation out of

the

building. If the personal property does float out

during a

flood, it will be conclusively presumed that it

was not reasonably secured. In that case there is no

coverage for such property.

2. Coverage for personal property includes the following

property, subject to

B.1. above, which is covered

under Coverage

B only:

a. Air conditioning units, portable or window type;

b. Carpets, not permanently installed, over

unfinished flooring;

c. Carpets over finished flooring;

d. Clothes washers and dryers;

e. “Cook-out” grills;

f. Food freezers, other than walk-in, and food in

any freezer; and

g. Portable microwave ovens and portable

dishwashers.

3. Coverage for items of property in a building

enclosure below the lowest elevated floor of an

elevated post-FIRM building located in Zones A1-

A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30,

V1-V30, or VE, or in a

basement, regardless of the

zone, is limited to the following items, if installed in

their functioning locations and, if necessary for

operation, connected to a power source:

a. Air conditioning units, portable or window type;

b. Clothes washers and dryers; and

c. Food freezers, other than walk-in, and food in

any freezer.

Page4of19

 POL 9 May 1, 2011

4. If you are a tenant and have insured personal

property under Coverage

B in this policy, we will

cover such property, including your cooking stove or

range and refrigerator. The

policy will also cover

improvements made or acquired solely at your

expense in the

dwelling or apartment in which you

reside, but for not more than 10 percent of the limit of

liability shown for personal property on the

Declarations Page. Use of this insurance is at your

option but reduces the personal property limit of

liability.

5. If you are the owner of a unit and have insured

personal property under Coverage

B in this policy,

we will also cover your interior walls, floor, and ceiling

(not otherwise covered under a flood insurance

policy purchased by your condominium

association

) for not more than 10 percent of the limit

of liability shown for personal property on the

Declarations Page. Use of this insurance is at your

option but reduces the personal property limit of

liability.

6. SpecialLimits.We will pay no more than $2,500 for

any one loss to one or more of the following kinds of

personal property:

a. Artwork, photographs, collectibles, or

memorabilia, including but not limited to,

porcelain or other figures, and sports cards;

b. Rare books or autographed items;

c. Jewelry, watches, precious and semiprecious

stones, or articles of gold, silver, or platinum;

d. Furs or any article containing fur which

represents its principal value; or

e. Personal property used in any business.

7. We will pay only for the functional value of antiques.

C. COVERAGEC-OTHERCOVERAGES

1. DebrisRemoval

We will pay the expense to remove non-owned

debris on or in insured property and owned

debris anywhere.

b. If you or a member of your household perform

the removal work, the value of your work will be

based on the Federal minimum wage.

c. This coverage does not increase the Coverage A

or CoverageBlimit of liability.

2. LossAvoidanceMeasures

a. Sandbags,Supplies,andLabor

(1) We will pay up to $1,000 for costs you incur

to protect the insured

building from aflood

or imminent danger of flood, for the

following:

(a) Your reasonable expenses to buy:

(i) Sandbags, including sand to fill

them;

(ii) Fill for temporary levees;

(iii) Pumps; and

(iv) Plastic sheeting and lumber used in

connection with these items.

(b) The value of work, at the Federal

minimum wage, that you or a member of

your household perform.

(2) This coverage for Sandbags, Supplies, and

Labor applies only if damage to insured

property by or from

flood is imminent, and

the threat of

flood damage is apparent

enough to lead a person of common

prudence to anticipate

flood damage. One

of the following must also occur:

(a) A general and temporary condition of

flooding in the area near the

described

location

must occur, even if the flood

does not reach the insured building; or

(b) A legally authorized official must issue

an evacuation order or other civil order

for the community in which the insured

buildingis located calling for measures

to preserve life and property from the

peril of

flood.

This coverage does not increase the CoverageA

or Coverage B limit of liability.

b. PropertyRemovedtoSafety

(1) We will pay up to $1,000 for the reasonable

expenses you incur to move insured property

to a place other than the

describedlocation

that contains the property in order to protect

it from

flood or the imminent danger of

flood.

Page5of19

 POL 10 May 1, 2011

Reasonable expenses include the value of

work, at the Federal minimum wage, that you

or a member of your household perform.

(2) If you move insured property to a location

other than the

described location that

contains the property, in order to protect it

from

floodor the imminent danger of flood,

we will cover such property while at that

location for a period of 45 consecutive days

from the date you begin to move it there. The

personal property that is moved must be

placed in a fully enclosed

building or

otherwise reasonably protected from the

elements.

Any property removed, including a moveable

home described in

II.B.6.b. and c., must be

placed above ground level or outside of the

specialfloodhazardarea.

This coverage does not increase the Coverage

A

or Coverage

B limit of liability.

3. CondominiumLossAssessments

If this policy insures a unit, we will pay, up to the

Coverage

A limit of liability, your share of loss

assessments charged against you by the

condominium association in accordance with

the

condominium association’s articles of

association, declarations and your deed.

The assessment must be made as a result of

directphysicallossbyorfromflood during the

policy term, to the

building’s common elements.

b. We will not pay any loss assessment charged

against you:

(1) And the condominiumassociation by any

governmental body;

(2) That results from a deductible under the

insurance purchased by the

condominium

association

insuring common elements;

(3) That results from a loss to personal property,

including contents of a

condominium

building

;

(4) That results from a loss sustained by the

condominium association that was not

reimbursed under a flood insurance

policy

written in the name of the association under

the

Act because the building was not, at the

time of loss, insured for an amount equal to

the lesser of:

(a) 80 percent or more of its full

replacement cost; or

(b) The maximum amount of insurance

permitted under the

Act;

(5) To the extent that payment under this policy

for a condominium building loss, in

combination with payments under any other

NFIP policies for the same building loss,

exceeds the maximum amount of insurance

permitted under the

Act for that kind of

building; or

(6) To the extent that payment under this policy

for a

condominium building loss, in

combination with any recovery available to

you as a tenant in common under any

NFIP

condominiumassociationpolicies

for the

same

building loss, exceeds the amount of

insurance permitted under the

Act for a

single-family dwelling.

Loss assessment coverage does not increase the

Coverage

A limit of liability.

D.

COVERAGED-INCREASEDCOSTOFCOMPLIANCE

1. General

This policy pays you to comply with a State or local

floodplain management law or ordinance affecting

repair or reconstruction of a structure suffering

flood

damage. Compliance activities eligible for payment

are: elevation, floodproofing, relocation, or demolition

(or any combination of these activities) of your

structure. Eligible floodproofing activities are limited

to:

a. Nonresidential structures.

b. Residential structures with basements that

satisfy FEMA’s standards published in the Code

of Federal Regulations [44 CFR 60.6 (b) or (c)].

2. LimitofLiability

We will pay you up to $30,000 under this Coverage D

- Increased Cost of Compliance, which only applies to

policies with building coverage (Coverage A). Our

payment of claims under Coverage

D is in addition to

the amount of coverage which you selected on the

application and which appears on the Declarations

Page

. But the maximum you can collect under this

policy for both Coverage A - Building Property and

Coverage

D - Increased Cost of Compliance cannot

exceed the maximum permitted under the

Act. We do

not charge a separate deductible for a claim under

Coverage

Page6of19

 POL 11 May 1, 2011

3. Eligibility

A structure covered under Coverage A - Building

Property sustaining a loss caused by a

flood as

defined by this

policy must:

(1) Be a “repetitive loss structure.” A repetitive

loss structure is one that meets the following

conditions:

(a) The structure is covered by a contract of

flood insurance issued under the

NFIP.

(b) The structure has suffered flood

damage on two occasions during a 10-

year period which ends on the date of

the second loss.

average, equaled or exceeded 25

percent of the market value of the

structure at the time of each flood loss.

(d) In addition to the current claim, the NFIP

must have paid the previous qualifying

claim, and the State or community must

have a cumulative, substantial damage

provision or repetitive loss provision in

its floodplain management law or

ordinance being enforced against the

structure; or

(2) Be a structure that has had flood damage in

which the cost to repair equals or exceeds

50 percent of the market value of the

structure at the time of the

flood. The State

or community must have a substantial

damage provision in its floodplain

management law or ordinance being

enforced against the structure.

b. This Coverage D pays you to comply with State or

local floodplain management laws or ordinances

that meet the minimum standards of the

National

FloodInsuranceProgram

found in the Code of

Federal Regulations at 44 CFR 60.3. We pay for

compliance activities that exceed those standards

under these conditions:

(1) 3.a.(1) above.

(2) Elevation or floodproofing in any risk zone to

preliminary or advisory

base flood

elevations provided by FEMA which the

State or local government has adopted and

is enforcing for

flood-damaged structures in

such areas. (This includes compliance

activities in B, C, X, or D zones which are

being changed to zones with

base flood

elevations. This also includes compliance

activities in zones where

base flood

elevations are being increased, and a flood-

damaged structure must comply with the

higher advisory

base flood elevation.)

Increased Cost of Compliance coverage

does not apply to situations in B, C, X, or D

zones where the community has derived its

own elevations and is enforcing elevation or

floodproofing requirements for

flood-

damaged structures to elevations derived

solely by the community.

(3) Elevation or floodproofing above the base

flood

elevation to meet State or local

“freeboard” requirements, i.e., that a

structure must be elevated above the

base

flood

elevation.

c. Under the minimumNFIP criteria at 44 CFR 60.3

(b)(4), States and communities must require the

elevation or floodproofing of structures in

unnumbered A zones to the

baseflood elevation

where elevation data is obtained from a Federal,

State, or other source. Such compliance activities

are also eligible for Coverage

d. This coverage will also pay for the incremental

cost, after demolition or relocation, of elevating or

floodproofing a structure during its rebuilding at

the same or another site to meet State or local

floodplain management laws or ordinances,

subject to Exclusion

D.5.g. below.

e. This coverage will also pay to bring a flood-

damaged structure into compliance with State or

local floodplain management laws or ordinances

even if the structure had received a variance

before the present loss from the applicable

floodplain management requirements.

4. Conditions

When a structure covered under Coverage A -

Building Property sustains a loss caused by a

flood, our payment for the loss under this

Coverage

D will be for the increased cost to

elevate, floodproof, relocate, or demolish (or any

combination of these activities) caused by the

enforcement of current State or local floodplain

management ordinances or laws. Our payment for

eligible demolition activities will be for the cost to

demolish and clear the site of the

building debris

or a portion thereof caused by the enforcement of

current State or local floodplain management

ordinances or laws. Eligible activities for the cost of

clearing the site will include those necessary to

discontinue utility service to the site and ensure

proper abandonment of on-site utilities.

b. When the building is repaired or rebuilt, it must be

intended for the same occupancy as the present

building unless otherwise required by current

floodplain management ordinances or laws.

Page7of19

 POL 12 May 1, 2011

5. Exclusions

Under this Coverage D - Increased Cost of

Compliance, we will not pay for:

a. The cost to comply with any floodplain

management law or ordinance in communities

participating in the

EmergencyProgram.

b. The cost associated with enforcement of any

ordinance or law that requires any insured or

others to test for, monitor, clean up, remove,

contain, treat, detoxify or neutralize, or in any way

respond to, or assess the effects of

pollutants.

c. The loss in value to any insured building or other

structure due to the requirements of any ordinance

or law.

d. The loss in residual value of the undamaged

portion of a

building demolished as a con-

sequence of enforcement of any State or local

floodplain management law or ordinance.

e. Any Increased Cost of Compliance under this

Coverage

(1) Until the building is elevated, floodproofed,

demolished, or relocated on the same or to

another premises; and

(2) Unless the building is elevated, floodproofed,

demolished, or relocated as soon as

reasonably possible after the loss, not to

exceed 2 years (see

3.b.).

f. Any code upgrade requirements, e.g., plumbing or

electrical wiring, not specifically related to the State

or local floodplain management law or ordinance.

g. Any compliance activities needed to bring

additions or

improvements made after the loss

occurred into compliance with State or local

floodplain management laws or ordinances.

h. Loss due to any ordinance or law that you were

required to comply with before the current loss.

i. Any rebuilding activity to standards that do not

meet the

NFIP’s minimum requirements. This

includes any situation where you have received

from the State or community a variance in

connection with the current

flood loss to rebuild

the property to an elevation below the

baseflood

elevation.

j. Increased Cost of Compliance for a garage or

carport.

k. Any structure insured under an NFIP Group Flood

Insurance Policy.

l. Assessments made by a condominium

association

on individual condominium unit

owners to pay increased costs of repairing

commonly owned

buildings after a flood in

compliance with State or local floodplain

management ordinances or laws.

6. OtherProvisions

Increased Cost of Compliance coverage will not be

included in the calculation to determine whether

coverage meets the 80 percent insurance-to-value

requirement for replacement cost coverage as set

forth in

VII. General Conditions, V. Loss

Settlement.

b. All other conditions and provisions of this policy

apply.

IV.PROPERTYNOTCOVERED

We do not cover any of the following property:

1. Personal property not inside the fully enclosed

building;

2. A building, and personal property in it, located

entirely in, on, or over water or seaward of mean high

tide if it was constructed or substantially improved

after September 30, 1982;

3. Open structures, including a building used as a

boathouse or any structure or

building into which

boats are floated, and personal property located in,

on, or over water;

4. Recreational vehicles other than travel trailers

described in

II.B.6.c., whether affixed to a permanent

foundation or on wheels;

5. Self-propelled vehicles or machines, including their

parts and equipment. However, we do cover self-

propelled vehicles or machines not licensed for use

on public roads that are:

a. Used mainly to service the describedlocation,

b. Designed and used to assist handicapped

persons,

while the vehicles or machines are inside a building

at the

describedlocation;

6. Land, land values, lawns, trees, shrubs, plants,

growing crops, or animals;

7. Accounts, bills, coins, currency, deeds, evidences of

debt, medals, money, scrip, stored value cards,

postage stamps, securities, bullion, manuscripts, or

other valuable papers;

Page8of19

 POL 13 May 1, 2011

8. Underground structures and equipment, including

wells, septic tanks, and septic systems;

9. Those portions of walks, walkways, decks, driveways,

patios, and other surfaces, all whether protected by a

roof or not, located outside the perimeter, exterior

walls of the insured

building or the building in which

the insured

unit is located;

10. Containers, including related equipment, such as, but

not limited to, tanks containing gases or liquids;

11. Buildings or units and all their contents if more than

49 percent of the

actualcashvalue of the building

unitis below ground, unless the lowest level is at

or above the

base flood elevation and is below

ground by reason of earth having been used as

insulation material in conjunction with energy efficient

building techniques;

12. Fences, retaining walls, seawalls, bulkheads,

wharves, piers, bridges, and docks;

13. Aircraft or watercraft, or their furnishings and

equipment;

14. Hot tubs and spas that are not bathroom fixtures, and

swimming pools, and their equipment such as, but not

limited to, heaters, filters, pumps, and pipes, wherever

located;

15. Property not eligible for flood insurance pursuant to

the provisions of the Coastal Barrier Resources Act

and the Coastal Barrier Improvement Act and

amendments to these acts;

16. Personal property you own in common with other unit

owners comprising the membership of a

condominiumassociation.

V.EXCLUSIONS

A. We only provide coverage for directphysical loss

byor fromflood, which means that we do not pay

you for:

1. Loss of revenue or profits;

2. Loss of access to the insured property or described

location

;

3. Loss of use of the insured property or described

location

;

4. Loss from interruption of business or production;

5. Any additional living expenses incurred while the

insured

building is being repaired or is unable to be

occupied for any reason;

6. The cost of complying with any ordinance or law

requiring or regulating the construction, demolition,

remodeling, renovation, or repair of property,

including removal of any resulting debris. This

exclusion does not apply to any eligible activities that

we describe in Coverage

D - Increased Cost of

Compliance; or

7. Any other economic loss.

B. We do not insure a loss directly or indirectly caused

by a

flood that is already in progress at the time and

date:

1. The policy term begins; or

2. Coverage is added at your request.

C. We do not insure for loss to property caused directly

by earth movement even if the earth movement is

caused by

flood. Some examples of earth movement

that we do not cover are:

1. Earthquake;

2. Landslide;

3. Land subsidence;

4. Sinkholes;

5. Destabilization or movement of land that results from

accumulation of water in subsurface land area; or

6. Gradual erosion.

We do, however, pay for losses from mudflow and land

subsidence as a result of erosion that are specifically

covered under our definition of

flood (see II.A.1.c. and

II.A.2.).

D. We do not insure for direct physical loss caused

directly or indirectly by any of the following:

1. The pressure or weight of ice;

2. Freezing or thawing;

3. Rain, snow, sleet, hail, or water spray;

4. Water, moisture, mildew, or mold damage that results

primarily from any condition:

a. Substantially confined to the dwelling; or

b. That is within your control, including but not

limited to:

(1) Design, structural, or mechanical defects;

Page9of19

 POL 14 May 1, 2011

(2) Failure, stoppage, or breakage of water or

sewer lines, drains, pumps, fixtures, or

equipment; or

(3) Failure to inspect and maintain the property

after a

flood recedes;

5. Water or waterborne material that:

a. Backs up through sewers or drains;

b. Discharges or overflows from a sump, sump

pump, or related equipment; or

c. Seeps or leaks on or through the covered

property;

unless there is a flood in the area and the flood is

the proximate cause of the sewer or drain backup,

sump pump discharge or overflow, or seepage of

water;

6. The pressure or weight of water unless there is a

flood in the area and the flood is the proximate

cause of the damage from the pressure or weight of

water;

7. Power, heating, or cooling failure unless the failure

results from directphysicallossbyorfromflood to

power, heating, or cooling equipment on the

describedlocation;

8. Theft, fire, explosion, wind, or windstorm;

9. Anything you or any member of your household do or

conspire to do to cause loss by

flood deliberately; or

10. Alteration of the insured property that significantly

increases the risk of flooding.

E. We do not insure for loss to any building or personal

property located on land leased from the Federal

Government, arising from or incident to the flooding of

the land by the Federal Government, where the lease

expressly holds the Federal Government harmless

under flood insurance issued under any Federal

Government program.

F. We do not pay for the testing for or monitoring of

pollutants unless required by law or ordinance.

VI.DEDUCTIBLES

A. When a loss is covered under this policy, we will pay

only that part of the loss that exceeds your deductible

amount, subject to the limit of liability that applies. The

deductible amount is shown on the

Declarations

Page

However, when a

building under construction,

alteration, or repair does not have at least two rigid

exterior walls and a fully secured roof at the time of

loss, your deductible amount will be two times the

deductible that would otherwise apply to a completed

building.

B. In each loss from flood, separate deductibles apply to

the

building and personal property insured by this

policy.

C. The deductible does not apply to:

1. III.C.2. Loss Avoidance Measures;

2. III.C.3. Condominium Loss Assessments; or

3. III.D.Increased Cost of Compliance.

VII.GENERALCONDITIONS

A. PairsandSets

In case of loss to an article that is part of a pair or set, we

will have the option of paying you:

1. An amount equal to the cost of replacing the lost,

damaged, or destroyed article, minus its depreciation;

2. The amount that represents the fair proportion of the

total value of the pair or set that the lost, damaged, or

destroyed article bears to the pair or set.

B. ConcealmentorFraudandPolicyVoidance

With respect to all insureds under this policy, this

policy:

a. Is void;

b. Has no legal force or effect;

c. Cannot be renewed; and

d. Cannot be replaced by a new NFIPpolicy;

Page10of19

 POL 15 May 1, 2011

if, before or after a loss, you or any other insured or

your agent have at any time:

(1) Intentionally concealed or misrepresented

any material fact or circumstance;

(2) Engaged in fraudulent conduct; or

(3) Made false statements;

relating to this policy or any other NFIP

insurance.

2. This policy will be void as of the date the wrongful

acts described in

B.1. above were committed.

3. Fines, civil penalties, and imprisonment under

applicable Federal laws may also apply to the acts of

fraud or concealment described above.

4. This policy is also void for reasons other than fraud,

misrepresentation, or wrongful act. This

policy is void

from its inception and has no legal force under the

following conditions:

a. If the property is located in a community that was

not participating in the

NFIP on the policy’s

inception date and did not join or reenter the

program during the

policy term and before the

loss occurred; or

b. If the property listed on the application is

otherwise not eligible for coverage under the

NFIP.

C. OtherInsurance

If a loss covered by this policy is also covered by

other insurance that includes

flood coverage not

issued under the

Act, we will not pay more than the

amount of insurance that you are entitled to for lost,

damaged, or destroyed property insured under this

policy subject to the following:

a. We will pay only the proportion of the loss that

the amount of insurance that applies under this

policy bears to the total amount of insurance

covering the loss, unless

C.1.b. or c. immediately

below applies.

b. If the other policy has a provision stating that it is

excess insurance, this

policy will be primary.

c. This policy will be primary (but subject to its own

deductible) up to the deductible in the other

flood

policy (except another policy as described in

C.1.b. above). When the other deductible amount

is reached, this

policy will participate in the same

proportion that the amount of insurance under

this

policy bears to the total amount of both

policies, for the remainder of the loss.

2. If there is other insurance in the name of your

condominium association covering the same

property covered by this policy, then this policy will

be in excess over the other insurance.

D. Amendments,Waivers,Assignment

This policy cannot be changed nor can any of its

provisions be waived without the express written consent

of the Federal Insurance Administrator. No action that we

take under the terms of this

policy constitutes a waiver of

any of our rights. You may assign this

policy in writing

when you transfer title of your property to someone else,

except under these conditions:

1. When this policy covers only personal property; or

2. When this policy covers a structure during the course

of construction.

E. CancellationofPolicybyYou

1. You may cancel this policy in accordance with the

applicable rules and regulations of the

NFIP.

2. If you cancel this policy, you may be entitled to a full

or partial refund of premium also under the applicable

rules and regulations of the

NFIP.

F. NonrenewalofthePolicybyUs

Your policy will not be renewed:

1. If the community where your covered property is

located stops participating in the

NFIP; or

2. If your building has been declared ineligible under

Section 1316 of the

Act.

G. ReductionandReformationofCoverage

If the premium we received from you was not enough

to buy the kind and amount of coverage you

requested, we will provide only the amount of

coverage that can be purchased for the premium

payment we received.

2. The policy can be reformed to increase the amount

of coverage resulting from the reduction described in



G.1.

above to the amount you requested as follows:

a. Discovery of insufficient premium or incomplete

rating information before a loss.

(1) If we discover before you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current

policy

term (or that portion of the current policy

term following any endorsement changing

Page11of19

 POL 16 May 1, 2011

the amount of coverage). If you or the

mortgagee or trustee pay the additional

premium within 30 days from the date of our

bill, we will reform the

policy to increase the

amount of coverage to the originally

requested amount effective to the beginning

of the current

policy term (or subsequent

date of any endorsement changing the

amount of coverage).

(2) If we determine before you have a floodloss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

submit the information within 60 days of our

request. Once we determine the amount of

additional premium for the current policy

term, we will follow the procedure in

G.2.a.(1)above.

(3) If we do not receive the additional premium

(or additional information) by the date it is

due, the amount of coverage can only be

increased by endorsement subject to any

appropriate waiting period.

b. Discovery of insufficient premium or incomplete

rating information after a loss.

(1) If we discover after you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current and the

prior

policy terms. If you or the mortgagee

or trustee pay the additional premium within

30 days from the date of our bill, we will

reform the

policy to increase the amount of

coverage to the originally requested amount

effective to the beginning of the prior

policy

term.

(2) If we discover after you have a flood loss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

submit the information before your claim can

be paid. Once we determine the amount of

additional premium for the current and prior

policyterms, we will follow the procedure in

G.2.b.(1) above.

(3) If we do not receive the additional premium

by the date it is due, your flood insurance

claim will be settled based on the reduced

amount of coverage. The amount of

coverage can only be increased by

endorsement subject to any appropriate

waiting period.

3. However, if we find that you or your agent

intentionally did not tell us, or falsified, any important

fact or circumstance or did anything fraudulent

relating to this insurance, the provisions of Condition

B. Concealment or Fraud and Policy Voidance apply.

H. PolicyRenewal

This policywill expire at 12:01 a.m. on the last day of

the

policy term.

2. We must receive the payment of the appropriate

renewal premium within 30 days of the expiration

date.

3. If we find, however, that we did not place your

renewal notice into the U.S. Postal Service, or if we

did mail it, we made a mistake, e.g., we used an

incorrect, incomplete, or illegible address, which

delayed its delivery to you before the due date for the

renewal premium, then we will follow these

procedures:

a. If you or your agent notified us, not later than 1

year after the date on which the payment of the

renewal premium was due, of nonreceipt of a

renewal notice before the due date for the

renewal premium, and we determine that the

circumstances in the preceding paragraph apply,

we will mail a second bill providing a revised due

date, which will be 30 days after the date on

which the bill is mailed.

b. If we do not receive the premium requested in the

second bill by the revised due date, then we will

not renew the

policy. In that case, the policy

will remain an expired

policy as of the expiration

date shown on the

DeclarationsPage.

4. In connection with the renewal of this policy, we may

ask you during the

policy term to recertify, on a

Recertification Questionnaire we will provide to you,

the rating information used to rate your most recent

application for or renewal of insurance.

I. ConditionsSuspendingorRestrictingInsurance

We are not liable for loss that occurs while there is a

hazard that is increased by any means within your control

or knowledge.

J. RequirementsinCaseofLoss

In case of a flood loss to insured property, you must:

1. Give prompt written notice to us;

2. As soon as reasonably possible, separate the

damaged and undamaged property, putting it in the

best possible order so that we may examine it;

3. Prepare an inventory of damaged property showing

the quantity, description,

actual cash value, and

amount of loss. Attach all bills, receipts, and related

documents;

Page12of19

 POL 17 May 1, 2011

4. Within 60 days after the loss, send us a proof of loss,

which is your statement of the amount you are

claiming under the

policy signed and sworn to by

you, and which furnishes us with the following

information:

a. The date and time of loss;

b. A brief explanation of how the loss happened;

c. Your interest (for example, “owner”) and the

interest, if any, of others in the damaged

property;

d. Details of any other insurance that may cover the

loss;

e. Changes in title or occupancy of the covered

property during the term of the

policy;

f. Specifications of damaged buildings and

detailed repair estimates;

g. Names of mortgagees or anyone else having a

lien, charge, or claim against the covered

property;

h. Details about who occupied any insured building

at the time of loss and for what purpose; and

i. The inventory of damaged personal property

described in

J.3. above.

5. In completing the proof of loss, you must use your

own judgment concerning the amount of loss and

justify that amount.

6. You must cooperate with the adjuster or

representative in the investigation of the claim.

7. The insurance adjuster whom we hire to investigate

your claim may furnish you with a proof of loss form,

and she or he may help you complete it. However,

this is a matter of courtesy only, and you must still

send us a proof of loss within 60 days after the loss

even if the adjuster does not furnish the form or help

you complete it.

8. We have not authorized the adjuster to approve or

disapprove claims or to tell you whether we will

approve your claim.

9. At our option, we may accept the adjuster’s report of

the loss instead of your proof of loss. The adjuster’s

report will include information about your loss and the

damages you sustained. You must sign the adjuster’s

report. At our option, we may require you to swear to

the report.

K. OurOptionsAfteraLoss

Options we may, in our sole discretion, exercise after loss

include the following:

1. At such reasonable times and places that we may

designate, you must:

a. Show us or our representative the damaged

property;

b. Submit to examination under oath, while not in

the presence of another insured, and sign the

same; and

c. Permit us to examine and make extracts and

copies of:

(1) Any policies of property insurance insuring

you against loss and the deed establishing

your ownership of the insured real property;

(2) Condominium association documents

including the Declarations of the

condominium, its Articles of Association or

Incorporation, Bylaws, rules and regulations,

and other relevant documents if you are a

unitowner in a condominiumbuilding; and

(3) All books of accounts, bills, invoices and

other vouchers, or certified copies pertaining

to the damaged property if the originals are

lost.

2. We may request, in writing, that you furnish us with a

complete inventory of the lost, damaged, or destroyed

property, including:

a. Quantities and costs;

b. Actual cash values or replacement cost

(whichever is appropriate);

c. Amounts of loss claimed;

d. Any written plans and specifications for repair of

the damaged property that you can reasonably

make available to us; and

e. Evidence that prior flood damage has been

repaired.

3. If we give you written notice within 30 days after we

receive your signed, sworn proof of loss, we may:

a. Repair, rebuild, or replace any part of the lost,

damaged, or destroyed property with material or

property of like kind and quality or its functional

equivalent; and

b. Take all or any part of the damaged property at

the value we agree upon or its appraised value.

L. NoBenefittoBailee

No person or organization, other than you, having custody

of covered property will benefit from this insurance.

Page13of19

 POL 18 May 1, 2011

M. LossPayment

1. We will adjust all losses with you. We will pay you

unless some other person or entity is named in the

policy or is legally entitled to receive payment. Loss

will be payable 60 days after we receive your proof of

loss (or within 90 days after the insurance adjuster

files an adjuster’s report signed and sworn to by you

in lieu of a proof of loss) and:

a. We reach an agreement with you;

b. There is an entry of a final judgment; or

c. There is a filing of an appraisal award with us, as

provided in

VII.P.

If we reject your proof of loss in whole or in part you

may:

a. Accept our denial of your claim;

b. Exercise your rights under this policy; or

c. File an amended proof of loss, as long as it is

filed within 60 days of the date of the loss.

N. Abandonment

You may not abandon to us damaged or undamaged

property insured under this

policy.

O. Salvage

We may permit you to keep damaged insured property

after a loss, and we will reduce the amount of the loss

proceeds payable to you under the

policy by the value of

the salvage.

P. Appraisal

If you and we fail to agree on the actualcashvalue or, if

applicable, replacement cost of your damaged property to

settle upon the amount of loss, then either may demand

an appraisal of the loss. In this event, you and we will

each choose a competent and impartial appraiser within

20 days after receiving a written request from the other.

The two appraisers will choose an umpire. If they cannot

agree upon an umpire within 15 days, you or we may

request that the choice be made by a judge of a court of

record in the State where the covered property is located.

The appraisers will separately state the

actual cash

value

, the replacement cost, and the amount of loss to

each item. If the appraisers submit a written report of an

agreement to us, the amount agreed upon will be the

amount of loss. If they fail to agree, they will submit their

differences to the umpire. A decision agreed to by any two

will set the amount of actual cash value and loss, or if it

applies, the replacement cost and loss.

Each party will:

1. Pay its own appraiser; and

2. Bear the other expenses of the appraisal and umpire

equally.

Q. MortgageClause

The word “mortgagee” includes trustee.

Any loss payable under Coverage

A - Building Property

will be paid to any mortgagee of whom we have actual

notice as well as any other mortgagee or loss payee

determined to exist at the time of loss, and you, as

interests appear. If more than one mortgagee is named,

the order of payment will be the same as the order of

precedence of the mortgages.

If we deny your claim, that denial will not apply to a valid

claim of the mortgagee, if the mortgagee:

1. Notifies us of any change in the ownership or

occupancy, or substantial change in risk of which the

mortgagee is aware;

2. Pays any premium due under this policy on demand

if you have neglected to pay the premium; and

3. Submits a signed, sworn proof of loss within 60 days

after receiving notice from us of your failure to do so.

All of the terms of this policy apply to the mortgagee.

The mortgagee has the right to receive loss payment even

if the mortgagee has started foreclosure or similar action

on the

building.

If we decide to cancel or not renew this

policy, it will

continue in effect for the benefit of the mortgagee only for

30 days after we notify the mortgagee of the cancellation

or nonrenewal.

If we pay the mortgagee for any loss and deny payment to

you, we are subrogated to all the rights of the mortgagee

granted under the mortgage on the property. Subrogation

will not impair the right of the mortgagee to recover the full

amount of the mortgagee’s claim.

R. SuitAgainstUs

You may not sue us to recover money under this policy

unless you have complied with all the requirements of the

policy. If you do sue, you must start the suit within 1 year

after the date of the written denial of all or part of the

claim, and you must file the suit in the United States

District Court of the district in which the insured property

was located at the time of loss. This requirement applies

to any claim that you may have under this

policy and to

any dispute that you may have arising out of the handling

of any claim under the

policy.

S. Subrogation

Whenever we make a payment for a loss under this

policy, we are subrogated to your right to recover for that

loss from any other person. That means that your right to

Page14of19

 POL 19 May 1, 2011

recover for a loss that was partly or totally caused by

someone else is automatically transferred to us, to the

extent that we have paid you for the loss. We may require

you to acknowledge this transfer in writing. After the loss,

you may not give up our right to recover this money or do

anything that would prevent us from recovering it. If you

make any claim against any person who caused your loss

and recover any money, you must pay us back first before

you may keep any of that money.

T. ContinuousLakeFlooding

If your insured building has been flooded by rising

lake waters continuously for 90 days or more and it

appears reasonably certain that a continuation of this

flooding will result in a covered loss to the insured

building equal to or greater than the buildingpolicy

limits plus the deductible or the maximum payable

under the

policy for any one building loss, we will

pay you the lesser of these two amounts without

waiting for the further damage to occur if you sign a

release agreeing:

a. To make no further claim under this policy;

b. Not to seek renewal of this policy;

c. Not to apply for any flood insurance under the

Actfor property at the describedlocation; and

d. Not to seek a premium refund for current or prior

terms.

If the policy term ends before the insured building

has been flooded continuously for 90 days, the

provisions of this paragraph

T.1. will apply when the

insured

building suffers a covered loss before the

policyterm ends.

2. If your insured building is subject to continuous lake

flooding from a closed basin lake, you may elect to file

a claim under either paragraph

T.1. above or

paragraph

T.2. (A “closed basin lake” is a natural lake

from which water leaves primarily through evaporation

and whose surface area now exceeds or has exceeded

1 square mile at any time in the recorded past. Most of

the nation’s closed basin lakes are in the western half

of the United States, where annual evaporation

exceeds annual precipitation and where lake levels and

surface areas are subject to considerable fluctuation

due to wide variations in the climate. These lakes may

overtop their basins on rare occasions.) Under this

paragraph

T.2. we will pay your claim as if the building

is a total loss even though it has not been continuously

inundated for 90 days, subject to the following

conditions:

a. Lake flood waters must damage or imminently

threaten to damage your

building.

b. Before approval of your claim, you must:

(1) Agree to a claim payment that reflects your

buying back the salvage on a negotiated

basis; and

(2) Grant the conservation easement described in

FEMA’s “Policy Guidance for Closed Basin

Lakes,” to be recorded in the office of the local

recorder of deeds. FEMA, in consultation with

the community in which the property is

located, will identify on a map an area or

areas of special consideration (ASC) in which

there is a potential for

flood damage from

continuous lake flooding. FEMA will give the

community the agreed-upon map showing the

ASC. This easement will only apply to that

portion of the property in the ASC. It will allow

certain agricultural and recreational uses of

the land. The only structures that it will allow

on any portion of the property within the ASC

are certain simple agricultural and recreational

structures. If any of these allowable structures

are insurable buildings under the

NFIP and

are insured under the

NFIP, they will not be

eligible for the benefits of this paragraph

T.2.

If a U.S. Army Corps of Engineers certified

flood control project or otherwise certified

flood control project later protects the

property, FEMA will, upon request, amend the

ASC to remove areas protected by those

projects. The restrictions of the easement will

then no longer apply to any portion of the

property removed from the ASC; and

(3) Comply with paragraphs T.1.a. through T.1.d.

above.

c. Within 90 days of approval of your claim, you must

move your

building to a new location outside the

ASC. FEMA will give you an additional 30 days to

move if you show that there is sufficient reason to

extend the time.

d. Before the final payment of your claim, you must

acquire an elevation certificate and a floodplain

development permit from the local floodplain

administrator for the new location of your

building.

e. Before the approval of your claim, the community

having jurisdiction over your

building must:

(1) Adopt a permanent land use ordinance, or a

temporary moratorium for a period not to

exceed 6 months to be followed immediately

by a permanent land use ordinance, that is

consistent with the provisions specified in the

easement required in paragraph

T.2.b.above.

(2) Agree to declare and report any violations of

this ordinance to FEMA so that under Section

1316 of the National Flood Insurance Act of

1968, as amended, flood insurance to the

building can be denied; and

Page15of19

 POL 20 May 1, 2011

(3) Agree to maintain as deed-restricted, for

purposes compatible with open space or

agricultural or recreational use only, any

affected property the community acquires an

interest in. These deed restrictions must be

consistent with the provisions of paragraph

T.2.b. above, except that, even if a certified

project protects the property, the land use

restrictions continue to apply if the property

was acquired under the Hazard Mitigation

Grant Program or the Flood Mitigation

Assistance Program. If a nonprofit land trust

organization receives the property as a

donation, that organization must maintain the

property as deed-restricted, consistent with

the provisions of paragraph

T.2.b. above.

f. Before the approval of your claim, the affected

State must take all action set forth in FEMA’s

“Policy Guidance for Closed Basin Lakes.”

g. You must have NFIP flood insurance coverage

continuously in effect from a date established by

FEMA until you file a claim under paragraph

T.2. If

a subsequent owner buys

NFIP insurance that

goes into effect within 60 days of the date of

transfer of title, any gap in coverage during that

60-day period will not be a violation of this

continuous coverage requirement. For the purpose

of honoring a claim under this paragraph

T.2., we

will not consider to be in effect any increased

coverage that became effective after the date

established by FEMA. The exception to this is any

increased coverage in the amount suggested by

your insurer as an inflation adjustment.

h. This paragraph T.2. will be in effect for a

community when the FEMA Regional Director for

the affected region provides to the community, in

writing, the following:

(1) Confirmation that the community and the

State are in compliance with the conditions in

paragraphs

T.2.e. and T.2.f. above; and

(2) The date by which you must have flood

insurance in effect.

U. DuplicatePoliciesNotAllowed

We will not insure your property under more than one

NFIPpolicy.

If we find that the duplication was not knowingly

created, we will give you written notice. The notice will

advise you that you may choose one of several

options under the following procedures:

a. If you choose to keep in effect the policy with the

earlier effective date, you may also choose to

add the coverage limits of the later

policy to the

limits of the earlier

policy. The change will

become effective as of the effective date of the

later

policy.

b. If you choose to keep in effect the policy with the

later effective date, you may also choose to add

the coverage limits of the earlier

policy to the

limits of the later policy. The change will be

effective as of the effective date of the later

policy.

In either case, you must pay the pro rata premium for

the increased coverage limits within 30 days of the

written notice. In no event will the resulting coverage

limits exceed the permissible limits of coverage under

the

Act or your insurable interest, whichever is less.

We will make a refund to you, according to applicable

NFIP rules, of the premium for the policy not being

kept in effect.

2. Your option under Condition U. Duplicate Policies Not

Allowed to elect which

NFIPpolicy to keep in effect

does not apply when duplicates have been knowingly

created. Losses occurring under such circumstances

will be adjusted according to the terms and conditions

of the earlier

policy. The policy with the later

effective date will be canceled.

V. LossSettlement

1. Introduction

This policy provides three methods of settling losses:

Replacement Cost, Special Loss Settlement, and

Actual Cash Value. Each method is used for a

different type of property, as explained in

a.-c. below.

a. Replacement Cost loss settlement, described in

V.2. below, applies to a single-family dwelling

provided:

(1) It is your principal residence, which means

that, at the time of loss, you or your spouse

lived there for at least 80 percent of:

(a) The 365 days immediately preceding

the loss; or

(b) The period of your ownership, if you

owned the

dwelling for less than 365

days; and

(2) At the time of loss, the amount of insurance

in this

policy that applies to the dwelling is

80 percent or more of its full replacement

cost immediately before the loss, or is the

maximum amount of insurance available

under the

NFIP.

b. Special loss settlement, described in V.3. below,

applies to a single-family

dwelling that is a

manufactured or mobile home or a travel trailer.

c. ActualCashValue loss settlement applies to a

single-family

dwelling not subject to replacement

cost or special loss settlement, and to the

property listed in

V.4. below.

Page16of19

 POL 21 May 1, 2011

2. ReplacementCostLossSettlement

The following loss settlement conditions apply to a

single-family

dwelling described in V.1.a. above:

a. We will pay to repair or replace the damaged

dwelling after application of the deductible and

without deduction for depreciation, but not more

than the least of the following amounts:

(1) The building limit of liability shown on your

DeclarationsPage;

(2) The replacement cost of that part of the

dwelling damaged, with materials of like

kind and quality, and for like use; or

(3) The necessary amount actually spent to

repair or replace the damaged part of the

dwellingfor like use.

b. If the dwelling is rebuilt at a new location, the

cost described above is limited to the cost that

would have been incurred if the

dwelling had

been rebuilt at its former location.

c. When the full cost of repair or replacement is

more than $1,000 or more than 5 percent of the

whole amount of insurance that applies to the

dwelling, we will not be liable for any loss under

V.2.a. above or V.4.a.(2) below unless and until

actual repair or replacement is completed.

d. You may disregard the replacement cost

conditions above and make claim under this

policyfor loss to dwellings on an actualcash

value

basis. You may then make claim for any

additional liability according to

V.2.a., b., and c.

above, provided you notify us of your intent to do

so within 180 days after the date of loss.

e. If the community in which your dwelling is

located has been converted from the

Emergency

Program

to the Regular Program during the

current

policy term, then we will consider the

maximum amount of available

NFIP insurance to

be the amount that was available at the

beginning of the current

policyterm.

3. SpecialLossSettlement

The following loss settlement conditions apply to

a single-family

dwelling that:

(1) Is a manufactured or mobile home or a travel

trailer, as defined in

II.B.6.b. and II.B.6.c.;

(2) Is at least 16 feet wide when fully assembled

and has an area of at least 600 square feet

within its perimeter walls when fully

assembled; and

(3) Is your principal residence, as specified in

V.1.a.(1)above.

b. If such a dwelling is totally destroyed or

damaged to such an extent that, in our judgment,

it is not economically feasible to repair, at least to

its predamage condition, we will, at our

discretion, pay the least of the following amounts:

(1) The lesser of the replacement cost of the

dwelling or 1.5 times the actual cash

value

, or

(2) The building limit of liability shown on your

DeclarationsPage.

c. If such a dwelling is partially damaged and, in

our judgment, it is economically feasible to repair

it to its predamage condition, we will settle the

loss according to the Replacement Cost

conditions in paragraph

V.2. above.

4. ActualCashValueLossSettlement

The types of property noted below are subject to

actualcashvalue [or in the case of V.4.a.(2) below,

proportional] loss settlement.

A dwelling, at the time of loss, when the amount

of insurance on the dwelling is both less than 80

percent of its full replacement cost immediately

before the loss and less than the maximum

amount of insurance available under the NFIP.

In that case, we will pay the greater of the

following amounts, but not more than the amount

of insurance that applies to that dwelling:

(1) The actualcashvalue, as defined in II.B.2.,

of the damaged part of the

dwelling; or

(2) A proportion of the cost to repair or replace

the damaged part of the

dwelling, without

deduction for physical depreciation and after

application of the deductible.

This proportion is determined as follows: If

80 percent of the full replacement cost of the

dwelling is less than the maximum amount

of insurance available under the

NFIP, then

the proportion is determined by dividing the

actual amount of insurance on the

dwelling

by the amount of insurance that represents

80 percent of its full replacement cost. But if

80 percent of the full replacement cost of the

dwelling

is greater than the maximum

amount of insurance available under the

NFIP,

then the proportion is determined by

dividing the actual amount of insurance on

the

dwelling

by the maximum amount of

insurance available under the

NFIP

b. A two-, three-, or four-family dwelling.

c. A unit that is not used exclusively for single-

family

dwelling purposes.

Page17of19

 POL 22 OctOber 1, 2011

d. Detachedgarages.

e. Personalproperty.

f. Appliances,carpets,andcarpetpads.

g. Outdoorawnings,outdoorantennas oraerialsof

t

ype,

a

o

ther

o

utdoor

eq

uipment.

h. Any property covered under this policy that is

bandoned

 a

fter

 a los

 a

 r

emains

 a

 d

ebris

nywhere

ont



describedlocation.

i. Adwellingthatisnotyourprincipalresidence.

5. AmountofInsuranceRequired

 To determinethe amount of insurance requiredfor a

dwelling immediatelybeforetheloss,donotinclude

v

alue

o

a. Footings, foundations, piers, or any other

tructures

 o

 d

evices

 t

hat

 a

 belo

 t

he

ndersurface

 o

 t

 lo

west

 b

asement

 f

loor

 a

nd

upport

a

o

p

art

o

t



dwelling;

b. Those supports listed in V.5.a. above that are

belo

 t

 s

urface

 o

 t

 g

round

 i

nside

 t

he

oundation

w

alls

ift

here

i

n

b

asement;

a

c. Excavations and underground flues, pipes,

iring,

a

d

rains.

 TheCoverageD-IncreasedCostofCompliancelimit

 l

iability

 i

 n

 i

ncluded

 i

 t

 d

etermination

 o

 t

he

mount

o

i

nsurance

r

equired.

VIII.LIBERALIZATIONCLAUSE

w

m

ake

ac

hange

t

hat

b

roadens

y

our

c

overage

u

nder



his

 ed

ition

 o



policy, but does not require any

dditional

 p

remium,

 t

hen

 t

hat

 c

hange

 w

ill

 a

utomatically

pply

 t

 y

our

 i

nsurance

 a

 o

 t

 d

ate

 w

 i

mplement

 t

he

hange,

p

rovided

t

hat

t

his

i

mplementation

d

ate

f

alls

w

ithin

 d

ays

 be

fore,

 o

 d

uring,

 t



policy term statedon the

DeclarationsPage.

IX.WHATLAWGOVERNS

This



policy and all disputes arising from the handling of

 c

laim

 u

nder

 t



policy are governed exclusively by

 f

lood

 i

nsurance

 r

egulations

 i

ssued

 b

 F

EMA,

 t

he

National

 F

lood

 I

nsurance

 A

 o

 1

968,

 a

mended

 (

42

.S.C.

4

001,

e

s

eq.),

a

F

ederal

c

ommon

l

aw.

INWITNESSWHEREOF,wehavesignedthispolicybelowandherebyenterintothisInsuranceAgreement.

Edward

L

C

onnor

DeputyAdministrator,Insurance

Federal

I

nsurance

a

M

itigation

A

dministration

Page

1

of1

 POL 23 May 1, 2011

CLAIMGUIDELINESINCASEOFAFLOOD

For the protection of you and your family, the following claim guidelines are provided by the National Flood

Insurance Program (NFIP). If you are ever in doubt as to what action is needed, consult your insurance

representative or call the NFIP toll-free at 1-800-638-6620 or on the TDD line at 1-800-447-9487.

Know your insurance representative’s name and telephone number. List them here for fast reference:

Insurance Representative

Representative’s Phone Number

• Notify us or your insurance representative, in writing, as soon as possible after the flood.

• If you report to your insurance representative, remind him or her to assign the claim to an NFIP-

approved claims adjuster. The NFIP pays for the services of the independent claims adjuster assigned

to your claim.

• Determine the independent claims adjuster assigned to your claim and contact him or her if you have

not been contacted within 24 hours after you reported the claim to your insurance representative.

• As soon as possible, separate damaged property from undamaged property so that damage can be

inspected and evaluated.

• Discuss with the claims adjuster any need you may have for an advance or partial payment for your

loss.

• To help the claims adjuster, try to take photographs of the outside of the premises showing the flooding

and the damage and photographs of the inside of the premises showing the height of the water and the

damaged property.

• Place all account books, financial records, receipts, and other loss verification material in a safe place

for examination and evaluation by the claims adjuster.

• Work cooperatively and promptly with the claims adjuster to determine and document all claim items.

Be prepared to advise the claims adjuster of the cause and responsible party(ies), if the flooding

resulted from other than natural cause.

• Make sure that the claims adjuster fully explains, and that you fully understand, all allowances and

procedures for processing claim payments on the basis of your proof of loss. This policy requires you to

send us detailed proof of loss within 60 days after the loss.

• Any and all coverage problems and claim allowance restrictions must be communicated directly from

the NFIP. Claims adjusters are not authorized to approve or deny claims; their job is to report to the

NFIP on the elements of flood cause and damage.

At our option, we may accept an adjuster’s report of the loss instead of your proof of loss. The adjuster’s

report will include information about your loss and the damages to your insured property. You must sign the

adjuster’s report. At our option, we may require you to swear to the report.

(8/09)

Page19of19

POL 24 May 1, 2011

This page is intentionally left blank.

 POL 25 May 1, 2011

National Flood Insurance Program

General Property Form

Standard Flood Insurance Policy

 POL 26 May 1, 2011

1. Section III. Property Covered, A. Coverage A -

BuildingProperty,3.

Additions and extensions to buildings that are connected

by a rigid exterior wall, a solid load-bearing interior wall, a

stairway, an elevated walkway, or a roof may be insured

as part of the building. At the option of the insured, these

extensions and additions may be insured separately.

Additions and extensions that are attached to and in

contact with the building by means of a common interior

wall that is not a solid load-bearing wall are always

considered part of the building and cannot be insured

separately.

2. Section III. Property Covered, B. Coverage B -

PersonalProperty,5.SpecialLimits

Coverage for fine arts, collectibles, jewelry, and furs, etc.,

has been increased to $2500.

3. Section III. Property Covered B. Coverage B -

PersonalProperty,8.

Coverage for condominium unit owners has been

extended to apply up to 10 percent of the contents

coverage for losses to interior walls, floors, and ceilings

not covered by the condominium association’s master

policy.

4. Section III. Property Covered, C. Coverage C -

OtherCoverages,2.a.&b.

Coverage for the two loss avoidance measures

(sandbagging and relocation of property to protect it from

flood or the imminent danger of flood) has been increased

to $1,000 for each.

5. Section III. Property Covered, C. Coverage C -

OtherCoverages,3.PollutionDamage

Coverage for damage caused by pollutants to covered

property has been limited to $10,000. This does not cover

the cost of testing for or monitoring of pollutants unless it

is required by law or ordinance.

6. SectionIV.PropertyNotCovered,5.a.&b.

Coverage has been changed to pay for losses to self-

propelled vehicles used to service the described location

or designed to assist handicapped persons provided that

the vehicles are in a building at the described location.

7. SectionIV.PropertyNotCovered,7.

Coverage is now specifically excluded for scrip and stored

value cards.

8. SectionIV.PropertyNotCovered,14.

Coverage for swimming pools, hot tubs, and spas (that are

not bathroom hot tubs or spas), and their equipment is

now excluded.

9. SectionV.Exclusions,B.1&2.

The explanation of when coverage begins as it relates to a

loss in progress has been simplified.

10.SectionV.Exclusions,C.

Coverage has been clarified to pay for losses from land

subsidence under certain circumstances. Subsidence of

land along a lake shore or similar body of water which

results from the erosion or undermining of the shoreline

caused by waves or currents of water exceeding cyclical

levels that result in a flood continues to be covered. All

other land subsidence is now excluded.

11.SectionV.Exclusions,D.4.b.(3)

Coverage is now excluded for water, moisture, mildew, or

mold damage caused by the policyholder’s failure to

inspect and maintain the insured property after the flood

waters recede.

12.SectionV.Exclusions,D.6.

Coverage is added for damage from the pressure of water

against the insured structure with the requirement that

there be a flood in the area and the flood is the proximate

cause of damage from the pressure of water against the

insured structure.

13.Section VII.  General Conditions, G. Reduction

andReformationofCoverage,2.a.(2)

If it is discovered before a claim occurs that there is

incomplete rating information, the policyholder has 60 days

to submit missing rating information. Otherwise, the

coverage is limited to the amount of coverage that can be

purchased for the premium originally received and can only

be increased by an endorsement that is subject to the

appropriate waiting period (currently 30 days).

GENERALPROPERTYFORM

SummaryofSignificantChanges,December31,2000

 POL 27 May 1, 2011

FEDERAL EMERGENCY MANAGEMENT AGENCY

NATIONAL FLOOD INSURANCE PROGRAM

STANDARD FLOOD INSURANCE POLICY

GENERALPROPERTYFORM

PLEASE READ THE POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS SUBJECT TO LIMITATIONS,

RESTRICTIONS, AND EXCLUSIONS.

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.

I.AGREEMENT

The Federal Emergency Management Agency (FEMA)

provides flood insurance under the terms of the National

Flood Insurance Act of 1968 and its amendments, and

Title 44 of the Code of Federal Regulations (CFR).

We will pay you for

directphysicallossbyorfromflood

to your insured property if you:

1. Have paid the correct premium;

2. Comply with all terms and conditions of this policy;

and

3. Have furnished accurate information and statements.

We have the right to review the information you give us at

any time and to revise your

policy based on our review.

II.DEFINITIONS

A. In this policy, “you” and “your” refer to the insured(s)

shown on the

Declarations Page of this policy.

“Insured(s)” includes: Any mortgagee and loss payee

named in the

Application and Declarations Page,

as well as any other mortgagee or loss payee

determined to exist at the time of loss in the order of

precedence. “We,” “us,” and “our” refer to the insurer.

Some definitions are complex because they are provided

as they appear in the law or regulations, or result from

court cases. The precise definitions are intended to protect

you.

Flood, as used in this flood insurance policy, means:

1. A general and temporary condition of partial or

complete inundation of two or more acres of normally

dry land area or of two or more properties (at least

one of which is your property) from:

a. Overflow of inland or tidal waters;

b. Unusual and rapid accumulation or runoff of

surface waters from any source;

c. Mudflow.

2. Collapse or subsidence of land along the shore of a

lake or similar body of water as a result of erosion or

undermining caused by waves or currents of water

exceeding anticipated cyclical levels that result in a

flood as defined in A.1.a. above.

B. The following are the other key definitions that we use

in this

policy:

1. Act. The National Flood Insurance Act of 1968 and

any amendments to it.

2. Actual CashValue. The cost to replace an insured

item of property at the time of loss, less the value of

its physical depreciation.

3. Application. The statement made and signed by you

or your agent in applying for this

policy. The

application gives information we use to determine

the eligibility of the risk, the kind of

policy to be

issued, and the correct premium payment. The

application is part of this flood insurance policy. For

us to issue you a

policy, the correct premium

payment must accompany the application.

4. BaseFlood. A flood having a one percent chance of

being equaled or exceeded in any given year.

Page1of18

 POL 28 May 1, 2011

5. Basement. Any area of the building, including any

sunken room or sunken portion of a room, having its

floor below ground level (subgrade) on all sides.

6. Building.

A structure with two or more outside rigid walls

and a fully secured roof, that is affixed to a

permanent site;

b. A manufactured home (a “manufactured home,”

also known as a mobile home, is a structure: built

on a permanent chassis, transported to its site in

one or more sections, and affixed to a permanent

foundation); or

c. A travel trailer without wheels, built on a chassis

and affixed to a permanent foundation, that is

regulated under the community’s floodplain

management and building ordinances or laws.

Building does not mean a gas or liquid storage tank

or a recreational vehicle, park trailer, or other similar

vehicle, except as described in

B.6.c., above.

7. Cancellation. The ending of the insurance coverage

provided by this

policy before the expiration date.

8. Condominium. That form of ownership of real

property in which each unit owner has an undivided

interest in common elements.

9. Condominium Association. The entity made up of

the

unitowners responsible for the maintenance and

operation of:

a. Common elements owned in undivided shares by

unit owners; and

b. Other real property in which the unit owners

have use rights;

where membership in the entity is a required condition

unitownership.

10. DeclarationsPage. A computer-generated summary

of information you provided in the

application for

insurance. The

DeclarationsPage also describes the

term of the

policy, limits of coverage, and displays

the premium and our name. The

DeclarationsPage

is a part of this flood insurance

policy.

11. DescribedLocation. The location where the insured

building or personal property are found. The

described location is shown on the Declarations

Page

12. Direct Physical Loss By or From Flood. Loss or

damage to insured property, directly caused by a



flood

. There must be evidence of physical changes to

the property.

13. ElevatedBuilding. A building that has no basement

and that has its lowest elevated floor raised above

ground level by foundation walls, shear walls, posts,

piers, pilings, or columns.

14. Emergency Program. The initial phase of a

community’s participation in the

National Flood

InsuranceProgram

. During this phase, only limited

amounts of insurance are available under the

Act.

15. Expense Constant. A flat charge you must pay on

each new or renewal

policy to defray the expenses of

the Federal Government related to

floodinsurance.

16. Federal Policy Fee. A flat charge you must pay on

each new or renewal

policy to defray certain

administrative expenses incurred in carrying out the

NationalFloodInsuranceProgram. This fee covers

expenses not covered by the

expenseconstant.

17. Improvements.Fixtures, alterations, installations, or

additions comprising a part of the insured

building.

18. Mudflow. A river of liquid and flowing mud on the

surfaces of normally dry land areas, as when earth is

carried by a current of water. Other earth movements,

such as landslide, slope failure, or a saturated soil

mass moving by liquidity down a slope, are not

mudflows.

19. National Flood Insurance Program (NFIP). The

program of flood insurance coverage and floodplain

management administered under the

Act and

applicable Federal regulations in Title 44 of the Code

of Federal Regulations, Subchapter B.

20. Policy. The entire written contract between you and

us. It includes:

a. This printed form;

b. The application and DeclarationsPage;

c. Any endorsement(s) that may be issued; and

d. Any renewal certificate indicating that coverage

has been instituted for a new

policy and new

policy term.

Only onebuilding, which you specifically described in

the

application, may be insured under this policy.

21. Pollutants. Substances that include, but are not

limited to, any solid, liquid, gaseous, or thermal irritant

or contaminant, including smoke, vapor, soot, fumes,

acids, alkalis, chemicals, and waste. “Waste”

includes, but is not limited to, materials to be recycled,

reconditioned, or reclaimed.

22. Post-FIRM Building. A building for which

construction or substantial improvement occurred

Page2of18

 POL 29 May 1, 2011

after December 31, 1974, or on or after the effective

date of an initial Flood Insurance Rate Map (FIRM),

whichever is later.

23. ProbationPremium. A flat charge you must pay on

each new or renewal

policy issued covering property

in a community that the NFIP has placed on probation

under the provisions of 44 CFR 59.24.

24. RegularProgram.The final phase of a community’s

participation in the

National Flood Insurance

Program

. In this phase, a Flood Insurance Rate Map

is in effect and full limits of coverage are available

under the

Act.

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.

26. SpecialFloodHazardArea. An area having special

flood, or mudflow, and/or flood-related erosion

hazards, and shown on a Flood Hazard Boundary

Map or Flood Insurance Rate Map as Zone A, AO,

A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH,

AR/AO, AR/A1-A30, V1-V30, VE, or V.

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 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.

29. ValuedPolicy.A policy in which the insured and the

insurer agree on the value of the property insured,

that value being payable in the event of a total loss.

The Standard Flood Insurance Policy is not a

valued

policy

III.PROPERTYCOVERED

A. COVERAGEA-BUILDINGPROPERTY

We insure against directphysicallossbyorfromflood

to:

1. The building described on the DeclarationsPage at

the

described location. If the building is a

condominiumbuilding and the named insured is the

condominiumassociation, Coverage A includes all

units within the

building and the improvements

within the

units, provided the units are owned in

common by all

unit owners.

2. We also insure building property for a period of 45

days at another location, as set forth in

III.C.2.b.,

Property Removed to Safety.

3. 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. At your option, additions

and extensions connected by any of these methods

may be separately insured. Additions and extensions

attached to and in contact with the

building by means

of a common interior wall that is not a solid load-

bearing wall are always considered part of the

building and cannot be separately insured.

4. The following fixtures, machinery, and equipment,

which are covered under Coverage

A only:

a. Awnings and canopies;

b. Blinds;

c. Carpet permanently installed over unfinished

flooring;

d. Central air conditioners;

e. Elevator equipment;

f. Fire extinguishing apparatus;

g. Fire sprinkler systems;

h. Walk-in freezers;

i. Furnaces;

j. Light fixtures;

k. Outdoor antennas and aerials attached to

buildings;

l. Permanently installed cupboards, bookcases,

paneling, and wallpaper;

m. Pumps and machinery for operating pumps;

n. Ventilating equipment;

o. Wall mirrors, permanently installed; and

p. In the units within the building, installed:

(1) Built-in dishwashers;

(2) Built-in microwave ovens;

(3) Garbage disposal units;

(4) Hot water heaters, including solar water

heaters;

(5) Kitchen cabinets;

(6) Plumbing fixtures;

(7) Radiators;

(8) Ranges;

(9) Refrigerators; and

(10) Stoves.

Page3of18

 POL 30 May 1, 2011

Page4of18

5. Materials and supplies to be used for construction,

alteration, or repair of the insured

building while the

materials and supplies are stored in a fully enclosed

building at the describedlocation or on an adjacent

property.

6. A building under construction, alteration, or repair at

the

describedlocation.

a. If the structure is not yet walled or roofed as

described in the definition for

building (see II.B.

6.a.

), then coverage applies:

(1) Only while such work is in progress; or

(2) If such work is halted, only for a period of up

to 90 continuous days thereafter.

b. However, coverage does not apply until the

building is walled and roofed if the lowest floor,

including the basement floor, of a non-

elevated

building

or the lowest elevated floor of an

elevatedbuilding is:

(1) Below the base flood elevation in Zones

AH, AE, A1-A30, AR, AR/AE, AR/AH,

AR/A1-A30, AR/A, AR/AO; or

(2) Below the base flood elevation adjusted to

include the effect of wave action in Zones VE

or V1-V30.

The lowest floor levels are based on the bottom of

the lowest horizontal structural member of the floor

in Zones VE or V1-V30 and the top of the floor in

Zones AH, AE, A1-A30, AR, AR/AE, AR/AH,

AR/A1-A30, AR/A, AR/AO.

7. A manufactured home or a travel trailer as described

in the Definitions section (see

II.B.6.b.and II.B.6.c.).

If the manufactured home or travel trailer is in a

special flood hazard area, it must be anchored in

the following manner at the time of the loss:

a. By over-the-top or frame ties to ground anchors;

b. In accordance with the manufacturer’s speci-

fications; or

c. In compliance with the community’s floodplain

management requirements

unless it has been continuously insured by the NFIP

at the same

describedlocation since September 30,

1982.

8. Items of property in a building enclosure below the

lowest elevated floor of an

elevated post-FIRM

building

located in Zones A1-A30, AE, AH, AR,

AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or

in a

basement, regardless of the zone. Coverage is

limited to the following:

a. Any of the following items, if installed in their

functioning locations and, if necessary for

operation, connected to a power source:

(1) Central air conditioners;

(2) Cisterns and the water in them;

(3) Drywall for walls and ceilings in a basement

and the cost of labor to nail it, unfinished and

unfloated and not taped, to the framing;

(4) Electrical junction and circuit breaker boxes;

(5) Electrical outlets and switches;

(6) Elevators, dumbwaiters, and related equip-

ment, except for related equipment installed

below the

base flood elevation after

September 30, 1987;

(7) Fuel tanks and the fuel in them;

(8) Furnaces and hot water heaters;

(9) Heat pumps;

(10) Nonflammable insulation in a basement;

(11) Pumps and tanks used in solar energy

systems;

(12) Stairways and staircases attached to the

building, not separated from it by elevated

walkways;

(13) Sump pumps;

(14) Water softeners and the chemicals in them,

water filters, and faucets installed as an

integral part of the plumbing system;

(15) Well water tanks and pumps;

(16) Required utility connections for any item in

this list; and

(17) Footings, foundations, posts, pilings, piers,

or other foundation walls and anchorage

systems required to support a

building.

b. Clean-up.

B. COVERAGEB-PERSONALPROPERTY

If you have purchased personal property coverage,

we insure, subject to

B.2., 3., and 4. below, against

direct physicallossbyor fromflood to personal

property inside a fully enclosed insured

building:

a. Owned solely by you, or in the case of a

condominium, owned solely by the con-

dominiumassociation

and used exclusively in

the conduct of the business affairs of the

condominiumassociation; or

b. Owned in common by the unit owners of the

condominiumassociation.

We also insure such personal property for 45 days

while stored at a temporary location, as set forth in

III.C.2.b. Property Removed to Safety.

 POL 31 May 1, 2011

Page5of18

2. When this policy covers personal property, coverage

will be either for household personal property or other

than household personal property, while within the

insured

building, but not both.

a. If this policy covers household personal property,

it will insure household personal property usual to

a living quarters, that:

(1) Belongs to you, or a member of your

household, or at your option:

(a) Your domestic worker;

(b) Your guest; or

(2) You may be legally liable for.

b. If this policy covers other than household

personal property, it will insure your:

(1) Furniture and fixtures;

(2) Machinery and equipment;

(3) Stock; and

(4) Other personal property owned by you and

used in your business, subject to

IV.

PropertyNotCovered

3. Coverage for personal property includes the following

property, subject to

B.1.a. and B.1.b. above, which is

covered under Coverage

Bonly:

a. Air conditioning units installed in the building;

b. Carpet, not permanently installed, over

unfinished flooring;

c. Carpets over finished flooring;

d. Clothes washers and dryers;

e. “Cook-out” grills;

f. Food freezers, other than walk-in, and food in

any freezer;

g. Outdoor equipment and furniture stored inside

the insured

building;

h. Ovens and the like; and

i. Portable microwave ovens and portable

dishwashers.

4. Coverage for items of property in a building

enclosure below the lowest elevated floor of an

elevated post-FIRM building located in Zones A1-

A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30,

V1-V30, or VE, or in a

basement, regardless of the

zone, is limited to the following items, if installed in

their functioning locations and, if necessary for

operation, connected to a power source:

a. Air conditioning units, portable or window type;

b. Clothes washers and dryers; and

c. Food freezers, other than walk-in, and food in

any freezer.

5. SpecialLimits. We will pay no more than $2,500 for

any loss to one or more of the following kinds of

personal property:

a. Artwork, photographs, collectibles, or

memorabilia, including but not limited to,

porcelain or other figures, and sports cards;

b. Rare books or autographed items;

c. Jewelry, watches, precious and semiprecious

stones, or articles of gold, silver, or platinum;

d. Furs or any article containing fur which

represents its principal value.

6. We will pay only for the functional value of antiques.

7. If you are a tenant, you may apply up to 10 percent of

the Coverage

B limit to improvements:

a. Made a part of the building you occupy; and

b. You acquired or made at your expense, even

though you cannot legally remove them.

This coverage does not increase the amount of

insurance that applies to insured personal property.

8. If you are a condominiumunit owner, you may apply

up to 10 percent of the Coverage

B limit to cover loss

to interior:

a. Walls;

b. Floors; and

c. Ceilings;

that are not covered under a policy issued to the

condominium association insuring the condo-

miniumbuilding

This coverage does not increase the amount of

insurance that applies to insured personal property.

9. If you are a tenant, personal property must be inside

the fully enclosed

building.

C. COVERAGEC-OTHERCOVERAGES

DebrisRemoval

We will pay the expense to remove non-owned

debris on or in insured property and owned

debris anywhere.

b. If you or a member of your household perform

the removal work, the value of your work will be

based on the Federal minimum wage.

c. This coverage does not increase the Coverage A

or Coverage B limit of liability.

 POL 32 May 1, 2011

2. LossAvoidanceMeasures

Sandbags,Supplies,andLabor

(1) We will pay up to $1,000 for the costs you

incur to protect the insured

building from a

flood

or imminent danger of flood, for the

following:

(a) Your reasonable expenses to buy:

(i) Sandbags, including sand to fill

them;

(ii) Fill for temporary levees;

(iii) Pumps; and

(iv) Plastic sheeting and lumber used in

connection with these items; and

(b) The value of work, at the Federal

minimum wage, that you perform.

(2) This coverage for Sandbags, Supplies, and

Labor only applies if damage to insured

property by or from

flood is imminent and

the threat of

flood damage is apparent

enough to lead a person of common

prudence to anticipate

flood damage. One

of the following must also occur:

(a) A general and temporary condition of

flooding in the area near the

described

location

must occur, even if the flood

does not reach the insured building; or

(b) A legally authorized official must issue

an evacuation order or other civil order

for the community in which the insured

building is located calling for measures

to preserve life and property from the

peril of

flood.

This coverage does not increase the Coverage A

or Coverage B limit of liability.

b. PropertyRemovedtoSafety

(1) We will pay up to $1,000 for the reasonable

expenses you incur to move insured property

to a place other than the

describedlocation

that contains the property in order to protect

it from

flood or the imminent danger of

flood.

Reasonable expenses include the value of

work, at the Federal minimum wage, that you

perform.

(2) If you move insured property to a location

other than the

described location that

contains the property, in order to protect it

from

flood or the imminent danger offlood,

we will cover such property while at that

location for a period of 45 consecutive days

from the date you begin to move it there. The

personal property that is moved must be

placed in a fully enclosed

building or

otherwise reasonably protected from the

elements.

Any property removed, including a moveable

home described in

II.B.6.b. and c., must be

placed above ground level or outside of the

specialfloodhazardarea.

This coverage does not increase the Coverage

A

or Coverage

B limit of liability.

3. PollutionDamage

We will pay for damage caused by pollutants to

covered property if the discharge, seepage, migration,

release, or escape of the

pollutants is caused by or

results from flood. The most we will pay under this

coverage is $10,000. This coverage does not

increase the Coverage

A or Coverage B limits of

liability. Any payment under this provision when

combined with all other payments for the same loss

cannot exceed the

replacementcostor actualcash

value

, as appropriate, of the covered property. This

coverage does not include the testing for or the

monitoring of

pollutants unless required by law or

ordinance.

D. COVERAGED-INCREASEDCOSTOFCOMPLIANCE

1. General

This policy pays you to comply with a State or local

floodplain management law or ordinance affecting

repair or reconstruction of a structure suffering

flood

damage. Compliance activities eligible for payment

are: elevation, floodproofing, relocation, or demolition

(or any combination of these activities) of your

structure. Eligible floodproofing activities are limited

to:

a. Nonresidential structures.

b. Residential structures with basements that

satisfy FEMA’s standards published in the Code

of Federal Regulations [44 CFR 60.6 (b) or (c)].

2. LimitofLiability

We will pay you up to $30,000 under this Coverage D

- Increased Cost of Compliance, which only applies to

policies with building coverage (Coverage A).

Page6of18

 POL 33 May 1, 2011

Our payment of claims under Coverage D is in

addition to the amount of coverage which you

selected on the

application and which appears on

the

Declarations Page. But the maximum you can

collect under this

policy for both Coverage A -

Building Property and Coverage

D - Increased Cost of

Compliance cannot exceed the maximum permitted

under the

Act. We do not charge a separate

deductible for a claim under Coverage

3. Eligibility

A structure covered under Coverage A - Building

Property sustaining a loss caused by a

flood as

defined by this

policy must:

(1) Be a “repetitive loss structure.” A repetitive

loss structure is one that meets the following

conditions:

(a) The structure is covered by a contract of

flood insurance issued under the

NFIP.

(b) The structure has suffered flood

damage on two occasions during a 10-

year period which ends on the date of

the second loss.

average, equaled or exceeded 25

percent of the market value of the

structure at the time of each

flood loss.

(d) In addition to the current claim, the NFIP

must have paid the previous qualifying

claim, and the State or community must

have a cumulative, substantial damage

provision or repetitive loss provision in

its floodplain management law or

ordinance being enforced against the

structure; or

(2) Be a structure that has hadflood damage in

which the cost to repair equals or exceeds

50 percent of the market value of the

structure at the time of the

flood. The State

or community must have a substantial

damage provision in its floodplain

management law or ordinance being

enforced against the structure.

This Coverage D pays you to comply with State

or local floodplain management laws or

ordinances that meet the minimum standards of

the NationalFloodInsuranceProgramfound in

the Code of Federal Regulations at 44 CFR 60.3.

We pay for compliance activities that exceed

those standards under these conditions:

(1) 3.a.(1) above.

(2) Elevation or floodproofing in any risk zone to

preliminary or advisory

base flood

elevations provided by FEMA which the

State or local government has adopted and

is enforcing for

flood-damaged structures in

such areas. (This includes compliance

activities in B, C, X, or D zones which are

being changed to zones with

base flood

elevations. This also includes compliance

activities in zones where

base flood

elevations are being increased, and a

flood-

damaged structure must comply with the

higher advisory

base flood elevation.)

Increased Cost of Compliance coverage

does not apply to situations in B, C, X, or D

zones where the community has derived its

own elevations and is enforcing elevation or

floodproofing requirements for

flood-

damaged structures to elevations derived

solely by the community.

(3) Elevation or floodproofing above the

base

flood

elevation to meet State or local

“freeboard” requirements, i.e., that a

structure must be elevated above the

base

flood

elevation.

c. Under the minimum NFIP criteria at 44 CFR 60.3

(b)(4), States and communities must require the

elevation or floodproofing of structures in

unnumbered A zones to the

baseflood elevation

where elevation data is obtained from a Federal,

State, or other source. Such compliance activities

are also eligible for Coverage

d. This coverage will also pay for the incremental

cost, after demolition or relocation, of elevating or

floodproofing a structure during its rebuilding at

the same or another site to meet State or local

floodplain management laws or ordinances,

subject to Exclusion

D.5.g. below.

e. This coverage will also pay to bring a flood-

damaged structure into compliance with State or

local floodplain management laws or ordinances

even if the structure had received a variance

before the present loss from the applicable

floodplain management requirements.

4. Conditions

When a structure covered under Coverage A -

Building Property sustains a loss caused by a

flood, our payment for the loss under this

Coverage

D will be for the increased cost to

elevate, floodproof, relocate, or demolish (or any

combination of these activities) caused by the

enforcement of current State or local floodplain

management ordinances or laws. Our payment

for eligible demolition activities will be for the cost

to demolish and clear the site of the

building

debris or a portion thereof caused by the

Page7of18

 POL 34 May 1, 2011

(2) Unless the building is elevated, floodproofed,

demolished, or relocated as soon as

reasonably possible after the loss, not to

exceed 2 years.

f. Any code upgrade requirements, e. g., plumbing or

electrical wiring, not specifically related to the State

or local floodplain management law or ordinance.

g. Any compliance activities needed to bring

additions or

improvements made after the loss

occurred into compliance with State or local

floodplain management laws or ordinances.

h. Loss due to any ordinance or law that you were

required to comply with before the current loss.

i. Any rebuilding activity to standards that do not

meet the

NFIP’s minimum requirements. This

includes any situation where the insured has

received from the State or community a variance

in connection with the current flood loss to rebuild

the property to an elevation below the

baseflood

elevation.

j. Increased Cost of Compliance for a garage or

carport.

k. Any structure insured under an NFIPGroup Flood

Insurance Policy.

l. Assessments made by a condominium

association on individual condominium unit

owners to pay increased costs of repairing

commonly owned

buildings after a flood in

compliance with State or local floodplain

management ordinances or laws.

6. OtherProvisions

All other conditions and provisions of this policy

apply.

enforcement of current State or local floodplain

management ordinances or laws. Eligible activities

for the cost of clearing the site will include those

necessary to discontinue utility service to the site

and ensure proper abandonment of on-site

utilities.

b. When the building is repaired or rebuilt, it must be

intended for the same occupancy as the present

building unless otherwise required by current

floodplain management ordinances or laws.

5. Exclusions

Under this Coverage D - Increased Cost of Compliance

we will not pay for:

a. The cost to comply with any floodplain

management law or ordinance in communities

participating in the

EmergencyProgram.

b. The cost associated with enforcement of any

ordinance or law that requires any insured or

others to test for, monitor, clean up, remove,

contain, treat, detoxify or neutralize, or in any way

respond to, or assess the effects of

pollutants.

c. The loss in value to any insured building or other

structure due to the requirements of any ordinance

or law.

d. The loss in residual value of the undamaged

portion of a

building demolished as a con-

sequence of enforcement of any State or local

floodplain management law or ordinance.

e. Any Increased Cost of Compliance under this

Coverage

(1) Until the building is elevated, floodproofed,

demolished, or relocated on the same or to

another premises; and

IV.PROPERTYNOTCOVERED

We do not cover any of the following property:

1. Personal property not inside the fully enclosed

building;

2. A building, and personal property in it, located

entirely in, on, or over water or seaward of mean high

tide, if it was constructed or substantially improved

after September 30, 1982;

3. Open structures, including a building used as a

boathouse or any structure or

building into which

boats are floated, and personal property located in,

on, or over water;

4. Recreational vehicles other than travel trailers

described in

II.B.6.c., whether affixed to a permanent

foundation or on wheels;

5. Self-propelled vehicles or machines, including their

parts and equipment. However, we do cover self-

propelled vehicles or machines not licensed for use

on public roads that are:

a. Used mainly to service the describedlocation,

Page8of18

 POL 35 May 1, 2011

b. Designed and used to assist handicapped

persons,

while the vehicles or machines are inside a building

at the

describedlocation;

6. Land, land values, lawns, trees, shrubs, plants,

growing crops, or animals;

7. Accounts, bills, coins, currency, deeds, evidences of

debt, medals, money, scrip, stored value cards,

postage stamps, securities, bullion, manuscripts, or

other valuable papers;

8. Underground structures and equipment, including

wells, septic tanks, and septic systems;

9. Those portions of walks, walkways, decks, driveways,

patios, and other surfaces, all whether protected by a

roof or not, located outside the perimeter, exterior

walls of the insured

building;

10. Containers, including related equipment, such as, but

not limited to, tanks containing gases or liquids;

11. Buildings or units and all their contents if more than

49 percent of the

actualcashvalue of the building

or unit is below ground, unless the lowest level is at

or above the

base flood elevation and is below

ground by reason of earth having been used as

insulation material in conjunction with energy efficient

building techniques;

12. Fences, retaining walls, seawalls, bulkheads,

wharves, piers, bridges, and docks;

13. Aircraft or watercraft, or their furnishings and

equipment;

14. Hot tubs and spas that are not bathroom fixtures, and

swimming pools, and their equipment such as, but not

limited to, heaters, filters, pumps, and pipes, wherever

located;

15. Property not eligible for flood insurance pursuant to

the provisions of the Coastal Barrier Resources Act

and the Coastal Barrier Improvement Act of 1990 and

amendments to these acts;

16. Personal property owned by or in the care, custody,

or control of a unit owner, except for property of the

type and under the circumstances set forth under

Coverage

B - Personal Property;

17. A residential condominium building located in a

RegularProgram community.

V.EXCLUSIONS

A. We only provide coverage for directphysical loss

byor fromflood, which means that we do not pay

you for:

1. Loss of revenue or profits;

2. Loss of access to the insured property or described

location

;

3. Loss of use of the insured property or described

location

;

4. Loss from interruption of business or production;

5. Any additional living expenses incurred while the

insured

building is being repaired or is unable to be

occupied for any reason;

6. The cost of complying with any ordinance or law

requiring or regulating the construction, demolition,

remodeling, renovation, or repair of property,

including removal of any resulting debris. This

exclusion does not apply to any eligible activities that

we describe in Coverage

D - Increased Cost of

Compliance; or

7. Any other economic loss.

B. We do not insure a loss directly or indirectly caused

by a

flood that is already in progress at the date and

time:

1. The policy term begins; or

2. Coverage is added at your request.

C. We do not insure for loss to property caused directly

by earth movement even if the earth movement is

caused by

flood. Some examples of earth movement

that we do not cover are:

1. Earthquake;

2. Landslide;

3. Land subsidence;

4. Sinkholes;

5. Destabilization or movement of land that results from

accumulation of water in subsurface land areas; or

Page9of18

 POL 36 May 1, 2011

b. Discharges or overflows from a sump, sump

pump, or related equipment; or

c. Seeps or leaks on or through insured property;

unless there is afloodin the area and theflood is the

proximate cause of the sewer or drain backup, sump

pump discharge or overflow, or the seepage of water;

6. The pressure or weight of water unless there is a

flood in the area and the flood is the proximate

cause of the damage from the pressure or weight of

water;

7. Power, heating, or cooling failure unless the failure

results from

directphysicallossbyorfromflood to

power, heating, or cooling equipment situated on the

describedlocation;

8. Theft, fire, explosion, wind, or windstorm;

9. Anything you or your agent do or conspire to do to

cause loss by

flood deliberately; or

10. Alteration of the insured property that significantly

increases the risk of flooding.

E. We do not insure for loss to any building or personal

property located on land leased from the Federal

Government, arising from or incident to the flooding of

the land by the Federal Government, where the lease

expressly holds the Federal Government harmless

under flood insurance issued under any Federal

Government program.

6. Gradual erosion.

We do, however, pay for losses from mudflow and land

subsidence as a result of erosion that are specifically

covered under our definition of flood (see

II.A.1.c. and

II.A.2.).

D. We do not insure for direct physical loss caused

directly or indirectly by:

1. The pressure or weight of ice;

2. Freezing or thawing;

3. Rain, snow, sleet, hail, or water spray;

4. Water, moisture, mildew, or mold damage that results

primarily from any condition:

a. Substantially confined to the insured building; or

b. That is within your control including, but not

limited to:

(1) Design, structural, or mechanical defects;

(2) Failure, stoppage, or breakage of water or

sewer lines, drains, pumps, fixtures, or

equipment; or

(3) Failure to inspect and maintain the property

after a

floodrecedes;

5. Water or waterborne material that:

a. Backs up through sewers or drains;

VI.DEDUCTIBLES

A. When a loss is covered under this policy, we will pay

only that part of the loss that exceeds the applicable

deductible amount, subject to the limit of liability that

applies. The deductible amount is shown on the

DeclarationsPage.

However, when a

building under construction,

alteration, or repair does not have at least two rigid

exterior walls and a fully secured roof at the time of

loss, your deductible amount will be two times the

deductible that would otherwise apply to a completed

building.

B. In each loss from flood, separate deductibles apply to

the

building and personal property insured by this

policy.

C. No deductible applies to:

1. III.C.2. Loss Avoidance Measures; or

2. III.D. Increased Cost of Compliance.

VII.GENERALCONDITIONS

A. PairsandSets

In case of loss to an article that is part of a pair or set, we

will have the option of paying you:

1. An amount equal to the cost of replacing the lost,

damaged, or destroyed article, less depreciation; or

2. An amount that represents the fair proportion of the

total value of the pair or set that the lost, damaged, or

destroyed article bears to the pair or set.

Page10of18

 POL 37 May 1, 2011

Page11of18

B. ConcealmentorFraudandPolicyVoidance

1. With respect to all insureds under this policy, this

policy:

a. Is void;

b. Has no legal force or effect;

c. Cannot be renewed; and

d. Cannot be replaced by a new NFIPpolicy;

if, before or after a loss, you or any other insured or

your agent have at any time:

(1) Intentionally concealed or misrepresented

any material fact or circumstance;

(2) Engaged in fraudulent conduct; or

(3) Made false statements;

relating to this policy or any other NFIP

insurance.

2. This policy will be void as of the date the wrongful

acts described in

B.1. above were committed.

3. Fines, civil penalties, and imprisonment under

applicable Federal laws may also apply to the acts of

fraud or concealment described above.

4. This policy is also void for reasons other than fraud,

misrepresentation, or wrongful act. This

policy is void

from its inception and has no legal force under the

following conditions:

a. If the property is located in a community that was

not participating in the

NFIP on the policy’s

inception date and did not join or reenter the

program during the

policy term and before the

loss occurred; or

b. If the property listed on the application is

otherwise not eligible for coverage under the

NFIP.

C. OtherInsurance

If a loss covered by this policy is also covered by

other insurance that includes

flood coverage not

issued under the

Act, we will not pay more than the

amount of insurance that you are entitled to for lost,

damaged, or destroyed property insured under this

policy subject to the following:

a. We will pay only the proportion of the loss that

the amount of insurance that applies under this

policy bears to the total amount of insurance

covering the loss, unless

C.1.b. or c. immediately

below applies.

b. If the other policy has a provision stating that it is

excess insurance, this

policywill be primary.

c. This policy will be primary (but subject to its own

deductible) up to the deductible in the otherflood

policy (except another policy as described in

C.1.b.above). When the other deductible amount

is reached, this policywill participate in the same

proportion that the amount of insurance under

this policy bears to the total amount of both

policies, for the remainder of the loss.

2. If this policy covers a condominium association

and there is a flood insurance

policy in the name of a

unitowner that covers the same loss as this

policy,

then this policy will be primary.

D. Amendments,Waivers,Assignment

This policy cannot be changed nor can any of its

provisions be waived without the express written consent

of the Federal Insurance Administrator. No action that we

take under the terms of this

policy can constitute a waiver

of any of our rights. You may assign this

policy in writing

when you transfer title of your property to someone else,

except under these conditions:

1. When this policy covers only personal property; or

2. When this policy covers a structure during the course

of construction.

E. CancellationofPolicybyYou

You may cancel this policy in accordance with the

applicable rules and regulations of the

NFIP.

2. If you cancel this policy, you may be entitled to a full

or partial refund of premium also under the applicable

rules and regulations of the

NFIP.

F. NonrenewalofthePolicybyUs

Your policy will not be renewed:

1. If the community where your covered property is

located stops participating in the

NFIP; or

2. If your building has been declared ineligible under

Section 1316 of the

Act.

G. ReductionandReformationofCoverage

If the premium we received from you was not enough

to buy the kind and amount of coverage you

requested, we will provide only the amount of

coverage that can be purchased for the premium

payment we received.

 POL 38 May 1, 2011

submit the information before your claim can

be paid. Once we determine the amount of

additional premium for the current and prior

policy terms, we will follow the procedure in

G.2.b.(1) above.

(3) If we do not receive the additional premium

by the date it is due, your flood insurance

claim will be settled based on the reduced

amount of coverage. The amount of

coverage can only be increased by

endorsement subject to any appropriate

waiting period.

3. However, if we find that you or your agent

intentionally did not tell us, or falsified, any important

fact or circumstance or did anything fraudulent

relating to this insurance, the provisions of Condition

B. Concealment or Fraud and Policy Voidance apply.

H. PolicyRenewal

This policy will expire at 12:01 a.m. on the last day of

the

policy term.

2. We must receive the payment of the appropriate

renewal premium within 30 days of the expiration

date.

3. If we find, however, that we did not place your

renewal notice into the U.S. Postal Service, or if we

did mail it, we made a mistake, e.g., we used an

incorrect, incomplete, or illegible address, which

delayed its delivery to you before the due date for the

renewal premium, then we will follow these

procedures:

a. If you or your agent notified us, not later than one

year after the date on which the payment of the

renewal premium was due, of nonreceipt of a

renewal notice before the due date for the

renewal premium, and we determine that the

circumstances in the preceding paragraph apply,

we will mail a second bill providing a revised due

date, which will be 30 days after the date on

which the bill is mailed.

b. If we do not receive the premium requested in the

second bill by the revised due date, then we will

not renew the

policy. In that case, the policy will

remain an expired

policy as of the expiration

date shown on the

DeclarationsPage.

4. In connection with the renewal of this policy, we may

ask you during the

policy term to recertify, on a

Recertification Questionnaire that we will provide to

you, the rating information used to rate your most

recent

application for or renewal of insurance.

I. ConditionsSuspendingorRestrictingInsurance

We are not liable for loss that occurs while there is a hazard

that is increased by any means within your control or

knowledge.

2. The policy can be reformed to increase the amount

of coverage resulting from the reduction described in

G.1. above to the amount you requested as follows:

a. Discovery of insufficient premium or incomplete

rating information before a loss.

(1) If we discover before you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current

policy

term (or that portion of the current policy

term following any endorsement changing

the amount of coverage). If you or the

mortgagee or trustee pay the additional

premium within 30 days from the date of our

bill, we will reform the

policy to increase the

amount of coverage to the originally

requested amount effective to the beginning

of the current

policy term (or subsequent

date of any endorsement changing the

amount of coverage).

(2) If we determine before you have a floodloss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

submit the information within 60 days of our

request. Once we determine the amount of

additional premium for the current

policy

term, we will follow the procedure in

G.2.a.(1)above.

(3) If we do not receive the additional premium

(or additional information) by the date it is

due, the amount of coverage can only be

increased by endorsement subject to any

appropriate waiting period.

b. Discovery of insufficient premium or incomplete

rating information after a loss.

(1) If we discover after you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current and the

prior

policy terms. If you or the mortgagee

or trustee pay the additional premium within

30 days from the date of our bill, we will

reform the

policy to increase the amount of

coverage to the originally requested amount

effective to the beginning of the prior

policy

term.

(2) If we discover after you have a flood loss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

Page12of18

 POL 39 May 1, 2011

Page13of18

J. RequirementsinCaseofLoss

In case of a flood loss to insured property, you must:

1. Give prompt written notice to us;

2. As soon as reasonably possible, separate the

damaged and undamaged property, putting it in the

best possible order so that we may examine it;

3. Prepare an inventory of damaged property showing

the quantity, description,

actual cash value, and

amount of loss. Attach all bills, receipts, and related

documents;

4. Within 60 days after the loss, send us a proof of loss,

which is your statement of the amount you are

claiming under the

policy signed and sworn to by

you, and which furnishes us with the following

information:

a. The date and time of loss;

b. A brief explanation of how the loss happened;

c. Your interest (for example, “owner”) and the

interest, if any, of others in the damaged

property;

d. Details of any other insurance that may cover the

loss;

e. Changes in title or occupancy of the insured

property during the term of the

policy;

f. Specifications of damaged buildings and

detailed repair estimates;

g. Names of mortgagees or anyone else having a

lien, charge, or claim against the insured

property;

h. Details about who occupied any insured building

at the time of loss and for what purpose; and

i. The inventory of damaged property described in

J.3. above.

5. In completing the proof of loss, you must use your

own judgment concerning the amount of loss and

justify that amount.

6. You must cooperate with the adjuster or

representative in the investigation of the claim.

7. The insurance adjuster whom we hire to investigate

your claim may furnish you with a proof of loss form,

and she or he may help you complete it. However,

this is a matter of courtesy only, and you must still

send us a proof of loss within 60 days after the loss

even if the adjuster does not furnish the form or help

you complete it.

8. We have not authorized the adjuster to approve or

disapprove claims or to tell you whether we will

approve your claim.

9. At our option, we may accept the adjuster’s report of

the loss instead of your proof of loss. The adjuster’s

report will include information about your loss and the

damages you sustained. You must sign the adjuster’s

report. At our option, we may require you to swear to

the report.

K. OurOptionsAfteraLoss

Options we may, in our sole discretion, exercise after loss

include the following:

1. At such reasonable times and places that we may

designate, you must:

a. Show us or our representative the damaged

property;

b. Submit to examination under oath, while not in

the presence of another insured, and sign the

same; and

c. Permit us to examine and make extracts and

copies of:

(1) Any policies of property insurance insuring

you against loss and the deed establishing

your ownership of the insured real property;

(2) Condominium association documents

including the Declarations of the

condominium, its Articles of Association or

Incorporation, Bylaws, and rules and

regulations; and

(3) All books of accounts, bills, invoices and

other vouchers, or certified copies pertaining

to the damaged property if the originals are

lost.

2. We may request, in writing, that you furnish us with a

complete inventory of the lost, damaged, or destroyed

property, including:

a. Quantities and costs;

b. Actualcashvalues;

c. Amounts of loss claimed;

d. Any written plans and specifications for repair of

the damaged property that you can reasonably

make available to us; and

e. Evidence that prior flood damage has been

repaired.

3. If we give you written notice within 30 days after we

receive your signed, sworn proof of loss, we may:

 POL 40 May 1, 2011

located. The appraisers will separately state the actual

cash value

and the amount of loss to each item. If the

appraisers submit a written report of an agreement to us,

the amount agreed upon will be the amount of loss. If they

fail to agree, they will submit their differences to the

umpire. A decision agreed to by any two will set the

amount of

actualcashvalue and loss.

Each party will:

1. Pay its own appraiser; and

2. Bear the other expenses of the appraisal and umpire

equally.

Q. MortgageClause

The word “mortgagee” includes trustee.

Any loss payable under Coverage

A - Building Property

will be paid to any mortgagee of whom we have actual

notice as well as any other mortgagee or loss payee

determined to exist at the time of loss, and you, as

interests appear. If more than one mortgagee is named,

the order of payment will be the same as the order of

precedence of the mortgages.

If we deny your claim, that denial will not apply to a valid

claim of the mortgagee, if the mortgagee:

1. Notifies us of any change in the ownership or

occupancy, or substantial change in risk of which the

mortgagee is aware;

2. Pays any premium due under this policy on demand

if you have neglected to pay the premium; and

3. Submits a signed, sworn proof of loss within 60 days

after receiving notice from us of your failure to do so.

All of the terms of this policy apply to the mortgagee.

The mortgagee has the right to receive loss payment even

if the mortgagee has started foreclosure or similar action

on the

building.

If we decide to cancel or not renew this

policy, it will

continue in effect for the benefit of the mortgagee only for

30 days after we notify the mortgagee of the cancellation

or nonrenewal.

If we pay the mortgagee for any loss and deny payment to

you, we are subrogated to all the rights of the mortgagee

granted under the mortgage on the property. Subrogation

will not impair the right of the mortgagee to recover the full

amount of the mortgagee’s claim.

R. SuitAgainstUs

You may not sue us to recover money under this policy

unless you have complied with all the requirements of the

policy. If you do sue, you must start the suit within one

year of the date of the written denial of all or part of the

a. Repair, rebuild, or replace any part of the lost,

damaged, or destroyed property with material or

property of like kind and quality or its functional

equivalent; and

b. Take all or any part of the damaged property at

the value we agree upon or its appraised value.

L. NoBenefittoBailee

No person or organization, other than you, having custody

of covered property will benefit from this insurance.

M. LossPayment

We will adjust all losses with you. We will pay you

unless some other person or entity is named in the

policy or is legally entitled to receive payment. Loss

will be payable 60 days after we receive your proof of

loss (or within 90 days after the insurance adjuster

files an adjuster’s report signed and sworn to by you

in lieu of a proof of loss) and:

a. We reach an agreement with you;

b. There is an entry of a final judgment; or

c. There is a filing of an appraisal award with us, as

provided in

VII.P.

If we reject your proof of loss in whole or in part you

may:

a. Accept such denial of your claim;

b. Exercise your rights under this policy; or

c. File an amended proof of loss, as long as it is

filed within 60 days of the date of the loss.

N. Abandonment

You may not abandon damaged or undamaged insured

property to us.

O. Salvage

We may permit you to keep damaged insured property

after a loss, and we will reduce the amount of the loss

proceeds payable to you under the

policy by the value of

the salvage.

P. Appraisal

If you and we fail to agree on the actualcashvalue of the

damaged property so as to determine the amount of loss,

either may demand an appraisal of the loss. In this event,

you and we will each choose a competent and impartial

appraiser within 20 days after receiving a written request

from the other. The two appraisers will choose an umpire.

If they cannot agree upon an umpire within 15 days, you

or we may request that the choice be made by a judge of

a court of record in the State where the insured property is

Page14of18

 POL 41 May 1, 2011

claim, and you must file the suit in the United States

District Court of the district in which the insured property

was located at the time of loss. This requirement applies

to any claim that you may have under this

policy and to

any dispute that you may have arising out of the handling

of any claim under the

policy.

S. Subrogation

Whenever we make a payment for a loss under this

policy, we are subrogated to your right to recover for that

loss from any other person. That means that your right to

recover for a loss that was partly or totally caused by

someone else is automatically transferred to us, to the

extent that we have paid you for the loss. We may require

you to acknowledge this transfer in writing. After the loss,

you may not give up our right to recover this money or do

anything that would prevent us from recovering it. If you

make any claim against any person who caused your loss

and recover any money, you must pay us back first before

you may keep any of that money.

T. ContinuousLakeFlooding

If your insured building has been flooded by rising

lake waters continuously for 90 days or more and it

appears reasonably certain that a continuation of this

flooding will result in a covered loss to the insured

building equal to or greater than thebuildingpolicy

limits plus the deductible or the maximum payable

under the

policy for any onebuilding loss, we will

pay you the lesser of these two amounts without

waiting for the further damage to occur if you sign a

release agreeing:

a. To make no further claim under this policy;

b. Not to seek renewal of this policy;

c. Not to apply for any flood insurance under the

Actfor property at the describedlocation; and

d. Not to seek a premium refund for current or prior

terms.

If the policy term ends before the insured building

has been flooded continuously for 90 days, the

provisions of this paragraph

T.1. will apply when the

insured

building suffers a covered loss before the

policyterm ends.

2. If your insured building is subject to continuous lake

flooding from a closed basin lake, you may elect to file

a claim under either paragraph

 T.1. above or this

paragraph

T.2.(A “closed basin lake” is a natural lake

from which water leaves primarily through evaporation

and whose surface area now exceeds or has exceeded

one square mile at any time in the recorded past. Most

of the nation’s closed basin lakes are in the western

half of the United States, where annual evaporation

exceeds annual precipitation and where lake levels and

surface areas are subject to considerable fluctuation

due to wide variations in the climate. These lakes may

overtop their basins on rare occasions.) Under this

paragraph

T.2. we will pay your claim as if the building

is a total loss even though it has not been continuously

inundated for 90 days, subject to the following

conditions:

a. Lake flood waters must damage or imminently

threaten to damage your

building.

b. Before approval of your claim, you must:

(1) Agree to a claim payment that reflects your

buying back the salvage on a negotiated

basis; and

(2)

Grant the conservation easement described in

FEMA’s “Policy Guidance for Closed Basin

Lakes,” to be recorded in the office of the local

recorder of deeds. FEMA, in consultation with

the community in which the property is

located, will identify on a map an area or

areas of special consideration (ASC) in which

there is a potential for flood damage from

continuous lake flooding. FEMA will give the

community the agreed-upon map showing the

ASC. This easement will only apply to that

portion of the property in the ASC. It will allow

certain agricultural and recreational uses of

the land. The only structures that it will allow

on any portion of the property within the ASC

are certain simple agricultural and recreational

structures. If any of these allowable structures

are insurable buildings under the NFIP and

are insured under the NFIP, they will not be

eligible for the benefits of this paragraph T.2.

If a U.S. Army Corps of Engineers certified

flood control project or otherwise certified

flood control project later protects the

property, FEMA will, upon request, amend the

ASC to remove areas protected by those

projects. The restrictions of the easement will

then no longer apply to any portion of the

property removed from the ASC; and

(3) Comply with paragraphs T.1.a. throughT.1.d.

above.

c. Within 90 days of approval of your claim, you must

move your

building to a new location outside the

ASC. FEMA will give you an additional 30 days to

move if you show that there is sufficient reason to

extend the time.

d. Before the final payment of your claim, you must

acquire an elevation certificate and a floodplain

development permit from the local floodplain

administrator for the new location of your

building.

e. Before the approval of your claim, the community

having jurisdiction over your

building must:

Page15of18

 POL 42 May 1, 2011

(2) The date by which you must have flood

insurance in effect.

U. DuplicatePoliciesNotAllowed

We will not insure your property under more than one

NFIPpolicy.

If we find that the duplication was not knowingly

created, we will give you written notice. The notice will

advise you that you may choose one of several

options under the following procedures:

a. If you choose to keep in effect the policy with the

earlier effective date, you may also choose to

add the coverage limits of the later

policy to the

limits of the earlier

policy. The change will

become effective as of the effective date of the

later

policy.

If you choose to keep in effect the policywith the

later effective date, you may also choose to add

the coverage limits of the earlier

policy to the

limits of the later

policy. The change will be

effective as of the effective date of the later

policy.

In either case, you must pay the pro rata premium for

the increased coverage limits within 30 days of the

written notice. In no event will the resulting coverage

limits exceed the permissible limits of coverage under

the

Actor your insurable interest, whichever is less.

We will make a refund to you, according to applicable

NFIP rules, of the premium for the policy not being

kept in effect.

2. The insured’s option under this ConditionU. Duplicate

Policies Not Allowed to elect which

NFIP policy to

keep in effect does not apply when duplicates have

been knowingly created. Losses occurring under such

circumstances will be adjusted according to the terms

and conditions of the earlier

policy. The policy with

the later effective date must be canceled.

V. LossSettlement

We 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.

(1) Adopt a permanent land use ordinance, or a

temporary moratorium for a period not to

exceed 6 months to be followed immediately

by a permanent land use ordinance, that is

consistent with the provisions specified for

the easement required in paragraph

T.2.b.

above;

(2) Agree to declare and report any violations of

this ordinance to FEMA so that under Section

1316 of the National Flood Insurance Act of

1968, as amended, flood insurance to the

building can be denied; and

(3) Agree to maintain as deed-restricted, for

purposes compatible with open space or

agricultural or recreational use only, any

affected property the community acquires an

interest in. These deed restrictions must be

consistent with the provisions of paragraph

T.2.b. above, except that, even if a certified

project protects the property, the land use

restrictions continue to apply if the property

was acquired under the Hazard Mitigation

Grant Program or the Flood Mitigation

Assistance Program. If a nonprofit land trust

organization receives the property as a

donation, that organization must maintain the

property as deed-restricted, consistent with

the provisions of paragraph

T.2.b.above.

f. Before the approval of your claim, the affected

State must take all action set forth in FEMA’s

“Policy Guidance for Closed Basin Lakes.”

g. You must have NFIP flood insurance coverage

continuously in effect from a date established by

FEMA until you file a claim under this paragraph

T.2. If a subsequent owner buys NFIP insurance

that goes into effect within 60 days of the date of

transfer of title, any gap in coverage during that

60-day period will not be a violation of this

continuous coverage requirement. For the purpose

of honoring a claim under this paragraph

T.2., we

will not consider to be in effect any increased

coverage that became effective after the date

established by FEMA. The exception to this is any

increased coverage in the amount suggested by

your insurer as an inflation adjustment.

h. This paragraph T.2. will be in effect for a

community when the FEMA Regional Director for

the affected region provides to the community, in

writing, the following:

(1) Confirmation that the community and the

State are in compliance with the conditions in

paragraphs

T.2.e. and T.2.f.above; and

Page16of18

 POL 43 OctOber 1, 2011

VIII.LIBERALIZATIONCLAUSE

 w

 m

ake

 a c

hange

 t

hat

 b

roadens

 y

our

 c

overage

 u

nder



his

 ed

ition

 o



policy, but does not require any

dditional

 p

remium,

 t

hen

 t

hat

 c

hange

 w

ill

 a

utomatically



pply

 t

 y

our

 i

nsurance

 a

 o

 t

 d

ate

 w

 i

mplement

 t

he

change,

 p

rovided

 t

hat

 t

his

 i

mplementation

 d

ate

 f

alls

 w

ithin

 d

ays

 be

fore,

 o

 d

uring,

 t



policy term stated on the

DeclarationsPage.

IX.WHATLAWGOVERNS

This



policy and all disputes arising from the handling of

 c

laim

 u

nder

 t



policy are governed exclusively by

 f

lood

 i

nsurance

 r

egulations

 i

ssued

 b

 F

EMA,

 t

he

National Flood Insurance Act of 1968, as amended (42

U.S.C.

4

001,

e

s

eq.),

a

F

ederal

c

ommon

l

aw.

INWITNESSWHEREOF,wehavesignedthispolicybelowandherebyenterintothisInsuranceAgreement.

Edward

L

C

onnor

DeputyAdministrator,Insurance

Federal

I

nsurance

a

M

itigation

A

dministration

Page

1

of1

 POL 44 May 1, 2011

Page18of18

CLAIMGUIDELINESINCASEOFAFLOOD

For the protection of you and your family, the following claim guidelines are provided by the National Flood

Insurance Program (NFIP). If you are ever in doubt as to what action is needed, consult your insurance

representative or call the NFIP toll-free at 1-800-638-6620 or on the TDD line at 1-800-447-9487.

Know your insurance representative’s name and telephone number. List them here for fast reference:

Insurance Representative

Representative’s Phone Number

• Notify us or your insurance representative, in writing, as soon as possible after the flood.

• If you report to your insurance representative, remind him or her to assign the claim to an NFIP-

approved claims adjuster. The NFIP pays for the services of the independent claims adjuster assigned

to your claim.

• Determine the independent claims adjuster assigned to your claim and contact him or her if you have

not been contacted within 24 hours after you reported the claim to your insurance representative.

• As soon as possible, separate damaged property from undamaged property so that damage can be

inspected and evaluated.

• Discuss with the claims adjuster any need you may have for an advance or partial payment for your

loss.

• To help the claims adjuster, try to take photographs of the outside of the premises showing the flooding

and the damage and photographs of the inside of the premises showing the height of the water and the

damaged property.

• Place all account books, financial records, receipts, and other loss verification material in a safe place

for examination and evaluation by the claims adjuster.

• Work cooperatively and promptly with the claims adjuster to determine and document all claim items.

Be prepared to advise the claims adjuster of the cause and responsible party(ies), if the flooding

resulted from other than natural cause.

• Make sure that the claims adjuster fully explains, and that you fully understand, all allowances and

procedures for processing claim payments on the basis of your proof of loss. This policy requires you to

send us detailed proof of loss within 60 days after the loss.

• Any and all coverage problems and claim allowance restrictions must be communicated directly from

the NFIP. Claims adjusters are not authorized to approve or deny claims; their job is to report to the

NFIP on the elements of flood cause and damage.

At our option, we may accept an adjuster’s report of the loss instead of your proof of loss. The adjuster’s report

will include information about your loss and the damages to your insured property. You must sign the

adjuster’s report. At our option, we may require you to swear to the report.

(8/09)

 POL 45 May 1, 2011

National Flood Insurance Program

Residential Condominium

Building Association Policy

Standard Flood Insurance Policy

 POL 46 May 1, 2011

RESIDENTIALCONDOMINIUMBUILDINGASSOCIATIONPOLICY

SummaryofSignificantChanges,December31,2000

1. Section III. Property Covered, A. Coverage A -

BuildingProperty,3.

Additions and extensions to buildings that are connected

by a rigid exterior wall, a solid load-bearing interior wall, a

stairway, an elevated walkway, or a roof may be insured

as part of the building. At the option of the insured, these

extensions and additions may be insured separately.

Additions and extensions that are attached to and in

contact with the building by means of a common interior

wall that is not a solid load-bearing wall are always

considered part of the building and cannot be insured

separately.

2. Section III. Property Covered, B. Coverage B -

PersonalProperty,4.SpecialLimits

Coverage for fine arts, collectibles, jewelry, and furs has

been increased to $ 2500.

3. Section III. Property Covered, C. Coverage C -

OtherCoverages,2.a.&b.

Coverage for the two loss avoidance measures,

(sandbagging and relocation of property to protect it from

flood or the imminent danger of flood) has been increased

to $1,000 for each.

4. SectionIV.PropertyNotCovered,5.a.&b.

Coverage has been changed to pay for losses to self-

propelled vehicles used to service the described location

or designed to assist handicapped persons provided that

the vehicles are in a building at the described location.

5. SectionIV.PropertyNotCovered,7.

Coverage is now specifically excluded for scrip and stored

value cards.

6. SectionIV.PropertyNotCovered,14.

Coverage for swimming pools, hot tubs, and spas (that are

not bathroom hot tubs or spas), and their equipment is

now excluded.

7. SectionV.Exclusions,B.1&2.

The explanation of when coverage begins as it relates to a

loss in progress has been simplified.

8. SectionV.Exclusions,C.

Coverage has been clarified to pay for losses from land

subsidence under certain circumstances. Subsidence of

land along a lake shore or similar body of water which

results from the erosion or undermining of the shoreline

caused by waves or currents of water exceeding cyclical

levels that result in a flood is now covered. All other land

subsidence is excluded.

9. SectionV.Exclusions,D.4.b.(3)

Coverage is now excluded for water, moisture, mildew, or

mold damage caused by the policyholder’s failure to

inspect and maintain the insured property after the flood

waters recede.

10.SectionV.Exclusions,D.6.

Coverage is now added for damage from the pressure of

water against the insured structure with the requirement

that there be a flood in the area and the flood is the

proximate cause of damage from the pressure of water

against the insured structure.

11.SectionV.Exclusions,F.

An exclusion for the cost of testing for or monitoring of

pollutants unless it is required by law or ordinance has

been added.

12.Section VIII.  General Conditions, G. Reduction

andReformationofCoverage,2.a.(2)

If it is discovered before a claim occurs that there is

incomplete rating information, the policyholder has 60 days

to submit missing rating information. Otherwise, the

coverage can only be increased by an endorsement that is

subject to the appropriate waiting period (currently 30 days).

13.Section VIII. General Conditions, V. Loss

Settlement,3.SpecialLossSettlement,b.(1)

Coverage for a manufactured or mobile home or travel

trailer eligible for replacement cost coverage is limited to

1.5 times its actual cash value.

 POL 47 May 1, 2011

FEDERAL EMERGENCY MANAGEMENT AGENCY

NATIONAL FLOOD INSURANCE PROGRAM

STANDARD FLOOD INSURANCE POLICY

RESIDENTIALCONDOMINIUMBUILDING

ASSOCIATIONPOLICY

PLEASE READ THE POLICY CAREFULLY. THE FLOOD INSURANCE PROVIDED IS SUBJECT TO LIMITATIONS,

RESTRICTIONS, AND EXCLUSIONS.

THIS POLICY COVERS ONLY A RESIDENTIAL CONDOMINIUM BUILDING IN A REGULAR PROGRAM COMMUNITY. IF

THE COMMUNITY REVERTS TO EMERGENCY PROGRAM STATUS DURING THE POLICY TERM AND REMAINS AN

EMERGENCY PROGRAM COMMUNITY AT TIME OF RENEWAL, THIS POLICY CANNOT BE RENEWED.

I.AGREEMENT

The Federal Emergency Management Agency (FEMA)

provides flood insurance under the terms of the National

Flood Insurance Act of 1968 and its amendments, and

Title 44 of the Code of Federal Regulations (CFR).

We will pay you for

directphysicallossbyorfromflood

to your insured property if you:

1. Have paid the correct premium;

2. Comply with all terms and conditions of this policy;

and

3. Have furnished accurate information and statements.

We have the right to review the information you give us at

any time and to revise your

policy based on our review.

II.DEFINITIONS

A. In this policy, “you” and “your” refer to the insured(s)

shown on the

Declarations Page of this policy.

“Insured(s)” includes: Any mortgagee and loss payee

named in the

Application and Declarations Page,

as well as any other mortgagee or loss payee

determined to exist at the time of loss in the order of

precedence. “We,” “us,” and “our” refer to the insurer.

Some definitions are complex because they are provided

as they appear in the law or regulations, or result from

court cases. The precise definitions are intended to

protect you.

Flood, as used in this flood insurance policy, means:

1. A general and temporary condition of partial or

complete inundation of two or more acres of normally

dry land area or of two or more properties (at least

one of which is your property) from:

a. Overflow of inland or tidal waters;

b. Unusual and rapid accumulation or runoff of

surface waters from any source;

c. Mudflow.

2. Collapse or subsidence of land along the shore of a

lake or similar body of water as a result of erosion or

undermining caused by waves or currents of water

exceeding anticipated cyclical levels that result in a

flood as defined in A.1.a. above.

B. The following are the other key definitions that we use

in this

policy:

1. Act. The National Flood Insurance Act of 1968 and

any amendments to it.

2. Actual CashValue. The cost to replace an insured

item of property at the time of loss, less the value of

its physical depreciation.

3. Application. The statement made and signed by you

or your agent in applying for this

policy. The

application gives information that we use to

determine the eligibility of the risk, the kind of

policy

to be issued, and the correct premium payment. The

application is part of this flood insurance

policy. For

us to issue you a

policy, the correct premium

payment must accompany the

application.

4. BaseFlood. A flood having a one percent chance of

being equaled or exceeded in any given year.

Page1of19

 POL 48 May 1, 2011

5. Basement. Any area of the building, including any

sunken room or sunken portion of a room, having its

floor below ground level (subgrade) on all sides.

6. Building.

A structure with two or more outside rigid walls

and a fully secured roof, that is affixed to a

permanent site;

b. A manufactured home (a “manufactured home,”

also known as a mobile home, is a structure built

on a permanent chassis, transported to its site in

one or more sections, and affixed to a permanent

foundation); or

c. A travel trailer without wheels, built on a chassis

and affixed to a permanent foundation, that is

regulated under the community’s floodplain

management and building ordinances or laws.

Building does not mean a gas or liquid storage tank

or a recreational vehicle, park trailer, or other similar

vehicle, except as described in

B.6.c. above.

7. Cancellation. The ending of the insurance coverage

provided by this

policybefore the expiration date.

8. Condominium. That form of ownership of real

property in which each

unit owner has an undivided

interest in common elements.

9. Condominium Association. The entity made up of

the

unitowners responsible for the maintenance and

operation of:

a. Common elements owned in undivided shares by

unitowners; and

b. Other real property in which the unit owners

have use rights;

where membership in the entity is a required condition

unitownership.

10. DeclarationsPage.A computer-generated summary

of information you provided in the

application for

insurance. The

DeclarationsPage also describes the

term of the

policy, limits of coverage, and displays

the premium and our name. The

DeclarationsPage

is a part of this flood insurance

policy.

11. DescribedLocation. The location where the insured

building or personal property are found. The

described location is shown on the Declarations

Page

12. Direct Physical Loss By or From Flood. Loss or

damage to insured property, directly caused by a

flood. There must be evidence of physical changes to

the property.

13. ElevatedBuilding. A building that has no basement

and that has its lowest elevated floor raised above

ground level by foundation walls, shear walls, posts,

piers, pilings, or columns.

14. Emergency Program. The initial phase of a

community’s participation in the

National Flood

InsuranceProgram

. During this phase, only limited

amounts of insurance are available under the

Act.

15. Expense Constant. A flat charge you must pay on

each new or renewal

policy to defray the expenses of

the Federal Government related to flood insurance.

16. Federal Policy Fee.A flat charge you must pay on

each new or renewal

policy to defray certain

administrative expenses incurred in carrying out the

NationalFloodInsuranceProgram. This fee covers

expenses not covered by the

expenseconstant.

17. Improvements. Fixtures, alterations, installations, or

additions comprising a part of the

residential

condominiumbuilding

, including improvements in

the

units.

18. Mudflow. A river of liquid and flowing mud on the

surfaces of normally dry land areas, as when earth is

carried by a current of water. Other earth movements,

such as landslide, slope failure, or a saturated soil

mass moving by liquidity down a slope, are not

mudflows.

19. National Flood Insurance Program (NFIP). The

program of flood insurance coverage and floodplain

management administered under the

Act and

applicable Federal regulations in Title 44 of the Code

of Federal Regulations, Subchapter B.

20. Policy. The entire written contract between you and

us. It includes:

a. This printed form;

b. The application and DeclarationsPage;

c. Any endorsement(s) that may be issued; and

d. Any renewal certificate indicating that coverage

has been instituted for a new

policy and new

policy term.

Only one building, which you specifically described in

the

application, may be insured under this policy.

21. Pollutants. Substances that include, but are not

limited to, any solid, liquid, gaseous, or thermal irritant

or contaminant, including smoke, vapor, soot, fumes,

acids, alkalis, chemicals, and waste. “Waste”

includes, but is not limited to, materials to be recycled,

reconditioned, or reclaimed.

Page2of19

 POL 49 May 1, 2011

22. Post-FIRM Building. A building for which

construction or substantial improvement occurred

after December 31, 1974, or on or after the effective

date of an initial Flood Insurance Rate Map (FIRM),

whichever is later.

23. ProbationPremium. A flat charge you must pay on

each new or renewal

policy issued covering property

in a community that the NFIP has placed on probation

under the provisions of 44 CFR 59.24.

24. RegularProgram. The final phase of a community’s

participation in the

National Flood Insurance

Program

.In this phase, a Flood Insurance Rate Map

is in effect and full limits of coverage are available

under the

Act.

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.

26. SpecialFloodHazardArea. An area having special

flood, or mudflow, and/or flood-related erosion

hazards, and shown on a Flood Hazard Boundary

Map or Flood Insurance Rate Map as Zone A, AO,

A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH,

AR/AO, AR/A1-A30, V1-V30, VE, or V.

27. Unit. A single-family unit in a residential

condominiumbuilding

28. ValuedPolicy.A policy in which the insured and the

insurer agree on the value of the property insured,

that value being payable in the event of a total loss.

The Standard Flood Insurance Policy is not a

valued

policy

III.PROPERTYCOVERED

A. COVERAGEA-BUILDINGPROPERTY

We insure against directphysicallossbyorfromflood

to:

1. The residential condominium building described

on the

DeclarationsPage at the describedlocation,

including all

units within the building and the

improvementswithin the units.

2. We also insure such building property for a period of

45 days at another location, as set forth in

III.C.2.b.,

Property Removed to Safety.

3. 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. At your option, additions

and extensions connected by any of these methods

may be separately insured. Additions and extensions

attached to and in contact with the

building by means

of a common interior wall that is not a solid load-

bearing wall are always considered part of the

building and cannot be separately insured.

4. The following fixtures, machinery, and equipment,

which are covered under Coverage

A only:

a. Awnings and canopies;

b. Blinds;

c. Carpet permanently installed over unfinished

flooring;

d. Central air conditioners;

e. Elevator equipment;

f. Fire extinguishing apparatus;

g. Fire sprinkler systems;

h. Walk-in freezers;

i. Furnaces;

j. Light fixtures;

k. Outdoor antennas and aerials fastened to

buildings;

l. Permanently installed cupboards, bookcases,

paneling, and wallpaper;

m. Pumps and machinery for operating pumps;

n. Ventilating equipment;

o. Wall mirrors, permanently installed; and

p. In the unitswithin the building, installed:

(1) Built-in dishwashers;

(2) Built-in microwave ovens;

(3) Garbage disposal units;

(4) Hot water heaters, including solar water

heaters;

(5) Kitchen cabinets;

(6) Plumbing fixtures;

(7) Radiators;

(8) Ranges;

(9) Refrigerators; and

(10) Stoves.

5. Materials and supplies to be used for construction,

alteration, or repair of the insured

building while the

materials and supplies are stored in a fully enclosed

building at the described location or on an

adjacent property.

6. A building under construction, alteration, or repair at

the

describedlocation.

a. If the structure is not yet walled or roofed as

described in the definition for

building (see

II.B.6.a.), then coverage applies:

(1) Only while such work is in progress; or

(2) If such work is halted, only for a period of up to

90 continuous days thereafter.

Page3of19

 POL 50 May 1, 2011

b. However, coverage does not apply until the

building is walled and roofed if the lowest floor,

including the

basementfloor, of a non-elevated

building

or the lowest elevated floor of an

elevatedbuilding is:

(1) Below the base flood elevation in Zones

AH, AE, A1-A30, AR, AR/AE, AR/AH,

AR/A1-A30, AR/A, AR/AO; or

(2) Below the base flood elevation adjusted to

include the effect of wave action in Zones VE

or V1-V30.

The lowest floor levels are based on the bottom of

the lowest horizontal structural member of the floor

in Zones VE or V1-V30 and the top of the floor in

Zones AH, AE, A1-A30, AR, AR/AE, AR/AH,

AR/A1-A30, AR/A, AR/AO.

7. A manufactured home or a travel trailer as described

in the Definitions section (see

II.B.6.b. and II.B.6.c.)

If the manufactured home is in a

special flood

hazard area

, it must be anchored in the following

manner at the time of the loss:

a. By over-the-top or frame ties to ground anchors;

b. In accordance with the manufacturer’s speci-

fications; or

c. In compliance with the community’s floodplain

management requirements;

unless it has been continuously insured by the NFIP

at the same

describedlocation since September 30,

1982.

8. Items of property in a building enclosure below the

lowest elevated floor of an

elevated post-FIRM

building

located in Zones A1-A30, AE, AH, AR,

AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or

in a

basement, regardless of the zone. Coverage is

limited to the following:

a. Any of the following items, if installed in their

functioning locations and, if necessary for

operation, connected to a power source:

(1) Central air conditioners;

(2) Cisterns and the water in them;

(3) Drywall for walls and ceilings in a basement

and the cost of labor to nail it, unfinished and

unfloated and not taped, to the framing;

(4) Electrical junction and circuit breaker boxes;

(5) Electrical outlets and switches;

(6) Elevators, dumbwaiters and related equip-

ment, except for related equipment installed

below the

base flood elevation after

September 30, 1987;

(7) Fuel tanks and the fuel in them;

(8) Furnaces and hot water heaters;

(9) Heat pumps;

(10) Nonflammable insulation in a basement;

(11) Pumps and tanks used in solar energy

systems;

(12) Stairways and staircases attached to the

building, not separated from it by elevated

walkways;

(13) Sump pumps;

(14) Water softeners and the chemicals in them,

water filters, and faucets installed as an

integral part of the plumbing system;

(15) Well water tanks and pumps;

(16) Required utility connections for any item in

this list; and

(17) Footings, foundations, posts, pilings, piers,

or other foundation walls and anchorage

systems required to support a

building.

b. Clean-up.

B. COVERAGEB-PERSONALPROPERTY

If you have purchased personal property coverage,

we insure, subject to

 B.2. and B.3. below, against

direct physicallossbyorfromflood to personal

property that is inside the fully enclosed insured

buildingand is:

a. Owned by the unitowners of the condominium

association

in common, meaning property in

which each

unit owner has an undivided

ownership interest; or

b. Owned solely by the condominiumassociation

and used exclusively in the conduct of the

business affairs of the

condominium

association

We also insure such personal property for 45 days

while stored at a temporary location, as set forth in

III.C.2.b., Property Removed to Safety.

2. Coverage for personal property includes the following

property, subject to paragraph

B.1. above, which is

covered under Coverage

B only:

a. Air conditioning units, portable or window type;

b. Carpet, not permanently installed, over

unfinished flooring;

c. Carpets over finished flooring;

d. Clothes washers and dryers;

e. “Cook-out” grills;

f. Food freezers, other than walk-in, and food in

any freezer;

g. Outdoor equipment and furniture stored inside

the insured

building;

h. Ovens and the like; and

i. Portable microwave ovens and portable

dishwashers.

Page4of19

 POL 51 May 1, 2011

3. Coverage for items of property in a building

enclosure lower than the lowest elevated floor of an

elevated post-FIRM building located in Zones A1-

A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30,

V1-V30, or VE, or in a

basement, regardless of the

zone, is limited to the following items, if installed in

their functioning locations and, if necessary for

operation, connected to a power source:

a. Air conditioning units, portable or window type;

b. Clothes washers and dryers; and

c. Food freezers, other than walk-in, and food in

any freezer.

4. SpecialLimits.We will pay no more than $2,500 for

any one loss to one or more of the following kinds of

personal property:

a. Artwork, photographs, collectibles, or

memorabilia, including but not limited to,

porcelain or other figures, and sports cards;

b. Rare books or autographed items;

c. Jewelry, watches, precious and semiprecious

stones, or articles of gold, silver, or platinum; or

d. Furs or any article containing fur which

represents its principal value.

5. We will pay only for the functional value of antiques.

C. COVERAGEC-OTHERCOVERAGES

DebrisRemoval

We will pay the expense to remove non-owned

debris on or in insured property and owned

debris anywhere.

b. If you or a member of your household perform

the removal work, the value of your work will be

based on the Federal minimum wage.

c. This coverage does not increase the Coverage A

or Coverage B limit of liability.

2. LossAvoidanceMeasures

Sandbags,Supplies,andLabor

(1) We will pay up to $1,000 for the costs you

incur to protect the insured

building from a

flood or imminent danger of flood, for the

following:

(a) Your reasonable expenses to buy:

(i) Sandbags, including sand to fill

them;

(ii) Fill for temporary levees;

(iii) Pumps; and

(iv) Plastic sheeting and lumber used in

connection with these items; and

(b) The value of work, at the Federal

minimum wage, that you perform.

(2) This coverage for Sandbags, Supplies, and

Labor applies only if damage to insured

property by or from

flood is imminent and

the threat of

flood damage is apparent

enough to lead a person of common

prudence to anticipate

flood damage. One

of the following must also occur:

(a) A general and temporary condition of

flooding in the area near the

described

location

must occur, even if the flood

does not reach the insured building; or

(b) A legally authorized official must issue

an evacuation order or other civil order

for the community in which the insured

building is located calling for measures

to preserve life and property from the

peril of

flood.

This coverage does not increase the Coverage

A

or Coverage

B

limit of liability.

b. PropertyRemovedtoSafety

(1) We will pay up to $1,000 for the reasonable

expenses you incur to move insured property

to a place other than the

describedlocation

that contains the property in order to protect

it from

flood or the imminent danger of

flood.

Reasonable expenses include the value of

work, at the Federal minimum wage, that you

perform.

(2) If you move insured property to a location

other than the

described location that

contains the property, in order to protect it

from

flood or the imminent danger of flood,

we will cover such property while at that

location for a period of 45 consecutive days

from the date you begin to move it there. The

personal property that is moved must be

placed in a fully enclosed

building or

otherwise reasonably protected from the

elements.

Page5of19

 POL 52 May 1, 2011

Any property removed, including a moveable

home described in Definition

6. Building,

paragraphs

b. and c., must be placed above

ground level or outside of the

specialflood

hazardarea

This coverage does not increase the Coverage

A

or Coverage

limit of liability.

D. COVERAGED-INCREASEDCOSTOF

COMPLIANCE

General

This policy pays you to comply with a State or local

floodplain management law or ordinance affecting

repair or reconstruction of a structure suffering

flood

damage. Compliance activities eligible for payment

are: elevation, floodproofing, relocation, or demolition

(or any combination of these activities) of your

structure. Eligible floodproofing activities are limited

to:

a. Nonresidential structures.

b. Residential structures with basements that

satisfy FEMA’s standards published in the Code

of Federal Regulations [44 CFR 60.6 (b) or

(c)].

2. LimitofLiability

We will pay you up to $30,000 under this Coverage D

- Increased Cost of Compliance, which only applies to

policies with building coverage (Coverage A). Our

payment of claims under Coverage

D is in addition to

the amount of coverage which you selected on the

application and which appears on the Declarations

Page

. But the maximum you can collect under this

policy for both Coverage

A - Building Property and

Coverage

D - Increased Cost of Compliance cannot

exceed the maximum permitted under the

Act. We do

not charge a separate deductible for a claim under

Coverage

3. Eligibility

A structure covered under Coverage A - Building

Property sustaining a loss caused by a

flood as

defined by this

policy must:

(1) Be a “repetitive loss structure.” A repetitive

loss structure is one that meets the following

conditions:

(a) The structure is covered by a contract of

flood insurance issued under the

NFIP.

(b) The structure has suffered flood

damage on two occasions during a 10-

year period which ends on the date of

the second loss.

average, equaled or exceeded 25

percent of the market value of the

structure at the time of each

flood loss.

(d) In addition to the current claim, the NFIP

must have paid the previous qualifying

claim, and the State or community must

have a cumulative, substantial damage

provision or repetitive loss provision in

its floodplain management law or

ordinance being enforced against the

structure; or

(2) Be a structure that has had flood damage in

which the cost to repair equals or exceeds

50 percent of the market value of the

structure at the time of the

flood. The State

or community must have a substantial

damage provision in its floodplain

management law or ordinance being

enforced against the structure.

b. This Coverage D pays you to comply with State

or local floodplain management laws or

ordinances that meet the minimum standards of

the NationalFloodInsuranceProgram found in

the Code of Federal Regulations at 44 CFR 60.3.

We pay for compliance activities that exceed

those standards under these conditions:

(1) 3.a.(1) above.

(2) Elevation or floodproofing in any risk zone to

preliminary or advisory base flood

elevations provided by FEMA which the

State or local government has adopted and

is enforcing for flood-damaged structures in

such areas. (This includes compliance

activities in B, C, X, or D zones which are

being changed to zones with base flood

elevations. This also includes compliance

activities in zones where base flood

elevations are being increased, and a flood-

damaged structure must comply with the

higher advisory base flood elevation.)

Increased Cost of Compliance coverage

does not apply to situations in B, C, X, or D

zones where the community has derived its

own elevations and is enforcing elevation or

floodproofing requirements for flood-

damaged structures to elevations derived

solely by the community.

(3) Elevation or floodproofing above the base

flood elevation to meet State or local

“freeboard” requirements, i.e., that a

structure must be elevated above the

base

flood

elevation.

Page6of19

 POL 53 May 1, 2011

Under the minimum NFIP criteria at 44 CFR 60.3

(b)(4), States and communities must require the

elevation or floodproofing of structures in

unnumbered A zones to the

baseflood elevation

where elevation data is obtained from a Federal,

State, or other source. Such compliance activities

are also eligible for Coverage

d. This coverage will also pay for the incremental

cost, after demolition or relocation, of elevating or

floodproofing a structure during its rebuilding at

the same or another site to meet State or local

floodplain management laws or ordinances,

subject to Exclusion

D.5.g. below.

e. This coverage will also pay to bring a flood-

damaged structure into compliance with State or

local floodplain management laws or ordinances

even if the structure had received a variance

before the present loss from the applicable

floodplain management requirements.

4. Conditions

When a structure covered under Coverage A -

Building Property sustains a loss caused by a

flood, our payment for the loss under this

Coverage

D will be for the increased cost to

elevate, floodproof, relocate, or demolish (or any

combination of these activities) caused by the

enforcement of current State or local floodplain

management ordinances or laws. Our payment for

eligible demolition activities will be for the cost to

demolish and clear the site of the building debris

or a portion thereof caused by the enforcement of

current State or local floodplain management

ordinances or laws. Eligible activities for the cost of

clearing the site will include those necessary to

discontinue utility service to the site and ensure

proper abandonment of on-site utilities.

b. When the building is repaired or rebuilt, it must be

intended for the same occupancy as the present

building unless otherwise required by current

floodplain management ordinances or laws.

5. Exclusions

Under this Coverage D - Increased Cost of Compliance

we will not pay for:

a. The cost to comply with any floodplain

management law or ordinance in communities

participating in the

EmergencyProgram.

b. The cost associated with enforcement of any

ordinance or law that requires any insured or

others to test for, monitor, clean up, remove,

contain, treat, detoxify or neutralize, or in any way

respond to, or assess the effects of

pollutants.

c. The loss in value to any insured

building

or other

structure due to the requirements of any ordinance

or law.

d. The loss in residual value of the undamaged

portion of a

building

demolished as a

consequence of enforcement of any State or local

floodplain management law or ordinance.

e. Any Increased Cost of Compliance under this

Coverage

(1) Until the building is elevated, floodproofed,

demolished, or relocated on the same or to

another premises; and

(2) Unless the building is elevated, floodproofed,

demolished, or relocated as soon as

reasonably possible after the loss, not to

exceed 2 years.

f. Any code upgrade requirements, e.g., plumbing or

electrical wiring, not specifically related to the State

or local floodplain management law or ordinance.

g. Any compliance activities needed to bring

additions or

improvements

made after the loss

occurred into compliance with State or local

floodplain management laws or ordinances.

h. Loss due to any ordinance or law that you were

required to comply with before the current loss.

i. Any rebuilding activity to standards that do not

meet the

NFIP’s

minimum requirements. This

includes any situation where the insured has

received from the State or community a variance

in connection with the current flood loss to rebuild

the property to an elevation below the

baseflood

elevation.

j. Increased Cost of Compliance for a garage or

carport.

k. Any structure insured under an

NFIP

Group

Flood Insurance Policy.

l. Assessments made by a

condominium

association

on individual

condominium unit

owners to pay increased costs of repairing

commonly owned

buildings after a flood in

compliance with State or local floodplain

management ordinances or laws.

6. OtherProvisions

Increased Cost of Compliance coverage will not

be included in the calculation to determine

whether coverage meets the coinsurance

Page7of19

 POL 54 May 1, 2011

requirement for replacement cost coverage under

VIII. General Conditions, V. Loss Settlement.

b. All other conditions and provisions of the policy

apply.

IV.PROPERTYNOTCOVERED

We do not cover any of the following property:

1. Personal property not inside the fully enclosed

building;

2. A building, and personal property in it, located

entirely in, on, or over water or seaward of mean high

tide, if constructed or substantially improved after

September 30, 1982;

3. Open structures, including a building used as a

boathouse or any structure or

building into which

boats are floated, and personal property located in,

on, or over water;

4. Recreational vehicles other than travel trailers

described in

II.B.6.c., whether affixed to a permanent

foundation or on wheels;

5. Self-propelled vehicles or machines, including their

parts and equipment. However, we do cover self-

propelled vehicles or machines not licensed for use

on public roads that are:

a. Used mainly to service the describedlocation,

b. Designed and used to assist handicapped

persons,

while the vehicles or machines are inside a building

at the

describedlocation;

6. Land, land values, lawns, trees, shrubs, plants,

growing crops, or animals;

7. Accounts, bills, coins, currency, deeds, evidences of

debt, medals, money, scrip, stored value cards,

postage stamps, securities, bullion, manuscripts, or

other valuable papers;

8. Underground structures and equipment, including

wells, septic tanks, and septic systems;

9. Those portions of walks, walkways, decks, driveways,

patios, and other surfaces, all whether protected by a

roof or not, located outside the perimeter, exterior

walls of the insured

building;

10. Containers, including related equipment, such as, but

not limited to, tanks containing gases or liquids;

11. Buildings and all their contents if more than 49

percent of the

actual cashvalue of the building is

below ground, unless the lowest level is at or above

the

base flood elevation and is below ground by

reason of earth having been used as insulation

material in conjunction with energy efficient building

techniques;

12. Fences, retaining walls, seawalls, bulkheads,

wharves, piers, bridges, and docks;

13. Aircraft or watercraft, or their furnishings and

equipment;

14. Hot tubs and spas that are not bathroom fixtures, and

swimming pools, and their equipment such as, but not

limited to, heaters, filters, pumps, and pipes, wherever

located;

15. Property not eligible for flood insurance pursuant to

the provisions of the Coastal Barrier Resources Act

and the Coastal Barrier Improvement Act of 1990 and

amendments to these acts;

16. Personal property used in connection with any

incidental commercial occupancy or use of the

building.

V.EXCLUSIONS

A. We only pay for direct physical loss by or from

flood

, which means that we do not pay you for:

1. Loss of revenue or profits;

2. Loss of access to the insured property or described

location

;

3. Loss of use of the insured property or described

location

;

4. Loss from interruption of business or production;

5. Any additional living expenses incurred while the

insured

building is being repaired or is unable to be

occupied for any reason;

Page8of19

 POL 55 May 1, 2011

6. The cost of complying with any ordinance or law

requiring or regulating the construction, demolition,

remodeling, renovation, or repair of property,

including removal of any resulting debris. This

exclusion does not apply to any eligible activities that

we describe in Coverage

D - Increased Cost of

Compliance; or

7. Any other economic loss.

B. We do not insure a loss directly or indirectly caused

by a

flood that is already in progress at the time and

date:

1. The policy term begins; or

2. Coverage is added at your request.

C. We do not insure for loss to property caused directly

by earth movement even if the earth movement is

caused by

flood. Some examples of earth movement

that we do not cover are:

1. Earthquake;

2. Landslide;

3. Land subsidence;

4. Sinkholes;

5. Destabilization or movement of land that results from

accumulation of water in subsurface land areas; or

6. Gradual erosion.

We do, however, pay for losses from mudflow and land

subsidence as a result of erosion that are specifically

covered under our definition of

flood (see II.A.1.c. and

II.A.2.).

D. We do not insure for direct physical loss caused

directly or indirectly by:

1. The pressure or weight of ice;

2. Freezing or thawing;

3. Rain, snow, sleet, hail, or water spray;

4. Water, moisture, mildew, or mold damage that results

primarily from any condition:

a. Substantially confined to the insured building; or

b. That is within your control including, but not

limited to:

(1) Design, structural, or mechanical defects;

(2) Failure, stoppage, or breakage of water or

sewer lines, drains, pumps, fixtures, or

equipment; or

(3) Failure to inspect and maintain the property

after a

flood recedes;

5. Water or waterborne material that:

a. Backs up through sewers or drains;

b. Discharges or overflows from a sump, sump

pump, or related equipment; or

c. Seeps or leaks on or through insured property;

unless there is a flood in the area and the flood is the

proximate cause of the sewer or drain backup, sump

pump discharge or overflow, or the seepage of water;

6. The pressure or weight of water unless there is a

flood in the area and the flood is the proximate

cause of the damage from the pressure or weight of

water;

7. Power, heating, or cooling failure unless the failure

results from

directphysicallossbyorfromflood to

power, heating, or cooling equipment situated on the

describedlocation;

8. Theft, fire, explosion, wind, or windstorm;

9. Anything you or your agents do or conspire to do to

cause loss by

flooddeliberately; or

10. Alteration of the insured property that significantly

increases the risk of flooding.

E. We do not insure for loss to any building or personal

property located on land leased from the Federal

Government, arising from or incident to the flooding of

the land by the Federal Government, where the lease

expressly holds the Federal Government harmless

under flood insurance issued under any Federal

Government program.

F. We do not pay for the testing for or monitoring of

pollutants unless required by law or ordinance.

VI.DEDUCTIBLES

A. When a loss is covered under this policy, we will pay

only that part of the loss that exceeds the applicable

deductible amount, subject to the limit of insurance

that applies. The deductible amount is shown on the

DeclarationsPage.

However, when a building under construction,

alteration, or repair does not have at least two rigid

exterior walls and a fully secured roof at the time of

loss, your deductible amount will be two times the

deductible that would otherwise apply to a completed

building.

Page9of19

 POL 56 May 1, 2011

B. In each loss from flood, separate deductibles apply to

the

building and personal property insured by this

policy.

C. No deductible applies to:

1. III.C.2. Loss Avoidance Measures; or

2. III.D. Increased Cost of Compliance.

VII.COINSURANCE

A. This Coinsurance section applies only to coverage on

the

building.

B. We will impose a penalty on loss payment unless the

amount of insurance applicable to the damaged

building is:

1. At least 80 percent of its replacement cost; or

2. The maximum amount of insurance available for that

building under the NFIP,

whichever is less.

C. If the actual amount of insurance on the building is

less than the required amount in accordance with the

terms of

VII.B. above, then loss payment is

determined as follows (subject to all other relevant

conditions in this

policy, including those pertaining to

valuation, adjustment, settlement, and payment of

loss):

1. Divide the actual amount of insurance carried on the

building by the required amount of insurance.

2. Multiply the amount of loss, before application of the

deductible, by the figure determined in

C.1. above.

3. Subtract the deductible from the figure determined in

C.2. above.

We will pay the amount determined in C.3. above, or the

amount of insurance carried, whichever is less. The

amount of insurance carried, if in excess of the applicable

maximum amount of insurance available under the

NFIP,

is reduced accordingly.

Examples

Example#1(InadequateInsurance)

Replacement value of the building $250,000

Required amount of insurance $200,000

(80% of replacement value of $250,000)

Actual amount of insurance carried $180,000

Amount of the loss $150,000

Deductible $500

Step1: 180,000 ÷ 200,000 = .90

(90% of what should be carried)

Step2: 150,000 × .90 = 135,000

Step3: 135,000 - 500 = 134,500

We will pay no more than $134,500. The remaining

$15,500 is not covered due to the coinsurance penalty

($15,000) and application of the deductible ($500).

Example#2(AdequateInsurance)

Replacement value of the building $500,000

Required amount of insurance $400,000

(80% of replacement value of $500,000)

Actual amount of insurance carried $400,000

Amount of the loss $200,000

Deductible $500

In this example there is no coinsurance penalty, because

the actual amount of insurance carried meets the required

amount. We will pay no more than $199,500 ($200,000

amount of loss minus the $500 deductible).

D. In calculating the full replacement cost of a building:

1. The replacement cost value of any covered building

property will be included;

2. The replacement cost value of any building property

not covered under this

policy will not be included;

and

3. Only the replacement cost value of improvements

installed by the condominium association will be

included.

Page10of19

 POL 57 May 1, 2011

VIII.GENERALCONDITIONS

A. PairsandSets

In case of loss to an article that is part of a pair or set, we

will have the option of paying you:

1. An amount equal to the cost of replacing the lost,

damaged, or destroyed article, less depreciation; or

2. An amount that represents the fair proportion of the

total value of the pair or set that the lost, damaged, or

destroyed article bears to the pair or set.

B. ConcealmentorFraudandPolicyVoidance

With respect to all insureds under this policy, this

policy:

a. Is void;

b. Has no legal force or effect;

c. Cannot be renewed; and

d. Cannot be replaced by a new NFIPpolicy;

if, before or after a loss, you or any other insured or

your agent have at any time:

(1) Intentionally concealed or misrepresented

any material fact or circumstance;

(2) Engaged in fraudulent conduct; or

(3) Made false statements;

relating to this policy or any other NFIP

insurance.

2. This policy will be void as of the date the wrongful

acts described in

B.1.above were committed.

3. Fines, civil penalties, and imprisonment under

applicable Federal laws may also apply to the acts of

fraud or concealment described above.

4. This policy is also void for reasons other than fraud,

misrepresentation, or wrongful act. This

policy is void

from its inception and has no legal force under the

following conditions:

a. If the property is located in a community that was

not participating in the

NFIP on the policy’s

inception date and did not join or reenter the

program during the

policy term and before the

loss occurred; or

b. If the property listed on the application is

otherwise not eligible for coverage under the

NFIP.

C. OtherInsurance

If a loss covered by this policy is also covered by

other insurance that includes

flood coverage not

issued under the

Act, we will not pay more than the

amount of insurance that you are entitled to for lost,

damaged, or destroyed property insured under this

policy subject to the following:

a. We will pay only the proportion of the loss that

the amount of insurance that applies under this

policy bears to the total amount of insurance

covering the loss, unless

C.1.b.or c.immediately

below applies.

b. If the other policy has a provision stating it is

excess insurance, this

policy will be primary.

c. This policy will be primary (but subject to its own

deductible) up to the deductible in the other

flood

policy (except another policy as described in

C.1.b. above). When the other deductible amount

is reached, this

policy will participate in the same

proportion that the amount of insurance under

this policy bears to the total amount of both

policies, for the remainder of the loss.

2. If there is a flood insurance policy in the name of a

unitowner that covers the same loss as this policy,

then this

policy will be primary.

D. Amendments,Waivers,Assignment

This policy cannot be changed nor can any of its

provisions be waived without the express written consent

of the Federal Insurance Administrator. No action that we

take under the terms of this

policyconstitutes a waiver of

any of our rights. You may assign this

policy in writing

when you transfer title of your property to someone else,

except under these conditions:

1. When this policy covers only personal property; or

2. When this policy covers a structure during the course

of construction.

E. CancellationofPolicybyYou

You may cancel this policy in accordance with the

applicable rules and regulations of the

NFIP.

2. If you cancel this policy, you may be entitled to a full

or partial refund of premium also under the applicable

rules and regulations of the

NFIP.

Page11of19

 POL 58 May 1, 2011

F. NonrenewalofthePolicybyUs

Your policywill not be renewed:

1. If the community where your covered property is

located stops participating in the

NFIP; or

2. If your building has been declared ineligible under

Section 1316 of the

Act.

G. ReductionandReformationofCoverage

If the premium we received from you was not enough

to buy the kind and amount of coverage you

requested, we will provide only the amount of

coverage that can be purchased for the premium

payment we received.

2. The policy can be reformed to increase the amount

of coverage resulting from the reduction described in

G.1. above to the amount you requested as follows:

a. Discovery of insufficient premium or incomplete

rating information before a loss.

(1) If we discover before you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current policy

term (or that portion of the current policy

term following any endorsement changing

the amount of coverage). If you or the

mortgagee or trustee pay the additional

premium within 30 days from the date of our

bill, we will reform the policy to increase the

amount of coverage to the originally

requested amount effective to the beginning

of the current policy term (or subsequent

date of any endorsement changing the

amount of coverage).

(2) If we determine before you have a flood loss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

submit the information within 60 days of our

request. Once we determine the amount of

additional premium for the current

policy

term, we will follow the procedure in

G.2.a.(1)above.

(3) If we do not receive the additional premium

(or additional information) by the date it is

due, the amount of coverage can only be

increased by endorsement subject to any

appropriate waiting period.

b. Discovery of insufficient premium or incomplete

rating information after a loss.

(1) If we discover after you have a flood loss

that your premium payment was not enough

to buy the requested amount of coverage,

we will send you and any mortgagee or

trustee known to us a bill for the required

additional premium for the current and the

prior

policy terms. If you or the mortgagee

or trustee pay the additional premium within

30 days from the date of our bill, we will

reform the

policyto increase the amount of

coverage to the originally requested amount

effective to the beginning of the prior

policy

term.

(2) If we discover after you have a flood loss

that the rating information we have is

incomplete and prevents us from calculating

the additional premium, we will ask you to

send the required information. You must

submit the information before your claim can

be paid. Once we determine the amount of

additional premium for the current and prior

policy terms, we will follow the procedure in

G.2.b.(1) above.

(3) If we do not receive the additional premium

by the date it is due, your flood insurance

claim will be settled based on the reduced

amount of coverage. The amount of

coverage can only be increased by

endorsement subject to any appropriate

waiting period.

3. However, if we find that you or your agent

intentionally did not tell us, or falsified, any important

fact or circumstance or did anything fraudulent

relating to this insurance, the provisions of Condition

B. Concealment or Fraud and Policy Voidance apply.

H. PolicyRenewal

This policy will expire at 12:01 a.m. on the last day of

the

policy term.

2. We must receive the payment of the appropriate

renewal premium within 30 days of the expiration

date.

3. If we find, however, that we did not place your

renewal notice into the U.S. Postal Service, or if we

did mail it, we made a mistake, e.g., we used an

incorrect, incomplete, or illegible address, which

delayed its delivery to you before the due date for the

renewal premium, then we will follow these

procedures:

a. If you or your agent notified us, not later than 1

year after the date on which the payment of the

renewal premium was due, of nonreceipt of a

renewal notice before the due date for the

renewal premium, and we determine that the

circumstances in the preceding paragraph apply,

we will mail a second bill providing a revised due

Page12of19

 POL 59 May 1, 2011

date, which will be 30 days after the date on

which the bill is mailed.

b. If we do not receive the premium requested in the

second bill by the revised due date, then we will

not renew the

policy. In that case, the policy will

remain an expired

policy as of the expiration

date shown on the

DeclarationsPage.

4. In connection with the renewal of this policy, we may

ask you during the

policy term to recertify, on a

Recertification Questionnaire that we will provide you,

the rating information used to rate your most recent

application for or renewal of insurance.

I. ConditionsSuspendingorRestrictingInsurance

We are not liable for loss that occurs while there is a hazard

that is increased by any means within your control or

knowledge.

J. RequirementsinCaseofLoss

In case of a flood loss to insured property, you must:

1. Give prompt written notice to us;

2. As soon as reasonably possible, separate the

damaged and undamaged property, putting it in the

best possible order so that we may examine it;

3. Prepare an inventory of damaged personal property

showing the quantity, description,

actualcashvalue,

and amount of loss. Attach all bills, receipts, and