[StBernard] Facts about Flood Insurance & Potential Oil Damage

Westley Annis Westley at da-parish.com
Sat Jul 24 15:17:32 EDT 2010


Facts about Flood Insurance & Potential Oil Damage

Oil in flood water is not new for the National Flood Insurance Program. In
the past, the mixing of oil and other pollutants in flood waters resulted
from damage caused by a storm. Lafourche Parish residents are encouraged to
review the following information from FEMA regarding flood insurance and
potential oil damage.


* There must first be a "flood" as defined in the Standard Flood
Insurance Policy (SFIP). Damage caused by the oil in flood waters is covered
subject to the provisions of the SFIP.
Under the terms of the SFIP's General Property Form (commercial
buildings and contents - both coverages must be purchased separately),
damage caused by pollutants is limited to $10,000.
* The Dwelling Form and the Residential Condominium Building
Association Policy Form limit damage to the building contents (both coverage
must be purchased separately) from pollutants to the policy limits.
* Damage to ground, soil, or land caused by flood, oil, or flood water
mixed with oil is not covered.
* The cost of complying with any local or State ordinance including
one that requires special removal methods for oil is specifically excluded
(certain floodplain management mitigation requirements are exceptions). This
exclusion would also apply to local or state condemnations-the NFIP only
pays for direct physical loss by or from flood.
* All three forms-no coverage for testing for or monitoring of
pollutants unless there is a law or ordinance requiring it.
* If payment is made, FEMA or the WYO is automatically subrogated to
the policyholder's right to recover the payment from a responsible party.
The policyholder may not give up FEMA's or the WYO's right to recover or do
anything that would prevent FEMA or the WYO from recovering. If the
policyholder makes any claim against any person who caused the loss and
recovers any money, the policyholder must pay FEMA or the WYO back first
before the policyholder may keep any of that money.

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