NFIP Coverage Exceptions

This page is a rough draft and will need more work before it's finalized.

preamble

Under Construction

In the context of NFIP coverage, Buildings Under Construction—commonly referred to as "Builder's Risk" in the insurance industry—are covered under the Standard Flood Insurance Policy (SFIP) rather than as a separate policy type. This differs from the standard approach in Property and Casualty insurance, where builder's risk is often a standalone policy. Coverage applies to buildings undergoing construction, alteration, or repair prior to being fully walled and roofed. The coverage ensures protection against flood damage during critical phases of construction, provided eligibility and documentation requirements are met.

Eligibility for Coverage

1. Coverage applies to buildings under construction, alteration, or repair.
2. The structure must not yet be fully walled and roofed for initial coverage eligibility.

Limitations

1. Coverage excludes structures where the lowest floor is below the Base Flood Elevation (BFE) in specific flood zones (e.g., AE, VE) until the building is fully walled and roofed.
2. If construction is temporarily halted, coverage extends for up to 90 continuous days.

Special Provisions

1. Materials and supplies stored in a fully enclosed building at the insured location or adjacent property are covered under specific conditions.
2. Policyholders must comply with all terms of the SFIP, including accurately identifying the structure and ensuring insurable interest.

Buildings Over Water

words

Buildings Below Ground

words

This page contains information about the NFIP. Find more NFIP Resources.