42 U.S.C. § 4013 : US Code - Section 4013: Nature and limitation of insurance coverage

Search 42 U.S.C. § 4013 : US Code - Section 4013: Nature and limitation of insurance coverage

(a) Regulations respecting general terms and conditions of
insurability
The Director shall from time to time, after consultation with the
advisory committee authorized under section 4025 of this title,
appropriate representatives of the pool formed or otherwise created
under section 4051 of this title, and appropriate representatives
of the insurance authorities of the respective States, provide by
regulation for general terms and conditions of insurability which
shall be applicable to properties eligible for flood insurance
coverage under section 4012 of this title, including -
(1) the types, classes, and locations of any such properties
which shall be eligible for flood insurance;
(2) the nature and limits of loss or damage in any areas (or
subdivisions thereof) which may be covered by such insurance;
(3) the classification, limitation, and rejection of any risks
which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating to insurance
coverage or exclusion which may be necessary to carry out the
purposes of this chapter.
(b) Regulations respecting amount of coverage
In addition to any other terms and conditions under subsection
(a) of this section, such regulations shall provide that -
(1) any flood insurance coverage based on chargeable premium
rates under section 4015 of this title which are less than the
estimated premium rates under section 4014(a)(1) of this title
shall not exceed -
(A) in the case of residential properties -
(i) $35,000 aggregate liability for any single-family
dwelling, and $100,000 for any residential structure
containing more than one dwelling unit,
(ii) $10,000 aggregate liability per dwelling unit for any
contents related to such unit, and
(iii) in the States of Alaska and Hawaii, and in the Virgin
Islands and Guam; the limits provided in clause (i) of this
sentence shall be: $50,000 aggregate liability for any single-
family dwelling, and $150,000 for any residential structure
containing more than one dwelling unit;
(B) in the case of business properties which are owned or
leased and operated by small business concerns, an aggregate
liability with respect to any single structure, including any
contents thereof related to premises of small business
occupants (as that term is defined by the Director), which
shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by
the number of such occupants and shall be allocated among such
occupants (or among the occupant or occupants and the owner)
under regulations prescribed by the Director; except that the
aggregate liability for the structure itself may in no case
exceed $100,000; and
(C) in the case of church properties and any other properties
which may become eligible for flood insurance under section
4012 of this title -
(i) $100,000 aggregate liability for any single structure,
and
(ii) $100,000 aggregate liability per unit for any contents
related to such unit; and
(2) in the case of any residential property for which the risk
premium rate is determined in accordance with the provisions of
section 4014(a)(1) of this title, additional flood insurance in
excess of the limits specified in clause (i) of subparagraph (A)
of paragraph (1) shall be made available to every insured upon
renewal and every applicant for insurance so as to enable such
insured or applicant to receive coverage up to a total amount
(including such limits specified in paragraph (1)(A)(i)) of
$250,000;
(3) in the case of any residential property for which the risk
premium rate is determined in accordance with the provisions of
section 4014(a)(1) of this title, additional flood insurance in
excess of the limits specified in clause (ii) of subparagraph (A)
of paragraph (1) shall be made available to every insured upon
renewal and every applicant for insurance so as to enable any
such insured or applicant to receive coverage up to a total
amount (including such limits specified in paragraph (1)(A)(ii))
of $100,000;
(4) in the case of any nonresidential property, including
churches, for which the risk premium rate is determined in
accordance with the provisions of section 4014(a)(1) of this
title, additional flood insurance in excess of the limits
specified in subparagraphs (B) and (C) of paragraph (1) shall be
made available to every insured upon renewal and every applicant
for insurance, in respect to any single structure, up to a total
amount (including such limit specified in subparagraph (B) or (C)
of paragraph (1), as applicable) of $500,000 for each structure
and $500,000 for any contents related to each structure; and
(5) any flood insurance coverage which may be made available in
excess of the limits specified in subparagraph (A), (B), or (C)
of paragraph (1), shall be based only on chargeable premium rates
under section 4015 of this title, which are not less than the
estimated premium rates under section 4014(a)(1) of this title,
and the amount of such excess coverage shall not in any case
exceed an amount equal to the applicable limit so specified (or
allocated) under paragraph (1)(C), (2), (3), or (4), as
applicable.
(c) Effective date of policies
(1) Waiting period
Except as provided in paragraph (2), coverage under a new
contract for flood insurance coverage under this chapter entered
into after September 23, 1994, and any modification to coverage
under an existing flood insurance contract made after September
23, 1994, shall become effective upon the expiration of the 30-
day period beginning on the date that all obligations for such
coverage (including completion of the application and payment of
any initial premiums owed) are satisfactorily completed.
(2) Exception
The provisions of paragraph (1) shall not apply to -
(A) the initial purchase of flood insurance coverage under
this chapter when the purchase of insurance is in connection
with the making, increasing, extension, or renewal of a loan;
or
(B) the initial purchase of flood insurance coverage pursuant
to a revision or updating of floodplain areas or flood-risk
zones under section 4101(f) of this title, if such purchase
occurs during the 1-year period beginning upon publication of
notice of the revision or updating under section 4101(h) of
this title.