Insurance policies that cover property that can be moved from one location to another for both transportation perils and perils affecting property at a fixed location.
Insurance Encyclopedia
Floating policy
1. Marine. A cargo policy covering individual shipments each of which is declared and eventually exhausts the sum insured. The arrangement has largely given way to open covers. 2. Floating insurance for building contractors. Annual policy insures buildings of normal construction in course of erection and completion (including outbuildings, walls, etc.) up to a specific sum on the site of any of the insured’s contracts.
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(i) When there are a series of export or import transactions, it is used for a single global sum insured, as shipments are made a declaration of their value must be made to the Insurers, the balance of the sum insured applicable to future transactions being thus automatically reduced. (ii) Policies where the sum insured covers a sequence of events, being reduced as each event occurs.
Flood
As defined in the National Flood Insurance Program Dwelling Form, a general and temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties (one of which is the insured’s) caused by the overflow of the natural boundaries of a body of water or the unusual and rapid accumulation of surface water runoff, or mudflow. Some insurance policies that include flood as a covered peril only insure against damage caused by overflow of the natural boundaries of a body of water, but other policies also may insure against surface water losses.
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(01) Flood is usually defined as “escape” from its normal confine of a body of water, due to a rise in its level, or to the breakdown of the barriers retaining it. The essential ingredients of flood is the rise of water to an abnormal level. (02) Overflow of water from its natural boundaries. More specifically defined as “a general and temporary condition of partial or complete inundation of normally dry land areas from (a) the overflow of inland or tidal waters, or (b) the unusual and rapid accumulation or runoff of surface waters from any source. (03) abnormal, flood related erosion and undermining of shorelines. Flood also means inundation from mud flows caused by accumulations of water on or under the ground as long as the mud flow and not a landslide is the proximate cause of the loss. (04) A flood is an overflow of an expanse of water that submerges land and the property. Flood may be a result of too much rain, excessive melting of snow, breach of canals and ponds etc.
Flood (Property Insurance)
A temporary overflow of a normally dry area due to overflow of a body of water, unusual buildup, runoff of surface waters, or abnormal erosion or undermining of shoreline. Floods can also be overflow of mud flow caused by buildup of water underground.
Flood coverage
Coverage for damage to property caused by flood. May be available by endorsement to an all risks policy or to a difference-in-conditions (DIC) policy. Normally, the coverage provided is subject to a per occurrence sublimit, an annual aggregate limit, and a separate deductible. Coverage may also be available from the National Flood Insurance Program (NFIP).
Flood exclusion
A provision found in nearly all property insurance policies (even in all risks policies) eliminating coverage for damage by flood. May also eliminate coverage for other types of water damage, such as seepage and sewer backup. Flood coverage can sometimes be provided by endorsement. If not, a separate flood insurance policy may be available from the National Flood Insurance Program (NFIP).
Flood Insurance
Contract of protection for damage caused by overflowing or rising water. Obtainable under Fire and Marine contracts as an incidental feature to a more comprehensive coverage. Straight Flood Insurance alone is a very rare coverage.
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US: Coverage against loss resulting from the flood peril, widely available at low cost under a program developed by the private industry and the federal government.
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Flood insurance is available from the federal government under the National Flood Insurance Program and is sold through licensed agents. Flood coverage is excluded under homeowners and most commercial property policies. Automobiles, however, are covered for flood under the comprehensive coverage section. Large commercial risks can often buy what is known as a “difference in conditions” policy that covers perils not covered in a standard property policy. Often this includes earthquake and flood coverage.
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Flood insurance, like earthquake coverage, is usually only of interest to those relatively few whose property is exposed. Consequently, losses among this small group will be high and premiums can be prohibitive. However, in 1968 the federal government stepped in to help property owners in designated flood plains with the National Flood Insurance Act of 1968. Coverage is not only available, but may even be required to obtain financing for exposed properties. Some private carriers are beginning to provide flood insurance.
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UK: Insurance against damage caused by the escape of water from the normal confines of any natural or artificial water course (other than water tanks, apparatus or pipes) or lake, reservoir, canal or dam in addition to inundation from the sea. Losses are normally subject to a minimum excess of £250. The risk is normally insured as an additional peril together with storm damage.
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MEDICAL,USA,REFERENCE: See: catastrophe insurance policy .
Flood insurance (Property Insurance)
Insurance that compensates the insured for the loss of property due to a flood.
Flood Insurance Rate Map (FIRM)
Provided by FEMA (Federal Emergency Management Agency), this map delineates base flood elevations and flood risk zones, and is used for rating purposes for flood insurance.
Floodplain
Any land area susceptible to being inundated by flood waters from any source.