1. Forms
  2. CP
  3. CP-10-65

What it does

The Water exclusion in every Causes of Loss form removes flood. CP 10 65 adds Flood as a Covered Cause of Loss for the property and coverages that have a Flood Limit of Insurance in the Flood Coverage Schedule (CP DS 65). Flood means a general and temporary condition of partial or complete inundation of normally dry land from overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters, mudslides, or collapse of land along a shore caused by erosion beyond cyclical levels. All flooding in a continuous or protracted event is one flood.

Key provisions (10 12 edition)

  • Waiting period: no coverage for a flood that begins before or within 72 hours after the endorsement's inception date, with a limited exception.
  • Property not covered: property not eligible for flood insurance under the Coastal Barrier Resources Act, boat houses and open structures over water, and personal property in the open unless the schedule covers it. Foundations below the lowest basement floor and underground pipes, flues and drains become covered property for flood.
  • Sewer or drain discharge is covered only if it results from flood and occurs within 72 hours after the flood recedes.
  • Limits: a per-occurrence flood limit (blanket or by location) and an annual aggregate. When flood causes fire, the most paid for flood and fire combined is the fire limit.
  • Deductible: the flood deductible in the schedule. The insurer will not pay any part attributable to an NFIP policy deductible.
  • Other insurance: if the property is covered by, or eligible for, an NFIP policy, this endorsement is excess over the maximum NFIP limit available, whether or not NFIP was bought. The exceptions are property that was ineligible when the endorsement was written, or a schedule showing an Underlying Insurance Waiver.

Quoting and selling notes

  • Find out the flood zone and whether an NFIP policy is in place. Without NFIP and without the underlying waiver, the client absorbs the first layer up to the NFIP maximum.
  • If a lender requires flood insurance, confirm the endorsement, limits and deductible satisfy the loan terms.
  • Flood and sewer backup are different exposures. Add CP 10 38 for non-flood backups.