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

What the form is

The CP DS 65 - Flood Coverage Schedule is an essential component used with the Commercial Property Flood Coverage Endorsement (CP 10 65). Its primary purpose is to provide a detailed breakdown of flood coverage specifics for each insured location. This schedule itemizes information such as the specific premises covered, the applicable limits of insurance for flood, the flood deductible amounts, and whether the requirement for underlying insurance through the National Flood Insurance Program (NFIP) is waived for any given location. It essentially customizes the flood endorsement to the insured's particular needs and exposures.

Classes of business it applies to

This schedule is utilized for any commercial enterprise that requires flood insurance as part of its commercial property policy. This is particularly relevant for:

• Businesses located in areas prone to flooding, such as coastal regions, riverine areas, or low-lying zones.
• Operations that need flood coverage limits exceeding those offered by the NFIP.
• Insureds who may qualify for a waiver of the NFIP underlying coverage requirement based on underwriting criteria.

Real-world examples: Manufacturing facilities near waterways, retail stores in coastal cities, hotels in flood zones, and warehouses located in areas with a history of flooding would all utilize this schedule when adding flood coverage via the CP 10 65 endorsement.

Special considerations

• NFIP Interaction: The schedule clarifies whether flood coverage is primary or excess over an NFIP policy. The "Underlying Insurance Waiver" section is critical, indicating if the insured is relieved of the requirement to maintain an NFIP policy for a specified location.
• Waiting Period: While the Flood Coverage Endorsement (CP 10 65) typically has a 72-hour waiting period before coverage inception, this waiting period may not apply to renewal policies if flood coverage was continuously maintained from the prior policy.
• Location Specifics: The form allows for precise tailoring of coverage, limits, and deductibles on a per-location basis, which is vital for businesses with multiple properties facing different flood exposures.
• Mandatory Use: When the CP 10 65 is used to provide flood coverage, the CP DS 65 schedule is generally required to specify the terms of that coverage.

Key information for agents and underwriters

• Accurate Data Entry: Agents must ensure all information on the schedule, including location addresses, flood limits, and deductibles, is accurate and reflects the coverage agreed upon with the insured.
• Underwriting Assessment: Underwriters rely heavily on this schedule to evaluate the flood risk at each listed property. This includes assessing flood zone determinations, elevation, loss history, and the adequacy of proposed limits and deductibles.
• Deductibles: Flood deductibles can be substantial and are clearly outlined on this schedule. Agents should ensure clients understand the deductible amounts applicable to each location.
• Waiver Implications: If the Underlying Insurance Waiver is applied, underwriters must be comfortable with the insurer taking on primary flood risk at that location, which will influence pricing and acceptability.
• Coinsurance: While not directly on this schedule, the underlying property coverage form's coinsurance provisions will still apply to flood losses unless modified by the flood endorsement itself. This should be considered in determining appropriate flood limits.