Cost of Compliance, which only applies to policies with building
coverage (Coverage A). Our payment of claims under Coverage D is in
addition to the amount of coverage which you selected on the
application and which appears on the Declarations Page. But the
maximum you can collect under this policy for both Coverage A--
Building Property and Coverage D--Increased Cost of Compliance
cannot exceed the maximum permitted under the Act. We do not charge
a separate deductible for a claim under Coverage D.

3. Eligibility

    a. A building insured under Coverage A--Building Property
sustaining a loss caused by a flood as defined by this policy must:
    (1) Be a ``repetitive loss building.'' A repetitive loss
building is one that meets the following conditions:
    (a) The building is insured by a contract of flood insurance
issued under the NFIP.
    (b) The building has suffered flood damage on two occasions
during a 10-year period which ends on the date of the second loss.
    (c) The cost to repair the flood damage, on average, equaled or
exceeded 25 percent of the market value of the building at the time
of each flood loss.
    (d) In addition to the current claim, the NFIP must have paid
the previous qualifying claim, and the State or community must have
a cumulative, substantial damage provision or repetitive loss
provision in its floodplain management law or ordinance being
enforced against the building; or
    (2) Be a building that has had flood damage in which the cost to
repair equals or exceeds 50 percent of the market value of the
building at the time of the flood. The State or community must have
a substantial damage provision in its floodplain management law or
ordinance being enforced against the building.
    b. This Coverage D pays you to comply with State or local
floodplain management laws or ordinances that meet the minimum
standards of the National Flood Insurance Program found in the Code
of Federal Regulations at 44 CFR 60.3. We pay for compliance
activities that exceed those standards under these conditions:
    (1) 3.a.1 above.
    (2) Elevation or floodproofing in any risk zone to preliminary
or advisory base flood elevations provided by FEMA which the State
or local government has adopted and is enforcing for flood-damaged
buildings in such areas. (This includes compliance activities in B,
C, X, or D zones which are being changed to zones with base flood
elevations. This also includes compliance activities in zones where
base flood elevations are being increased, and a flood-damaged
building must comply with the higher advisory base flood elevation.)
Increased Cost of Compliance coverage does not apply to situations
in B, C, X, or D zones where the community has derived its own
elevations and is enforcing elevation or floodproofing requirements
for flood-damaged buildings to elevations derived solely by the
community.
    (3) Elevation or floodproofing above the base flood elevation to
meet State or local ``free-board'' requirements, i.e., that a
building must be elevated above the base flood elevation.
    c. Under the minimum NFIP criteria at 44 CFR 60.3(b)(4), States
and communities must require the elevation or floodproofing of
buildings in unnumbered A zones to the base flood elevation where
elevation data is obtained from a Federal, State, or other source.
Such compliance activities are eligible for Coverage D.
    d. Coverage D will pay for the incremental cost, after
demolition or relocation, of elevating or floodproofing a building
during its rebuilding at the same or another site to meet State or
local floodplain management laws or ordinances, subject to Coverage
D Exclusion 5.g below.
    e. Coverage D will pay to bring a flood-damaged building into
compliance with State or local floodplain management laws or
ordinances even if the building had received a variance before the
present loss from the applicable floodplain management requirements.

4. Conditions

    a. When a building insured under Coverage A--Building Property
sustains a loss caused by a flood, our payment for the loss under
this Coverage D will be for the increased cost to elevate,
floodproof, relocate, or demolish (or any combination of these
activities) caused by the enforcement of current State or local
floodplain management ordinances or laws. Our payment for eligible
demolition

activities will be for the cost to demolish and clear the site of
the building debris or a portion thereof caused by the enforcement
of current State or local floodplain management ordinances or laws.
Eligible activities for the cost of clearing the site will include
those necessary to discontinue utility service to the site and
ensure proper abandonment of on-site utilities.
    b. When the building is repaired or rebuilt, it must be intended
for the same occupancy as the present building unless otherwise
required by current floodplain management ordinances or laws.

5. Exclusions

    Under this Coverage D (Increased Cost of Compliance), we will
not pay for:
    a. The cost to comply with any floodplain management law or
ordinance in communities participating in the Emergency Program.
    b. The cost associated with enforcement of any ordinance or law
that requires any insured or others to test for, monitor, clean up,
remove, contain, treat, detoxify or neutralize, or in any way
respond to, or assess the effects of pollutants.
    c. The loss in value to any insured building due to the
requirements of any ordinance or law.
    d. The loss in residual value of the undamaged portion of a
building demolished as a consequence of enforcement of any State or
local floodplain management law or ordinance.
    e. Any Increased Cost of Compliance under this Coverage D:
    (1) Until the building is elevated, floodproofed, demolished, or
relocated on the same or to another premises; and
    (2) Unless the building is elevated, floodproofed, demolished,
or relocated as soon as reasonably possible after the loss, not to
exceed two years.
    f. Any code upgrade requirements, e.g., plumbing or electrical
wiring, not specifically related to the State or local floodplain
management law or ordinance.
    g. Any compliance activities needed to bring additions or
improvements made after the loss occurred into compliance with State
or local floodplain management laws or ordinances.
    h. Loss due to any ordinance or law that you were required to
comply with before the current loss.
    i. Any rebuilding activity to standards that do not meet the
NFIP's minimum requirements. This includes any situation where the
insured has received from the State or community a variance in
connection with the current flood loss to rebuild the property to an
elevation below the base flood elevation.
    j. Increased Cost of Compliance for a garage or carport.
    k. Any building insured under an NFIP Group Flood Insurance
Policy.
    l. Assessments made by a condominium association on individual
condominium unit owners to pay increased costs of repairing commonly
owned buildings after a flood in compliance with State or local
floodplain management ordinances or laws.

6. Other Provisions

    a. Increased Cost of Compliance coverage will not be included in
the calculation to determine whether coverage meets the 80 percent
insurance-to-value requirement for replacement cost coverage as set
forth in Art. VII.R (``Loss Settlement'') of this policy.
    b. All other conditions and provisions of this policy apply.

IV. Property Not Insured

    We do not insure any of the following:
    1. Personal property not inside a building.
    2. A building, and personal property in it, located entirely in,
on, or over water or seaward of mean high tide if it was constructed
or substantially improved after September 30, 1982.
    3. Open structures, including a building used as a boathouse or
any structure or building into which boats are floated, and personal
property located in, on, or over water.
    4. Recreational vehicles other than travel trailers described in
the Definitions section (see II.B.6.c) whether affixed to a
permanent foundation or on wheels.
    5. Self-propelled vehicles or machines, including their parts
and equipment. However, we do cover self-propelled vehicles or
machines not licensed for use on public roads that are:
    a. Used mainly to service the described location; or
    b. Designed and used to assist handicapped persons, while the
vehicles or machines are inside a building at the described
location.
    6. Land, land values, lawns, trees, shrubs, plants, growing
crops, or animals.
    7. Accounts, bills, coins, currency, deeds, evidences of debt,
medals, money, scrip, stored value cards, postage stamps,
securities, bullion, manuscripts, or other valuable papers.
    8. Underground structures and equipment, including wells, septic
tanks, and septic systems.
    9. Those portions of walks, walkways, decks, driveways, patios
and other surfaces, all whether protected by a roof or not, located
outside the perimeter, exterior walls of the insured building or the
building in which the insured unit is located.
    10. Containers, including related equipment, such as, but not
limited to, tanks containing gases or liquids.
    11. Buildings or units and all their contents if more than 49
percent of the actual cash value of the building is below ground,
unless the lowest level is at or above the base flood elevation and
is below ground by reason of earth having been used as insulation
material in conjunction with energy efficient building techniques.
    12. Fences, retaining walls, seawalls, bulkheads, wharves,
piers, bridges, and docks.
    13. Aircraft or watercraft, or their furnishings and equipment.
    14. Hot tubs and spas that are not bathroom fixtures, and
swimming pools, and their equipment, such as, but not limited to,
heaters, filters, pumps, and pipes, wherever located.
    15. Property not eligible for flood insurance pursuant to the
provisions of the Coastal Barrier Resources Act and the Coastal
Barrier Improvement Act and amendments to these acts.
    16. Personal property you own in common with other unit owners
comprising the membership of a condominium association.

V. Exclusions

    A. We only pay for direct physical loss by or from flood, which
means that we do not pay you for:
    1. Loss of revenue or profits;
    2. Loss of access to the insured property or described location;
    3. Loss of use of the insured property or described location;
    4. Loss from interruption of business or production;
    5. Any additional living expenses incurred while the insured
building is being repaired or is unable to be occupied for any
reason;
    6. The cost of complying with any ordinance or law requiring or
regulating the construction, demolition, remodeling, renovation, or
repair of property, including removal of any resulting debris. This
exclusion does not apply to any eligible activities we describe in
Coverage D--Increased Cost of Compliance; or
    7. Any other economic loss you suffer.
    B. Flood in Progress. If this policy became effective as of the
time of a loan closing, as provided by 44 CFR 61.11(b), we will not
pay for a loss caused by a flood that is a continuation of a flood
that existed prior to coverage becoming effective. In all other
circumstances, we will not pay for a loss caused by a flood that is
a continuation of a flood that existed on or before the day you
submitted the application for coverage under this policy and the
full amount due. We will determine the date of application using 44
CFR 61.11(f).
    C. We do not insure for loss to property caused directly by
earth movement even if the earth movement is caused by flood. Some
examples of earth movement that we do not cover are:
    1. Earthquake;
    2. Landslide;
    3. Land subsidence;
    4. Sinkholes;
    5. Destabilization or movement of land that results from
accumulation of water in subsurface land area; or
    6. Gradual erosion.
    We do, however, pay for losses from mudflow and land subsidence
as a result of erosion that are specifically insured under our
definition of flood (see II.B.1.c and II.B.2).
    D. We do not insure for direct physical loss caused directly or
indirectly by any of the following:
    1. The pressure or weight of ice;
    2. Freezing or thawing;
    3. Rain, snow, sleet, hail, or water spray;
    4. Water, moisture, mildew, or mold damage that results
primarily from any condition:
    a. Substantially confined to the dwelling; or
    b. That is within your control, including but not limited to:
    (1) Design, structural, or mechanical defects;

    (2) Failure, stoppage, or breakage of water or sewer lines,
drains, pumps, fixtures, or equipment; or
    (3) Failure to inspect and maintain the property after a flood
recedes;
    5. Water or water-borne material that:
    a. Backs up through sewers or drains;
    b. Discharges or overflows from a sump, sump pump, or related
equipment; or
    c. Seeps or leaks on or through the insured property;

unless there is a flood in the area and the flood is the proximate
cause of the sewer or drain backup, sump pump discharge or overflow,
or the seepage of water;
    6. The pressure or weight of water unless there is a flood in
the area and the flood is the proximate cause of the damage from the
pressure or weight of water;
    7. Power, heating, or cooling failure unless the failure results
from direct physical loss by or from flood to power, heating, or
cooling equipment on the described location;
    8. Theft, fire, explosion, wind, or windstorm;
    9. Anything you or any member of your household do or conspire
to do to deliberately cause loss by flood; or
    10. Alteration of the insured property that significantly
increases the risk of flooding.
    E. We do not insure for loss to any building or personal
property located on land leased from the Federal Government, arising
from or incident to the flooding of the land by the Federal
Government, where the lease expressly holds the Federal Government
harmless under flood insurance issued under any Federal Government
program.
    F. We do not pay for the testing for or monitoring of pollutants
unless required by law or ordinance.

VI. Deductibles

    A. When a loss is insured under this policy, we will pay only
that part of the loss that exceeds your deductible amount, subject
to the limit of liability that applies. The deductible amount is
shown on the Declarations Page.
    However, when a building under construction, alteration, or
repair does not have at least two rigid exterior walls and a fully
secured roof at the time of loss, your deductible amount will be two
times the deductible that would otherwise apply to a completed
building.
    B. In each loss from flood, separate deductibles apply to the
building and personal property insured by this policy.
    C. The deductible does NOT apply to:
    1. III.C.2. Loss Avoidance Measures;
    2. III.C.3. Condominium Loss Assessments; or
    3. III.D. Increased Cost of Compliance.

VII. General Conditions

A. Pair and Set Clause

    In case of loss to an article that is part of a pair or set, we
will have the option of paying you:
    1. An amount equal to the cost of replacing the lost, damaged,
or destroyed article, minus its depreciation; or
    2. The amount that represents the fair proportion of the total
value of the pair or set that the lost, damaged, or destroyed
article bears to the pair or set.

B. Other Insurance

    1. If a loss insured by this policy is also insured by other
insurance that includes flood coverage not issued under the Act, we
will not pay more than the amount of insurance you are entitled to
for lost, damaged, or destroyed property insured under this policy
subject to the following:
    a. We will pay only the proportion of the loss that the amount
of insurance that applies under this policy bears to the total
amount of insurance covering the loss, unless VII.B.1.b or c
immediately below applies.
    b. If the other policy has a provision stating that it is excess
insurance, this policy will be primary.
    c. This policy will be primary (but subject to its own
deductible) up to the deductible in the other flood policy (except
another policy as described in VII.B.1.b above). When the other
deductible amount is reached, this policy will participate in the
same proportion that the amount of insurance under this policy bears
to the total amount of both policies, for the remainder of the loss.
    2. If there is other insurance issued under the Act in the name
of your condominium association covering the same property insured
by this policy, then this policy will be in excess over the other
insurance, except where a condominium loss assessment to the unit
owner results from a loss sustained by the condominium association
that was not reimbursed under a flood insurance policy written in
the name of the association under the Act because the building was
not, at the time of loss, insured for an amount equal to the lesser
of:
    a. 80 percent or more of its full replacement cost; or
    b. The maximum amount of insurance permitted under the Act.
    The combined coverage payment under the other NFIP insurance and
this policy cannot exceed the maximum coverage available under the
Act, of $250,000 per single unit.

C. Amendments, Waivers, Assignment

    This policy cannot be changed, nor can any of its provisions be
waived, without the express written consent of the Federal Insurance
Administrator. No action we take under the terms of this policy
constitutes a waiver of any of our rights. You may assign this
policy in writing when you transfer title of your property to
someone else except under these conditions:
    a. When this policy insures only personal property; or
    b. When this policy insures a building under construction.

D. Insufficient Premium or Rating Information

    1. Applicability. The following provisions apply to all
instances where the premium paid on this policy is insufficient or
where the rating information is insufficient, such as where an
Elevation Certificate is not provided.
    2. Reforming the Policy with Reduced Coverage. Except as
otherwise provided in VII.D.1, if the premium we received from you
was not sufficient to buy the kinds and amounts of coverage you
requested, we will provide only the kinds and amounts of coverage
that can be purchased for the premium payment we received.
    a. For the purpose of determining whether your premium payment
is sufficient to buy the kinds and amounts of coverage you
requested, we will first deduct the costs of all applicable fees and
surcharges.
    b. If the amount paid, after deducting the costs of all
applicable fees and surcharges, is not sufficient to buy any amount
of coverage, your payment will be refunded. Unless the policy is
reformed to increase the coverage amount to the amount originally
requested pursuant to VII.D.3, this policy will be cancelled, and no
claims will be paid under this policy.
    c. Coverage limits on the reformed policy will be based upon the
amount of premium submitted per type of coverage, but will not
exceed the amount originally requested.
    3. Discovery of Insufficient Premium or Rating Information. If
we discover that your premium payment was not sufficient to buy the
requested amount of coverage, the policy will be reformed as
described in VII.D.2. You have the option of increasing the amount
of coverage resulting from this reformation to the amount you
requested as follows:
    a. Insufficient Premium. If we discover that your premium
payment was not sufficient to buy the requested amount of coverage,
we will send you, and any mortgagee or trustee known to us, a bill
for the required additional premium for the current policy term (or
that portion of the current policy term following any endorsement
changing the amount of coverage). If it is discovered that the
initial amount charged to you for any fees or surcharges is
incorrect, the difference will be added or deducted, as applicable,
to the total amount in this bill.
    (1) If you or the mortgagee or trustee pays the additional
premium amount due within 30 days from the date of our bill, we will
reform the policy to increase the amount of coverage to the
originally requested amount, effective to the beginning of the
current policy term (or subsequent date of any endorsement changing
the amount of coverage).
    (2) If you or the mortgagee or trustee do not pay the additional
amount due within 30 days of the date of our bill, any flood
insurance claim will be settled based on the reduced amount of
coverage.
    (3) As applicable, you have the option of paying all or part of
the amount due out of a claim payment based on the originally
requested amount of coverage.
    b. Insufficient Rating Information. If we determine that the
rating information we have is insufficient and prevents us from
calculating the additional premium, we will ask you to send the
required information. You must submit the information within 60 days
of our request.
    (1) If we receive the information within 60 days of our request,
we will determine the amount of additional premium for the current
policy term, and follow the procedure in VII.D.3.a above.
    (2) If we do not receive the information within 60 days of our
request, no claims will be paid until the requested information is

provided. Coverage will be limited to the amount of coverage that
can be purchased for the payments we received, as determined when
the requested information is provided.
    4. Coverage Increases. If we do not receive the amounts
requested in VII.D.3.a or the additional information requested in
VII.D.3.b by the date it is due, the amount of coverage under this
policy can only be increased by endorsement subject to the
appropriate waiting period. However, no coverage increases will be
allowed until you have provided the information requested in
VII.D.3.b.
    5. Falsifying Information. However, if we find that you or your
agent intentionally did not tell us, or falsified any important fact
or circumstance or did anything fraudulent relating to this
insurance, the provisions of VIII.A apply.

E. Policy Renewal

    1. This policy will expire at 12:01 a.m. on the last day of the
policy term.
    2. We must receive the payment of the appropriate renewal
premium within 30 days of the expiration date.
    3. If we find, however, that we did not place your renewal
notice into the U.S. Postal Service, or if we did mail it, we made a
mistake, e.g., we used an incorrect, incomplete, or illegible
address, which delayed its delivery to you before the due date for
the renewal premium, then we will follow these procedures:
    a. If you or your agent notified us, not later than one year
after the date on which the payment of the renewal premium was due,
of non-receipt of a renewal notice before the due date for the
renewal premium, and we determine that the circumstances in the
preceding paragraph apply, we will mail a second bill providing a
revised due date, which will be 30 days after the date on which the
bill is mailed.
    b. If we do not receive the premium requested in the second bill
by the revised due date, then we will not renew the policy. In that
case, the policy will remain an expired policy as of the expiration
date shown on the Declarations Page.
    4. In connection with the renewal of this policy, we may ask you
during the policy term to recertify, on a Recertification
Questionnaire we will provide to you, the rating information used to
rate your most recent application for or renewal of insurance.

F. Conditions Suspending or Restricting Insurance

    We are not liable for loss that occurs while there is a hazard
that is increased by any means within your control or knowledge.

G. Requirements in Case of Loss

    In case of a flood loss to insured property, you must:
    1. Give prompt written notice to us.
    2. As soon as reasonably possible, separate the damaged and
undamaged property, putting it in the best possible order so that we
may examine it.
    3. Prepare an inventory of damaged property showing the
quantity, description, actual cash value, and amount of loss. Attach
all bills, receipts, and related documents.
    4. Within 60 days after the loss, send us a proof of loss, which
is your statement of the amount you are claiming under the policy
signed and sworn to by you, and which furnishes us with the
following information:
    a. The date and time of loss;
    b. A brief explanation of how the loss happened;
    c. Your interest (for example, ``owner'') and the interest, if
any, of others in the damaged property;
    d. Details of any other insurance that may cover the loss;
    e. Changes in title or occupancy of the insured property during
the term of the policy;
    f. Specifications of damaged buildings and detailed repair
estimates;
    g. Names of mortgagees or anyone else having a lien, charge, or
claim against the insured property;
    h. Details about who occupied any insured building at the time
of loss and for what purpose; and
    i. The inventory of damaged personal property described in G.3
above.
    5. In completing the proof of loss, you must use your own
judgment concerning the amount of loss and justify that amount.
    6. You must cooperate with the adjuster or representative in the
investigation of the claim.
    7. The insurance adjuster whom we hire to investigate your claim
may furnish you with a proof of loss form, and she or he may help
you complete it. However, this is a matter of courtesy only, and you
must still send us a proof of loss within 60 days after the loss
even if the adjuster does not furnish the form or help you complete
it.
    8. We have not authorized the adjuster to approve or disapprove
claims or to tell you whether we will approve your claim.
    9. At our option, we may accept the adjuster's report of the
loss instead of your proof of loss. The adjuster's report will
include information about your loss and the damages you sustained.
You must sign the adjuster's report. At our option, we may require
you to swear to the report.

H. Our Options After a Loss

    Options we may, in our sole discretion, exercise after loss
include the following:
    1. At such reasonable times and places that we may designate,
you must:
    a. Show us or our representative the damaged property;
    b. Submit to examination under oath, while not in the presence
of another insured, and sign the same; and
    c. Permit us to examine and make extracts and copies of:
    (1) Any policies of property insurance insuring you against loss
and the deed establishing your ownership of the insured real
property;
    (2) Condominium association documents including the Declarations
of the condominium, its Articles of Association or Incorporation,
Bylaws, rules and regulations, and other relevant documents if you
are a unit owner in a condominium building; and
    (3) All books of accounts, bills, invoices and other vouchers,
or certified copies pertaining to the damaged property if the
originals are lost.
    2. We may request, in writing, that you furnish us with a
complete inventory of the lost, damaged or destroyed property,
including:
    a. Quantities and costs;
    b. Actual cash values or replacement cost (whichever is
appropriate);
    c. Amounts of loss claimed;
    d. Any written plans and specifications for repair of the
damaged property that you can reasonably make available to us; and
    e. Evidence that prior flood damage has been repaired.
    3. If we give you written notice within 30 days after we receive
your signed, sworn proof of loss, we may:
    a. Repair, rebuild, or replace any part of the lost, damaged, or
destroyed property with material or property of like kind and
quality or its functional equivalent; and
    b. Take all or any part of the damaged property at the value
that we agree upon or its appraised value.

I. No Benefit to Bailee

    No person or organization, other than you, having custody of
insured property will benefit from this insurance.

J. Loss Payment

    1. We will adjust all losses with you. We will pay you unless
some other person or entity is named in the policy or is legally
entitled to receive payment. Loss will be payable 60 days after we
receive your proof of loss (or within 90 days after the insurance
adjuster files the adjuster's report signed and sworn to by you in
lieu of a proof of loss) and:
    a. We reach an agreement with you;
    b. There is an entry of a final judgment; or
    c. There is a filing of an appraisal award with us, as provided
in VII.M.
    2. If we reject your proof of loss in whole or in part you may:
    a. Accept our denial of your claim;
    b. Exercise your rights under this policy; or
    c. File an amended proof of loss as long as it is filed within
60 days of the date of the loss.

K. Abandonment

    You may not abandon to us damaged or undamaged property insured
under this policy.

L. Salvage

    We may permit you to keep damaged property insured under this
policy after a loss, and we will reduce the amount of the loss
proceeds payable to you under the policy by the value of the
salvage.

M. Appraisal

    If you and we fail to agree on the actual cash value or, if
applicable, replacement cost of your damaged property to settle upon
the amount of loss, then either may demand an appraisal of the loss.
In this event, you and we will each choose a competent and impartial
appraiser within 20 days after receiving a written request from the
other. The two appraisers will choose an umpire. If they cannot
agree upon an umpire within 15 days, you or we may request that the
choice be made by a judge of a court of record in the state where
the insured property is

located. The appraisers will separately state the actual cash value,
the replacement cost, and the amount of loss to each item. If the
appraisers submit a written report of an agreement to us, the amount
agreed upon will be the amount of loss. If they fail to agree, they
will submit their differences to the umpire. A decision agreed to by
any two will set the amount of actual cash value and loss, or if it
applies, the replacement cost and loss.
    Each party will:
    1. Pay its own appraiser; and
    2. Bear the other expenses of the appraisal and umpire equally.

N. Mortgage Clause

    1. The word ``mortgagee'' includes trustee.
    2. Any loss payable under Coverage A--Building Property will be
paid to any mortgagee of whom we have actual notice, as well as any
other mortgagee or loss payee determined to exist at the time of
loss, and you, as interests appear. If more than one mortgagee is
named, the order of payment will be the same as the order of
precedence of the mortgages.
    3. If we deny your claim, that denial will not apply to a valid
claim of the mortgagee, if the mortgagee:
    a. Notifies us of any change in the ownership or occupancy, or
substantial change in risk of which the mortgagee is aware;
    b. Pays any premium due under this policy on demand if you have
neglected to pay the premium; and
    c. Submits a signed, sworn proof of loss within 60 days after
receiving notice from us of your failure to do so.
    4. All of the terms of this policy apply to the mortgagee.
    5. The mortgagee has the right to receive loss payment even if
the mortgagee has started foreclosure or similar action on the
building.
    6. If we decide to cancel or not renew this policy, it will
continue in effect for the benefit of the mortgagee only for 30 days
after we notify the mortgagee of the cancellation or non-renewal.
    7. If we pay the mortgagee for any loss and deny payment to you,
we are subrogated to all the rights of the mortgagee granted under
the mortgage on the property. Subrogation will not impair the right
of the mortgagee to recover the full amount of the mortgagee's
claim.

O. Suit Against Us

    You may not sue us to recover money under this policy unless you
have complied with all the requirements of the policy. If you do
sue, you must start the suit within one year after the date of the
written denial of all or part of the claim, and you must file the
suit in the United States District Court of the district in which
the insured property was located at the time of loss. This
requirement applies to any claim that you may have under this policy
and to any dispute that you may have arising out of the handling of
any claim under the policy.

P. Subrogation

    Whenever we make a payment for a loss under this policy, we are
subrogated to your right to recover for that loss from any other
person. That means that your right to recover for a loss that was
partly or totally caused by someone else is automatically
transferred to us, to the extent that we have paid you for the loss.
We may require you to acknowledge this transfer in writing. After
the loss, you may not give up our right to recover this money or do
anything that would prevent us from recovering it. If you make any
claim against any person who caused your loss and recover any money,
you must pay us back first before you may keep any of that money.

Q. Continuous Lake Flooding

    1. If an insured building has been flooded by rising lake waters
continuously for 90 days or more and it appears reasonably certain
that a continuation of this flooding will result in an insured loss
to the insured building equal to or greater than the building policy
limits plus the deductible or the maximum payable under the policy
for any one building loss, we will pay you the lesser of these two
amounts without waiting for the further damage to occur if you sign
a release agreeing:
    a. To make no further claim under this policy;
    b. Not to seek renewal of this policy;
    c. Not to apply for any flood insurance under the Act for
property at the described location;
    d. Not to seek a premium refund for current or prior terms.
    If the policy term ends before the insured building has been
flooded continuously for 90 days, the provisions of this paragraph
Q.1 will apply when the insured building suffers a covered loss
before the policy term ends.
    2. If your insured building is subject to continuous lake
flooding from a closed basin lake, you may elect to file a claim
under either paragraph Q.1 above or Q.2 (A ``closed basin lake'' is
a natural lake from which water leaves primarily through evaporation
and whose surface area now exceeds or has exceeded one square mile
at any time in the recorded past. Most of the nation's closed basin
lakes are in the western half of the United States where annual
evaporation exceeds annual precipitation and where lake levels and
surface areas are subject to considerable fluctuation due to wide
variations in the climate. These lakes may overtop their basins on
rare occasions.) Under this paragraph Q.2, we will pay your claim as
if the building is a total loss even though it has not been
continuously inundated for 90 days, subject to the following
conditions:
    a. Lake floodwaters must damage or imminently threaten to damage
your building.
    b. Before approval of your claim, you must:
    (1) Agree to a claim payment that reflects your buying back the
salvage on a negotiated basis; and
    (2) Grant the conservation easement described in FEMA's ``Policy
Guidance for Closed Basin Lakes'' to be recorded in the office of
the local recorder of deeds. FEMA, in consultation with the
community in which the property is located, will identify on a map
an area or areas of special consideration (ASC) in which there is a
potential for flood damage from continuous lake flooding. FEMA will
give the community the agreed-upon map showing the ASC. This
easement will only apply to that portion of the property in the ASC.
It will allow certain agricultural and recreational uses of the
land. The only structures it will allow on any portion of the
property within the ASC are certain simple agricultural and
recreational structures. If any of these allowable structures are
insurable buildings under the NFIP and are insured under the NFIP,
they will not be eligible for the benefits of this paragraph Q.2. If
a U.S. Army Corps of Engineers certified flood control project or
otherwise certified flood control project later protects the
property, FEMA will, upon request, amend the ASC to remove areas
protected by those projects. The restrictions of the easement will
then no longer apply to any portion of the property removed from the
ASC; and
    (3) Comply with paragraphs Q.1.a through Q.1.d above.
    c. Within 90 days of approval of your claim, you must move your
building to a new location outside the ASC. FEMA will give you an
additional 30 days to move if you show there is sufficient reason to
extend the time.
    d. Before the final payment of your claim, you must acquire an
elevation certificate and a floodplain development permit from the
local floodplain administrator for the new location of your
building.
    e. Before the approval of your claim, the community having
jurisdiction over your building must:
    (1) Adopt a permanent land use ordinance, or a temporary
moratorium for a period not to exceed 6 months to be followed
immediately by a permanent land use ordinance that is consistent
with the provisions specified in the easement required in paragraph
Q.2.b above;
    (2) Agree to declare and report any violations of this ordinance
to FEMA so that under Section 1316 of the National Flood Insurance
Act of 1968, as amended, flood insurance to the building can be
denied; and
    (3) Agree to maintain as deed-restricted, for purposes
compatible with open space or agricultural or recreational use only,
any affected property the community acquires an interest in. These
deed restrictions must be consistent with the provisions of
paragraph Q.2.b above, except that, even if a certified project
protects the property, the land use restrictions continue to apply
if the property was acquired under the Hazard Mitigation Grant
Program or the Flood Mitigation Assistance Program. If a non-profit
land trust organization receives the property as a donation, that
organization must maintain the property as deed-restricted,
consistent with the provisions of paragraph Q2.b above.
    f. Before the approval of your claim, the affected State must
take all action set forth in FEMA's ``Policy Guidance for Closed
Basin Lakes.''
    g. You must have NFIP flood insurance coverage continuously in
effect from a date established by FEMA until you file a claim under
paragraph Q.2. If a subsequent owner buys NFIP insurance that goes
into effect within 60 days of the date of transfer of title,

any gap in coverage during that 60-day period will not be a
violation of this continuous coverage requirement. For the purpose
of honoring a claim under this paragraph Q.2, we will not consider
to be in effect any increased coverage that became effective after
the date established by FEMA. The exception to this is any in-
creased coverage in the amount suggested by your insurer as an
inflation adjustment.
    h. This paragraph Q.2 will be in effect for a community when the
FEMA Regional Administrator for the affected region provides to the
community, in writing, the following:
    (1) Confirmation that the community and the State are in
compliance with the conditions in paragraphs Q.2.e and Q.2.f above;
and
    (2) The date by which you must have flood insurance in effect.

R. Loss Settlement

1. Introduction

    This policy provides three methods of settling losses:
Replacement Cost, Special Loss Settlement, and Actual Cash Value.
Each method is used for a different type of property, as explained
in paragraphs a-c below.
    a. Replacement Cost Loss Settlement, described in R.2 below,
applies to a single-family dwelling provided:
    (1) It is your principal residence; and
    (2) At the time of loss, the amount of insurance in this policy
that applies to the dwelling is 80 percent or more of its full
replacement cost immediately before the loss, or is the maximum
amount of insurance available under the NFIP.
    b. Special Loss Settlement, described in R.3 below, applies to a
single-family dwelling that is a manufactured or mobile home or a
travel trailer.
    c. Actual Cash Value Loss Settlement applies to a single-family
dwelling not subject to replacement cost or special loss settlement,
and to the property listed in R.4 below.

2. Replacement Cost Loss Settlement

    The following loss settlement conditions apply to a single-
family dwelling described in R.1.a above:
    a. We will pay to repair or replace the damaged dwelling after
application of the deductible and without deduction for
depreciation, but not more than the least of the following amounts:
    (1) The building limit of liability shown on your Declarations
Page;
    (2) The replacement cost of that part of the dwelling damaged,
with materials of like kind and quality and for like use; or
    (3) The necessary amount actually spent to repair or replace the
damaged part of the dwelling for like use.
    b. If the dwelling is rebuilt at a new location, the cost
described above is limited to the cost that would have been incurred
if the dwelling had been rebuilt at its former location.
    c. When the full cost of repair or replacement is more than
$1,000, or more than 5 percent of the whole amount of insurance that
applies to the dwelling, we will not be liable for any loss under
R.2.a above or R.4.a.2 below unless and until actual repair or
replacement is completed.
    d. You may disregard the replacement cost conditions above and
make claim under this policy for loss to dwellings on an actual cash
value basis. You may then make claim for any additional liability
according to R.2.a, b, and c above, provided you notify us of your
intent to do so within 180 days after the date of loss.
    e. If the community in which your dwelling is located has been
converted from the Emergency Program to the Regular Program during
the current policy term, then we will consider the maximum amount of
available NFIP insurance to be the amount that was available at the
beginning of the current policy term.

3. Special Loss Settlement

    a. The following loss settlement conditions apply to a single-
family dwelling that:
    (1) is a manufactured or mobile home or a travel trailer, as
defined in II.C.6.b and c;
    (2) is at least 16 feet wide when fully assembled and has an
area of at least 600 square feet within its perimeter walls when
fully assembled; and
    (3) is your principal residence as specified in R.1.a.1 above.
    b. If such a dwelling is totally destroyed or damaged to such an
extent that, in our judgment, it is not economically feasible to
repair, at least to its pre-damage condition, we will, at our
discretion pay the least of the following amounts:
    (1) The lesser of the replacement cost of the dwelling or 1.5
times the actual cash value; or
    (2) The building limit of liability shown on your Declarations
Page.
    c. If such a dwelling is partially damaged and, in our judgment,
it is economically feasible to repair it to its pre-damage
condition, we will settle the loss according to the Replacement Cost
conditions in R.2 above.

4. Actual Cash Value Loss Settlement

    The types of property noted below are subject to actual cash
value (or in the case of R.4.a.2., below, proportional) loss
settlement.
    a. A dwelling, at the time of loss, when the amount of insurance
on the dwelling is both less than 80 percent of its full replacement
cost immediately before the loss and less than the maximum amount of
insurance available under the NFIP. In that case, we will pay the
greater of the following amounts, but not more than the amount of
insurance that applies to that dwelling:
    (1) The actual cash value, as defined in II.C.2, of the damaged
part of the dwelling; or
    (2) A proportion of the cost to repair or replace the damaged
part of the dwelling, without deduction for physical depreciation
and after application of the deductible.
    This proportion is determined as follows: If 80 percent of the
full replacement cost of the dwelling is less than the maximum
amount of insurance available under the NFIP, then the proportion is
determined by dividing the actual amount of insurance on the
dwelling by the amount of insurance that represents 80 percent of
its full replacement cost. But if 80 percent of the full replacement
cost of the dwelling is greater than the maximum amount of insurance
available under the NFIP, then the proportion is determined by
dividing the actual amount of insurance on the dwelling by the
maximum amount of insurance available under the NFIP.
    b. A two-, three-, or four-family dwelling.
    c. A unit that is not used exclusively for single-family
dwelling purposes.
    d. Detached garages.
    e. Personal property.
    f. Appliances, carpets, and carpet pads.
    g. Outdoor awnings, outdoor antennas or aerials of any type, and
other outdoor equipment.
    h. Any property insured under this policy that is abandoned
after a loss and remains as debris anywhere on the described
location.
    i. A dwelling that is not your principal residence.

5. Amount of Insurance Required

    To determine the amount of insurance required for a dwelling
immediately before the loss, we do not include the value of:
    a. Footings, foundations, piers, or any other structures or
devices that are below the undersurface of the lowest basement floor
and support all or part of the dwelling;
    b. Those supports listed in R.5.a above, that are below the
surface of the ground inside the foundation walls if there is no
basement; and
    c. Excavations and underground flues, pipes, wiring, and drains.
    Note: The Coverage D--Increased Cost of Compliance limit of
liability is not included in the determination of the amount of
insurance required.

VIII. Policy Nullification, Cancellation, and Non-Renewal

A. Policy Nullification for Fraud, Misrepresentation, or Making
False Statements

    1. With respect to all insureds under this policy, this policy
is void and has no legal force and effect if at any time, before or
after a loss, you or any other insured or your agent have, with
respect to this policy or any other NFIP insurance:
    a. Concealed or misrepresented any material fact or
circumstance;
    b. Engaged in fraudulent conduct; or
    c. Made false statements.
    2. Policies voided under A.1 cannot be renewed or replaced by a
new NFIP policy.
    3. Policies are void as of the date the acts described in A.1
above were committed.
    4. Fines, civil penalties, and imprisonment under applicable
Federal laws may also apply to the acts of fraud or concealment
described above.

B. Policy Nullification for Reasons Other Than Fraud

    1. This policy is void from its inception, and has no legal
force or effect, if:
    a. The property listed on the application is located in a
community that was not participating in the NFIP on this policy's
inception date and did not join or reenter the program during the
policy term and before the loss occurred;

    b. The property listed on the application is otherwise not
eligible for coverage under the NFIP at the time of the initial
application;
    c. You never had an insurable interest in the property listed on
the application;
    d. You provided an agent with an application and payment, but
the payment did not clear; or
    e. We receive notice from you, prior to the policy effective
date, that you have determined not to take the policy and you are
not subject to a requirement to obtain and maintain flood insurance
pursuant to any statute, regulation, or contract.
    2. In such cases, you will be entitled to a full refund of all
premium, fees, and surcharges received. However, if a claim was paid
for a policy that is void, the claim payment must be returned to
FEMA or offset from the premiums to be refunded before the refund
will be processed.

C. Cancellation of the Policy by You

    1. You may cancel this policy in accordance with the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.
    2. If you cancel this policy, you may be entitled to a full or
partial refund of premium, surcharges, or fees under the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.

D. Cancellation of the Policy by Us

    1. Cancellation for Underpayment of Amounts Owed on Policy. This
policy will be cancelled, pursuant to VII.D.2, if it is determined
that the premium amount you paid is not sufficient to buy any amount
of coverage, and you do not pay the additional amount of premium
owed to increase the coverage to the originally requested amount
within the required time period.
    2. Cancellation Due to Lack of an Insurable Interest.
    a. If you no longer have an insurable interest in the insured
property, we will cancel this policy. You will cease to have an
insurable interest if:
    (1) For building coverage, the building was sold, destroyed, or
removed.
    (2) For contents coverage, the contents were sold or transferred
ownership, or the contents were completely removed from the
described location.
    b. If your policy is cancelled for this reason, you may be
entitled to a partial refund of premium under the applicable rules
and regulations of the NFIP.
    3. Cancellation of Duplicate Policies
    a. Except as allowed under Article I.G, your property may not be
insured by more than one NFIP policy, and payment for damages to
your property will only be made under one policy.
    b. Except as allowed under Article I.G, if the property is
insured by more than one NFIP policy, we will cancel all but one of
the policies. The policy, or policies, will be selected for
cancellation in accordance with 44 CFR 62.5 and the applicable rules
and guidance of the NFIP.
    c. If this policy is cancelled pursuant to VIII.D.4.b, you may
be entitled to a full or partial refund of premium, surcharges, or
fees under the terms and conditions of this policy and the
applicable rules and regulations of the NFIP.
    4. Cancellation Due to Physical Alteration of Property
    a. If the insured building has been physically altered in such a
manner that it is no longer eligible for flood insurance coverage,
we will cancel this policy.
    b. If your policy is cancelled for this reason, you may be
entitled to a partial refund of premium under the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.

E. Non-Renewal of the Policy by Us

    Your policy will not be renewed if:
    1. The community where your insured property is located is
suspended or stops participating in the NFIP;
    2. Your building is otherwise ineligible for flood insurance
under the Act;
    3. You have failed to provide the information we requested for
the purpose of rating the policy within the required deadline.

IX. Liberalization Clause

    If we make a change that broadens your coverage under this
edition of our policy, but does not require any additional premium,
then that change will automatically apply to your insurance as of
the date we implement the change, provided that this implementation
date falls within 60 days before or during the policy term stated on
the Declarations Page.

X. What Law Governs

    This policy and all disputes arising from the insurer's policy
issuance, policy administration, or the handling of any claim under
the policy are governed exclusively by the flood insurance
regulations issued by FEMA, the National Flood Insurance Act of
1968, as amended (42 U.S.C. 4001, et seq.), and Federal common law.
    In Witness Whereof, we have signed this policy below and hereby
enter into this Insurance Agreement.

Administrator, Federal Insurance and Mitigation Administration

0
14. Revise Appendix A(2) to Part 61 to read as follows:

Appendix A(2) to Part 61

    Federal Emergency Management Agency, Federal Insurance and
Mitigation Administration

Standard Flood Insurance Policy

General Property Form

    Please read the policy carefully. The flood insurance provided
is subject to limitations, restrictions, and exclusions.

I. Agreement

    A. Coverage Under This Policy
    1. Except as provided in I.A.2, this policy provides coverage
for multifamily buildings (residential buildings designed for use by
5 or more families that are not condominium buildings), non-
residential buildings, and their contents.
    2. There is no coverage for a residential condominium building
in a regular program community, except for personal property
coverage for a unit in a condominium building.
    B. The Federal Emergency Management Agency (FEMA) provides flood
insurance under the terms of the National Flood Insurance Act of
1968 and its amendments, and Title 44 of the Code of Federal
Regulations.
    C. We will pay you for direct physical loss by or from flood to
your insured property if you:
    1. Have paid the full amount due (including applicable premiums,
surcharges, and fees);
    2. Comply with all terms and conditions of this policy; and
    3. Have furnished accurate information and statements.
    D. We have the right to review the information you give us at
any time and revise your policy based on our review.
    E. This policy insures only one building. If you own more than
one building, coverage will apply to the single building
specifically described in the Flood Insurance Application.
    F. Multiple policies with building coverage cannot be issued to
insure a single building to one insured or to different insureds,
even if issued through different NFIP insurers. Payment for damages
may only be made under a single policy for building damages under
Coverage A--Building Property.

II. Definitions

    A. In this policy, ``you'' and ``your'' refer to the named
insured(s) shown on the Declarations Page of this policy. Insured(s)
also includes: Any mortgagee and loss payee named in the Application
and Declarations Page, as well as any other mortgagee or loss payee
determined to exist at the time of loss, in the order of precedence.
``We,'' ``us,'' and ``our'' refer to the insurer.
    Some definitions are complex because they are provided as they
appear in the law or regulations, or result from court cases.
    B. Flood, as used in this flood insurance policy, means:
    1. A general and temporary condition of partial or complete
inundation of two or more acres of normally dry land area or of two
or more properties (one of which is your property) from:
    a. Overflow of inland or tidal waters;
    b. Unusual and rapid accumulation or runoff of surface waters
from any source;
    c. Mudflow.
    2. Collapse or subsidence of land along the shore of a lake or
similar body of water as a result of erosion or undermining caused
by waves or currents of water exceeding anticipated cyclical levels
that result in a flood as defined in B.1.a above.
    C. The following are the other key definitions we use in this
policy:
    1. Act. The National Flood Insurance Act of 1968 and any
amendments to it.
    2. Actual Cash Value. The cost to replace an insured item of
property at the time of loss, less the value of its physical
depreciation.
    3. Application. The statement made and signed by you or your
agent in applying for this policy. The application gives information
we use to determine the

eligibility of the risk, the kind of policy to be issued, and the
correct premium payment. The application is part of this flood
insurance policy.
    4. Base Flood. A flood having a one percent chance of being
equaled or exceeded in any given year.
    5. Basement. Any area of a building, including any sunken room
or sunken portion of a room, having its floor below ground level on
all sides.
    6. Building
    a. A structure with two or more outside rigid walls and a fully
secured roof that is affixed to a permanent site;
    b. A manufactured home, also known as a mobile home, is a
structure built on a permanent chassis, transported to its site in
one or more sections, and affixed to a permanent foundation; or
    c. A travel trailer without wheels, built on a chassis and
affixed to a permanent foundation, that is regulated under the
community's floodplain management and building ordinances or laws.
    Building does not mean a gas or liquid storage tank, shipping
container, or a recreational vehicle, park trailer, or other similar
vehicle, except as described in C.6.c above.
    7. Cancellation. The ending of the insurance coverage provided
by this policy before the expiration date.
    8. Condominium. That form of ownership of one or more buildings
in which each unit owner has an undivided interest in common
elements.
    9. Condominium Association. The entity made up of the unit
owners responsible for the maintenance and operation of:
    a. Common elements owned in undivided shares by unit owners; and
    b. Other buildings in which the unit owners have use rights
where membership in the entity is a required condition of unit
ownership.
    10. Condominium Building. A type of building for which the form
of ownership is one in which each unit owner has an undivided
interest in common elements of the building.
    11. Declarations Page. A computer-generated summary of
information you provided in your application for insurance. The
Declarations Page also describes the term of the policy, limits of
coverage, and displays the premium and our name. The Declarations
Page is a part of this flood insurance policy.
    12. Deductible. The fixed amount of an insured loss that is your
responsibility and that is incurred by you before any amounts are
paid for the insured loss under this policy.
    13. Described Location. The location where the insured
building(s) or personal property are found. The described location
is shown on the Declarations Page.
    14. Direct Physical Loss By or From Flood. Loss or damage to
insured property, directly caused by a flood. There must be evidence
of physical changes to the property.
    15. Elevated Building. A building that has no basement and that
has its lowest elevated floor raised above ground level by
foundation walls, shear walls, posts, piers, pilings, or columns.
    16. Emergency Program. The initial phase of a community's
participation in the National Flood Insurance Program. During this
phase, only limited amounts of insurance are available under the Act
and the regulations prescribed pursuant to the Act.
    17. Federal Policy Fee. A flat rate charge you must pay on each
new or renewal policy to defray certain administrative expenses
incurred in carrying out the National Flood Insurance Program.
    18. Improvements. Fixtures, alterations, installations, or
additions comprising a part of the dwelling or apartment in which
you reside.
    19. Mudflow. A river of liquid and flowing mud on the surface of
normally dry land areas, as when earth is carried by a current of
water. Other earth movements, such as landslide, slope failure, or a
saturated soil mass moving by liquidity down a slope, are not
mudflows.
    20. National Flood Insurance Program (NFIP). The program of
flood insurance coverage and floodplain management administered
under the Act and applicable Federal regulations in Title 44 of the
Code of Federal Regulations, Subchapter B.
    21. Policy. The entire written contract between you and us. It
includes:
    a. This printed form;
    b. The application and Declarations Page;
    c. Any endorsement(s) that may be issued; and
    d. Any renewal certificate indicating that coverage has been
instituted for a new policy and new policy term. Only one building,
which you specifically described in the application, may be insured
under this policy.
    22. Pollutants. Substances that include, but are not limited to,
any solid, liquid, gaseous, or thermal irritant or contaminant,
including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and
waste. ``Waste'' includes, but is not limited to, materials to be
recycled, reconditioned, or reclaimed.
    23. Post-FIRM Building. A building for which construction or
substantial improvement occurred after December 31, 1974, or on or
after the effective date of an initial Flood Insurance Rate Map
(FIRM), whichever is later.
    24. Probation Surcharge. A flat charge you must pay on each new
or renewal policy issued covering property in a community the NFIP
has placed on probation under the provisions of 44 CFR 59.24.
    25. Regular Program. The final phase of a community's
participation in the National Flood Insurance Program. In this
phase, a Flood Insurance Rate Map is in effect and full limits of
coverage are available under the Act and the regulations prescribed
pursuant to the Act.
    26. Residential Condominium Building. A condominium building,
containing one or more family units and in which at least 75 percent
of the floor area is residential.
    27. Special Flood Hazard Area (SFHA). An area having special
flood or mudflow, and/or flood-related erosion hazards, and shown on
a Flood Hazard Boundary Map or Flood Insurance Rate Map as Zone A,
AO, A1-A30, AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30,
V1-V30, VE, or V.
    28. Stock means merchandise held in storage or for sale, raw
materials, and in-process or finished goods, including supplies used
in their packing or shipping. Stock does not include any property
not insured under Section IV. Property Not Insured, except the
following:
    a. Parts and equipment for self-propelled vehicles;
    b. Furnishings and equipment for watercraft;
    c. Spas and hot-tubs, including their equipment; and
    d. Swimming pool equipment.
    29. Unit. A single-family residential or non-residential space
you own in a condominium building.
    30. Valued Policy. A policy in which the insured and the insurer
agree on the value of the property insured, that value being payable
in the event of a total loss. The Standard Flood Insurance Policy is
not a valued policy.

III. Property Insured

A. Coverage A--Building Property

    We insure against direct physical loss by or from flood to:
    1. The building described on the Declarations Page at the
described location. If the building is a condominium building and
the named insured is the condominium association, Coverage A
includes all units within the building and the improvements within
the units, provided the units are owned in common by all unit
owners.
    2. Building property located at another location for a period of
45 days at another location, as set forth in III.C.2.b, Property
Removed to Safety.
    3. Additions and extensions attached to and in contact with the
building by means of a rigid exterior wall, a solid load-bearing
interior wall, a stairway, an elevated walkway, or a roof. At your
option, additions and extensions connected by any of these methods
may be separately insured. Additions and extensions attached to and
in contact with the building by means of a common interior wall that
is not a solid load-bearing wall are always considered part of the
building and cannot be separately insured.
    4. The following fixtures, machinery, and equipment, which are
insured under Coverage A only:
    a. Awnings and canopies;
    b. Blinds;
    c. Carpet permanently installed over unfinished flooring;
    d. Central air conditioners;
    e. Elevator equipment;
    f. Fire extinguishing apparatus;
    g. Fire sprinkler systems;
    h. Walk-in freezers;
    i. Furnaces;
    j. Light fixtures;
    k. Outdoor antennas and aerials attached to buildings;
    l. Permanently installed cupboards, bookcases, paneling, and
wallpaper;
    m. Pumps and machinery for operating pumps;
    n. Ventilating equipment;
    o. Wall mirrors, permanently installed; and
    p. In the units within the building, installed:

    (1) Built-in dishwashers;
    (2) Built-in microwave ovens;
    (3) Garbage disposal units;
    (4) Hot water heaters, including solar water heaters;
    (5) Kitchen cabinets;
    (6) Plumbing fixtures;
    (7) Radiators;
    (8) Ranges;
    (9) Refrigerators; and
    (10) Stoves.
    5. Materials and supplies to be used for construction,
alteration, or repair of the insured building while the materials
and supplies are stored in a fully enclosed building at the
described location or on an adjacent property.
    6. A building under construction, alteration, or repair at the
described location.
    a. If the structure is not yet walled or roofed as described in
the definition for building (see II.B.6.a.) then coverage applies:
    (1) Only while such work is in progress; or
    (2) If such work is halted, only for a period of up to 90
continuous days thereafter.
    b. However, coverage does not apply until the building is walled
and roofed if the lowest floor, including the basement floor, of a
non-elevated building or the lowest elevated floor of an elevated
building is:
    (1) Below the base flood elevation in Zones AH, AE, A1-A30, AR,
AR/AE, AR/AH, AR/A1-A30, AR/A, AR/AO; or
    (2) Below the base flood elevation adjusted to include the
effect of wave action in Zones VE or V1-V30.
    The lowest floor level is based on the bottom of the lowest
horizontal structural member of the floor in Zones VE or V1-V30 or
the top of the floor in Zones AH, AE, A1-A30, AR, AR/AE, AR/AH, AR/
A1-A30, AR/A, and AR/AO.
    7. A manufactured home or a travel trailer, as described in the
II.C.6. If the manufactured home or travel trailer is in a special
flood hazard area, it must be anchored in the following manner at
the time of the loss:
    a. By over-the-top or frame ties to ground anchors; or
    b. In accordance with the manufacturer's specifications; or
    c. In compliance with the community's floodplain management
requirements unless it has been continuously insured by the NFIP at
the same described location since September 30, 1982.
    8. Items of property below the lowest elevated floor of an
elevated post-FIRM building located in zones A1-A30, AE, AH, AR, AR/
A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in a basement
regardless of the zone. Coverage is limited to the following:
    a. Any of the following items, if installed in their functioning
locations and, if necessary for operation, connected to a power
source:
    (1) Central air conditioners;
    (2) Cisterns and the water in them;
    (3) Drywall for walls and ceilings in a basement and the cost of
labor to nail it, unfinished and unfloated and not taped, to the
framing;
    (4) Electrical junction and circuit breaker boxes;
    (5) Electrical outlets and switches;
    (6) Elevators, dumbwaiters, and related equipment, except for
related equipment installed below the base flood elevation after
September 30, 1987;
    (7) Fuel tanks and the fuel in them;
    (8) Furnaces and hot water heaters;
    (9) Heat pumps;
    (10) Nonflammable insulation in a basement;
    (11) Pumps and tanks used in solar energy systems;
    (12) Stairways and staircases attached to the building, not
separated from it by elevated walkways;
    (13) Sump pumps;
    (14) Water softeners and the chemicals in them, water filters,
and faucets installed as an integral part of the plumbing system;
    (15) Well water tanks and pumps;
    (16) Required utility connections for any item in this list; and
    (17) Footings, foundations, posts, pilings, piers, or other
foundation walls and anchorage systems required to support a
building.
    b. Clean-up.

B. Coverage B--Personal Property

    1. If you have purchased personal property coverage, we insure,
subject to B.2-4 below, against direct physical loss by or from
flood to personal property inside the fully enclosed insured
building:
    a. Owned solely by you, or in the case of a condominium, owned
solely by the condominium association and used exclusively in the
conduct of the business affairs of the condominium association; or
    b. Owned in common by the unit owners of the condominium
association.
    2. We also insure such personal property for 45 days while
stored at a temporary location, as set forth in III.C.2.b, Property
Removed to Safety.
    3. When this policy insures personal property, coverage will be
either for household personal property or other than household
personal property, while within the insured building, but not both.
    a. If this policy insures household personal property, it will
insure household personal property usual to a living quarters, that:
    (1) Belongs to you, or a member of your household, or at your
option:
    (a) Your domestic worker;
    (b) Your guest; or
    (2) You may be legally liable for.
    b. If this policy insures other than household personal
property, it will insure your:
    (1) Furniture and fixtures;
    (2) Machinery and equipment;
    (3) Stock; and
    (4) Other personal property owned by you and used in your
business, subject to IV, Property Not Insured.
    4. Coverage for personal property includes the following
property, subject to B.1.a and B.1.b above, which is insured under
Coverage B, only:
    a. Air conditioning units, portable or window type;
    b. Carpets, not permanently installed, over unfinished flooring;
    c. Carpets over finished flooring;
    d. Clothes washers and dryers;
    e. ``Cook-out'' grills;
    f. Food freezers, other than walk-in, and food in any freezer;
    g. Outdoor equipment and furniture stored inside the insured
building;
    h. Ovens and the like; and
    i. Portable microwave ovens and portable dishwashers.
    5. Coverage for items of property below the lowest elevated
floor of an elevated post-FIRM building located in Zones A1-A30, AE,
AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in a
basement regardless of the zone, is limited to the following items,
if installed in their functioning locations and, if necessary for
operation, connected to a power source:
    a. Air conditioning units, portable or window type;
    b. Clothes washers and dryers; and
    c. Food freezers, other than walk-in, and food in any freezer.
    6. Special Limits. We will pay no more than $2,500 for any loss
to one or more of the following kinds of personal property:
    a. Artwork, photographs, collectibles, or memorabilia, including
but not limited to, porcelain or other figures, and sports cards.
    b. Rare books or autographed items.
    c. Jewelry, watches, precious and semi-precious stones, or
articles of gold, silver, or platinum.
    d. Furs or any article containing fur that represents its
principal value.
    7. We will pay only for the functional value of antiques.
    8. If you are a tenant, you may apply up to 10 percent of the
Coverage B limit to improvements:
    a. Made a part of the building you occupy; and
    b. You acquired, or made at your expense, even though you cannot
legally remove.
    This coverage does not increase the amount of insurance that
applies to insured personal property.
    9. If you are a condominium unit owner, you may apply up to 10
percent of the Coverage B limit to cover loss to interior:
    a. walls,
    b. floors, and
    c. ceilings,

that are not insured under a policy issued to the condominium
association insuring the condominium building.
    This coverage does not increase the amount of insurance that
applies to insured personal property.
    10. If you are a tenant, personal property must be inside the
fully enclosed building.

C. Coverage C--Other Coverages

1. Debris Removal

    a. We will pay the expense to remove non-owned debris that is on
or in insured property and debris of insured property anywhere.
    b. If you or a member of your household perform the removal
work, the value of your work will be based on the Federal minimum
wage.
    c. This coverage does not increase the Coverage A or Coverage B
limit of liability.

2. Loss Avoidance Measures

    a. Sandbags, Supplies, and Labor
    (1) We will pay up to $1,000 for costs you incur to protect the
insured building from a flood or imminent danger of flood, for the
following:

    (a) Your reasonable expenses to buy:
    (i) Sandbags, including sand to fill them;
    (ii) Fill for temporary levees;
    (iii) Pumps; and
    (iv) Plastic sheeting and lumber used in connection with these
items.
    (b) The value of work, at the Federal minimum wage, that you
perform.
    (2) This coverage for Sandbags, Supplies, and Labor only applies
if damage to insured property by or from flood is imminent and the
threat of flood damage is apparent enough to lead a person of common
prudence to anticipate flood damage. One of the following must also
occur:
    (a) A general and temporary condition of flooding in the area
near the described location must occur, even if the flood does not
reach the building; or
    (b) A legally authorized official must issue an evacuation order
or other civil order for the community in which the building is
located calling for measures to preserve life and property from the
peril of flood.
    This coverage does not increase the Coverage A or Coverage B
limit of liability.
    b. Property Removed to Safety
    (1) We will pay up to $1,000 for the reasonable expenses you
incur to move insured property to a place other than the described
location that contains the property in order to protect it from
flood or the imminent danger of flood. Reasonable expenses include
the value of work, at the Federal minimum wage, you or a member of
your household perform.
    (2) If you move insured property to a location other than the
described location that contains the property in order to protect it
from flood or the imminent danger of flood, we will cover such
property while at that location for a period of 45 consecutive days
from the date you begin to move it there. The personal property that
is moved must be placed in a fully enclosed building or otherwise
reasonably protected from the elements.
    (3) Any property removed, including a moveable home described in
II.6, must be placed above ground level or outside of the special
flood hazard area.
    (4) This coverage does not increase the Coverage A or Coverage B
limit of liability.

3. Pollution Damage

    We will pay for damage caused by pollutants to insured property
if the discharge, seepage, migration, release, or escape of the
pollutants is caused by or results from flood. The most we will pay
under this coverage is $10,000. This coverage does not increase the
Coverage A or Coverage B limits of liability. Any payment under this
provision when combined with all other payments for the same loss
cannot exceed the replacement cost or actual cash value, as
appropriate, of the insured property. This coverage does not include
the testing for or monitoring of pollutants unless required by law
or ordinance.

D. Coverage D--Increased Cost of Compliance

1. General

    This policy pays you to comply with a State or local floodplain
management law or ordinance affecting repair or reconstruction of a
building suffering flood damage. Compliance activities eligible for
payment are: elevation, floodproofing, relocation, or demolition (or
any combination of these activities) of your building. Eligible
floodproofing activities are limited to:
    a. Non-residential buildings.
    b. Residential buildings with basements that satisfy FEMA's
standards published in the Code of Federal Regulations [44 CFR
60.6(b) or (c)].

2. Limits of Liability

    We will pay you up to $30,000 under this Coverage D (Increased
Cost of Compliance), which only applies to policies with building
coverage (Coverage A). Our payment of claims under Coverage D is in
addition to the amount of coverage which you selected on the
application and which appears on the Declarations Page. However, the
maximum you can collect under this policy for both Coverage A
(Building Property) and Coverage D (Increased Cost of Compliance)
cannot exceed the maximum permitted under the Act. We do NOT charge
a separate deductible for a claim under Coverage D.

3. Eligibility

    a. A building insured under Coverage A (Building Property)
sustaining a loss caused by a flood as defined by this policy must:
    (1) Be a ``repetitive loss building.'' A repetitive loss
building is one that meets the following conditions:
    (a) The building is insured by a contract of flood insurance
issued under the NFIP.
    (b) The building has suffered flood damage on two occasions
during a 10-year period which ends on the date of the second loss.
    (c) The cost to repair the flood damage, on average, equaled or
exceeded 25 percent of the market value of the building at the time
of each flood loss.
    (d) In addition to the current claim, the NFIP must have paid
the previous qualifying claim, and the State or community must have
a cumulative, substantial damage provision or repetitive loss
provision in its floodplain management law or ordinance being
enforced against the building; or
    (2) Be a building that has had flood damage in which the cost to
repair equals or exceeds 50 percent of the market value of the
building at the time of the flood. The State or community must have
a substantial damage provision in its floodplain management law or
ordinance being enforced against the building.
    b. This Coverage D pays you to comply with State or local
floodplain management laws or ordinances that meet the minimum
standards of the National Flood Insurance Program found in the Code
of Federal Regulations at 44 CFR 60.3. We pay for compliance
activities that exceed those standards under these conditions:
    (1) 3.a.1 above.
    (2) Elevation or floodproofing in any risk zone to preliminary
or advisory base flood elevations provided by FEMA which the State
or local government has adopted and is enforcing for flood-damaged
buildings in such areas. (This includes compliance activities in B,
C, X, or D zones which are being changed to zones with base flood
elevations. This also includes compliance activities in zones where
base flood elevations are being increased, and a flood-damaged
building must comply with the higher advisory base flood elevation.)
Increased Cost of Compliance coverage does not apply to situations
in B, C, X, or D zones where the community has derived its own
elevations and is enforcing elevation or floodproofing requirements
for flood-damaged buildings to elevations derived solely by the
community.
    (3) Elevation or floodproofing above the base flood elevation to
meet State or local ``free-board'' requirements, i.e., that a
building must be elevated above the base flood elevation.
    c. Under the minimum NFIP criteria at 44 CFR 60.3(b)(4), States
and communities must require the elevation or floodproofing of
buildings in unnumbered A zones to the base flood elevation where
elevation data is obtained from a Federal, State, or other source.
Such compliance activities are also eligible for Coverage D.
    d. This coverage will pay for the incremental cost, after
demolition or relocation, of elevating or floodproofing a building
during its rebuilding at the same or another site to meet State or
local floodplain management laws or ordinances, subject to the
exclusion at III.D.5.g.
    e. This coverage will pay to bring a flood-damaged building into
compliance with State or local floodplain management laws or
ordinances even if the building had received a variance before the
present loss from the applicable floodplain management requirements.

4. Conditions

    a. When a building insured under Coverage A--Building Property
sustains a loss caused by a flood, our payment for the loss under
this Coverage D will be for the increased cost to elevate,
floodproof, relocate, or demolish (or any combination of these
activities) caused by the enforcement of current State or local
floodplain management ordinances or laws. Our payment for eligible
demolition activities will be for the cost to demolish and clear the
site of the building debris or a portion thereof caused by the
enforcement of current State or local floodplain management
ordinances or laws. Eligible activities for the cost of clearing the
site will include those necessary to discontinue utility service to
the site and ensure proper abandonment of on-site utilities.
    b. When the building is repaired or rebuilt, it must be intended
for the same occupancy as the present building unless otherwise
required by current floodplain management ordinances or laws.

5. Exclusions

    Under this Coverage D (Increased Cost of Compliance), we will
not pay for:
    a. The cost to comply with any floodplain management law or
ordinance in communities participating in the Emergency Program.
    b. The cost associated with enforcement of any ordinance or law
that requires any insured or others to test for, monitor, clean up,
remove, contain, treat, detoxify or neutralize, or in any way
respond to, or assess the effects of pollutants.

    c. The loss in value to any insured building due to the
requirements of any ordinance or law.
    d. The loss in residual value of the undamaged portion of a
building demolished as a consequence of enforcement of any State or
local floodplain management law or ordinance.
    e. Any Increased Cost of Compliance under this Coverage D:
    (1) Until the building is elevated, floodproofed, demolished, or
relocated on the same or to another premises; and
    (2) Unless the building is elevated, floodproofed, demolished,
or relocated as soon as reasonably possible after the loss, not to
exceed two years.
    f. Any code upgrade requirements, e.g., plumbing or electrical
wiring, not specifically related to the State or local floodplain
management law or ordinance.
    g. Any compliance activities needed to bring additions or
improvements made after the loss occurred into compliance with State
or local floodplain management laws or ordinances.
    h. Loss due to any ordinance or law that you were required to
comply with before the current loss.
    i. Any rebuilding activity to standards that do not meet the
NFIP's minimum requirements. This includes any situation where the
insured has received from the State or community a variance in
connection with the current flood loss to rebuild the property to an
elevation below the base flood elevation.
    j. Increased Cost of Compliance for a garage or carport.
    k. Any building insured under an NFIP Group Flood Insurance
Policy.
    l. Assessments made by a condominium association on individual
condominium unit owners to pay increased costs of repairing commonly
owned buildings after a flood in compliance with State or local
floodplain management ordinances or laws.

6. Other Provisions

    All other conditions and provisions of the policy apply.

IV. Property Not Insured

    We do not insure any of the following property:
    1. Personal property not inside the fully enclosed building.
    2. A building, and personal property in it, located entirely in,
on, or over water or seaward of mean high tide if it was constructed
or substantially improved after September 30, 1982.
    3. Open structures, including a building used as a boathouse or
any structure or building into which boats are floated, and personal
property located in, on, or over water.
    4. Recreational vehicles other than travel trailers described in
the II.C.6.c, whether affixed to a permanent foundation or on
wheels.
    5. Self-propelled vehicles or machines, including their parts
and equipment. However, we do cover self-propelled vehicles or
machines not licensed for use on public roads and are:
    a. Used mainly to service the described location; or
    b. Designed and used to assist handicapped persons, while the
vehicles or machines are inside a building at the described
location.
    6. Land, land values, lawns, trees, shrubs, plants, growing
crops, or animals.
    7. Accounts, bills, coins, currency, deeds, evidences of debt,
medals, money, scrip, stored value cards, postage stamps,
securities, bullion, manuscripts, or other valuable papers.
    8. Underground structures and equipment, including wells, septic
tanks, and septic systems.
    9. Those portions of walks, walkways, decks, driveways, patios,
and other surfaces, all whether protected by a roof or not, located
outside the perimeter, exterior walls of the insured building.
    10. Containers, including related equipment, such as, but not
limited to, tanks containing gases or liquids.
    11. Buildings or units and all their contents if more than 49
percent of the actual cash value of the building is below ground,
unless the lowest level is at or above the base flood elevation and
is below ground by reason of earth having been used as insulation
material in conjunction with energy efficient building techniques.
    12. Fences, retaining walls, seawalls, bulkheads, wharves,
piers, bridges, and docks.
    13. Aircraft or watercraft, or their furnishings and equipment.
    14. Hot tubs and spas that are not bathroom fixtures, and
swimming pools, and their equipment, such as, but not limited to,
heaters, filters, pumps, and pipes, wherever located.
    15. Property not eligible for flood insurance pursuant to the
provisions of the Coastal Barrier Resources Act and the Coastal
Barrier Improvement Act and amendments to these Acts.
    16. Personal property owned by or in the care, custody or
control of a unit owner, except for property of the type and under
the circumstances set forth under III. Coverage B--Personal Property
of this policy.
    17. A residential condominium building located in a Regular
Program community.

V. Exclusions

    A. We only pay for ``direct physical loss by or from flood,''
which means that we do not pay you for:
    1. Loss of revenue or profits;
    2. Loss of access to the insured property or described location;
    3. Loss of use of the insured property or described location;
    4. Loss from interruption of business or production;
    5. Any additional living expenses incurred while the insured
building is being repaired or is unable to be occupied for any
reason;
    6. The cost of complying with any ordinance or law requiring or
regulating the construction, demolition, remodeling, renovation, or
repair of property, including removal of any resulting debris. This
exclusion does not apply to any eligible activities we describe in
Coverage D--Increased Cost of Compliance; or
    7. Any other economic loss you suffer.
    B. Flood in Progress. If this policy became effective as of the
time of a loan closing, as provided by 44 CFR 61.11(b), we will not
pay for a loss caused by a flood that is a continuation of a flood
that existed prior to coverage becoming effective. In all other
circumstances, we will not pay for a loss caused by a flood that is
a continuation of a flood that existed on or before the day you
submitted the application for coverage under this policy and the
correct premium. We will determine the date of application using 44
CFR 611.11(f).
    C. We do not insure for loss to property caused directly by
earth movement even if the earth movement is caused by flood. Some
examples of earth movement that we do not cover are:
    1. Earthquake;
    2. Landslide;
    3. Land subsidence;
    4. Sinkholes;
    5. Destabilization or movement of land that results from
accumulation of water in subsurface land areas; or
    6. Gradual erosion.
    We do, however, pay for losses from mudflow and land subsidence
as a result of erosion that are specifically insured under our
definition of flood (see II.B.1.c and II.B.2).
    D. We do not insure for direct physical loss caused directly or
indirectly by:
    1. The pressure or weight of ice;
    2. Freezing or thawing;
    3. Rain, snow, sleet, hail, or water spray;
    4. Water, moisture, mildew, or mold damage that results
primarily from any condition:
    a. Substantially confined to the insured building; or
    b. That is within your control including, but not limited to:
    (1) Design, structural, or mechanical defects;
    (2) Failures, stoppages, or breakage of water or sewer lines,
drains, pumps, fixtures, or equipment; or
    (3) Failure to inspect and maintain the property after a flood
recedes;
    5. Water or water-borne material that:
    a. Backs up through sewers or drains;
    b. Discharges or overflows from a sump, sump pump, or related
equipment; or
    c. Seeps or leaks on or through the insured property;
    unless there is a flood in the area and the flood is the
proximate cause of the sewer or drain backup, sump pump discharge or
overflow, or the seepage of water;
    6. The pressure or weight of water unless there is a flood in
the area and the flood is the proximate cause of the damage from the
pressure or weight of water;
    7. Power, heating, or cooling failure unless the failure results
from direct physical loss by or from flood to power, heating, or
cooling equipment on the described location;
    8. Theft, fire, explosion, wind, or windstorm;
    9. Anything you or any member of your household do or conspires
to do to deliberately cause loss by flood; or
    10. Alteration of the insured property that significantly
increases the risk of flooding.

    E. We do not insure for loss to any building or personal
property located on land leased from the Federal Government, arising
from or incident to the flooding of the land by the Federal
Government, where the lease expressly holds the Federal Government
harmless under flood insurance issued under any Federal Government
program.

VI. Deductibles

    A. When a loss is insured under this policy, we will pay only
that part of the loss that exceeds your deductible amount, subject
to the limit of liability that applies. The deductible amount is
shown on the Declarations Page.
    However, when a building under construction, alteration, or
repair does not have at least two rigid exterior walls and a fully
secured roof at the time of loss, your deductible amount will be two
times the deductible that would otherwise apply to a completed
building.
    B. In each loss from flood, separate deductibles apply to the
building and personal property insured by this policy.
    C. The deductible does NOT apply to:
    1. III.C.2. Loss Avoidance Measures; or
    2. III.D. Increased Cost of Compliance.

VII. General Conditions

A. Pair and Set Clause

    In case of loss to an article that is part of a pair or set, we
will have the option of paying you:
    1. An amount equal to the cost of replacing the lost, damaged,
or destroyed article, minus its depreciation; or
    2. The amount that represents the fair proportion of the total
value of the pair or set that the lost, damaged, or destroyed
article bears to the pair or set.

B. Other Insurance

    1. If a loss insured by this policy is also insured by other
insurance that includes flood coverage not issued under the Act, we
will not pay more than the amount of insurance that you are entitled
to for lost, damaged, or destroyed property insured under this
policy subject to the following:
    a. We will pay only the proportion of the loss that the amount
of insurance that applies under this policy bears to the total
amount of insurance covering the loss, unless VII.B.1.b or c below
applies.
    b. If the other policy has a provision stating that it is excess
insurance, this policy will be primary.
    c. This policy will be primary (but subject to its own
deductible) up to the deductible in the other flood policy (except
another policy as described in VII.B.1.b above). When the other
deductible amount is reached, this policy will participate in the
same proportion that the amount of insurance under this policy bears
to the total amount of both policies, for the remainder of the loss.
    2. Where this policy insures a condominium association and there
is a National Flood Insurance Program flood insurance policy in the
name of a unit owner that insures the same loss as this policy, then
this policy will be primary.

C. Amendments, Waivers, Assignment

    This policy cannot be changed, nor can any of its provisions be
waived, without the express written consent of the Federal Insurance
Administrator. No action that we take under the terms of this policy
can constitute a waiver of any of our rights. You may assign this
policy in writing when you transfer title of your property to
someone else except under these conditions:
    1. When this policy insures only personal property; or
    2. When this policy insures a building under construction.

D. Insufficient Premium or Rating Information

    1. Applicability. The following provisions apply to all
instances where the premium paid on this policy is insufficient or
where the rating information is insufficient, such as where an
Elevation Certificate is not provided.
    2. Reforming the Policy with Reduced Coverage. Except as
otherwise provided in VII.D.1 and VII.D.4, if the premium we
received from you was not sufficient to buy the kinds and amounts of
coverage you requested, we will provide only the kinds and amounts
of coverage that can be purchased for the premium payment we
received.
    a. For the purpose of determining whether your premium payment
is sufficient to buy the kinds and amounts of coverage you
requested, we will first deduct the costs of all applicable fees and
surcharges.
    b. If the amount paid, after deducting the costs of all
applicable fees and surcharges, is not sufficient to buy any amount
of coverage, your payment will be refunded. Unless the policy is
reformed to increase the coverage amount to the amount originally
requested pursuant to VII.D.3, this policy will be cancelled, and no
claims will be paid under this policy.
    c. Coverage limits on the reformed policy will be based upon the
amount of premium submitted per type of coverage, but will not
exceed the amount originally requested.
    3. Discovery of Insufficient Premium or Rating Information. If
we discover that your premium payment was not sufficient to buy the
requested amount of coverage, the policy will be reformed as
described in VII.D.2. You have the option of increasing the amount
of coverage resulting from this reformation to the amount you
requested as follows:
    a. Insufficient Premium. If we discover that your premium
payment was not sufficient to buy the requested amount of coverage,
we will send you, and any mortgagee or trustee known to us, a bill
for the required additional premium for the current policy term (or
that portion of the current policy term following any endorsement
changing the amount of coverage). If it is discovered that the
initial amount charged to you for any fees or surcharges is
incorrect, the difference will be added or deducted, as applicable,
to the total amount in this bill.
    (1) If you or the mortgagee or trustee pay the additional amount
due within 30 days from the date of our bill, we will reform the
policy to increase the amount of coverage to the originally
requested amount, effective to the beginning of the current policy
term (or subsequent date of any endorsement changing the amount of
coverage).
    (2) If you or the mortgagee or trustee do not pay the additional
amount due within 30 days of the date of our bill, any flood
insurance claim will be settled based on the reduced amount of
coverage.
    (3) As applicable, you have the option of paying all or part of
the amount due out of a claim payment based on the originally
requested amount of coverage.
    b. Insufficient Rating Information. If we determine that the
rating information we have is insufficient and prevents us from
calculating the additional premium, we will ask you to send the
required information. You must submit the information within 60 days
of our request.
    (1) If we receive the information within 60 days of our request,
we will determine the amount of additional premium for the current
policy term and follow the procedure in VII.D.3.a above.
    (2) If we do not receive the information within 60 days of our
request, no claims will be paid until the requested information is
provided. Coverage will be limited to the amount of coverage that
can be purchased for the payments we received, as determined when
the requested information is provided.
    4. Coverage Increases. If we do not receive the amounts
requested in VII.D.3.a or the additional information requested in
VII.D.3.b by the date it is due, the amount of coverage under this
policy can only be increased by endorsement subject to the
appropriate waiting period. However, no coverage increases will be
allowed until you have provided the information requested in
VII.D.3.b is provided.
    5. Falsifying Information. However, if we find that you or your
agent intentionally did not tell us, or falsified, any important
fact or circumstance or did anything fraudulent relating to this
insurance, the provisions of VIII.A apply.

E. Policy Renewal

    1. This policy will expire at 12:01 a.m. on the last day of the
policy term.
    2. We must receive the payment of the appropriate renewal
premium within 30 days of the expiration date.
    3. If we find, however, that we did not place your renewal
notice into the U.S. Postal Service, or if we did mail it, we made a
mistake, e.g., we used an incorrect, incomplete, or illegible
address, which delayed its delivery to you before the due date for
the renewal premium, then we will follow these procedures:
    a. If you or your agent notified us, not later than one year
after the date on which the payment of the renewal premium was due,
of non-receipt of a renewal notice before the due date for the
renewal premium, and we determine that the circumstances in the
preceding paragraph apply, we will mail a second bill providing a
revised due date, which will be 30 days after the date on which the
bill is mailed.
    b. If we do not receive the premium requested in the second bill
by the revised due date, then we will not renew the policy. In that
case, the policy will remain as an

expired policy as of the expiration date shown on the Declarations
Page.
    4. In connection with the renewal of this policy, we may ask you
during the policy term to recertify, on a Recertification
Questionnaire that we will provide to you, the rating information
used to rate your most recent application for or renewal of
insurance.

F. Conditions Suspending or Restricting Insurance

    We are not liable for loss that occurs while there is a hazard
that is increased by any means within your control or knowledge.

G. Requirements in Case of Loss

    In case of a flood loss to insured property, you must:
    1. Give prompt written notice to us.
    2. As soon as reasonably possible, separate the damaged and
undamaged property, putting it in the best possible order so that we
may examine it.
    3. Prepare an inventory of damaged property showing the
quantity, description, actual cash value, and amount of loss. Attach
all bills, receipts, and related documents.
    4. Within 60 days after the loss, send us a proof of loss, which
is your statement of the amount you are claiming under the policy
signed and sworn to by you, and which furnishes us with the
following information:
    a. The date and time of loss;
    b. A brief explanation of how the loss happened;
    c. Your interest (for example, ``owner'') and the interest, if
any, of others in the damaged property;
    d. Details of any other insurance that may cover the loss;
    e. Changes in title or occupancy of the insured property during
the term of the policy;
    f. Specifications of damaged buildings and detailed repair
estimates;
    g. Names of mortgagees or anyone else having a lien, charge, or
claim against the insured property;
    h. Details about who occupied any insured building at the time
of loss and for what purpose; and
    i. The inventory of damaged personal property described in G.3
above.
    5. In completing the proof of loss, you must use your own
judgment concerning the amount of loss and justify that amount.
    6. You must cooperate with the adjuster or representative in the
investigation of the claim.
    7. The insurance adjuster whom we hire to investigate your claim
may furnish you with a proof of loss form, and she or he may help
you complete it. However, this is a matter of courtesy only, and you
must still send us a proof of loss within 60 days after the loss
even if the adjuster does not furnish the form or help you complete
it.
    8. We have not authorized the adjuster to approve or disapprove
claims or to tell you whether we will approve your claim.
    9. At our option, we may accept the adjuster's report of the
loss instead of your proof of loss. The adjuster's report will
include information about your loss and the damages you sustained.
You must sign the adjuster's report. At our option, we may require
you to swear to the report.

H. Our Options After a Loss

    Options we may, in our sole discretion, exercise after loss
include the following:
    1. At such reasonable times and places that we may designate,
you must:
    a. Show us or our representative the damaged property;
    b. Submit to examination under oath, while not in the presence
of another insured, and sign the same; and
    c. Permit us to examine and make extracts and copies of:
    (1) Any policies of property insurance insuring you against loss
and the deed establishing your ownership of the insured real
property;
    (2) Condominium association documents including the Declarations
of the condominium, its Articles of Association or Incorporation,
Bylaws, rules and regulations, and other relevant documents if you
are a unit owner in a condominium building; and
    (3) All books of accounts, bills, invoices and other vouchers,
or certified copies pertaining to the damaged property if the
originals are lost.
    2. We may request, in writing, that you furnish us with a
complete inventory of the lost, damaged or destroyed property,
including:
    a. Quantities and costs;
    b. Actual cash values or replacement cost (whichever is
appropriate);
    c. Amounts of loss claimed;
    d. Any written plans and specifications for repair of the
damaged property that you can reasonably make available to us; and
    e. Evidence that prior flood damage has been repaired.
    3. If we give you written notice within 30 days after we receive
your signed, sworn proof of loss, we may:
    a. Repair, rebuild, or replace any part of the lost, damaged, or
destroyed property with material or property of like kind and
quality or its functional equivalent; and
    b. Take all or any part of the damaged property at the value
that we agree upon or its appraised value.

I. No Benefit to Bailee

    No person or organization, other than you, having custody of
insured property will benefit from this insurance.

J. Loss Payment

    1. We will adjust all losses with you. We will pay you unless
some other person or entity is named in the policy or is legally
entitled to receive payment. Loss will be payable 60 days after we
receive your proof of loss (or within 90 days after the insurance
adjuster files the adjuster's report signed and sworn to by you in
lieu of a proof of loss) and:
    a. We reach an agreement with you;
    b. There is an entry of a final judgment; or
    c. There is a filing of an appraisal award with us, as provided
in VII.M.
    2. If we reject your proof of loss in whole or in part you may:
    a. Accept our denial of your claim;
    b. Exercise your rights under this policy; or
    c. File an amended proof of loss as long as it is filed within
60 days of the date of the loss.

K. Abandonment

    You may not abandon damaged or undamaged insured property to us.

L. Salvage

    We may permit you to keep damaged insured property after a loss,
and we will reduce the amount of the loss proceeds payable to you
under the policy by the value of the salvage.

M. Appraisal

    If you and we fail to agree on the actual cash value of the
damaged property so as to determine the amount of loss, either may
demand an appraisal of the loss. In this event, you and we will each
choose a competent and impartial appraiser within 20 days after
receiving a written request from the other. The two appraisers will
choose an umpire. If they cannot agree upon an umpire within 15
days, you or we may request that the choice be made by a judge of a
court of record in the state where the insured property is located.
The appraisers will separately state the actual cash value and the
amount of loss to each item. If the appraisers submit a written
report of an agreement to us, the amount agreed upon will be the
amount of loss. If they fail to agree, they will submit their
differences to the umpire. A decision agreed to by any two will set
the amount of actual cash value and loss.
    Each party will:
    1. Pay its own appraiser; and
    2. Bear the other expenses of the appraisal and umpire equally.

N. Mortgage Clause

    1. The word ``mortgagee'' includes trustee.
    2. Any loss payable under Coverage A--Building Property will be
paid to any mortgagee of whom we have actual notice, as well as any
other mortgagee or loss payee determined to exist at the time of
loss, and you, as interests appear. If more than one mortgagee is
named, the order of payment will be the same as the order of
precedence of the mortgages.
    3. If we deny your claim, that denial will not apply to a valid
claim of the mortgagee, if the mortgagee:
    a. Notifies us of any change in the ownership or occupancy, or
substantial change in risk of which the mortgagee is aware;
    b. Pays any premium due under this policy on demand if you have
neglected to pay the premium; and
    c. Submits a signed, sworn proof of loss within 60 days after
receiving notice from us of your failure to do so.
    4. All terms of this policy apply to the mortgagee.
    5. The mortgagee has the right to receive loss payment even if
the mortgagee has started foreclosure or similar action on the
building.
    6. If we decide to cancel or not renew this policy, it will
continue in effect for the benefit of the mortgagee only for 30 days
after we notify the mortgagee of the cancellation or non-renewal.

    7. If we pay the mortgagee for any loss and deny payment to you,
we are subrogated to all the rights of the mortgagee granted under
the mortgage on the property. Subrogation will not impair the right
of the mortgagee to recover the full amount of the mortgagee's
claim.

O. Suit Against Us

    You may not sue us to recover money under this policy unless you
have complied with all the requirements of the policy. If you do
sue, you must start the suit within one year of the date of the
written denial of all or part of the claim, and you must file the
suit in the United States District Court of the district in which
the insured property was located at the time of loss. This
requirement applies to any claim that you may have under this policy
and to any dispute that you may have arising out of the handling of
any claim under the policy.

P. Subrogation

    Whenever we make a payment for a loss under this policy, we are
subrogated to your right to recover for that loss from any other
person. That means that your right to recover for a loss that was
partly or totally caused by someone else is automatically
transferred to us, to the extent that we have paid you for the loss.
We may require you to acknowledge this transfer in writing. After
the loss, you may not give up our right to recover this money or do
anything that would prevent us from recovering it. If you make any
claim against any person who caused your loss and recover any money,
you must pay us back first before you may keep any of that money.

Q. Continuous Lake Flood

    1. If an insured building has been flooded by rising lake waters
continuously for 90 days or more and it appears reasonably certain
that a continuation of this flooding will result in an insured loss
to the insured building equal to or greater than the building policy
limits plus the deductible or the maximum payable under the policy
for any one building loss, we will pay you the lesser of these two
amounts without waiting for the further damage to occur if you sign
a release agreeing:
    a. To make no further claim under this policy;
    b. Not to seek renewal of this policy;
    c. Not to apply for any flood insurance under the Act for
property at the described location;
    d. Not to seek a premium refund for current or prior terms.
    If the policy term ends before the insured building has been
flooded continuously for 90 days, the provisions of this paragraph
Q.1 will apply when the insured building suffers a covered loss
before the policy term ends.
    2. If your insured building is subject to continuous lake
flooding from a closed basin lake, you may elect to file a claim
under either paragraph Q.1 above or Q.2 (A ``closed basin lake'' is
a natural lake from which water leaves primarily through evaporation
and whose surface area now exceeds or has exceeded one square mile
at any time in the recorded past. Most of the nation's closed basin
lakes are in the western half of the United States where annual
evaporation exceeds annual precipitation and where lake levels and
surface areas are subject to considerable fluctuation due to wide
variations in the climate. These lakes may overtop their basins on
rare occasions.) Under this paragraph Q.2, we will pay your claim as
if the building is a total loss even though it has not been
continuously inundated for 90 days, subject to the following
conditions:
    a. Lake floodwaters must damage or imminently threaten to damage
your building.
    b. Before approval of your claim, you must:
    (1) Agree to a claim payment that reflects your buying back the
salvage on a negotiated basis; and
    (2) Grant the conservation easement described in FEMA's ``Policy
Guidance for Closed Basin Lakes'' to be recorded in the office of
the local recorder of deeds. FEMA, in consultation with the
community in which the property is located, will identify on a map
an area or areas of special consideration (ASC) in which there is a
potential for flood damage from continuous lake flooding. FEMA will
give the community the agreed-upon map showing the ASC. This
easement will only apply to that portion of the property in the ASC.
It will allow certain agricultural and recreational uses of the
land. The only structures it will allow on any portion of the
property within the ASC are certain simple agricultural and
recreational structures. If any of these allowable structures are
insurable buildings under the NFIP and are insured under the NFIP,
they will not be eligible for the benefits of this paragraph Q.2. If
a U.S. Army Corps of Engineers certified flood control project or
otherwise certified flood control project later protects the
property, FEMA will, upon request, amend the ASC to remove areas
protected by those projects. The restrictions of the easement will
then no longer apply to any portion of the property removed from the
ASC; and
    (3) Comply with paragraphs Q.1.a through Q.1.d above.
    c. Within 90 days of approval of your claim, you must move your
building to a new location outside the ASC. FEMA will give you an
additional 30 days to move if you show there is sufficient reason to
extend the time.
    d. Before the final payment of your claim, you must acquire an
elevation certificate and a floodplain development permit from the
local floodplain administrator for the new location of your
building.
    e. Before the approval of your claim, the community having
jurisdiction over your building must:
    (1) Adopt a permanent land use ordinance, or a temporary
moratorium for a period not to exceed 6 months to be followed
immediately by a permanent land use ordinance that is consistent
with the provisions specified in the easement required in paragraph
Q.2.b above;
    (2) Agree to declare and report any violations of this ordinance
to FEMA so that under Section 1316 of the National Flood Insurance
Act of 1968, as amended, flood insurance to the building can be
denied; and
    (3) Agree to maintain as deed-restricted, for purposes
compatible with open space or agricultural or recreational use only,
any affected property the community acquires an interest in. These
deed restrictions must be consistent with the provisions of
paragraph Q.2.b above, except that, even if a certified project
protects the property, the land use restrictions continue to apply
if the property was acquired under the Hazard Mitigation Grant
Program or the Flood Mitigation Assistance Program. If a non-profit
land trust organization receives the property as a donation, that
organization must maintain the property as deed-restricted,
consistent with the provisions of paragraph Q2.b. above.
    f. Before the approval of your claim, the affected State must
take all action set forth in FEMA's ``Policy Guidance for Closed
Basin Lakes.''
    g. You must have NFIP flood insurance coverage continuously in
effect from a date established by FEMA until you file a claim under
paragraph Q.2. If a subsequent owner buys NFIP insurance that goes
into effect within 60 days of the date of transfer of title, any gap
in coverage during that 60-day period will not be a violation of
this continuous coverage requirement. For the purpose of honoring a
claim under this paragraph Q.2, we will not consider to be in effect
any increased coverage that became effective after the date
established by FEMA. The exception to this is any increased coverage
in the amount suggested by your insurer as an inflation adjustment.
    h. This paragraph Q.2 will be in effect for a community when the
FEMA Regional Administrator for the affected region provides to the
community, in writing, the following:
    (1) Confirmation that the community and the State are in
compliance with the conditions in paragraphs Q.2.e and Q.2.f above;
and
    (2) The date by which you must have flood insurance in effect.

R. Loss Settlement

    We will pay the least of the following amounts after application
of the deductible:
    1. The applicable amount of insurance under this policy;
    2. The actual cash value; or
    3. The amount it would cost to repair or replace the property
with material of like kind and quality within a reasonable time
after the loss.

VIII. Policy Nullification, Cancellation, and Non-Renewal

A. Policy Nullification for Fraud, Misrepresentation, or Making
False Statements

    1. With respect to all insureds under this policy, this policy
is void and has no legal force and effect if at any time, before or
after a loss, you or any other insured or your agent have, with
respect to this policy or any other NFIP insurance:
    a. Concealed or misrepresented any material fact or
circumstance;
    b. Engaged in fraudulent conduct; or
    c. Made false statements.
    2. Policies voided under A.1 cannot be renewed or replaced by a
new NFIP policy.
    3. Policies are void as of the date the acts described in A.1
above were committed.

    4. Fines, civil penalties, and imprisonment under applicable
Federal laws may also apply to the acts of fraud or concealment
described above.

B. Policy Nullification for Reasons Other Than Fraud

    1. This policy is void from its inception, and has no legal
force or effect, if:
    a. The property listed on the application is located in a
community that was not participating in the NFIP on this policy's
inception date and did not join or reenter the program during the
policy term and before the loss occurred;
    b. The property listed on the application is otherwise not
eligible for coverage under the NFIP at the time of the initial
application;
    c. You never had an insurable interest in the property listed on
the application;
    d. You provided an agent with an application and payment, but
the payment did not clear; or
    e. We receive notice from you, prior to the policy effective
date, that you have determined not to take the policy and you are
not subject to a requirement to obtain and maintain flood insurance
pursuant to any statute, regulation, or contract.
    2. In such cases, you will be entitled to a full refund of all
premium, fees, and surcharges received. However, if a claim was paid
for a policy that is void, the claim payment must be returned to
FEMA or offset from the premiums to be refunded before the refund
will be processed.

C. Cancellation of the Policy by You

    1. You may cancel this policy in accordance with the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.
    2. If you cancel this policy, you may be entitled to a full or
partial refund of premium, surcharges, or fees under the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.

D. Cancellation of the Policy by Us

    1. Cancellation for Underpayment of Amounts Owed on Policy. This
policy will be cancelled, pursuant to VII.D.2, if it is determined
that the premium amount you paid is not sufficient to buy any amount
of coverage, and you do not pay the additional amount of premium
owed to increase the coverage to the originally requested amount
within the required time period.
    2. Cancellation Due to Lack of an Insurable Interest.
    a. If you no longer have an insurable interest in the insured
property, we will cancel this policy. You will cease to have an
insurable interest if:
    (1) For building coverage, the building was sold, destroyed, or
removed.
    (2) For contents coverage, the contents were sold or transferred
ownership, or the contents were completely removed from the
described location.
    b. If your policy is cancelled for this reason, you may be
entitled to a partial refund of premium under the applicable rules
and regulations of the NFIP.
    3. Cancellation of Duplicate Policies.
    a. Your property may not be insured by more than one NFIP
policy, and payment for damages to your property will only be made
under one policy.
    b. If the property is insured by more than one NFIP policy, we
will cancel all but one of the policies. The policy, or policies,
will be selected for cancellation in accordance with 44 CFR 62.5 and
the applicable rules and guidance of the NFIP.
    c. If this policy is cancelled pursuant to VIII.D.4.b, you may
be entitled to a full or partial refund of premium, surcharges, or
fees under the terms and conditions of this policy and the
applicable rules and regulations of the NFIP.
    4. Cancellation Due to Physical Alteration of Property
    a. If the insured building has been physically altered in such a
manner that it is no longer eligible for flood insurance coverage,
we will cancel this policy.
    b. If your policy is cancelled for this reason, you may be
entitled to a partial refund of premium under the terms and
conditions of this policy and the applicable rules and regulations
of the NFIP.

E. Non-Renewal of the Policy by Us

    Your policy will not be renewed if:
    1. The community where your insured property is located is
suspended or stops participating in the NFIP;
    2. Your building is otherwise ineligible for flood insurance
under the Act;
    3. You have failed to provide the information we requested for
the purpose of rating the policy within the required deadline.

IX. Liberalization Clause

    If we make a change that broadens your coverage under this
edition of our policy, but does not require any additional premium,
then that change will automatically apply to your insurance as of
the date we implement the change, provided that this implementation
date falls within 60 days before or during the policy term stated on
the Declarations Page.

X. What Law Governs

    This policy and all disputes arising from the insurer's policy
issuance, policy administration, or the handling of any claim under
the policy are governed exclusively by the flood insurance
regulations issued by FEMA, the National Flood Insurance Act of
1968, as amended (42 U.S.C. 4001, et seq.), and Federal common law.
    In Witness Whereof, we have signed this policy below and hereby
enter into this Insurance Agreement.

Administrator, Federal Insurance and Mitigation Administration

0
15. Revise Appendix A(3) to Part 61 to read as follows:

Appendix A(3) to Part 61

Federal Emergency Management Agency, Federal Insurance and Mitigation
Administration

Standard Flood Insurance Policy

Residential Condominium Building Association Policy

    Please read the policy carefully. The flood insurance provided
is subject to limitations, restrictions, and exclusions.

I. Agreement

    A. This policy insures only a residential condominium building
in a regular program community. If the community reverts to
emergency program status during the policy term and remains as an
emergency program community at time of renewal, this policy cannot
be renewed.
    B. The Federal Emergency Management Agency (FEMA) provides flood
insurance under the terms of the National Flood Insurance Act of
1968 and its amendments, and Title 44 of the Code of Federal
Regulations.
    C. We will pay you for direct physical loss by or from flood to
your insured property if you:
    1. Have paid the full amount due (including applicable premiums,
surcharges, and fees);
    2. Comply with all terms and conditions of this policy; and
    3. Have furnished accurate information and statements.
    D. We have the right to review the information you give us at
any time and revise your policy based on our review.
    E. This policy insures only one building. If you own more than
one building, coverage will apply to the single building
specifically described in the Flood Insurance Application.
    F. Subject to the exception in Section I.G below, multiple
policies with building coverage cannot be issued to insure a single
building to one insured or to different insureds, even if issued
through different NFIP insurers. Payment for damages may only be
made under a single policy for building damages under Coverage A--
Building Property.
    G. A Dwelling Form policy with building coverage may be issued
to a unit owner in a condominium building that is also insured under
a Residential Condominium Building Association Policy (RCBAP).
However, no more than $250,000 may be paid in combined benefits for
a single unit under the Dwelling Form and the RCBAP. We will only
pay for damage once. Items of damage paid for under a RCBAP cannot
also be claimed under the Dwelling Form policy.

II. Definitions

    A. In this policy, ``you'' and ``your'' refer to the named
insured(s) shown on the Declarations Page of this policy. The named
insured must also include the building owner if building coverage is
purchased. Insured(s) includes: Any mortgagee and loss payee named
in the Application and Declarations Page, as well as any other
mortgagee or loss payee determined to have an existing interest

at the time of loss, in the order of precedence. ``We,'' ``us,'' and
``our'' refer to the insurer.
    Some definitions are complex because they are provided as they
appear in the law or regulations, or result from court cases.
    B. Flood, as used in this flood insurance policy, means:
    1. A general and temporary condition of partial or complete
inundation of two or more acres of normally dry land area or of two
or more properties (one of which is your property) from:
    a. Overflow of inland or tidal waters;
    b. Unusual and rapid accumulation or runoff of surface waters
from any source;
    c. Mudflow.
    2. Collapse or subsidence of land along the shore of a lake or
similar body of water as a result of erosion or undermining caused
by waves or currents of water exceeding anticipated cyclical levels
which result in a flood as defined in B.1.a above.
    C. The following are the other key definitions we use in this
policy:
    1. Act. The National Flood Insurance Act of 1968 and any
amendments to it.
    2. Actual Cash Value. The cost to replace an insured item of
property at the time of loss, less the value of its physical
depreciation.
    3. Application. The statement made and signed by you or your
agent in applying for this policy. The application gives information
we use to determine the eligibility of the risk, the kind of policy
to be issued, and the correct premium payment. The application is
part of this flood insurance policy.
    4. Base Flood. A flood having a one percent chance of being
equaled or exceeded in any given year.
    5. Basement. Any area of a building, including any sunken room
or sunken portion of a room, having its floor below ground level on
all sides.
    6. Building
    a. A structure with two or more outside rigid walls and a fully
secured roof that is affixed to a permanent site;
    b. A manufactured home, also known as a mobile home, is a
structure built on a permanent chassis, transported to its site in
one or more sections, and affixed to a permanent foundation; or
    c. A travel trailer without wheels, built on a chassis and
affixed to a permanent foundation, that is regulated under the
community's floodplain management and building ordinances or laws.
    Building does not mean a gas or liquid storage tank, shipping
container, or a recreational vehicle, park trailer, or other similar
vehicle, except as described in C.6.c above.
    7. Cancellation. The ending of the insurance coverage provided
by this policy before the expiration date.
    8. Condominium. That form of ownership of one or more buildings
in which each unit owner has an undivided interest in common
elements.
    9. Condominium Association. The entity made up of the unit
owners responsible for the maintenance and operation of:
    a. Common elements owned in undivided shares by unit owners; and
    b. Other buildings in which the unit owners have use rights;
where membership in the entity is a required condition of ownership.
    10. Condominium Building. A type of building for which the form
of ownership is one in which each unit owner has an undivided
interest in common elements of the building.
    11. Declarations Page. A computer-generated summary of