(a) No new flood insurance or renewal of flood insurance policies shall be written for properties declared by a duly constituted State or local zoning or other authority to be in violation of any flood plain, mudslide (i.e., mudflow) or flood-related erosion area management or control law, regulation, or ordinance.
(b) In order to reduce the administrative costs of the Program, of which the Federal Government pays a major share, payment of the full policyholder premium must be made at the time of application.
(c) Because of the seasonal nature of flooding, refunds of premiums upon cancellation of coverage by the insured are permitted only if the insurer ceases to have an ownership interest in the covered property at the location described in the policy. Refunds of premiums for any other reason are subject to the conditions set forth in §62.5 of this subchapter.
(d) Optional Deductibles, All Zones, are available as follows:
Category One—1 to 4 Family Building and Contents Coverage Policies
| Options | Building/contents |
|---|---|
| $500/$500 | |
| 1,000/1,000 | |
| 2,000/1,000 | |
| 3,000/1,000 | |
| 4,000/2,000 | |
| 5,000/2,000 |
Category Two—1 to 4 Family Building Coverage Only or Contents Coverage Only Policies
| Options | Building | Contents1 |
|---|---|---|
| $500 | $500 | |
| 1,000 | 1,000 | |
| 2,000 | 2,000 | |
| 3,000 | 3,000 | |
| 4,000 | 4,000 | |
| 5,000 | 5,000 |
1Also applies to residential unit contents in other residential building or in multi-unit condominium building.
Category Three—Other Residential and Nonresidential Policies
| Options | Policy combining building and contents | Single coverage only policy (either building or contents) |
|---|---|---|
| $500/$500 | $500 | |
| 1,000/1,000 | 1,000 | |
| 2,000/2,000 | 2,000 | |
| 3,000/3,000 | 3,000 | |
| 4,000/4,000 | 4,000 | |
| 5,000/5,000 | 5,000 |
Category Four—Residential Condominium Building Policies
| Options | Policy combining building and contents | Single coverage only policy (either building or contents) |
|---|---|---|
| $10,000/$10,000 | $10,000 | |
| 25,000/10,000 | 25,000 |
Note: Any other combination may be submitted for rating to the NFIP.
(e) The standard flood insurance policy is authorized only under terms and conditions established by Federal statute, the program's regulations, the Administrator's interpretations and the express terms of the policy itself. Accordingly, representations regarding the extent and scope of coverage which are not consistent with the National Flood Insurance Act of 1968, as amended, or the Program's regulations, are void, and the duly licensed property or casualty agent acts for the insured and does not act as agent for the Federal Government, the Federal Emergency Management Agency, or the servicing agent.
[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, as amended at 47 FR 19140, May 4, 1982; 48 FR 39068, Aug. 29, 1983; 49 FR 33656, Aug. 23, 1984; 50 FR 36025, Sept. 4, 1985; 51 FR 30309, Aug. 25, 1986; 53 FR 16277, May 6, 1988; 53 FR 27991, July 26, 1988; 57 FR 19541, May 7, 1992; 58 FR 62424, Nov. 26, 1993]
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