| Author |
Message |
Jim Flynt
Registered User
Username: Jimflynt
Post Number: 303
Registered: 6-2001
| | Posted on Wednesday, May 15, 2002 - 7:57 am: | |
Congratulations to Lee Mushaney, our very FIRST CADO ~ Outback Steakhouse Coverage Question Challenge WINNER.
Lee, your extra effort to find the correct answer to Q-1 of this two part challenge paid off.
Lee Mushaney is correct that the FWUA Producer Bulletin No. 02-01 provides the correct answer to Question 1, and she is the first responder to post that correct answer.
Her answer to Question 2: that exterior paint would be covered under the FWUA Dwelling Policy as either contents or when applied to interior walls, and damaged by a covered cause of loss, is correct as well.
FWUA Bulletin No. 02-01 advises us of the following:
Flood Policy Requirements on Builders' Risk Applications
FWUA requires insured risks located in A or V flood zones to maintain a flood policy
And, then continues:
The regional office of the National Flood Insurance Program has advised that a flood policy may be taken out any time after:
(1) a permit has been issued, and
(2) construction has begun.
This NFIP policy went into effect in December 2000.
Clayton is indeed correct that a policy would not be issued by NFIP without a completed application and payment of premium, but even that fails to insure NFIP issuance of a builders' risk policy, which was essential to the initial question, without compliance with these last two requirements: (1) issuance of a permit (2) initiation of construction.
Congratulations to Lee Mushaney as our first CADO ~ Outback Steakhouse Coverage Question Challenge Winner. Your gift certificate is on the way to your home. Enjoy.
Thanks to everyone who participated in this first challenge and stay tuned for Challenge # 2 coming real soon.
Hope everyone learned something new! |
Clayton Carr
Member
Username: Clayton
Post Number: 57
Registered: 11-2001
| | Posted on Wednesday, May 15, 2002 - 7:31 am: | |
Well done Lee. I scrolled through NFIP and FWUA web sites for quite some time in my quest, but did not review the bulletin you mention; which I am sure is the answer to Q1 that is being sought by the inquisitor.
Although my answer was detached from the specific technical issue of policy issuance for a COC in Florida; I still stand firm that NFIP would not issue any policy - a COC or otherwise - without a completed app and a paid premium. |
Lee Mushaney
Registered User
Username: Red
Post Number: 9
Registered: 3-2001
| | Posted on Wednesday, May 15, 2002 - 1:06 am: | |
After reviewing my thoughts and closely checking the question. I decided to go to FWUA website and start doing some research. My orig. answer part one was based as it is written in the flood policy and part 2 was based strictly under the wind policy.
I went to the FWUA Bulletin #02-1 second page
I found the following
FLOOD POLICY REQUIREMENTS ON BUILDERS RISK
and is required for A & V zones.
1. Permit has been issued
2. construction has begun.
It indicates this was NFIP policy effective 12/2000. I am going to stick to my orig. answer to the 2nd part of the question. That being the exterior paint or stain could be contents or
on a wall that is not the outside exterior wall.
|
Jim Flynt
Registered User
Username: Jimflynt
Post Number: 302
Registered: 6-2001
| | Posted on Tuesday, May 14, 2002 - 11:27 pm: | |
I have reviewed the answers to Q-1 from Richard, Clayton and Lee (all of which are similar) yet their answers are incorrect.
I fully understand and appreciate the answers they have provided and with less research, I might have been tempted to answer similarly as they each did.
However, no one has of yet answered the question correctly, thus we still do not have a 'winner.'
I know this question is frustrating to some and will concede it is in fact much trickier than it first appears.
While those who have responded so far may not see eye to eye with me now or believe there is any other correct answer, I do believe they will see more clearly once the correct answer is posted.
I leave you one additional hint: just remember that the FWUA is Florida based and only insures Florida risks. |
Richard Brooks
Registered User
Username: Rwbrooks
Post Number: 1
Registered: 4-2002
| | Posted on Tuesday, May 14, 2002 - 10:16 pm: | |
(Q-1)The NFIP Dwelling Form will not cover a building under construction before it is walled and roofed when the building is Post-FIRM and the basement floor or lowest elevated floor is below Base Flood Elevation in any Zones "A", or below Base Flood Elevation adjusted for wave action in any Zones VE or V1-V30.
And the work on the building cannot stop for 90 continuous days.
These condition must be met before NFIP will issue and policy. |
Clayton Carr
Member
Username: Clayton
Post Number: 56
Registered: 11-2001
| | Posted on Tuesday, May 14, 2002 - 9:58 pm: | |
Well, here we go again with Q1.
The question has no relationship to the statement that preceeded it. It is purely an NFIP question.
In my first attempt I slipped into a claims mode, a wasted effort as the question relates to policy issuance, and has nothing to do with coverage interpretation.
My second attempt, I still feel has applicability for determining if a policy will be issued; but perhaps not through legislation.
However, going to the base root of the question, " .... what point in the construction process will NFIP issue .... " - has no relevance to the real question I see as underlying - at what point will NFIP issue a policy.
The two requirements are - NFIP receiving a properly completed application that gives information on the basis of which NFIP determines the acceptability of the risk and the premium to charge. The application becomes a part of the policy. Second, the premium must accompany the application. |
Jim Flynt
Registered User
Username: Jimflynt
Post Number: 301
Registered: 6-2001
| | Posted on Tuesday, May 14, 2002 - 7:10 pm: | |
Clayton, your answer to Q-2 is in fact one scenario in which exterior paint and stain would be covered under the FWUA Dwelling Policy.
Now, who wants to win a free Outback steak dinner?
Remember, this is a two part question and we are still looking for the correct answer for Q-1.
|
Clayton Carr
Member
Username: Clayton
Post Number: 55
Registered: 11-2001
| | Posted on Tuesday, May 14, 2002 - 10:35 am: | |
I'll restate and elaborate my answer for Q1 -
The NFIP would issue a flood policy for a COC risk once (1) a elevation certificate is supplied, (2) and that the community in which the risk is located adopt a floodplan management ordinance
My answer to Q2 remains as previously stated |
Jim Flynt
Registered User
Username: Jimflynt
Post Number: 300
Registered: 6-2001
| | Posted on Tuesday, May 14, 2002 - 9:03 am: | |
Clayton, you need to go back and take a closer look at the questions being asked.
Sorry, but we're still looking for the first person to answer the questions correctly.
(Message edited by jimflynt on May 14, 2002) |
Clayton Carr
Member
Username: Clayton
Post Number: 54
Registered: 11-2001
| | Posted on Tuesday, May 14, 2002 - 8:58 am: | |
Well, my time is not very valuable today, and that I am not real sure who is asking the question; I'll offer an answer.
Q1 - The answer would be found in the NFIP definitions - "building" - a walled and roofed structure, other than .... (yatta yatta), that is principally above ground and affixed to a permanent site .... and a walled and roofed building in the course of construction.
I would add that COC buildings which are not completely walled and roofed, are considered buildings and coverage is extended subject to the following conditions; (1) the deductible applied to each loss equals two times the policy deductible (2) coverage ceases if construction is halted for more than 90 consecutive days.
Q2 - The answer is clear when reading the exclusion stated (1M) versus the loss scenario. The exclusion is clear - do not cover exterior paint and stain "applied to the exterior" of any building or structure.
A supply of paint and stain would be covered if damaged by a covered peril while within an enclosed structure on the residence premises. The question did not contain the "applied to the exterior" caveat.
Coverage for this is found on page 4 - covered property - we cover #1(3) "materials and supplies .... used to construct, alter or repair the dwelling .... "
I do look forward to receiving the gift certificate to enjoy on my next trip into the USA. |
Jim Flynt
Registered User
Username: Jimflynt
Post Number: 296
Registered: 6-2001
| | Posted on Tuesday, May 14, 2002 - 6:53 am: | |
CADO ~ Outback Coverage Question # 1
Our first coverage question challenge is a two part question involving the FWUA Dwelling Policy (DW2 7/00):
FWUA requires Builders' Risk policyholders located in A or V flood zones to maintain an NFIP flood policy.
(Q-1) At what point in the construction process will NFIP issue a flood policy for a risk under construction? (Hint: there are two requirements that must be met first).
Finally, the FWUA Dwelling Policy contains the following language:
"PROPERTY NOT COVERED
1. We do not cover:
M. Paint or waterproof material, including stain, applied to the exterior of any building or structure;"
(Q-2) Provide and explain one situation or instance where exterior paint and stain WOULD BE COVERED for damage by wind, policy language exclusions notwithstanding.
For anyone who needs to review the FWUA DW2 7/00 Policy, it is available at the FWUA website through the hyperlink portal enclosed:
http://www.fwua.com/ |
Lee Mushaney
Registered User
Username: Red
Post Number: 8
Registered: 3-2001
| | Posted on Tuesday, May 14, 2002 - 11:02 pm: | |
NFIP will issue a policy under construction
1. if it is studded with a roof on it.
2. Only during construction
3. can't be in a Cbra zone
Coverage found under IIIProperty covered coverage A item 5
FWUA-would pay for exterior paint and stain if it was on the inside of a covered loss either as a content item or if the exterior paint was applied to the inside walls that weren't the outside wall
of the building |
