Claims Guidance

To assist with the challenges of adjusting NFIP claims after a flood, FEMA periodically issues guidance for claims adjusters and others who need to understand the coverage provided by the Standard Flood Insurance Policy (SFIP). The following are several of the clarifications stated in the WYO Claims Guidance Bulletin W-08043 issued by FEMA on July 8, 2008.

Flood Damage to Detached Garages

The SFIP Dwelling Form covers direct physical loss by or from flood to a detached garage at the described location. Coverage is limited to no more than 10 percent of the limit of liability on the dwelling. Use of this insurance is at the option of the property owner, but policyholders must be informed that submitting a claim will reduce the limit of liability on the building.

The SFIP does not cover any detached garage used or held for use for residential (i.e., dwelling), business, or farming purposes. The ordinary dictionary meanings of "residential" (e.g., suitable for or used as a residence or dwelling) and "dwelling" (e.g., a place to live in, an abode) should be used when applying coverage to detached garages. Although insurers will no longer broadly apply these words that limit coverage, for the purpose of this limitation, kitchen facilities are not required for the space to qualify as "residential use" or "a place to live in."

Property Removed to Safety

The Property Removed to Safety coverage described in Section III.C.2.b. of the SFIP Dwelling Form on pages 5-6, applies to the cost of removing the insured property from the described location and also to any cost of returning the same insured property to that location. Also covered are costs associated with uninstalling and reinstalling the covered property to be removed and returned. All such costs must be reasonable and are subject to the $1,000 limit of liability. Any payments made to the policyholder under this coverage will not increase the limits of liability for either Coverage A (building) or Coverage B (personal property, i.e. contents).

Using the Correct Term

What is the difference between using the terms "drywall" and "Sheetrock^®"?

Drywall is a generic term for the building material using in finishing construction of interior walls and ceilings. Since is has a core of gypsum plaster surrounded by a heavy paper covering, drywall is also known as gypsum board, plaster board, and wall board.

Sheetrock^® is a registered trademark of United States Gypsum Company for its brand of gypsum board and related products. It is possible the use of the term "Sheetrock^®" in place of "drywall" could be an infringement of copyright. For this reason, only the generic term "drywall" should be used on NFIP claim forms or other documents.