Water damaged a building that belonged to Chesapeake Ship Propeller Company because it eroded the soil and caused the foundation to settle. FEMA denied coverage because the cause of loss did not meet the definition of flood.

Chesapeake argued that the drainage ditch next to the property was a body of water and that flood coverage should apply because the ditch's overflow caused the soil erosion.

Click here to see if a drainage ditch can be considered a body of water.

The National Flood Insurance Program provides two flood policies. The General Property Policy Coverage covers commercial buildings. The Standard Form covers dwellings.

Click here for an overview of the National Flood Insurance Program.

Communicating the importance of flood insurance is important! Many insureds do not know that they might need flood insurance even if they are not in a flood plain. Review the following e-marketing articles and consider adding one or more to your newsletter or posting them on your website.

Need Flood Insurance?

Saving Water-Damaged Property?

Deja Flood

A Stormy Issue

A near miss can force customers to consider their need for flood insurance. Consider a prospect mailing to businesses or individuals located in an area next to the location where a significant flood event occurred. The flood could have damaged their properties instead and they might not have had coverage.

Click here for a letter you might want to use.