An Act To Reduce Municipal Liability outside Federally Declared Flood Zones

Sec. 1. 24-A MRSA §3062  is enacted to read:

§ 3062.  Exclusion for certain flood damage prohibited

An insurance company issuing a property insurance policy subject to this subchapter may not exclude coverage under any policy for flood damages to the property caused by the failure of any municipal or government infrastructure despite the property's location outside a flood zone designated by the Federal Government.

summary

This bill prohibits an insurance company from excluding coverage under a homeowner's property insurance policy for flood damages caused by the failure of municipal or government infrastructure whether or not the home is located in a flood zone designated by the Federal Government.