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Title 42, The Public Health and WelfareRelease 119-110

§4019 Payment of Claims

Title 42 › CHAPTER 50 — NATIONAL FLOOD INSURANCE › SUBCHAPTER I — THE NATIONAL FLOOD INSURANCE PROGRAM › § 4019

Last updated Sep 22, 2026|Official source

Summary

The Administrator can make rules for how proved and approved flood insurance claims are adjusted and paid. The law also sets minimum yearly deductibles for building damage. A "pre-firm" building is one built or greatly improved on or before December 31, 1974, or before the area's first flood insurance rate map took effect. A "post-firm" building is one built or improved after those dates. For pre-firm buildings the deductible is $1,500 if coverage is $100,000 or less, and $2,000 if coverage is more than $100,000. For post-firm buildings the deductible is $1,000 if coverage is $100,000 or less, and $1,250 if coverage is more than $100,000. Owners who buy their own condo flood insurance must be paid for covered losses and cannot be denied just because the condo association or others have insurance.

Full Legal Text

Title 42, §4019

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In general
The Administrator is authorized to prescribe regulations establishing the general method or methods by which proved and approved claims for losses may be adjusted and paid for any damage to or loss of property which is covered by flood insurance made available under the provisions of this chapter.
(b)Minimum annual deductible
(1)Pre-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
(A)$1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B)$2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(2)Post-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
(A)$1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B)$1,250, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(c)Payment of claims to condominium owners
The Administrator may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based solely, or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (b), was in the original a reference to “this title” meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 4001 of this title and Tables.

Amendments

2012—Pub. L. 112–141, § 100210, designated existing provisions as subsec. (a) and inserted heading, substituted “The Administrator is” for “The Director is”, and added subsec. (b). Subsec. (c). Pub. L. 112–141, § 100214, added subsec. (c). 1983—Pub. L. 98–181 substituted “Director” for “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.

Transfer of Functions

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For

Transfer of Functions

, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and section 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.

Reference

Citations & Metadata

Citation

42 U.S.C. § 4019

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110