What type of indemnification and guarantee does First American offer with its flood zone determinations?
First American guarantees its flood zone determinations as required by federal regulations. The specifics of the guarantee are prescribed by the Standard Service Agreement between First American and its client and may vary according to the particular product. Generally speaking, if First American incorrectly states that a building is not in the SFHA on the effective Flood Insurance Rate Map and the building suffers flood damage, then First American will reimburse the client for the structural damage caused by flood as if a valid NFIP flood insurance policy were in effect at the time of the loss. Conversely, if First American incorrectly states that a building is in the SFHA on the effective Flood Insurance Rate Map and a flood insurance policy is required based on this flood zone determination, then First American will reimburse the client up to the amount of the flood insurance policy premiums.
