Damage caused by oil mixed with U.S. floodwaters is covered: FEMA

The Federal Emergency Management Agency (FEMA) confirmed that National Flood Insurance Program policies will cover property damage caused by oil in floodwaters, reports the US’s Insurance Information Institute (III).”FEMA’s clarification comes after rising concerns over whether flood insurance policies would cover damage to homes and businesses if oil from the Deepwater Horizon spill mixes with flood waters, comes ashore during a storm and causes pollution damage to NFIP-covered buildings and their contents,” said III vice president Loretta Worters.Damage by flooding, including storm surge, is not covered by standard homeowners or business owner’s policies.