Machinery and Equipment

NFIP policies define Machinery and Equipment (M&E) as essential systems permanently installed in a building that are necessary for its function. These items fall under Building Property Coverage when attached to the structure.

Similarly, Contents Coverage is used to protect installed appliances.

Building Coverage

• Electrical and plumbing systems
• Central air conditioning units
• Furnaces and water heaters
• Heat pumps
• Elevator machinery and equipment
• Fire sprinkler systems
• Pumps and related machinery (e.g., sump pumps, well water tanks, septic tanks)
• Fuel tanks and the fuel within them
• Solar energy equipment
• Walk-in freezers
• Permanently installed appliances (dishwashers, refrigerators)
• Outdoor antennas and aerials attached to the building
• Ventilating equipment, radiators, and kitchen/bathroom fixtures
• Permanently installed wallboard, bookcases, and cabinets
• Permanently installed carpeting over unfinished floors

Appliances

• Clothes washers and dryers
• Food freezers and the food within them
• Window air conditioning units

M&E Discount

M&E is also a factor in mitigation discounts:

• To qualify for an M&E Mitigation Discount, covered machinery & equipment must be elevated above the first floor (varies by foundation type).
• If located in a basement or enclosure, the NFIP may not provide full coverage unless properly elevated.

Limitations & Exclusions

• Basement Coverage Restrictions: While some M&E items are covered in basements, certain appliances and personal property (like carpets and paneling) are not covered if located below grade regardless of flood zone.
• Enclosures Below Elevated Buildings: M&E located in enclosures below the lowest elevated floor may be limited in coverage unless properly installed per NFIP requirements.

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