Machinery and Equipment

1. Coverage for Machinery & Equipment (M&E)

NFIP policies define 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 and under Contents Coverage when they are personal property.

Covered Under Building Coverage (If permanently installed):

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

Covered Under Contents Coverage (If not permanently installed):

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

2. Elevation Requirements & Discounts

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.

3. 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.
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.

Key Takeaways:

M&E is covered under NFIP policies, but coverage varies based on installation, elevation, and location within the building.
Proper elevation of M&E can result in mitigation discounts and reduce flood risk.
Basements and enclosed areas may have coverage limitations for M&E.