According to media reports, the Federal Emergency Management Agency (“FEMA”) has confirmed that damage caused by oil mixed with flood waters is covered under National Flood Insurance Program (“NFIP”) policies. FEMA noted that before claims for damages from the British Petroleum (BP) oil spill will be paid there must be a flood as defined in the NFIP policy. Subject to the terms of the policy, claims for residential properties would be covered up to the policy limits and claims for commercial properties would be covered up to $10,000. NFIP policies would not, however, cover damage to the land.