Flood Insurance Flashcards
Which of the following statements BEST describes the reason it was necessary to create a federal flood insurance program in 1968?
Answer Choices: Select the Correct Answer
Because other property policies routinely exclude flood from coverage.
Because people were building their homes closer and closer to large bodies of water than ever before.
Because the United States was experiencing more flooding than ever before.
Because the flood insurance policies that were being issued at the time, did not provide adequate coverage for contents.
Because other property policies routinely exclude flood from coverage. is correct.
EXPLANATION:
It was necessary to create a federal flood insurance program because other property policies routinely exclude flood from coverage. Many citizens were losing everything because they could not purchase insurance to cover their home and their belongings in case of flood.
Hotels and motels may be classified as an “Other Residential Building” for eligibility under the National Flood Insurance Program (NFIP) if the normal occupancy of a guest is:
Answer Choices: Select the Correct Answer
30 days or more.
90 days or more.
6 months or more.
1 year or more.
The correct answer is: 6 months or more.
EXPLANATION:
A hotel or motel may be classified under the NFIP as an “Other Residential Building” if the normal occupancy of a guest is 6 months or more.
Which of the following flood zones show a “flood depth” instead of a “base flood elevation” on a FIRM?
Answer Choices: Select the Correct Answer
V
AO
AE
VE
AO is correct.
EXPLANATION:
The AO zones are subject to only shallow flooding during the base flood, therefore “flood depths” are shown in these zones.
Under the “Regular Program” of the NFIP in a state/territory other than Alaska, Hawaii, Guam, or the U.S. Virgin Islands, a single-family residence is insured for up to:
Answer Choices: Select the Correct Answer
$250,000.
$35,000.
$100,000.
$185,000.
$250,000. is correct.
EXPLANATION:
The limit under the “Regular Program” is $250,000. Under the “Emergency Program” the dwelling is covered for only $35,000.
The deductible under the NFIP Emergency Program for coverage over $100,000 is:
Answer Choices: Select the Correct Answer
$1,500.
$2,000.
$1,250.
$1,000.
The correct answer is: $2,000.
EXPLANATION:
$2,000 is the standard deductible for NFIP coverage over $100,000.