Flood Insurance

Question 1

Definition of a flood

Answer 1

• A general and temporary condition
• Partial or complete inundation
• Two or more acres of normally dry land or two or more properties

Question 2

Non Participating Communities

Answer 2

• No flood insurance
• No disaster relief
• No federal mortgages in SFHA

Question 3

When can flood insurance not be purchased?

Answer 3

• Immediately before or during a flood

Question 4

What is not insured by the national flood insurance program?

Answer 4

• Basement Coverage

Question 5

Special Flood Hazard Areas (SFHA): Darkly Shaded Area

Answer 5

• Greater than 1% chance of being flooded
• 100 year flood plain
• Greater than 26% chance of flooding during 30 year mortgage

Question 6

Special Flood Hazard Areas (SFHA): Light Grey or No Shading

Answer 6

• Less than 1% chance of flooding

- Approximately 30% of claims located

Question 7

Mandatory Purchase Requirement

Answer 7

• Flood Insurance purchase requirement for certain homes in SFHA
• Coverage must be provided for the term of the loan
  Coverage limit must equal the outs

Question 8

What must the Mandatory Purchase Requirement Coverage Limit Equal?

Answer 8

= Either (Whichever is lower)

• outstanding principal balance of the loan
• the maximum limit available under the program

Question 9

Who can buy flood insurance?

Answer 9

1) Participating Community

2) All zones

Question 10

2 Types of Flood Insurance Policy Types

Answer 10

1) Dwelling Form

2) General Property Form

Question 11

Dwelling Form

Answer 11

• More residential: 1-4 Family residence
• Single Family, Duplex, Triplex, Quadplex
• Condo Unit: Not whole unity, only single family unit
• ACT or Replacement Cost

Question 12

Where would a larger condo unit before insured?

Answer 12

Business Policy: Not a dwelling form

Question 13

Coverage A: Dwelling Form

Answer 13

• Covers damage to the building/dwelling cased by covered perils
• $250,000 Max

Question 14

Coverage A: Other Structures

Answer 14

• 10% of the LOL may be used to cover other structures from covered perils (ONLY ATTACHED Structures)
• A detached garage is the only detached structure that may be included
• NOT Additional Coverage: Does reduce overall limit

Question 15

Coverage B: Dwelling Form

Answer 15

• Direct Loss Personal Property: NOT INDIRECT
• Inside Building
• TV, bed, furniture, clothes, dishwasher
• ## Basement Limitations

Question 16

Coverage B: Basement Coverage

Answer 16

• Foundation Elements
• Required Utility Connections: Gas, Line, Internet
• Items necessary to live; oil tanks, water heaters, furnaces, pumps, electrical junction/circuit, electrical outlets/wiring
• Unfinished Ceilings/Walls
• Not extended to wall paper, ceilings, finishing

Question 17

Coverage C: Dwelling Form

Answer 17

• Other Coverage
• Debris Removal
• Loss Avoidance Measures
• Condominium Loss Assessment

Question 18

Property Not Covered

Answer 18

• Outside of building
• In, on, or over water; deck covered, dock neither
• Land, tress, shrubs
• Fences, seawalls, piers, and docks
• Fences, seawalls, Piers, and docks
• Crops and livestock not covered
• Hot tubs and swimming pools
• Accounts, bills coins
• Open structures; boat houses

Question 19

Coverage C: Dwelling Form

Answer 19

• Increased cost of compliance
• Flood proofing
• Relocation
• Elevation
• Demolition

Question 20

Flood Exclusions

Answer 20

• Earth Movements
• Gradual Erosion
• Sewer Back up or seepage

Question 21

Deductible

Answer 21

• $500 is standard

- Available to $5,000

Question 22

Double Deductible

Answer 22

Applies separately to A and B

- $100,000 loss for both = $1,000 not $500

Question 23

Requirements to increase deductible

Answer 23

• Nowhere near flood zone

- Bank not making buy policy since not near flood zone; so doesn’t care

Question 24

Replacement Cost Coverage

Answer 24

• Cost to buy new to replace old
• Primary residence; not vacation
• Building, not contents
• Insured to 80% replacement cost (Requirement for loans in high risk area) or maximum available
• Otherwise ACV applies

Question 25

Elevated Building

Answer 25

• No basement
• Lowest elevated floor raised above ground level
• By foundation walls, shear walls, posts, piers, pilings, or columns

Question 26

Breakaway Wall

Answer 26

• Not part of structured support of building

- Designed to collapse form certain forces and not harm building or supporting foundation system

Question 27

Flood Vent

Answer 27

• Permanent opening in a wall that allows for the free passage of water
• Automatically in both directions without human intervention
• Minimum of two openings
• No higher than one foot above grade

Question 28

Waiting Period

Answer 28

• Can be purchased at anytime
• 30 day wait to become effective after application
  Written on a one year renewable term basis

Question 29

Waiting Period Exceptions

Answer 29

• When in conjunction with making, increasing, extending or renewing a loan
• When map revision has placed building into a SFHA

Question 30

What are the rates based on?

Answer 30

• Location: NOT experience