Flood Insurance

Question 1

Flood Insurance

Answer 1

The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency.
Since nearly all property policies specifically exclude flood coverage in their contracts, flood insurance must be purchased separately or as an endorsement to a property policy.

Question 2

Definition of Flood

Answer 2

an overflow of inland or tidal waters.
an unusual or rapid accumulation of runoff or surface waters from any source.
mud flows.
collapse or subsidence of land along the shore of a lake or other body of water, as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood.

Question 3

Eligible Buildings

Answer 3

have two or more outside rigid walls.
have a fully secured roof.
be affixed to a permanent site.
the building must be able to resist flotation, collapse, and lateral movement
at least 51% of the ACV of the building, including machinery and equipment within the structure, must be above ground level.

Question 4

Eligible Contents

Answer 4

Eligible contents must be located inside a fully enclosed building and fastened down to prevent flotation.

Question 5

Residential Building Coverage

Answer 5

insures the house or dwelling, attached and detached garages, permanently installed fixtures such as shelving, built-in appliances, furnaces, radiators, plumbing and hot water heaters.

Question 6

Residential Contents Coverage

Answer 6

furniture, housewares and bedding
lamps, lighting fixtures
computers, home electronics
washers and dryers
air conditioners
food freezers and the food in them

Question 7

Basement Coverage

Answer 7

unfinished drywall
electrical junction and circuit breaker boxes
central air conditioning units
furnaces, hot water heaters, fuel tanks, heat pumps
lighting fixtures
foundation elements
clean up

Question 8

Nonresidential Building Coverage

Answer 8

the building and its foundation
electrical and plumbing systems
electrical junction and circuit breaker boxes
central air conditioning units
furnaces, hot water heaters, fuel tanks, heat pumps
lighting fixtures
foundation elements

Question 9

Nonresidential Contents Coverages

Answer 9

furniture and fixtures
machinery and equipment
stock
raw materials
finished and unfinished goods
packing and shipping supplies

Question 10

Dwelling Form

Answer 10

homeowners
residential renters
owners of 25.4 unit residential structures
residential townhouse or row house
owners of an individual unit in a condominium building

Question 11

Policy Limits Dwellings

Answer 11

The dwelling form uses a replacement cost valuation, provided:

the property is insured to 80% of its value.
the insured lives in the dwelling for at least 80% of the year.
If either of these conditions are not met, valuation of damaged property falls to ACV.

Policy Limits: Up to $250,000 building and $100,000 contents coverage.

Question 12

General Property Form

Answer 12

The general property form coverage applies to all other buildings that do not fall under the dwelling policy form. Examples include:

residential structures with five or more units
hotels and motels
apartment buildings
assisted living facilities and dorms
non-residential structures

Question 13

Residential Condominium Building Association Policy

Answer 13

Also known as a RCBAP policy, this coverage form applies to residential condominium buildings provided that 75% or more of the building is reserved strictly for residential use.

Coverage is written in the name of the association for the benefit of the association and the condo unit owners.

Coverage is provided at replacement cost value as long as the co-insurance requirement is met at 80%+ of the value of the property.

Policy Limits: Up to $250,000 per unit per building.