What coverages in a flood policy are subject to a deductible?
Asked by: Dr. Dante Hyatt Sr. | Last update: September 23, 2022Score: 4.9/5 (45 votes)
What is the NFIP deductible?
NFIP flood insurance deductibles can range from $1,000 to $10,000 for both the building and contents. If you choose a $10,000 deductible, you could get a 40% discount. The problem can be paying that deductible amount if you have damage.
What is not covered under a flood policy?
According to the NFIP, the following kinds of damage are not covered by flood insurance: Damage caused by moisture, mildew, or mold that could have been avoided by the property owner or which is not attributable to the flood. Damage caused by earth movement, even if the earth movement is caused by flood.
What is generally included in a standard flood insurance policy?
A Standard Flood Insurance Policy is a single-peril (flood) policy that pays for direct physical damage to your insured property up to the replacement cost or Actual Cash Value (ACV) (See “How Flood Damages Are Valued”) of the actual damages or the policy limit of liability, whichever is less.
Will FEMA cover deductibles?
ANSWER: FEMA does not cover insurance deductibles. However, if the insurance proceeds are insufficient to cover necessary expenses or serious needs, FEMA may be able to offer assistance.
Determining Flood Insurance Coverage
Which loss would not be covered by the National Flood Insurance Program quizlet?
The National Flood Insurance Program does not provide any indirect financial loss coverage. It covers direct loss only to the insured property from those conditions that constitute the definition of flood under the Program. Damage to property in the care, custody and control of the insured is excluded from coverage.
Which of the following could be insured with replacement cost coverage under the flood insurance program?
Under the National Flood Insurance Program, property is insured on an actual cash value basis, except one- to four- family residences and residential condominiums may be insured on a replacement cost basis.
Which of the following structures is not eligible for flood insurance under the NFIP?
Buildings newly constructed or substantially improved on or after October 1, 1982, and located entirely in, on, or over water or seaward of mean high tide are ineligible for coverage.
Which of the following claims would be covered under the DP 3?
Which of the following claims would be covered under the DP-3? Damage by vandalism to a dwelling vacant for 30 days before the loss - Loss from vandalism and malicious mischief is excluded if the dwelling has been vacant for more than 60 consecutive days immediately before a loss.
What is Reformation coverage clause?
Reformation — a remedy available to an insurer when an otherwise valid insurance policy does not, as written, fully or accurately express the agreement of the insurer and the insured because of fraud, inequitable conduct, or mutual mistake.
Which building would fall under a General property Form flood insurance policy?
The General Property Form is used to insure five -or -more -family residential buildings and non -residential buildings. The Residential Condominium Building Association Policy Form is used to insure residential condominium association buildings.
Which of the following is covered under Coverage E of the dwelling policy?
The additional living expenses incurred by the insured while the insured's home is uninhabitable because of a direct loss are provided by Coverage E. The dwelling must be used principally for residential dwelling purposes and MAY be occupied on a seasonal or secondary basis, but it is not required.
What type of property may an applicant choose a maximum deductible of $10000?
The minimum deductible for flood insurance is $1,000, and the maximum deductible is $10,000. You can save up to 40% on your premiums by increasing your deductible. For those in the riskiest areas, the savings realized by increasing to a $10,000 deductible would make up the added cost in less than three years.
What is the biggert Waters Act?
Answer: The Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) is a law passed by Congress and signed by the President in 2012 that extends the National Flood Insurance Program (NFIP) for five years, while requiring significant program reform.
What does flood insurance cover in Florida?
What Does Flood Insurance Cover? The standard NFIP policy provides replacement cost coverage capped at $250,000 for damage to the structure of the home and actual cash value coverage capped at $100,000 for loss of personal possessions.
Which types of loans are subject to the mandatory requirement to purchase flood insurance?
The regulations require the escrowing of flood insurance premiums and fees for designated loans secured by residential improved real estate or a mobile home made, increased, renewed, or extended on or after January 1, 2016.
What are the correct options for calculating the minimum amount of flood insurance required?
The minimum amount of flood insurance required must be at least equal to the lesser of the outstanding principal balance of the loan, the maximum amount available under the NFIP for the type of structure, or the insurable value of the property.
What does mire mean for flood insurance?
MIRE events trigger the flood rules; MIRE is an acronym for make, increase, renew or extend. If you accomplish the accommodation using a new note, you are MAKING a new loan.
Which of the following homeowners coverages does not have a deductible?
Which of the following homeowners coverage does not have a deductible? Damage to property of Others is an Additional Coverage under Section II, which is not subject to a deductible. A guest falls in K's house and is injured in an amount of $1,000.
Which of the following does not pay regardless of fault?
Which of the following does not pay regardless of fault? Uninsured Motorist Bodily Injury --The other party must be legally responsible for bodily injury to an insured that arises out of ownership, maintenance, or use of an uninsured motor vehicle in order for this coverage to apply.
Which coverage is not provided under Section II of a homeowners policy?
Four Section II exclusions— an insured's premises that are not an insured location, motor vehicles, watercraft, and aircraft—do not apply to bodily injury sustained by a “residence employee” in the course of employment by an insured.
Which statement is false regarding the National Flood insurance?
Which statement is false regarding the National Flood Insurance Program (NFIP)? It provides coverage for direct and indirect loss to covered property as the result of flooding; The National Flood Insurance Program does not provide any indirect financial loss coverage.
Which of the following perils is covered under the personal umbrella?
Which of the following perils is covered under the Personal Umbrella? B Personal injury perils are covered under the Umbrella policy, and will drop down to cover from the first dollar if personal injury coverage is not covered on the primary policy.
Which part of the insurance contract specifies the risks the policy will not cover?
Which part of the insurance contract specifies the risks the policy will not cover? Exclusions.