National Flood Insurance Program (NFIP)
Eighty percent of the Larkspur Condominiums' property is devoted to residential use. The condominium association has flood insurance coverage under an NFIP Residential Condominium Building Association Policy that provides building coverage and coverage on commonly owned:
contents
Karina owns the four homes listed below. Which one of them is NOT eligible for flood coverage under the NFIP's dwelling form?
the eight-unit apartment building she bought as an investment
Which of the following correctly compares benefits and premiums of a flood insurance policy purchased directly from the National Flood Insurance Program (NFIP) and one purchased through a private insurer?
Coverage and premiums are the same from either source.
Doug owns a single-family home with a replacement cost value of $500,000 and contents valued at $250,000. What is the maximum amount of insurance he can buy under a standard flood policy?
$250,000 on the building and $100,000 on the contents
What are the maximum limits of insurance a business owner can buy to cover the business structure and business contents under a regular flood insurance policy?
$500,000 on the building and $500,000 on the contents
Ina's home is located in a special flood hazard area (SFHA). What does this mean with respect to the area's tendency to flood?
It has a 1 percent chance of being flooded in any given year.
For a building to be insurable under a regular flood insurance policy, which of the following conditions must be met?
It must have at least two rigid walls.
Private insurers that sell National Flood Insurance Program policies on their own "paper" participate in the:
Write-Your-Own (WYO) program
Approximately what percentage of flood losses occurs in moderate- to low-risk flood zones?
about 20%
After a flood severely damaged Serena's home, floodplain management ordinances required her to reconstruct it at a higher elevation. Some or all of Serena's expenses to comply with these ordinances may be available from what kind of coverage from her National Flood Insurance Policy?
increased cost of compliance coverage
Which of the following building properties may be eligible for flood coverage under the National Flood Insurance Program?
mobile home
Following an unusually heavy rainstorm, Polly's building was damaged when flowing mud flowed down from the hillside above her home. According to the National Flood Insurance Program (NFIP), what did Polly experience?
mudflow, which is a type of flood
In which of the following communities would the National Flood Insurance Program make flood insurance available?
only in communities that participate in the National Flood Insurance Program
As a result of flood damage to his store, Burt was out of business for several months, lost income, and incurred additional expenses to comply with a floodplain management ordinance requiring him to relocate the store to a higher elevation. Under some circumstances, Burt's NFIP policy might pay or reimburse him for:
the increased cost of complying with floodplain management ordinance
A flood swept some of Bridgette's flood-damaged property onto a neighbor's land, and it swept some of a neighbor's flood-damaged property onto Bridgette's land. The debris removal coverage in Bridgette's National Flood Insurance Policy will pay for removing all the following debris EXCEPT
the neighbor's property on the neighbor's land
A flood swept some of Bridgette's flood-damaged property onto a neighbor's land, and it swept some of a neighbor's flood-damaged property onto Bridgette's land. The debris removal coverage in Bridgette's National Flood Insurance Policy will pay for removing all the following debris EXCEPT:
the neighbor's property on the neighbor's land
Brad's home is badly damaged by flood. Which of the following items is covered under the personal property coverage (Coverage B) of his NFIP dwelling form?
wind air conditioner unit
