Flood Insurance & NFIP Flashcards
7 cards from real CFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Flood Insurance & NFIP flashcards as text
What is the primary purpose of the Elevation Certificate (EC) in relation to flood insurance?
Answer: To document a building's elevation for flood insurance rating and compliance purposes
The Elevation Certificate documents the elevation of a building relative to the Base Flood Elevation and is used by insurance agents to rate NFIP flood insurance policies and by communities to verify compliance with floodplain management ordinances.
What is a Preferred Risk Policy (PRP) under the NFIP?
Answer: A lower-cost flood insurance policy available to eligible properties in low-to-moderate risk areas
A Preferred Risk Policy is a lower-cost NFIP flood insurance policy available to buildings located in moderate- or low-risk flood zones (B, C, and X zones) that meet eligibility requirements.
Which of the following losses is typically NOT covered under a Standard NFIP flood insurance policy?
Answer: Additional living expenses while displaced
NFIP policies do not cover additional living expenses (ALE) or loss of use; this coverage must be obtained through a separate homeowners or renter's policy.
What is a 'Repetitive Loss' property as defined by FEMA?
Answer: A property that has had two or more NFIP claim payments of more than $1,000 each within any 10-year period
FEMA defines a Repetitive Loss property as one with two or more NFIP claim payments of more than $1,000 each within any rolling 10-year period, regardless of ownership changes.
What is a 'Severe Repetitive Loss' (SRL) property under the NFIP?
Answer: A property with NFIP cumulative claims exceeding the property value or with four or more separate claim payments over $5,000 each
SRL properties are those with cumulative NFIP claim payments exceeding the current value of the structure, OR those with four or more separate NFIP claim payments each exceeding $5,000 within any 10-year period.
Under NFIP rules, what type of damage is covered when water from a sewer backs up into a home due to flooding?
Answer: It is covered only if the sewer backup is caused by flooding of the general area
NFIP covers sewer or drain backup if the backup is a direct result of flooding in the area; damage from sewer backup not caused by flooding conditions is not covered.
What is the Increased Cost of Compliance (ICC) coverage under NFIP?
Answer: Coverage that helps pay for the cost to bring a substantially damaged or repetitive loss structure into compliance with local floodplain ordinance
ICC coverage provides up to $30,000 to help pay the costs of bringing a substantially damaged or repetitive loss building into compliance with the community's floodplain management ordinance, including elevation, floodproofing, relocation, or demolition.