CFS CFS Flood Insurance & Claims Assessment 2 — Questions and Answers
Question 1: What is the maximum building coverage limit available under a standard NFIP policy for a residential building?
- $100,000
- $150,000
- $250,000 (Correct answer)
- $500,000
Correct answer: $250,000
The NFIP provides a maximum of $250,000 in building coverage for residential structures; homeowners needing additional coverage may purchase excess flood insurance.
Question 2: Which FEMA program gives NFIP policyholders in communities that adopt enhanced floodplain management measures a discount on flood insurance premiums?
- Flood Mitigation Assistance (FMA) Program
- Community Rating System (CRS) (Correct answer)
- Hazard Mitigation Grant Program (HMGP)
- Risk Mapping, Assessment, and Planning (Risk MAP)
Correct answer: Community Rating System (CRS)
The Community Rating System (CRS) is a voluntary program that rewards communities exceeding minimum NFIP requirements with premium discounts of 5% to 45% for policyholders.
Question 3: When completing Section C of the Elevation Certificate, the surveyor must reference elevations to which datum?
- NAVD 29
- NGVD 29 or NAVD 88 as shown on the effective FIRM (Correct answer)
- Mean sea level only
- Local benchmark datum
Correct answer: NGVD 29 or NAVD 88 as shown on the effective FIRM
Section C elevations on the Elevation Certificate must be reported in the vertical datum (NAVD 88 or NGVD 29) used on the effective Flood Insurance Rate Map for that community.
Question 4: A pre-FIRM building is one constructed before which date, and why does this distinction matter for flood insurance?
- Before January 1, 1975 — they are exempt from all NFIP requirements
- Before the community's initial FIRM effective date — they may qualify for subsidized rates (Correct answer)
- Before January 1, 1968 — they require mandatory elevation certificates
- Before the BFE was established — they are ineligible for NFIP coverage
Correct answer: Before the community's initial FIRM effective date — they may qualify for subsidized rates
Pre-FIRM buildings were constructed before the community's first Flood Insurance Rate Map and may have historically qualified for subsidized rates, though Risk Rating 2.0 transitioned most to actuarial pricing.
Question 5: Increased Cost of Compliance (ICC) coverage under an NFIP policy pays up to how much to help bring a substantially damaged building into compliance?
- $10,000
- $30,000
- $50,000 (Correct answer)
- $100,000
Correct answer: $50,000
ICC coverage provides up to $30,000 to help owners of substantially damaged or repetitive loss buildings pay the cost of elevating, floodproofing, demolishing, or relocating the structure.
Question 6: What is a 'repetitive loss property' under NFIP terminology?
- Any property flooded more than once in a calendar year
- A property with two or more NFIP claims of over $1,000 each within any 10-year period (Correct answer)
- A property located within a V zone that floods annually
- A property denied elevation certificate approval twice
Correct answer: A property with two or more NFIP claims of over $1,000 each within any 10-year period
FEMA defines a repetitive loss property as one that has had two or more NFIP claim payments of more than $1,000 each within any rolling 10-year period since 1978.
CFS CFS Flood Insurance & Claims Assessment 2
What is the maximum building coverage limit available under a standard NFIP policy for a residential building?