CFM Flood Insurance & NFIP 2

Question 1

What is the primary purpose of the Elevation Certificate (EC) in relation to flood insurance?

Accepted Answer

To document a building's elevation for flood insurance rating and compliance purposes

Answer

To certify that a building meets energy efficiency standards

Answer

To prove a property has been remediated from prior flood damage

Answer

To establish the base flood elevation for a new community

Question 2

What is a Preferred Risk Policy (PRP) under the NFIP?

Accepted Answer

A lower-cost flood insurance policy available to eligible properties in low-to-moderate risk areas

Answer

A policy only available to government-owned properties

Answer

A policy that provides additional living expense coverage after a flood

Answer

A policy for properties with previous flood claims that receive a discount

Question 3

Which of the following losses is typically NOT covered under a Standard NFIP flood insurance policy?

Accepted Answer

Additional living expenses while displaced

Answer

Structural damage to the foundation

Answer

Damage to electrical systems

Answer

Damage to HVAC systems

Question 4

What is a 'Repetitive Loss' property as defined by FEMA?

Accepted Answer

A property that has had two or more NFIP claim payments of more than $1,000 each within any 10-year period

Answer

Any property that has flooded more than once

Answer

A property located in a floodway that floods annually

Answer

A property with cumulative NFIP claims exceeding its current market value

Question 5

What is a 'Severe Repetitive Loss' (SRL) property under the NFIP?

Accepted Answer

A property with NFIP cumulative claims exceeding the property value or with four or more separate claim payments over $5,000 each

Answer

A property with any flood claim over $50,000

Answer

A property with four or more separate NFIP flood claims, each exceeding $5,000

Answer

A property that has flooded in five consecutive years

Question 6

Under NFIP rules, what type of damage is covered when water from a sewer backs up into a home due to flooding?

Accepted Answer

It is covered only if the sewer backup is caused by flooding of the general area

Answer

It is always fully covered as flood damage

Answer

It is never covered under NFIP; only private policies cover sewer backup

Answer

It is covered only if the homeowner purchased a separate sewer backup rider

Question 7

What is the Increased Cost of Compliance (ICC) coverage under NFIP?

Accepted Answer

Coverage that helps pay for the cost to bring a substantially damaged or repetitive loss structure into compliance with local floodplain ordinance

Answer

Coverage for upgrading a home's energy systems after a flood

Answer

Additional coverage purchased by communities to upgrade their flood maps

Answer

Coverage for legal costs when disputing flood insurance claims