FLOOD INSURANCE QUES TIONS AND
ANSWERS
Question: Makes federally-backed flood insurance available
to homeowners, renters, and business owners
CORRECT ANSWER: National Flood Insurance Program
(NFIP)
Question: Flood insurance can be purchased by either what
two ways?
CORRECT ANSWER: 1. Directly through the National
Flood Insurance Program (NFIP), 2. From private insurers in a program referred to as "write your own" which is available through local producers (agents)
Question: True or False: Depending on how you purchased your flood insurance will determine the coverage and premium amount.
CORRECT ANSWER: False, the coverage and the
premium are the same regardless of the method purchased
Question: National agency that monitors the flood insurance
program and provides subsidized rates for flood insurance
CORRECT ANSWER: Federal Emergency Management
Agency (FEMA)
Question: True or False: Coverage can be written only on property in "eligible communities" which participate in FEMA's requirements to reduce the risk of flooding.
CORRECT ANSWER: True
Question: General and temporary condition of water covering
normally dry land causing one of the following: 1. An
overflow of inland or tidal waters, 2. Rapid accumulation of surface waters (flash flood), 3. Mud slide caused by water (NOT landslide), 4. Collapse or destabilization of shoreline
CORRECT ANSWER: Definition of a flood
Question: A temporary condition of water covering normally
dry land caused by a landslide is a "flood".
CORRECT ANSWER: False, not a landslide, but a
mudslide
Question: Coverage forms for Flood Insurance can be written
on both __ and __ property.
CORRECT ANSWER: Residential and commercial
property
Question: Does flood insurance coverage include the removal
of mud?
CORRECT ANSWER: Yes
Question: True or False: Coverage is purchased separately on 1) buildings and 2) personal property.
CORRECT ANSWER: True
Question: What is the standard deductible per occurrence for
flood insurance?
CORRECT ANSWER: $500
Question: True or False: The standard deductible of $500 per occurrence does not apply separately to buildings and to personal property.
CORRECT ANSWER: False, it does apply separately
Question: When does coverage become effective for a flood
insurance policy?
CORRECT ANSWER: 1. A waiting period of 30 days after
the application is signed, 2. The first year's annual premium is paid
Question: True or False: Producers have binding authority with flood insurance.
CORRECT ANSWER: False, they do not have binding
authority
Question: True or False: There is not a coinsurance requirement for flood insurance.
CORRECT ANSWER: True
Question: What is the valuation method on buildings and
personal property in flood insurance?
CORRECT ANSWER: ACV (Actual Cash Value)
Question: What are the exclusions to a flood insurance
policy?
CORRECT ANSWER: 1. Indirect losses - loss of use, 2.
Sewer backups, wind-driven water damage, 3. Losses in control of the insured, 4. Building flood damage to underground structures, retaining walls, fences, swimming pools, septic tanks, docks, and structures on or above the water, 5. Personal property in the basement, 6. Money, securities, manuscripts, animals, and plants
Question: True or False: Flood insurance will cover personal property in the basement.
CORRECT ANSWER: False, they will not
Question : All of the following are covered under flood
policy except?
