PI-084 (R 08/2023 11
Replacement cost coverage does not apply to manufactured (i.e., mobile) homes smaller than certain dimensions
specified in the policy. Losses are adjusted on a replacement cost basis for residential condominium buildings insured
under the Residential Condominium Building Association Policy (RCBAP).
The principal residence and the 80% insurance to value requirements for single-family dwellings do not apply to RCBAP.
However, coverage amounts less than 80% of the building’s full replacement cost value at the time of loss will be
subject to a coinsurance penalty.
Contents losses are always adjusted on an actual cash value basis. If the replacement cost conditions are not met, the
building loss is also adjusted on an actual cash value basis. Actual cash value means the replacement cost of an insured
item of property at the time of loss, less the value of physical depreciation as to the item damaged.
Are there limitations on the amount of insurance available for certain types of property?
Items such as artwork, photographs, collectibles, memorabilia, rare books, autographed items, jewelry, watches, gems,
articles of gold, silver, or platinum and furs are limited to $2,500 coverage in the aggregate. This limitation does not
apply to other items that are personal property or household contents usual or incidental to the occupancy of the
building as a residence. For other limitations under the Standard Flood Insurance Program see the current policy or
contact a property insurance agent.
Will damage-preventing measures I have taken in my home be reimbursed by my flood insurance policy?
Some will be. When your insured home is in imminent danger of being flooded, you may receive up to a $1,000
reimbursement for your damage-preventing expenses. Things like renting storage space to protect your belongings,
buying sandbags and lumber to make a barricade, and renting pumps are all things that qualify for reimbursement. No
deductible is applied to this coverage.
Does the flood insurance dwelling policy provide additional living expenses if the insured dwelling is flood
damaged and cannot be occupied while repairs are being made?
No. The policy only covers direct physical flood damage to the dwelling and does not provide additional living
expenses.
Note: Loss or damage occurring as a result of a flood, such as explosion, fire, theft, looting, etc., may be covered under
your existing property insurance policy. You should contact your agent should such loss occur as a result of a flood.
What is covered in my basement?
Flood insurance covers your home’s foundation elements and equipment that are necessary to support the structure
(for example, furnace, water heaters, circuit breakers, etc.).
It is important to note, some items in your basement are covered under building coverage (like a furnace, hot water
heater, and circuit breaker), and others are covered under contents coverage that must be purchased in addition to
building coverage (for example, your washer and dryer, or your freezer and the food in it).
NFIP encourages people to purchase both building and contents coverage for the most complete protection. Flood
insurance does not cover basement improvements, such as finished walls, floors, ceilings, or personal belongings kept
in a basement. For a complete list of what is covered, view the Standard Flood Insurance Policy (SFIP) forms.
(fema.gov/national-flood-insurance-program/standard-flood-insurance-policy-forms
).
Is sewer backup covered under a flood insurance policy?
Flood insurance does not cover sewer backup since flooding is defined as the inundation of normally dry land by the
overflow or rise of inland waters or the accumulation of storm water runoff.
Sewer backup is also not covered under your homeowners insurance policy. Sewer backup coverage is an endorsement
available through most insurance companies, but it may not be offered to property owners when purchasing coverage
if you do not ask for it.