Endorsements & Optional CoveragesQuestion 451 of 474
A single-family home would cost $340,000 to rebuild. The most building coverage its owner can buy through the National Flood Insurance Program is:
a.$250,000
b.$340,000
c.$500,000
d.$100,000
Explanation
The National Flood Insurance Program caps a single-family residential building at $250,000 and its contents at $100,000, so this owner is left with $90,000 of building exposure and would need excess flood coverage from a private insurer to close it. The $100,000 figure is the contents maximum, not the building maximum, and the program does not write the full rebuilding cost of an expensive home.
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