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#1980072 - 12/01/14 09:45 PM maximum deductible on flood insurance
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Is there a maximum deductible permitted on flood insurance. If so, where can I find this information.

Thanks for your help!

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Flood Compliance
#1980123 - 12/01/14 10:51 PM Re: maximum deductible on flood insurance Chocaholic
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Yes, if it's an NFIP policy.
Residential = $5,000.00
Non-Residential = $50,000.00
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#1980307 - 12/02/14 06:11 PM Re: maximum deductible on flood insurance David Dickinson
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Thanks David, another wrinkle- we have two buildings insured under one policy with a schedule that identifies both structures and their insured value for flood. Would the deductible be per building or per policy in this case?

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#1980319 - 12/02/14 06:27 PM Re: maximum deductible on flood insurance Chocaholic
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
What difference does it make?
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#1980680 - 12/03/14 06:38 PM Re: maximum deductible on flood insurance rlcarey
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Well I guess if we are trying to underwrite the risk portion to make sure borrower can handle the higher deductible... if only 1 out of the 2 buildings are damaged in the flood, if the deductible is pro-rated over 2 buildings since they are scheduled on the policy, meaning deductible will be less than the $50,000 total. OR
I guess management wants to make sure that each structure does not have its own $50k deductible because of the scheduled property.
However, based on other types of insurance, a deductible would need to be satisfied no matter how much of the loss or whether only one structure vs two are damaged. Just wanting to confirm my understanding is not flawed.
Last edited by Chocaholic; 12/03/14 06:43 PM.
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#1980701 - 12/03/14 07:06 PM Re: maximum deductible on flood insurance Chocaholic
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
I see and it is a very valid question from a risk standpoint. From my understanding it is a per building deductible as when applying for a scheduled building policy, a separate application must be submitted for each building.
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