Subject: Questions About Flood Insurance Policy and RCV/ACV
Good morning, everyone! I have a couple of questions:
- Is the FEMA flood insurance policy I’ve listed below the most current version? I obtained this from my dad’s agent, but please note the date.
National Flood Insurance Program
Dwelling Form
Standard Flood Insurance Policy
F-122 / October 2021
- Regarding this type of policy, I’ve come across information indicating it operates on an Actual Cash Value (ACV) basis. This is also what the adjuster has mentioned in the draft report. Can anyone confirm this?
Thank you!
Good Morning!
Yes, the document you received is indeed the Standard Flood Insurance Policy for the National Flood Insurance Program (NFIP). The version you mentioned, F-122 / October 2021, is current as of that date. It’s always good to check with the agent for the most recent updates, but as of now, that version is valid.
Regarding the Actual Cash Value (ACV) aspect of the policy, it’s important to note that certain types of flood insurance usually pay out based on ACV, particularly for contents coverage. However, dwelling coverage under the NFIP can be either Replacement Cost Value (RCV) or ACV, depending on how the policy is structured and whether the property meets certain criteria (e.g., if it’s insured for at least 80% of its replacement cost). I would recommend reviewing the specific policy details or reaching out to the agent for clarification on how coverage is applied in your dad’s case.
Hope this helps! If you have any more questions, feel free to ask.