Flood Insurance Policy Inquiry & RCV/ACV Clarification
Good morning! I have two questions:
- Can you confirm if the current FEMA flood insurance policy is the one listed below? I requested a copy from my dad’s agent, and this is what I received (please note the date).
National Flood Insurance Program
Dwelling Form
Standard Flood Insurance Policy
F-122 / October 2021
- Regarding this type of policy, I understand it operates under Actual Cash Value (ACV). I’ve noticed this mentioned in the adjuster’s draft report. I would appreciate any confirmation on this matter.
Thank you!
Good Morning!
Yes, the National Flood Insurance Program (NFIP) has a Standard Flood Insurance Policy known as the Dwelling Form, and the document you received (F-122 / October 2021) is indeed the most current version of that policy. NFIP policies are updated periodically, but as of your reference date, this version is appropriate.
Regarding the Actual Cash Value (ACV) versus Replacement Cost Value (RCV), flood insurance under the NFIP typically provides coverage at ACV for personal property. However, if the structure itself is insured under the policy, there can be options for replacement cost coverage for the building, depending on specific conditions (like the elevation of the home and compliance with floodplain management regulations). It’s always good to confirm the details with the agent to clarify coverage specifics in the policy, as each situation can vary.
Hope this helps!