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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. What is my flood zone?
  2. What is my property's flood risk?
  3. Is flood insurance mandatory for my property? Will the lender require it?
  4. Even if flood insurance isn't required by my lender, do I still need it?
  5. Do I qualify for a Preferred Risk Policy?
  6. What does NFIP, CRS, FEMA, etc stand for?
  7. What will and won't be covered by flood insurance?
  8. Will my flood insurance policy be backed by the federal government?
  9. How much coverage should I get for my building and for my contents?
  10. Are there additional expenses or agency fees I should be aware of?
  11. What is the difference between Replacement Cost Value and Actual Cash Value? And what is the difference between the two?
  12. Will my policy provide Replacement Cost Value or Actual Cash Value?
  13. Who should I contact to report a flood claim?
  14. How can I pay for my policy?
  15. How will my policy be renewed?
What is my flood zone?
We will determine your flood zone based on your property address. Flood zones are geographic areas that FEMA has defined according to varying levels of flood risk. These zones are depicted on a community's Flood Insurance Rate Map (FIRM) or Flood Hazard Boundary Map. Each zone reflects the severity or type of flooding in the area. Everyone lives in a flood zone, it’s just a question of whether you live in a low, moderate or high risk area. Learn more about flood zones and their definitions.

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What is my property's flood risk?
Be aware of flood hazards no matter where you live, but especially if you live in a low-lying area, near water or downstream from a dam. Even very small streams, gullies, creeks, culverts, dry streambeds, or low-lying ground that appears harmless in dry weather can flood. Every state is at risk from this hazard. Click here to obtain a free quote and find out your flood risk.

The National Weather Service has a web site which tracks the water levels of rivers located in the United States. For more information go to their web site:  http://water.weather.gov/ahps/

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Is flood insurance mandatory for my property? Will the lender require it?
Your lender will let you know if Flood Insurance is mandatory for your property.  If your lender does not mandate you purchase flood insurance this does not mean that you may never experience a flood and therefore the financial burden of the outcomes of this natural disaster. Be aware of flood hazards no matter where you live, but especially if you live in a low-lying area, near water or downstream from a dam. Even very small streams, gullies, creeks, culverts, dry streambeds, or low-lying ground that appears harmless in dry weather can flood. Every state is at risk from this hazard.

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Even if flood insurance isn't required by my lender, do I still need it?
Your lender may not require you purchase insurance in order to borrow money; however, how important is your investment? As a home owner, in the event of a flood, you will be responsible for the financial burden of the outcomes of this natural disaster. Be aware of flood hazards no matter where you live, but especially if you live in a low-lying area, near water or downstream from a dam. Even very small streams, gullies, creeks, culverts, dry streambeds, or low-lying ground that appears harmless in dry weather can flood. Every state is at risk from this hazard.

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Do I qualify for a Preferred Risk Policy?
You may. This will be determined once we determine in which Flood Zone your property is located. The Preferred Risk Policy offers low-cost coverage to owners and tenants of eligible buildings located in the moderate-risk B, C and X zones in the National Flood Program.

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What does NFIP, CRS, FEMA, etc stand for?
For a complete list of acronyms and their meanings commonly used in the flood industry click here.

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What will and won't be covered by flood insurance?
For a complete list of what your flood insurance will cover please read Summary of Coverage.

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Will my flood insurance policy be backed by the federal government?
Yes, the National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA). The NFIP, is a federal program, which offers flood insurance, and can be purchased from us, Direct Flood Insurance Agency. Rates are set by the federal flood program. These rates depend on many factors, which include the date and type of construction of your home, along with your property’s level of risk.

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How much coverage should I get for my building and for my contents?
The maximum flood policy limits offered by the NFIP is $250,000 for residential building coverage and a $100,000 limit for contents coverage. The maximum flood policy limits offered by the NFIP for a commercial flood policy is $500,000 for the building and $500,000 for the contents. The coverage which is right for you as a homeowner or a business owner depends on the value of the building and the contents you are insuring. The NFIP requires the insured to insure the building to 80 percent of its replacement value. However, we recommend you insure your home and contents to 100% of its replacement value.

Tip: Many customers underestimate the cost to replace their contents. Consider purchasing more coverage than you think you need.


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Are there additional expenses or agency fees I should be aware of?
All expenses and/or agency fees are included in the quote we will provide you. Rates are set by the NFIP. These rates depend on many factors, which include the date and type of construction of your home, along with your property’s level of risk.

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What is the difference between Replacement Cost Value and Actual Cash Value? And what is the difference between the two?
Replacement Cost Value (RCV) is the cost to replace that part of a building that is damaged (without depreciation).

Actual Cash Value (ACV) is Replacement Cost Value at the time of loss, less the value of its physical depreciation.


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Will my policy provide Replacement Cost Value or Actual Cash Value?
For Residential Buildings: To be eligible for Replacement Cost Value, three conditions must be met:
  1. 1.The building must be a single-family dwelling, and
  2. 2. Be your principal residence, meaning you live there at least 80 percent of the year, and
  3. 3.Your building coverage is at least 80 percent of the full replacement cost of the building, or is the maximum available for the property under the NFIP.

Some building items such as carpeting are always adjusted on an Actual Cash Value (ACV) basis. For example, wall-to-wall carpeting could lose between 10–14 percent of its value each year, depending on the quality of the carpeting. This depreciation would be factored in the adjustment.

For Non-Residential Buildings: Actual Cash Value will be used to adjust non-residential buildings.

For Contents: Personal property is always valued at ACV.


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Who should I contact to report a flood claim?
You should contact us, Direct Flood Insurance Agency, LLC, your flood agent, if you have a flood claim.  Fill in the required Claim Form information.  Once we received the claim we will submit it to the insurance company for processing.

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How can I pay for my policy?
Payment must be made for the full year's premium. The Direct Flood Insurance Agency, LLC accepts check and credit card payments (i.e. American Express, VISA, MasterCard). Coverage will not be effective until full payment is received.

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How will my policy be renewed?
A renewal bill will be sent annually. You can choose for the bill to be sent to you, the insured, or to your mortgage company. In general, if your mortgage company requires you to obtain flood insurance they will pay the premium.  However, you should verify with your mortgage company that it will be paying your renewal when you receive the renewal notice.

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