South Carolina Personal Lines Practice Exam

If you want to increase your already existing Flood Coverage, how long is the waiting period for the higher coverage?

1. 24 hours

2. 5 days

3. 15 days

4. 1201 AM on the 5th day

The correct answer is: 1201 AM on the 5th day

When increasing flood coverage under the National Flood Insurance Program (NFIP), the waiting period for the additional coverage typically begins at 12:01 AM on the fifth day after the increased coverage is purchased. This means that effective coverage does not begin immediately, but rather after a defined waiting period, which is standard for many types of insurance policies, including flood insurance. The waiting period is essential as it allows time for a thorough assessment and processing of the changes made to the policy. This is designed to prevent last-minute coverage acquisitions before a flood event occurs, ensuring that the flood insurance system remains sustainable and can effectively manage risks. It's important to remember that the coverage increase is not in effect until that waiting period is complete, therefore policyholders should always plan accordingly when considering increasing coverage.