South Carolina Personal Lines Practice Exam

The regular NFIP would insure an eligible single-family dwelling for up to what amount?

1. 150,000

2. 250,000

3. 500,000

4. 1,000,000

The correct answer is: 250,000

The National Flood Insurance Program (NFIP) provides coverage for single-family dwellings, and the maximum amount of coverage available under the regular program for residential properties is set at $250,000. This limit is established to help homeowners protect their investment in the event of flood damage, ensuring they have a reasonable level of financial protection against common flood risks. It's important to note that while this is the maximum coverage amount for a single-family dwelling, policyholders can choose to purchase additional amounts of insurance for personal property within the home, which can go up to $100,000. However, the focus of the question is on the coverage for the structure itself, which is capped at $250,000 under the NFIP for eligible properties. This coverage limit is a crucial aspect of flood insurance policies and is meant to provide a safety net for homeowners experiencing flood-related losses.