The purpose of this coverage is to protect the association from loss of or damage to association property caused by flood. Your association’s buildings do not have to be in a designated flood zone to experience a loss due to rising water. Flood insurance is never covered by an associations master property policy, it is always a separate policy.
It is important to know that the limit the National Federal Insurance Program (NFIP) will pay in the event of a building loss is $250,000 per unit which includes the association and individual unit owner’s policies. Additional Flood coverage is available in the private insurance marketplace if higher limits are needed. Flood Insurance premiums are determined by the dollar amount of coverage needed, the designated flood zone, and the deductible selected.
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