Property and Casualty Insurance Practice Exam

Which flood insurance plan option has the lowest deductible?

1. Emergency Flood Insurance Plan

2. Regular Flood Insurance Plan

3. Supplemental Flood Insurance Plan

4. Excess Flood Insurance Plan

The correct answer is: Regular Flood Insurance Plan

The Regular Flood Insurance Plan typically offers the lowest deductible option for policyholders. This plan is designed for property owners who are looking for comprehensive coverage and is part of the National Flood Insurance Program (NFIP). The regular plan covers both structural and contents losses and provides more robust protection compared to the Emergency Flood Insurance Plan, which is initially focused on providing immediate coverage but generally has higher deductibles. In contrast, the Supplemental Flood Insurance Plan often acts as a secondary layer of coverage for those who require additional insurance beyond the primary policy. The Excess Flood Insurance Plan offers coverage above and beyond the limits set by the standard flood policies, which can also come with higher deductibles to mitigate risk for insurers. Hence, the Regular Flood Insurance Plan remains the most appealing option in terms of having the lowest deductible, making it accessible for policyholders who want to minimize out-of-pocket expenses in the event of a flood loss.