Hawaii Insurance Adjuster License Practice Exam

Under the "regular program", what is the maximum amount insured for a single-family residence through a flood insurance policy?

1. $150,000

2. $200,000

3. $250,000

4. $300,000

The correct answer is: $250,000

The correct answer for the maximum amount insured for a single-family residence through a flood insurance policy under the "regular program" is indeed $250,000. This coverage limit is established by the National Flood Insurance Program (NFIP), which provides flood insurance to homeowners, renters, and businesses nationwide. The reasoning behind this figure is that it reflects the average value of single-family homes in areas subjected to floodplain management and helps ensure that property owners can mitigate their financial losses in the event of a flood. It's essential for homeowners to understand this limit, as it influences their purchasing decisions regarding flood insurance, ensuring that they are adequately covered for potential flood damage. In the context of other amounts listed, such as $150,000, $200,000, and $300,000, these figures do not represent the maximum limit available under the regular program for single-family homes. The $150,000 figure may pertain to personal property coverage limits, while $200,000 could represent other scenarios or types of structures. The $300,000 amount exceeds the standard limit set by the NFIP for residential properties, demonstrating that while there might be higher coverage options, they do not apply to single-family residences under the regular program specifications.