Florida Certified Insurance Representative (CIR) Practice Exam

To determine the necessary coverage for Paul's garage to ensure complete repairs to his home following a flood, one must consider the specifics of flood insurance coverage, especially under the National Flood Insurance Program (NFIP).

Coverage A pertains to the building structure of the home itself, which includes attached structures like garages. The value needed under Coverage A would typically be based on the replacement cost or the actual cash value of the garage. If the garage is valued at $18,000, that amount would be sufficient for full repair of that specific structure, assuming it is the only thing needing coverage in this scenario.

In flood insurance contexts, it is important for homeowners to accurately gauge the value of their properties to set appropriate limits on their coverage under policies. Thus, if Paul’s garage requires $18,000 to restore it to its pre-flood condition, that amount of coverage is deemed necessary for full repair.

In contrast, other options presented either suggest amounts that surpass or inaccurately reflect the needed coverage based on the garage’s actual repair cost. The sum of $200,000 under Coverage A might exceed what is necessary for just the garage, making it impractical if the garage is only worth $18,000. The options suggesting "only the cost for the

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