Every flood claim payment starts with a subtraction. Under the federal Standard Flood Insurance Policy (SFIP) Dwelling Form, the policy used for National Flood Insurance Program homes, the policy pays only that part of an insured loss that exceeds your deductible, subject to the limit of liability that applies. Your deductible amount is shown on your Declarations Page.
Two parts of the deductible section surprise people: the building and the contents each carry their own deductible, and an unfinished building can face double.
| Topic | What the SFIP Dwelling Form says |
|---|---|
| How a payment is figured | Pays only the part of an insured loss above your deductible, subject to the limit of liability |
| Where your deductible appears | On the Declarations Page |
| Building vs. contents | Separate deductibles apply to the building and personal property in each flood loss |
| Building under construction, alteration, or repair | Two times the usual deductible if it lacks at least two rigid exterior walls and a fully secured roof at the time of loss |
| Increased Cost of Compliance (Coverage D) | No separate deductible |
| Condo loss assessments | No payment for an assessment that results from the association's deductible on common elements |
Source: 44 CFR Part 61, Appendix A(1), Standard Flood Insurance Policy, Dwelling Form.
Two deductibles in one flood
The SFIP says that in each loss from flood, separate deductibles apply to the building and personal property insured by the policy. If you carry both building and contents coverage and both are damaged, expect the building deductible to come off the building claim and the contents deductible to come off the contents claim.
That makes it worth knowing both numbers before water reaches the door, and how your limits line up behind them: NFIP flood policies cap Tennessee home building coverage at $250,000 and contents at $100,000.
The double deductible on an unfinished building
If a building under construction, alteration, or repair does not have at least two rigid exterior walls and a fully secured roof at the time of loss, the deductible is two times the deductible that would otherwise apply to a completed building. Owners in the middle of a remodel or an addition in a flood-prone area should know where their project stands against that test.
Where no separate deductible applies
For Increased Cost of Compliance, the coverage that can help pay to bring a flood-damaged building up to local floodplain rules, the SFIP says the deductible does not apply to Coverage D. Section VI.C also exempts Loss Avoidance Measures and Condominium Loss Assessments; the separate exclusion for an association's deductible still applies. Background: Tennessee NFIP flood policies include up to $30,000 in Increased Cost of Compliance coverage for qualifying rebuilds.
Condo owners should note a separate rule. The dwelling form will not pay a condominium loss assessment that results from a deductible under the insurance the association bought on the common elements. Unit owner flood background: Tennessee condo owners can carry their own flood policy, but federal rules cap a unit's combined flood payout at $250,000.
Questions to ask about your flood deductibles
- What are my building and contents deductibles, and are they the same amount? Check the Declarations Page: TDCI glossary: what your insurance declarations page shows.
- Would a higher or lower deductible change my premium enough to matter?
- Do I have contents coverage at all, or only building coverage?
- If I am remodeling, when will the project have two rigid exterior walls and a secured roof?
- What is my deadline for a proof of loss after a flood? A Tennessee flood claim under the NFIP comes with a 60-day proof-of-loss deadline that the adjuster will not file for you.
This article is informational only. It summarizes the NFIP Standard Flood Insurance Policy Dwelling Form and does not promise coverage or eligibility. Your policy and Declarations Page control.
Related reading from All Seasons
- NFIP flood policies cap Tennessee home building coverage at $250,000 and contents at $100,000.
- Tennessee NFIP flood policies include up to $30,000 in Increased Cost of Compliance coverage for qualifying rebuilds.
- A Tennessee flood claim under the NFIP comes with a 60-day proof-of-loss deadline that the adjuster will not file for you.
- Tennessee homeowners with basements should know an NFIP flood policy pays for only a short list of items below ground level.
- New Tennessee flood insurance usually waits 30 days to start, and federal rules list only three exceptions.
- Tennessee condo owners can carry their own flood policy, but federal rules cap a unit's combined flood payout at $250,000.
- TDCI glossary: what your insurance declarations page shows.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
How does an NFIP flood deductible work?
The dwelling policy pays only the part of an insured loss above your deductible, subject to the limit of liability. The deductible is on your Declarations Page.
Is there one flood deductible or two?
In each flood loss, separate deductibles apply to the building and to the personal property insured by the policy.
Why would my flood deductible double?
If a building under construction, alteration, or repair lacks two rigid exterior walls and a fully secured roof at the time of loss, the deductible is two times the usual amount.
Is there a deductible on Increased Cost of Compliance?
The SFIP says there is no separate deductible for a claim under Coverage D, Increased Cost of Compliance.
Does my flood policy pay my condo association's deductible?
The dwelling form will not pay a loss assessment that results from a deductible under the association's insurance on common elements.
Where do I find my flood deductibles?
On the Declarations Page of your flood policy.
Should I ask about my deductible before a flood?
Yes. Knowing both deductibles and your limits ahead of time helps you plan for what a claim would and would not pay.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
