The study guide containing FEMA IS 1114 answers and course notes to the independent study course Adjusting RCBAP and Condo Unit Owner Claims. Learn how to deal with condominiums, a form of ownership and not a type of building. You will also have to perform calculations using the limit of recovery formula which is explained. You may also be interested in our FEMA IS 1104 Answers Guide.

Course Date 11/15/2018 Course Overview The Adjusting RCBAP and Condo Unit-Owner Claims course provides the Large Commercial and RCBAP authorized adjusters with the most challenging aspects of adjusting NFIP flood losses under the Residential Condominium Building Association Policy and the Dwelling Form, commonly referred to as the unit-owner policy. Flood losses to condominium buildings insured under the RCBAP and Dwelling Form are complex and must be thoroughly investigated to ensure proper claim handling. This course reviews specialized knowledge areas and adjustment concepts for consideration and use when adjusting these types of claims. Course Objectives: Identify Homeowner Associations (HOAs), townhomes, and other forms of ownership not eligible for coverage uner the RCBAP

Determine building value, insurance to value, and Replacement Cost Value

Compute coinsurance calculations using examples and case studies

Identify documentation associated with RCBAP and unit-owner policies (e.g. condominiums bylaws, appraisals and ownership verification)

Explain coverage differences as applied to condominium and unit-owner policies insured under the RCBAP, General Property Form, and the Dwelling Form.

Explain coverage for business units (General Property Form) located in condominium buildings

Describe condominium loss assessment and the Dwelling Form Primary Audience Whole Community From IS-1114: Adjusting RCBAP and Condo Unit Owner Claims

Example Questions & FEMA IS 1114 Answers

A building insured under the RCBAP has 200 units; the replacement cost value of the building is $60,000,000. How much insurance is required in order for there to be no coinsurance applied to a flood claim?

A. “$47,000,000 ”

B. “$58,000,000 ”

Answer: “$48,000,000 “

D. “$45,000,000 ”

E. “$42,000,000 ”

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When is coinsurance applicable under the General Property Form insuring a condominium building?

A. When the condominium building is not insured to value

B. Co-insurance is not applicable under the General Property Form

C. When the condominium building is not insured to the maximum amount of insurance available under the NFIP

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Which of the following statements is true?

A. The General Property Form insuring a condominium building is responsible for improvements within the units owned in common by all unit owners.

B. The General Property Form insuring a condominium building is responsible for improvements within the individually owned units.

C. The General Property Form insuring a condominium building is responsible for improvements within those units that are residential.

Which of the following is the definition of “unit” under the General Property Form?

A. A unit in a condominium building

B. A single-family unit you own in a condominium building

C. A single-family unit in a residential condominium building

If the condominium bylaws indicate the carpet in the units is the unit owner’s responsibility, which of the following is accurate?

A. The RCBAP will respond to the carpet damaged by flood based on the language of the RCBAP policy.

B. The RCBAP will not respond to the carpet damaged by flood based on the language of the bylaws.

C. The RCBAP is only responsible for carpet in those areas owned in common by all unit owners.

If the commercial square-foot area of a condominium building is 70% of the total area of the building, it is insurable under which form of the policy?

A. General Property Form

B. Dwelling Form

C. Residential Condominium Building Association Policy Form

D. Not insurable under the SFIP

A condominium building is insured under the General Property Form, and only 40% of the square-foot area of the building is residential. Those residential units within this building can be insured under which form(s) of the policy?

A. General Property Form

B. Contents only on the General Property Form

C. Dwelling Form

D. Residential Condominium Building Association Policy Form

E. Contents only on the Dwelling Form

After reviewing the building appraisal provided by the Condominium Association President, the adjuster notes that the appraisal includes the detached garages, pools, and fences. The condominium building in question is a high-rise building with more than 100 units. What should the adjuster do next?

A. Estimate ITV based on the bottom three floors of the condo building.

B. Use the acquired appraisal and just deduct an arbitrary amount for the garages, fences, and pool.

C. Inspect every unit on every floor of the building and calculate the estimated replacement cost.

D. Ask the WYO to have an appraisal of the building done by an expert and only include the covered buildings.

Which of the following statements is true?

A. The appraisal will provide information pertinent to determine the current valuation of the building.

B. The appraisal will determine if the building form of ownership is a condominium association.

C. The appraisal will provide information pertinent to determine the amount of flood damage.

If a condominium unit owner has a building policy under the Dwelling Form of the SFIP, the RCBAP claim for the building will be settled after the claim settlement for the unit under the Dwelling Form.

A. FALSE

B. TRUE

If a business unit owner in a condominium building is insured under the General Property Form for building coverage, and the unit owner is assessed by the condominium association, will the unit owner’s flood insurance cover assessment?

A. Yes, if the assessment is for common areas.

B. Yes, if the building is insured 80% to replacement cost value.

C. No. Assessments are not covered under the General Property Form.

If a unit owner in a condominium building is insured under the Dwelling Form and is assessed by the condominium association to cover the RCBAP deductible, loss assessment coverage under the Dwelling Form will respond to which of the following?

A. Assessment to cover contents of the association

B. Assessment to cover the association’s policy deductible

C. Assessment to cover those items not covered by the RCBAP

D. Assessment to cover that part of the loss that exceeds 80% of the association’s building replacement cost

To which of the following damages will the Dwelling Form loss assessment coverage respond?

A. Fire damage

B. Flood damage

C. Pool damage

D. Sidewalk damage

In which of the following situations does the RCBAP coinsurance clearly not apply?

A. The residential condominium building is not insured to the maximum amount of insurance available under the NFIP.

B. The residential condominium building is not insured to value.

C. The residential condominium building is insured over 80% of the replacement cost value.

A condominium building insured under the RCBAP has flood damage totaling $325,000. The replacement cost of the building at the time of the loss was $2,500,000. The amount of insurance carried under the NFIP is $1,750,000. What is the limit of recovery on this loss?

A. $248,828.12 minus deductible

B. $284,375.00 minus deductible

C. $289,375.00 minus deductible

D. $250,000.00 minus deductible

The building valuation must include which of the following:

A. Detached garages

B. Exterior landscaping

C. Building foundation

For more questions and FEMA IS 1114 answers, download the guide!

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