Relation to NFIP
I understand NFIP protects property owners in the event of catastrophic floods. FHCF essentially a mandatory extra protection for insurers. In Florida Hurricanes and Floods usually go hand in hand. It sounds like if a hurricane like Hurricane Andrew hits Florida both NFIP and FHCF will come into play. However, my understanding is NFIP assumes most if not all the risk for flooding, which I was thinking causes most of the damage. So, I'm trying to wrap my head around where FHCF comes into play.
I'm guessing if a Hurricane comes through and causes both wind damage and flooding there will be an assessment what part of the loss is flooding covered by NFIP and what part of the loss is wind where FHCF comes into play? Just trying to understand the relation, or lack thereof, between the two programs.
Comments
NFIP covers all flood, including storm surge. But wind-driven rain is covered under windstorm, not NFIP.
Yes, losses will be separated between flood and windstorm and NFIP and FHCF will kick in respectively.