MASTER FLOODRCBAP INSURANCE
FLOOD DAMAGE IS EXCLUDED FROM PROPERTY POLICIES — THE RCBAP FILLS THAT GAP.
FLOOD IS EXCLUDED FROM EVERY STANDARD PROPERTY POLICY.
The master property policy covers fire, wind, and water damage from plumbing failures — but it excludes flood. Rising water from storms, overflowing rivers, coastal surge, and heavy rainfall runoff are all flood events that the property policy will not pay. The RCBAP is a separate flood policy built specifically for condo and community associations.
The RCBAP covers the building structure and common elements owned by the association against flood damage.
Federally backed mortgage lenders require flood insurance if any part of the building is in a FEMA flood zone.
NFIP provides standard coverage with formula-based limits. Private markets can offer higher limits and broader terms.
Fannie Mae and Freddie Mac require adequate flood coverage to maintain warrantable status in flood zones.
TAP EACH LAYER TO SEE WHAT THE RCBAP COVERS.
The association's flood program may need multiple layers. Tap each to understand the coverage structure.
THE FORMULA HAS A CEILING — YOUR BUILDING MAY EXCEED IT.
The NFIP caps RCBAP coverage at 250,000 dollars multiplied by the number of units. For smaller buildings this may be sufficient, but for high-rise and high-value buildings, the replacement cost can exceed the NFIP formula significantly. A 200-unit luxury high-rise with a replacement cost of 80 million has an NFIP maximum of 50 million — leaving 30 million uninsured without excess flood from the private market. Kelly Insurance Group layers NFIP and private flood coverage to match the building's actual replacement cost, and we ensure the combined program meets warrantability requirements so unit financing is not disrupted.
MASTER FLOOD RCBAP — ANSWERED.
WHAT IS AN RCBAP FLOOD POLICY?
A Residential Condominium Building Association Policy covers the building structure and common elements against flood damage. Available through NFIP and private markets. Designed specifically for condo and community associations.
DOES THE ASSOCIATION NEED FLOOD INSURANCE IN A FLOOD ZONE?
If any part of the building is in a FEMA Special Flood Hazard Area, federally backed lenders require it. Even outside mandatory zones, flood coverage is strongly recommended — property policies exclude flood entirely.
WHAT DOES THE RCBAP COVER VS THE UNIT OWNER'S POLICY?
RCBAP covers building structure and common elements. Unit owners need their own flood policy for interior improvements, personal property, and contents. The RCBAP does not cover unit owner belongings.
WHAT IS THE MAXIMUM NFIP COVERAGE?
250,000 dollars per unit. A 100-unit building has a 25 million maximum. Buildings with higher replacement costs need excess flood from the private market to fill the gap.
DOES FLOOD INSURANCE AFFECT WARRANTABILITY?
Fannie Mae and Freddie Mac require adequate flood coverage in flood zones for warrantable status. Dropping or under-insuring flood can block unit buyers from conventional financing.
IS PRIVATE FLOOD AN ALTERNATIVE TO NFIP?
Yes. Private markets can offer higher limits, broader terms, and sometimes lower premiums. Private policies must meet lender requirements. We evaluate both options for each building.
CLOSE THE FLOOD GAP IN YOUR PROPERTY PROGRAM.
Kelly Insurance Group layers NFIP and private flood to match replacement cost — not just the formula minimum. Since 1881.
The availability of coverage and eligibility for coverage can depend on numerous factors. We cannot guarantee that all customers, individuals, and businesses looking for coverage will be successful in these efforts when contacting our team. All policy coverages and terms need to be fully reviewed by the respective consumer to ensure the coverage asked for is what is specifically being quoted or provided by any insurance policy. Insurance Policies, Coverage Changes, and their terms and conditions are not bound or altered until written confirmation is provided by one of our licensed team members or underwriters. This page does not offer legal advice, legal opinions, or policy interpretations. Rather, this page is meant as a resource to help provide customers and insurance consumers with additional considerations that may help in their insurance buying or pursuit of insurance information. Kelly Insurance Group does not employ or direct attorneys.
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Disclaimer: Coverage availability and eligibility may depend on underwriting review, carrier guidelines, policy terms, state requirements, business operations, risk characteristics, and other information provided during the application or quoting process. Kelly Insurance Group cannot guarantee that every individual, customer, organization, or business seeking coverage will qualify for, receive, or successfully place insurance coverage. All policy coverages, exclusions, conditions, limits, endorsements, and terms should be carefully reviewed by the consumer, insured, or applicant to confirm that the coverage requested is the coverage being quoted, offered, or provided. Insurance coverage, policy changes, endorsements, cancellations, and other policy terms are not bound, changed, confirmed, or altered unless and until written confirmation is provided by a licensed Kelly Insurance Group team member, the applicable insurance carrier, or an authorized underwriter. This page is provided for general informational purposes only and does not provide legal advice, legal opinions, insurance coverage opinions, or policy interpretations.