Flood Insurance Terms & Definitions
Flood Insurance Glossary
Search common flood insurance terms, policy language, and claim-related definitions written for homeowners and property owners.
Condominium
A condominium is a form of property ownership where individuals own their individual units while sharing an undivided ownership interest in common areas of the building and associated facilities.
Coastal High Hazard Area
A Coastal High Hazard Area is a coastal zone subject to high-velocity flood waters and wave action, typically from storms such as hurricanes.
Cancellation
Cancellation is the termination of a flood insurance policy before its scheduled expiration date.
Building
A structure with rigid exterior walls and a fully secured roof that is attached to a permanent site. Under NFIP rules, certain manufactured homes and specific permanently affixed travel trailers can also qualify as a building.
Basement
A basement is any part of a building where the floor is below ground level on all sides, including sunken rooms.
Base Flood
The flood that has a 1% chance of being equaled or exceeded in any given year.
Association
The group or legal entity made up of condominium unit owners that is responsible for maintaining and operating the condominium’s common elements and related shared property.
Actual Cash Value
Actual Cash Value (ACV) is the value of insured property at the time of loss, calculated as the replacement cost minus depreciation.
Act
A U.S. federal law passed in 1968 that created the National Flood Insurance Program, allowing people in participating communities to buy flood insurance and encouraging better floodplain management.