Certified Floodplain Manager (CFM) Practice Exam 2025 - Free CFM Practice Questions and Study Guide

Under the National Flood Insurance Program (NFIP), flood insurance is structured to provide coverage primarily for property owners and renters, but the availability of specific types of coverage differs. While property owners can acquire building coverage to protect the structure itself, renters do not have access to building coverage under NFIP guidelines. Renters are, however, encouraged to purchase contents coverage in order to protect personal belongings against flood damage.

Thus, stating that building coverage is not available to renters aligns with NFIP policy. Renters can still benefit from flood insurance through contents coverage, which is important because it helps safeguard their personal items from flood-related losses, but they cannot insure the building itself under NFIP. This is critical for understanding the limitations and options available to renters within the framework of the NFIP.