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<br />A deductible provision in an insurance policy specifies the amount of the loss the insurer <br />must bear before payment is made under the policy. This amount is $200. or 2 percent of the <br />amount of the loss applied separately to both the structural loss and content loss (4). This <br />provision makes the cost of the policy somewhat less attractive in situations where flood damage <br />is small, but frequent. <br /> <br />Costs <br />At the present time there are two insurance rate schedules to establish the payable premium <br />for flood insurance (4, 5). These are the chargeable (subsidized) rate and the risk premium rate. <br />Chargeable rates are rates established by the Federal Insurance Administration (FIA) and involve <br />a high degree of participation by the Federal Government to encourage the purchase of flood <br />insurance. Chargeable rates are available under the Emergency Program which at the present <br />time is scheduled to end September 30, 1978, and for structures and contents outside the special <br />flood hazard areas (6). Most premiums being paid today are based upon this chargeable rate. <br />The risk premium rate is the actuarial rate available under the Regular Program. <br /> <br />Table 13-1 shows the chargeable annual rate for flood insurance. Table 13-2 shows the <br />maximum coverage available at this rate. Insurance for maximum coverage of a single-family <br />dwelling in most states would <;ost $122.50 annually for structure and contents. This i~ <br />approximately 0.41 percent of the value of the structure. The average premium per policy in the <br />Flood Insurance Program as of March 1977 was $75.00. <br /> <br />TABLE 13-1 <br /> <br />FIA CHARGEABLE (EMERGENCY) RATE TABLE <br />(Rates per $100 Insurance) <br /> <br />Rates <br /> <br />Structure <br /> <br />Contents <br /> <br />Residential <br /> <br />.25 <br />.40 <br /> <br />.35 <br />.75 <br /> <br />All Other <br /> <br />93 <br /> <br />- <br />