If the insured has a dwelling flood policy for a primary structure they only live in 30% of the time, how will their claim be settled?

When an insured property is covered by a dwelling flood policy, the primary requirement is that the insured must be using the property as their primary residence. In Florida, and under standard flood policies, a property is considered a primary residence only when the insured occupies it for a significant portion of the year, generally around 51% of the time. Since the insured in this scenario lives in the dwelling only 30% of the time, this falls short of the threshold needed for primary residence classification.

As a result, the insured may face disqualification from receiving replacement cost benefits when filing a claim. Instead, any claim settled for a property that does not meet the primary residence requirement is typically limited to actual cash value rather than full replacement cost. This is important because it highlights how the terms of the flood policy distinguish benefits based on the use and occupancy of the property, impacting the settlement options available in the event of a loss.