The Residential Condominium Building Association Policy (RCBAP) form is available only in NFIP regular programs and provides building coverage for what condition?

The Residential Condominium Building Association Policy (RCBAP) form is available only in NFIP regular programs and provides building coverage for what condition?

• A. Buildings where 50% or more of total floor area is residential units
• B. Buildings where 75% or more of total floor area is residential units
• C. Buildings with 100% nonresidential space
• D. Buildings with 25% residential units

Answer: (B)

The form is meant for condominium associations whose buildings are primarily residential. It’s offered only in the NFIP Regular Program and is designed to provide building coverage for structures where most of the space is residential units. The correct threshold is that at least 75% of the total floor area must be residential units for the RCBA policy to apply. This 75% rule matters because it ensures the policy matches the risk profile of a condo building—the building’s structure and common areas are the focus of coverage when the building is predominantly residential. If a building has less than 75% residential space (for example, 50% or 25%), or if it’s 100% nonresidential, the RCBA form isn’t the appropriate NFIP option.

The form is meant for condominium associations whose buildings are primarily residential. It’s offered only in the NFIP Regular Program and is designed to provide building coverage for structures where most of the space is residential units. The correct threshold is that at least 75% of the total floor area must be residential units for the RCBA policy to apply.

This 75% rule matters because it ensures the policy matches the risk profile of a condo building—the building’s structure and common areas are the focus of coverage when the building is predominantly residential. If a building has less than 75% residential space (for example, 50% or 25%), or if it’s 100% nonresidential, the RCBA form isn’t the appropriate NFIP option.