What action is required of a policyholder under the Standard Flood Insurance Policy (SFIP) after a flood loss?

The correct action required of a policyholder under the Standard Flood Insurance Policy (SFIP) after a flood loss is to immediately notify the insurer of the loss. This prompt notification allows the insurance company to begin the claims process promptly and assess the damage, which is crucial for ensuring that the claim can be handled efficiently. The SFIP requires policyholders to report losses as soon as possible to optimize the evaluation and settlement of claims, enabling both the insurer and insured to accurately account for the damages and begin necessary recovery actions.

In contrast, delaying notification or waiting until repairs are completed could complicate or jeopardize the claims process. The policy's stipulation for immediate notification emphasizes its aim to facilitate timely response and assistance in the aftermath of a flood event. Other options, such as fixing all damages before notifying, holding claims until repairs are done, or reporting losses after a specified period, counteract this goal and could lead to unnecessary complications in the claims process, potentially resulting in denial of a claim or inability to recover full losses.