Property Insurance FundamentalsQuestion 146 of 474
A homeowner's basement is destroyed when a nearby river overflows after several days of rain. The HO-3 policy will:
a.Deny the loss; flood and surface water are excluded — separate NFIP or private flood coverage is needed
b.Pay the loss in full under the wind/hail peril
c.Pay the loss under Coverage A but reduce the payment by the amount recoverable from the National Flood Insurance Program
d.Pay for the personal property in the basement but not the structure, since Coverage C carries no flood exclusion
Explanation
Flood, surface water, waves, tidal water, and overflow of any body of water are EXCLUDED under every standard HO and DP form. Flood coverage in California must be purchased separately, usually through the National Flood Insurance Program (NFIP) or a private flood carrier. Wind/hail does not apply because the loss came from rising water, not wind.
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Related questions on this topic
- All of the following are classic 'basic form' perils EXCEPT:
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