Endorsements & LiabilityQuestion 92 of 158
Which statement about residential flood insurance is correct?
a.Flood is a standard endorsement that any insurer can add to a homeowners policy
b.The Coverage A perils on an HO-3 automatically include rising surface water
c.Flood coverage is generally written as a separate NFIP policy and typically has a 30-day waiting period before it takes effect
d.Flood policies have no waiting period and bind the same day the application is signed
Explanation
Standard homeowners policies exclude flood. Flood is generally written as a separate policy through the National Flood Insurance Program (NFIP) or through private flood markets. NFIP policies typically have a 30-day waiting period from application/payment before coverage takes effect (with narrow exceptions, such as a loan-closing requirement), so a homeowner cannot buy flood insurance the day a storm is forecast and expect coverage.
Law Reference: National Flood Insurance Act of 1968; NFIP rulesPractice all 158 questions free — no signup required.
Related questions on this topic
- Which of the following losses would be covered ONLY after a Personal Injury endorsement is added to a homeowners policy?
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