Endorsements & LiabilityQuestion 92 of 158
Which statement about residential flood insurance is correct?
a.Flood coverage is generally written as a separate NFIP policy and typically has a 30-day waiting period before it takes effect
b.Flood policies have no waiting period and bind the same day the application is signed
c.The Coverage A perils on an HO-3 automatically include rising surface water
d.Flood is a standard endorsement that any insurer can add to a homeowners policy
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.
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