A heavy rainstorm causes a nearby river to overtop its banks, and floodwater enters the insured's basement, ruining the carpet and furnace. Under an unendorsed HO-3, how is this loss handled?
Explanation
Flood — defined as surface water, waves, tidal water, overflow of a body of water, or spray from any of these — is excluded from every standard ISO homeowners form. Coverage requires a separate flood policy, almost always written through the National Flood Insurance Program (NFIP) or a private flood insurer. The HO-3 also excludes earth movement, sewer backup (unless endorsed), war, nuclear hazard, and intentional acts.
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