Insurance · Perils and Exclusions

Which of the following losses is typically EXCLUDED from a standard homeowners policy?

Correct answer

Flood (rising water from external sources)

  1. A Flood (rising water from external sources)
  2. B Theft
  3. C Fire
  4. D Vandalism

Why this is the answer

Flood is the most commonly tested homeowners exclusion. Standard homeowners policies (HO-3 and similar) EXCLUDE: flood (rising water from any external source — rivers, storm surge, surface water); earthquake (earth movement); sewer/drain backup (unless endorsement purchased); wear and tear; intentional acts; power failure off premises. Flood coverage requires a separate NFIP (National Flood Insurance Program) policy or private flood insurance. Many homeowners discover this exclusion only when they file a flood claim and are denied.
Source: Property Insurance Exam, Homeowners Exclusions

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About this topic: Perils and Exclusions

Perils and exclusions questions ask what a form covers and what it does not — fire, windstorm, theft, vandalism versus flood, earthquake, wear and tear, intentional loss — and the endorsements that buy back excluded perils. This is one of 9 Property Insurance questions on perils and exclusions, each with a full explanation on a single study page.

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