North Carolina Adjuster Practice Exam

Which of the following losses would not typically be covered under a standard homeowners insurance policy?

1. Theft of personal items from a car

2. Fire damage to the home

3. Liability for injury to a guest

4. Damage from flooding

The correct answer is: Damage from flooding

A standard homeowners insurance policy typically covers a range of risks associated with home ownership, including damage from fire and liability for injuries that occur on the property. However, it generally excludes coverage for flood damage. This is because flooding is considered a separate peril that requires specific flood insurance, usually obtained through the National Flood Insurance Program (NFIP) or private insurers. The importance of having a separate flood insurance policy arises from the fact that floods can result from heavy rainfall, snowmelt, or other environmental factors, and these events are not typically included in the standard coverage. Homeowners need to be aware of this limitation and assess their geographical risk to determine if additional flood coverage is necessary. In contrast, other mentioned losses, such as fire damage and liability for injury, are usually included within the scope of a standard homeowners insurance policy.