Louisiana P&C Adjuster Practice Exam

What is Ted's policy's stance on flood damage in the context of hurricane insurance?

1. Covered under hurricane insurance

2. Covered separately

3. Not covered

4. Partially covered

The correct answer is: Not covered

Flood damage typically falls outside the realm of standard homeowners or hurricane insurance policies. These types of insurance generally provide coverage for wind and storm-related damages but do not include flooding unless specific provisions are made. In the context of hurricane insurance, which usually focuses on damage resulting from wind and structural issues due to storms, flood damage is not included as it is often considered an entirely separate risk. Therefore, many policyholders are surprised to find that, despite having hurricane coverage, they remain unprotected against flood-related losses that could arise from storm surges or extended rainfall. As a result, flood damage is commonly not covered under typical hurricane insurance policies, rendering the notion of comprehensive flood protection through such a policy inaccurate. This reinforces the importance for policyholders to seek separate flood insurance if they want coverage against water damage caused by flooding.