Washington State Insurance Practice Exam

Which insurance covers property damage from flooding?

1. Auto insurance

2. Health insurance

3. Homeowners insurance

4. Flood insurance

The correct answer is: Flood insurance

Flood insurance is specifically designed to cover damage to property caused by flooding events. This type of insurance is crucial for homeowners, renters, and business owners located in flood-prone areas, as standard homeowners insurance typically excludes flood-related damages. Flood insurance provides financial protection against loss or damage to property and belongings directly resulting from flooding, which can include significant repair costs and replacement expenses. In contrast, auto insurance primarily covers damages to vehicles rather than property structures, health insurance focuses on medical expenses and health-related issues, and homeowners insurance can provide some coverage for water damage but does not include coverage for floods unless an additional flood insurance policy is purchased. Thus, for comprehensive coverage against flood-related damages, flood insurance is the appropriate and necessary choice.