Louisiana P&C Adjuster Practice Exam

What type of insurance did Ted purchase that excludes coverage for floods?

1. Homeowners insurance

2. Comprehensive insurance

3. Hurricane insurance

4. Auto insurance

The correct answer is: Hurricane insurance

Hurricane insurance primarily covers damages caused by hurricanes and related wind events. However, it typically does not include coverage for floods that can occur as a result of heavy rainfall and storm surges associated with hurricanes. This exclusion is due to the unique nature of flooding, which often requires a separate flood insurance policy, often mandated by the National Flood Insurance Program (NFIP) for properties in high-risk flood zones. Homeowners insurance, on the other hand, does not cover floods either, and comprehensive insurance relates to auto coverage, providing protection against incidents like theft or non-collision damages. While hurricane insurance may suggest some coverage related to storms, its limitations regarding flood coverage make it the better answer in this context. Thus, it highlights that Ted's purchase specifically excludes flood-related damages while focusing on hurricane impacts.