South Carolina Personal Lines Practice Exam

Which of the following is NOT considered an exclusion of a flood?

1. Flooding within insured's control

2. Earthquake damage

3. Windblown rain

4. Sewer backup unrelated to flood

The correct answer is: Earthquake damage

The reason the answer is considered correct hinges on the nature of flood insurance exclusions. Flood insurance policies typically do not cover damage caused by earthquakes because earthquakes are classified as a separate peril. Thus, damage from earthquakes falls outside the scope of what is considered a flood, making it an exclusion. On the other hand, flooding within the insured's control, windblown rain, and sewer backup related to flooding are typically excluded from coverage. Flooding within the insured's control suggests that the damage could be prevented or mitigated by actions the insured could take, which is why it would not be covered. Windblown rain generally refers to moisture entering a structure due to wind rather than flooding, and sewer backup often is connected to flooding conditions, reflecting scenarios where damage is not covered by standard flood insurance. Consequently, earthquake damage being an exclusion illustrates a fundamental aspect of insurance policies, where certain risks are deemed outside the scope of a particular coverage, reinforcing the integrity and focus of flood insurance.