As a Result of Frequent Flooding, the Insurance Market Has

question 41

Multiple Choice

As a result of frequent flooding, the insurance market has noted a positive correlation between flooding and the amount of insurance monies paid out for such floods. Moreover, the probability of such flooding has been increasing. As a result, homeowners in flood plains will find flood insurance:

• A) easy to acquire and relatively inexpensive.
• B) very costly and relatively difficult to find.
• C) premiums have not changed, since the insurance continues to offer the same coverage.
• D) relatively expensive but easy to acquire.

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