Which of the Following Statements Is True About Flood Insurance

question 71

Multiple Choice

Which of the following statements is true about flood insurance?

• A)It is covered under homeowners policies.
• B)It provides coverage for structures and personal property or contents on a replacement cost basis.
• C)It is provided automatically to flood-prone areas, but provided only on specific request to flood-immune areas.
• D)It offers replacement coverage for contents.
• E)Once a flood rate map is completed, a second, or regular, layer of coverage is available at subsidized rates rather than actual rates.

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Definitions:

Required Rate of Return

The lowest yearly percentage gain from an investment required to attract individuals or businesses to invest in a specific security or venture.