If You Have a Loss Due to a Flood

question 95

Multiple Choice

If you have a loss due to a flood,

• A) Your homeowner's insurance should normally cover the loss.
• B) You need to have purchased special coverage if you live in an area that has frequent floods in order to be covered.
• C) FEMA (Federal Emergency Management Agency) will automatically provide coverage if this is your second flood loss.
• D) You need an umbrella policy for coverage.
• E) Your additional living expenses coverage will apply if you move to an area that has not flooded in one year.

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Definitions:

Price

The sum of money needed to buy a product or service.

Movement Along

Refers to changes in the quantity demanded or supplied of a good in response to price changes, moving along a demand or supply curve.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, normally sloping downwards from left to right.

Milk Consumption

Refers to the amount of milk and milk products that individuals drink or use over a certain period.