Which item is an NFIP general exclusion?

Which item is an NFIP general exclusion?

• A. Damage caused directly by earth movement
• B. Damage caused by flood water
• C. Damage caused by wind
• D. Damage caused by mold

Answer: (A)

The key idea is that NFIP general exclusions include losses caused by earth movement. Earth movement such as earthquakes or landslides isn’t covered under flood insurance, even if floodwaters are involved, so this item is excluded by the NFIP. Damage from flood water is exactly what NFIP flood insurance is designed to cover, so it’s not an exclusion. Wind damage falls outside the flood peril as well, and while it wouldn’t be paid by a flood policy, the fundamental exclusion the question is testing is earth movement. Mold-related issues are typically not covered by NFIP either, but the specific general exclusion highlighted here is earth movement.

The key idea is that NFIP general exclusions include losses caused by earth movement. Earth movement such as earthquakes or landslides isn’t covered under flood insurance, even if floodwaters are involved, so this item is excluded by the NFIP.

Damage from flood water is exactly what NFIP flood insurance is designed to cover, so it’s not an exclusion. Wind damage falls outside the flood peril as well, and while it wouldn’t be paid by a flood policy, the fundamental exclusion the question is testing is earth movement. Mold-related issues are typically not covered by NFIP either, but the specific general exclusion highlighted here is earth movement.