In a standard BOP, flood damage to insured property is typically excluded.

In a standard BOP, flood damage to insured property is typically excluded.

• A. True
• B. False
• C. Only if endorsements
• D. Only for personal property

Answer: (A)

Flood damage is not covered by a standard Businessowners Policy. The standard BOP excludes flood as a peril for both the building and its contents, so flood damage is typically excluded unless you add coverage with a flood endorsement or obtain separate flood insurance (such as through the NFIP or a private policy). Endorsements are used to add flood coverage, and without them, the exposure remains uninsured. The exclusion applies to insured property as a whole, not only to personal property, so that option wouldn’t fit.

Flood damage is not covered by a standard Businessowners Policy. The standard BOP excludes flood as a peril for both the building and its contents, so flood damage is typically excluded unless you add coverage with a flood endorsement or obtain separate flood insurance (such as through the NFIP or a private policy). Endorsements are used to add flood coverage, and without them, the exposure remains uninsured. The exclusion applies to insured property as a whole, not only to personal property, so that option wouldn’t fit.