Question 107

Flood is NOT a basic peril on all homeowners forms.

Homeowners insurance typically covers a range of basic perils, but flood is generally excluded and requires separate coverage. Therefore, flood does not fall under the standard basic perils covered by homeowners policies.

A) Riot

Riot is considered a basic peril included in most homeowners insurance policies. It covers damages resulting from civil commotion or disturbances, making it a common inclusion in coverage.

B) Smoke

Smoke damage is also a basic peril that is usually covered under homeowners insurance policies. This coverage applies to damages caused by smoke from a fire, making it an essential part of standard coverage.

C) Volcanic eruption

Volcanic eruption is recognized as a basic peril in homeowners insurance. Policies typically include coverage for damages resulting from volcanic activity, thus making it a standard peril in many cases.

D) Flood

Flood is explicitly excluded from basic homeowners insurance policies and requires separate flood insurance for coverage. This distinguishes it from other perils that are typically included in standard policies.

Conclusion

Flood is the correct answer because it is not a basic peril covered under standard homeowners forms, unlike riot, smoke, and volcanic eruption, which are all included. Understanding the differences in coverage helps homeowners make informed decisions about their insurance needs and the necessity for additional policies like flood insurance.