Free Pennsylvania Real Estate Practice Exam Practice Question
Which one of the following statements about flood insurance is TRUE?
Correct Answer: D
Rationale: Flood insurance is available from private insurance companies, allowing property owners flexibility in choosing coverage options. This statement reflects the reality of the insurance market, where private insurers offer various flood insurance policies.
Option A is incorrect; flood insurance can be obtained for commercial properties, although it may differ from residential coverage. Option B is misleading; flood insurance is only mandatory for properties in high-risk flood zones with federally backed mortgages, not for all real estate transactions. Option C is also false; standard hazard insurance policies typically do not include flood coverage, necessitating a separate flood insurance policy.
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