West Virginia Property and Casualty Licensing Practice Exam

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Prepare for the West Virginia Property and Casualty Licensing Exam. Study with flashcards and multiple choice questions, with hints and explanations for each. Get exam-ready today!

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Sue insures her home for $100,000 under a dwelling property board form (DP-2). If a flood occurs and causes $1,000 in damage to the home's contents, how much will her insurance company pay?

$1,000
Half of the damage
$0
Full amount minus deductible

The correct answer is: $0

The coverage under a dwelling property board form (DP-2) typically does not include protection against flood damage. Flood exposure is generally not covered under standard homeowners or dwelling property policies, including the DP-2. Separate flood insurance policies are necessary to cover damages resulting from flooding events. In this scenario, since the damage caused by the flood falls outside the parameters of the DP-2 policy, the insurance company would not provide any compensation for the $1,000 in damages to the home's contents. Thus, the amount that Sue's insurance company would pay in this situation is $0, affirming the correctness of the chosen answer.