Question

What should homeowners in flood-prone areas consider regarding insurance?

a.

They should always purchase flood insurance

b.

It is advisable to bear the risk if the premium payments are high compared to the potential loss

c.

They should obtain maximum insurance for all risks

d.

They should consider additional coverage for fire and theft

Answer: (b).It is advisable to bear the risk if the premium payments are high compared to the potential loss Explanation:Homeowners in flood-prone areas should consider bearing the risk if the premium payments are high compared to the potential loss.

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Q. What should homeowners in flood-prone areas consider regarding insurance?

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