Question

Maggie called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repairing the hot water heater, which had corroded in places.

The agent was polite. He had been getting hundreds of similar calls. . . .

"Ma'am, I'm sorry, but according to our records, you do not have flood insurance protections in your policy."

What is most likely to happen to Maggie? Check all that apply.

Her insurance company will eventually pay the damages.
She may have to pay thousands of dollars to repair and replace her possessions.
She will convince the insurance company that she has flood coverage.
She may lose her home.
She may go into debt

Answer 1

Select:
- She may have to pay thousands of dollars to repair and replace her possessions.
- She may lose her home.
- She may go into debt.

Why: The agent said she does not have flood coverage, so flood damage normally is not covered by a standard homeowners policy and the insurer is unlikely to pay for flood-related losses. That leaves Maggie responsible for repairs and replacements (which can easily cost thousands). If she cannot afford necessary repairs or mortgage payments, she could go into debt or, in extreme cases, lose the home.

Not selected:
- "Her insurance company will eventually pay the damages." — Unlikely without flood insurance.
- "She will convince the insurance company that she has flood coverage." — Unlikely unless there is an unusual error or ambiguity in her policy.