Final answer:
Flood policies typically exclude losses caused by earthquakes, among other exclusions. Earthquakes can cause distinct damage from flooding, and specific earthquake insurance policies are available for that type of risk.
Step-by-step explanation:
The question is about what losses are typically excluded from flood insurance policies. While flood insurance is designed to cover damages directly caused by flooding, there are several types of losses that these policies do not cover.
Among the options provided, one of the losses that flood policies generally exclude is damage caused by an earthquake. Therefore, the correct answer is 3) Earthquake. The exclusion applies because earthquakes can cause separate, distinct damage from flooding, and coverage for them is typically provided under earthquake insurance policies.
To clarify, here are examples of what various insurance types would pay out for:
- Health insurance pays when medical expenses are incurred.
- Life insurance pays out upon the policyholder's death.
- Car insurance covers when a car is damaged, stolen, or causes damage to others.
- House or renter's insurance pays if the dwelling is damaged (excluding flood damage) or burglarized.