Final answer:
Flood insurance is generally not included in homeowners insurance policies and is often purchased separately. It is required by lenders for properties in high-risk flood areas, but it is optional for others. Therefore correct option is C
Step-by-step explanation:
The correct answer to the question of what is generally true of flood insurance is that flood insurance is not a standard part of a homeowners policy. Instead, it is usually purchased separately or bundled with a homeowners policy but not included as standard coverage. While homeowner's insurance is typically required by lenders when providing a loan to purchase a home, flood insurance may be optional or required depending on the property's location, particularly if it is situated in a high-risk flood area.
It is crucial to understand that while some forms of insurance, such as auto and homeowner's insurance, are legally required, others, like flood insurance, might be a condition set by lenders or chosen optionally by the property owner for additional protection.