Your clients have decided to convert their unfinished basement into living space which will include a recreation room, a bedroom, a full bath, and an office. Other than a small space housing the furnace and water heater, the balance of the square footage will be finished. Your clients have recently read that water damage is now the number one cause of loss in homes and are concerned about what that will mean to them.

1. Explain, through your research, why water damage has now surpassed fire as the most common cause of loss for property insurance.

2. Explain, in detail, the Water Damage exclusion found in the Comprehensive Homeowner's Form.

Answer rating: 100% (QA)

1 Water damage has become a leading cause of property loss for several reasons Climate change has in... View the full answer