It should be noted that additional named insureds do not necessarily have all of the privileges and. obligations of the first named insured such as the obligation to pay premiums and the right to. cancel coverage and receive notice of cancellation.
Generally, physical damage to your building or personal property âdirectlyâ caused by a flood is covered by your. flood insurance policy. For example, damages caused by a sewer backup are covered if the backup is a direct result. of flooding.
An extension of a current insurance plan that provides for losses outside of the normal circumstances that the original insurance plan covers. The plan must be purchased in addition to another insurance plan and will not solely cover all possible losses. For example, standard renterâs insurance may not cover flood damage, so a person may purchase extended coverage so that he or she is covered under all possible scenarios. http://www.businessdictionary.com/definition/extended-coverage.html.