1. A surety bond differs from insurance because it involves:

Three parties, with the surety guaranteeing the principal's obligation to the obligee

A surety bond is a three-party agreement in which the surety guarantees that the principal will fulfill an obligation owed to the obligee, unlike a two-party insurance contract.

2. Inland marine insurance is commonly used to cover:

Movable property and property in transit

Inland marine covers movable or specialized property, property in transit, and certain instrumentalities of transportation and communication.

3. A personal umbrella policy provides:

Excess liability over underlying auto and homeowners limits

A personal umbrella provides additional liability limits above the underlying auto and homeowners policies and can cover some claims not covered by the underlying policies, subject to a self-insured retention.

4. Because standard property policies exclude flood, North Carolina property owners often obtain flood coverage through:

The National Flood Insurance Program or eligible private flood insurers

Flood is excluded from standard property forms; coverage is typically purchased through the National Flood Insurance Program or, increasingly, private flood insurers.