Not every property risk fits inside a homeowners, dwelling, or standard commercial policy. Floods, valuable movable property, ships and cargo, earthquakes, and hard-to-insure properties each have their own specialized coverage. This guide tours the most important "other" property insurance products you'll be tested on: the national flood program, inland and ocean marine, earthquake coverage, extended coverage, and the residual-market FAIR plans.

Flood insurance (NFIP)

Standard homeowners, dwelling, and commercial property policies exclude flood, so flood is insured separately — most commonly through the National Flood Insurance Program (NFIP), a federal program.

• The NFIP makes flood insurance available in participating communities that agree to adopt floodplain management rules.
• Policies are often sold and serviced by private insurers under a "Write Your Own" arrangement but backed by the federal program.
• Flood is generally defined as a temporary condition of partial or complete inundation of normally dry land — from overflowing water, unusual surface water runoff, or mudflow — typically affecting two or more acres or two or more properties.
• Coverage is split between building property and personal property (contents), which must usually be purchased separately. Settlement is often on an actual cash value basis for contents, with replacement cost available on a primary dwelling building under certain conditions.
• There is typically a waiting period (commonly 30 days) before a new flood policy takes effect, which discourages buying coverage only when a flood is imminent.
• A private flood insurance market also exists and may offer higher limits than the NFIP caps.

Inland marine and floaters

Inland marine insurance grew out of ocean marine and covers property that moves, is portable, or is held by a bailee — essentially property "over land" rather than the building it sits in.

• It commonly covers goods in transit, mobile equipment, property of others in the insured's care, and instrumentalities of transportation/communication (bridges, tunnels, radio towers).
• Floaters are inland marine policies that cover movable personal property wherever it goes. A Personal Articles Floater (PAF) schedules high-value personal items — jewelry, furs, fine art, cameras, musical instruments, silverware, stamps/coins — usually on an open-peril, often no-deductible basis and frequently at an agreed value.
• Inland marine is valued for covering items that personal/commercial property policies sublimit or exclude, and for following the property as it travels.

Ocean marine

Ocean marine is the oldest form of insurance, covering ships, their cargo, and related exposures over water. It traditionally has four parts:

• Hull — physical damage to the vessel itself.
• Cargo — the goods being transported on the vessel.
• Freight — the income/revenue the shipowner earns for carrying cargo (lost if the voyage fails).
• Protection & Indemnity (P&I) — the liability coverage for injury to people and damage to other property caused by the vessel.

Ocean marine policies frequently include features unique to marine insurance, such as general average (shared sacrifice among all parties when cargo is jettisoned to save the voyage) and warranties that the insured must strictly comply with.

Earthquake coverage

Like flood, earthquake (earth movement) is excluded from standard property policies and must be added.

• It can be provided by endorsement to a homeowners, dwelling, or commercial property policy, or by a separate earthquake policy.
• Earthquake coverage commonly uses a percentage deductible based on the coverage limit (rather than a flat dollar amount), and the deductible can be substantial.
• It typically covers shake damage to the structure and contents but still excludes resulting flood/tsunami (which require flood coverage) and may treat each earthquake event within a set time window as a single occurrence.

Extended coverage

Extended Coverage (EC) is a historical but exam-relevant concept. Early property policies covered only fire and lightning; Extended Coverage was an add-on that broadened protection to a standard bundle of additional perils:

• Windstorm and hail, Explosion, Aircraft, Vehicles, Riot and civil commotion, and Smoke (a handy memory aid is "WEAVRS" or similar).
• A separate add-on, Vandalism and Malicious Mischief (V&MM), extended coverage further to intentional damage.

You still see "Extended Coverage perils" referenced in dwelling and older commercial forms, so know that EC is the layer that turns a bare fire policy into a broader named-peril policy.

FAIR plans and residual markets

Some properties cannot get coverage in the normal ("voluntary") market — perhaps because of location, age, condition, or high exposure to crime or catastrophe. Residual markets exist to serve these hard-to-insure risks.

• FAIR Plans (Fair Access to Insurance Requirements) are state-organized programs that provide basic property insurance to owners who have been unable to obtain coverage in the standard market, often in urban or high-risk areas.
• Coverage is typically limited (basic perils, sometimes ACV) and may cost more than voluntary-market insurance.
• Related residual mechanisms include beach and windstorm plans for coastal exposures and assigned-risk/shared-market arrangements in other lines.
• These plans are considered a market of last resort — designed to make essential coverage available, not to compete with standard insurers.

Common exam traps

• Flood and earthquake are both excluded from standard property policies and must be covered separately.
• NFIP waiting period: a new flood policy usually has a 30-day wait, so last-minute purchases won't pay.
• Inland vs. ocean marine: inland marine covers movable property over land; ocean marine covers vessels and cargo over water.
• Ocean marine's four parts: hull, cargo, freight, and P&I (liability) — freight is income, not the goods.
• Floaters cover scheduled personal property anywhere it goes, often open-peril with no deductible.
• Earthquake uses a percentage deductible, not a flat dollar amount.
• FAIR plans are a last resort for those denied coverage elsewhere, not a first choice.

Key terms at a glance

• NFIP — federal flood program available in participating communities (30-day wait).
• Inland marine — movable/transit property and floaters.
• Personal Articles Floater — schedules high-value items, open-peril, agreed value.
• Ocean marine — hull, cargo, freight, and P&I (liability).
• Earthquake — endorsement or separate policy; percentage deductible.
• Extended Coverage — added perils (wind, hail, explosion, aircraft, vehicles, riot, smoke).
• FAIR plan — residual-market basic property coverage of last resort.

Quick recap

• Flood and earthquake are excluded from standard policies; flood is covered by the NFIP (with a 30-day wait) and earthquake by endorsement/separate policy with a percentage deductible.
• Inland marine covers movable property and floaters schedule valuables anywhere they travel, often open-peril at agreed value.
• Ocean marine has four parts — hull, cargo, freight, and protection & indemnity (liability).
• Extended Coverage is the historical add-on that broadened bare fire policies to include wind, hail, explosion, aircraft, vehicles, riot, and smoke.
• FAIR plans and residual markets provide basic, limited coverage as a last resort for risks the standard market won't insure.