Which type of insurance typically requires a waiting period before coverage begins?

Flood insurance is the correct answer because it commonly involves a waiting period before the coverage becomes effective. This waiting period is typically 30 days from the date of purchase. The reasoning behind this delay is primarily to prevent last-minute purchases of flood insurance in anticipation of an imminent flood disaster, thereby maintaining the integrity of the insurance system.

Homeowners insurance generally provides coverage as soon as the policy is in effect, which is usually upon payment of the initial premium. Health insurance may have specific waiting periods for certain conditions or types of coverage, but these are often related to coverage status rather than a blanket waiting period for the entire policy. Automobile insurance typically goes into effect immediately once the policy is active. Thus, when considering insurances that require a waiting period before coverage begins, flood insurance stands out as the clear example.