Homeowner's and Liability Insurance Quiz

Front

What is a vacancy clause in homeowner’s insurance?

Back

A clause that limits coverage during vacancy

Front

Which of the following is a recommended action to mitigate risks during a home vacancy?

Back

Install video surveillance

Front

What happens if a house is vacant beyond the period specified in the insurance policy?

Back

The policy does not cover damages

Front

What is a potential consequence of a lapse in car insurance coverage?

Back

Higher insurance rates

Front

What is the primary purpose of liability insurance?

Back

To protect against claims resulting from injuries and damage to other people or property

Front

Which type of liability insurance extends the coverage limits of homeowner’s and auto liability policies?

Back

Umbrella insurance

Front

What is the definition of strict liability?

Back

Liability that holds a party responsible for damages or injuries regardless of fault or intent

Front

Which of the following is NOT typically covered by liability insurance?

Back

The policyholder's own medical expenses in an at-fault accident

Front

What is a binder in the context of insurance?

Back

A temporary insurance contract providing coverage until a permanent policy is issued

Front

Which of the following is an example of vicarious liability?

Back

An employer being held liable for the actions of an employee during work hours