9.6 Homeowner's & Renter's Insurance: Protecting your Belongings

A careless attitude on the part of an insurance policyholder is a:

• managed hazard

• morale hazard

• physical hazard

• moral hazard

All of the following are examples of morale hazard, EXCEPT:

• keeping a messy house full of paper and other flammable

• smoking in bed before falling asleep

• habitually leaving hot stoves unattended

• filing false insurance claims

For which of the following hazards would "avoidance" be the best primary strategy?

• throwing a block party at your house

• owning a wood-built house

• owning a high-end television

• having a house with multiple stairs

What should you do if you know that an event has a high probability of occurring but a low cost when the event actually happens?

• self-insure

• reduce-risk

• buy insurance

• avoid risk

With a named perils HO policy, which of the following risks would be covered?

I. earthquakes and floods

II. a risk specifically listed in the policy

III. fire, windstorm, or smoke

• II only

• I and III only

• II and III only

• I, II, and III

With a special perils HO policy, which of the following risks would be covered?

• earthquakes and floods

• fire, windstorm, and floods

• termite damage

• earthquakes, fire, windstorm, floods, and termite damage

Which part of a standard HO policy can you find information about your liability coverage?

• Part A

• Part C

• Part E

• Part G

What would be considered an attractive nuisance on your property?

• a basketball court

• a swimming pool

• a swing set

• a basketball, swimming pool, or a swing set

Why should consider buying umbrella liability insurance?

I. it provides peace of mind

II. it is inexpensive coverage

III. it provides additional liability coverage

• I only

• I and III only

• II and III only

• I, II, and III

Renter's insurance typically covers:

• loss of personal property

• loss of the use of the property

• personal liability

• loss of personal property, loss of the use of the property, and personal liability