Property Insurance

What does homeowners insurance cover? (a)  

• Fire
• Theft
• Tornado
• All of the above

What is Homeowners Insurance?

• This insurance protects your home and covers it in case something happens like a fire.

• where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.

• is insurance for cars, trucks, motorcycles, and other road vehicles.

3. Karishma has a renters insurance policy with a coverage limit of $25,000. While she’s on vacation a fire breaks out, ruining $9,000 worth of possessions before the fire department puts it out. Her deductible is $500. How much will Karishma and the insurance company each pay?

• Karishma pays $0, while the insurance company pays $500
• Karishma pays $0, while the insurance company pays $9,000
• Karishma pays $500, while the insurance company pays $8,500
• Karishma pays $500, while the insurance company pays $24,500

2. What is the liability portion of a homeowners insurance policy meant to cover?

• The cost of a lawsuit if someone sues you for injuries they got on your property
• The cost of repairing the physical structure of your home
• The cost of floods and earthquakes not covered by a standard policy
• The cost of replacing personal property that you, yourself, damage within your home

3. Which college student is MOST likely to need their own renters insurance policy?

• Abigail, who lives with her parents and commutes to college
• Beatrice, who is a freshman living in a dorm and whose mom has homeowners insurance
• Carson, who is a senior living in a dorm and whose guardians have homeowners insurance
• Dani, who lives in an off-campus apartment with her cousin and a friend

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury. (a)  

• claim
• request
• complaint

If you rent your house, this is the type of insurance policy that provides payment to renters to cover the damage and loss of property in a rental unit in addition to liability losses. (a)  

• renters insurance
• homeowners insurance
• automobile insurance

A deductible is . . .

• the amount that the insurance company pays

• the amount that the homeowner must pay

• neither of the above

What does homeowners insurance cover

• Repair or Replace you home in the event of danger

• Natural disaster or other weather event

• Termites

• Rust

True or False: Insurance is based on the concept of shared risk, or risk pooling.

• True

• False