What does a standard homeowners insurance policy generally NOT cover?

• Flooding

• Fire

• Hurricane

• Lightning

Which of the following is included in the liability protection of a homeowners insurance policy?

• Lawsuits for bodily injury caused by the policyholder

• Routine wear and tear

• Earthquake damage

• Flood damage

A homeowner wants to insure expensive jewelry for its full value. What should they do according to the document?

• Purchase a special personal property endorsement or floater

• Rely on standard coverage

• Buy flood insurance

• Ignore insurance for jewelry

A policyholder’s garage is destroyed by a hurricane. According to the document, is this typically covered by a standard homeowners insurance policy?

• Yes, if the garage is not attached to the house

• No, only attached garages are covered

• No, hurricanes are never covered

• Yes, but only if it is a tool shed

What is the main difference in homeowners insurance policies between Texas and other states?

• Texas does not offer homeowners insurance

• Texas policies vary from those in other states

• Texas only covers fire damage

• Texas policies are more expensive

Which of the following disasters is covered by the HO-3 policy?

• Termite infestation

• Fire or lightning

• Normal wear and tear

• Earthquake

A student is planning to buy a home in Texas. What should they do to understand the specific homeowners insurance policies available in Texas?

• Refer to the Texas Insurance Department for detailed information

• Ask their neighbor for advice

• Only buy the cheapest policy

• Ignore state differences

Which type of home insurance policy is generally purchased by owners of multifamily homes with renters living in their houses?

• HO-3 with an endorsement

• HO-2

• HO-1

• HO-8

What does the Actual Cash Value coverage option provide?

• Replacement minus depreciation

• Full replacement cost

• Guaranteed replacement cost

• No coverage for possessions

How can a policyholder cover the cost of upgrading a house to comply with current building codes after a disaster?

• By adding an endorsement called Ordinance or Law to the policy

• By purchasing only actual cash value coverage

• By choosing HO-1 policy

• By not insuring the home at all