Chapter 13 Homeowner's and Renter's Insurance

Which of the following protects your dwelling, personal possessions AND personal liability?

• Renter's Insurance

• Liability Insurance

• Homeowner's Insurance

• Nothing will replace your personal items

Which provision in your homeowner's insurance policy covers your financial loss in "today's dollars"?

• Depreciated value coverage

• Actual cash value coverage

• Replacement cost coverage

• Dog bite coverage

Increasing your deductible (the amount you have to pay out of pocket in the event of a claim) ___________________ .

• will likely decrease your premium

• will likely increase your premium

• will likely have no effect on your premium

Which of the following is not covered in a typical homeowner's policy?

• Tornado

• Fire

• Flood

• Somebody falls and is injured on your property

You and your friend are moving furniture into your apartment. You accidentally drop the sofa on his foot and break it (his foot, not the sofa). What coverage will help pay for his medical bills?

• Property insurance

• Medical payments from your renter's policy

• Liability insurance from your renter's policy

• Nothing, I'll have to pitch in.

According to Simpson and most insurance experts, which type of homeowner's insurance policy should you purchase?

• HO-1

• HO-2

• HO-3

• HO-4

Your dwelling is insured for $300,000. Unless you purchase additional insurance, your detached garage will be insured for ___________ .

• $10,000

• $20,000

• $30,000

• $40,000

The reason why your homeowner's policy (after a fire) only pays you $500 for your destroyed 5-yr. old $3,000 sofa is because _______________ .

• The sofa has depreciated in value

• The insurance company are cheapskates.

• You have full "replacement cost" coverage

When you renovate or remodel your home, who do you need to notify your homeowner's insurance company of any improvements?

• If the value has increased, you should increase your coverage limits

• The insurance companies will not cover your dwelling at all if you do not.

• The company will cancel your policy if you do not

• The insurance company is nosey.

Choose ALL that apply: When getting renter's or homeowner's insurance, you should

• shop around

• list all valuable items you have in your home

• take pictures of valuable items

• keep receipts of valuable items if you still have them