Unit 8 Review

Why would someone want to have renters insurance if their building owner has insurance?

• There is no need to get renters insurance if the building owner already has an insurance policy

• The building owner's policy only covers the building structure. Renters insurance covers your personal property

• By law, you must have two types of insurance; landlord insurance and renters insurance

• The building owner's insurance only covers liability; renters insurance will cover damage to the exterior and structure of the building

If your apartment catches on fire and you have renters insurance, the insurance company will likely pay all of these EXCEPT

• the cost of replacing any items inside the apartment that completely burned in the fire

• The cost of your hotel room for a week while your apartment is cleaned up

• The cost of replacing items ruined by water as firefighters put out the fire

• The cost of replacing damaged sections of the roof and any broken windows

What is one way that homeowners insurance differs from renters insurance?

• Homeowners insurance will cover your physical structure (house, condo, etc) but renters insurance does not

• Homeowners insurance is typically cheaper, because houses are less risky than apartments

• Homeowners insurance will cover car accidents, but renters insurance will not

• Homeowners insurance is completely voluntary, while renters insurance is mandatory

Each of the following factors affect your monthly auto insurance premium EXCEPT

• Your vehicle's make, model, and year

• Your driving record

• Your local auto shop's customer service reviews

• Your age and marital status

Ricardo was not paying attention to the flow of traffic and rear-ended the car in front of him. Both cars have damage, but he doesn't have car insurance. What will most likely happen?

• As long as the other person has auto insurance, then Ricardo is also covered

• If the accident happened near a local repair shop, they might be able to fix the cars at a discounted price

• They can split the costs; Ricardo's health insurance will cover medical bills and the person he hit will cover the vehicles' damages

• Ricardo will have to pay out of pocket for auto repair and possible medical bills for the person he hit

Which of the following factors can impact your monthly auto insurance premium?

• How many credits you are enrolled in at school and your class schedule

• The dealership where you bought the car and the popularity of the dealership

• Your age, driving record, and annual mileage

• How much you pay for rent and utilities

Miguel has a deductible of $500 and a coverage limit of $50,000 for bodily injury liability. He causes an accident and the other driver's medical bills total exactly $52,300. How much will Miguel pay in TOTAL?

• $0

• $500

• $2,300

• $2,800

Which of the following people is likely to have the HIGHEST auto insurance premium?

• Patrick: 17 years old, single, new driver

• Clementine: 35 years old, married, an experienced driver

• Joel: 45 years old, single, experienced driver

• Mary: 26 years old, married, new driver

A standard homeowners policy will include all of these coverage bundles EXCEPT

• Dwelling

• Earthquake and flood

• Other structures

• Personal property

Which of the following will likely affect the total amount of interest you will end up paying on a home loan?

• How many other homes in your neighborhood are also for sale

• The median cost of homes in your neighborhood

• Your credit score

• The type of car you drive