Homeowners Insurance

Why is homeowners insurance considered a necessity?

• It is optional for all homeowners

• Mortgage companies require it for financing

• It only covers theft of possessions

• It is a luxury for those who can afford it

What does homeowners insurance typically not cover?

• Fire and hurricane damage

• Liability protection

• Theft and vandalism

• Floods and earthquakes

What percentage of the insurance on the structure of your home is typically covered for your possessions?

• 50% to 70%

• 30% to 50%

• 20% to 40%

• 70% to 90%

What does liability coverage in homeowners insurance protect you against?

• Lawsuits filed by others

• Natural disasters

• Depreciation of home value

• Cost of home maintenance

What is the least comprehensive level of homeowners insurance coverage?

• Guaranteed replacement cost

• Replacement cost coverage

• Actual cash value

• Umbrella policy

What does the most comprehensive homeowners insurance policy offer?

• Coverage for depreciation

• Actual cash value only

• Whatever it costs to repair or rebuild your home

• Fixed sum for repairs regardless of cost

Which of the following is usually not covered by standard homeowners insurance?

• Fire damage

• Flood damage

• Vandalism

• Theft

What factors do insurance companies consider when determining home insurance rates?

• Color of the house

• Past claims and credit of the homeowner

• Number of windows in the house

• The homeowner's job

How can homeowners reduce their insurance premiums?

• Removing all valuables from the home

• Increasing the number of claims

• Installing a security system

• By painting the house

What is the effect of a high deductible on annual premiums?

• Has no effect on the premiums

• Eliminates the need for premiums

• Increases the annual premiums

• Lowers the annual premiums