Homeowners Insurance Quiz

Which HO policy is the most common homeowner’s policy today?

• HO-4

• HO-3

• HO-2

• HO-5

What does the HO-4 policy cover?

• Only the contents of a rented home

• Only the building

• The building and its contents

• The building and contents of a condo

Which of the following is NOT typically excluded from HO-2, -3, -4, -5, and -6 forms?

• Earthquake

• Fire

• Flood

• War

What does the HO-8 policy insure?

• Only the contents of a rented home

• The structure based on its replacement cost

• The structure based on its market value

• The building and contents of a condo

What is the liability limit in a homeowners insurance policy?

• The amount of money it would cost to buy a new home

• The market value of the home

• The purchase price of the home

• The amount of money it would cost to rebuild the home

What is the recommended amount of coverage for a homeowners insurance policy?

• $300,000 to $500,000

• $200,000

• $600,000 to $800,000

• $100,000

What does replacement cost coverage provide?

• The purchase price of the items

• The current value of the items accounting for depreciation

• A new version of the item that was lost or damaged

• The market value of the items

What is the coverage for personal belongings usually based on?

• 20 percent of the amount of coverage on the structure of the home

• 10 percent of the amount of coverage on the structure of the home

• 50 percent to 70 percent of the amount of coverage on the structure of the home

• 100 percent of the amount of coverage on the structure of the home

What does the HO-6 policy insure?

• The condo contents and the portion of the building you own

• The building and its contents

• Only the contents of a rented home

• Only the building

What is the main reason for buying homeowners insurance?

• It is required by the tenants' association

• It increases the market value of the home

• It saves money in the event of damage or theft

• It is required by law