Chapter 9 Lesson 3 Homeowners and Renters Insurance

What is the primary purpose of homeowners insurance?

• To increase the market value of your home

• To protect your home and personal possessions from damage or loss

• To reduce property taxes

• To cover the cost of home renovations

Which of the following is typically NOT covered by a standard homeowners insurance policy?

• Fire damage

• Theft

• Earthquakes

• Wind and hail

What is the average annual cost of homeowners insurance in the United States?

• $500

• $1,211

• $2,500

• $3,000

What type of coverage in a homeowners insurance policy protects you from legal liability for property damage or bodily injury?

• Dwelling coverage

• Personal property coverage

• Liability coverage

• Loss of use coverage

Which of the following is a benefit of bundling your homeowners and auto insurance policies?

• Increased coverage limits

• Lower deductibles

• Reduced annual premium costs

• Faster claim processing

What is the average annual cost of renters insurance in the United States?

• $100

• $180

• $500

• $1,000

What is the main difference between renters insurance and homeowners insurance?

• Renters insurance is more expensive

• Renters insurance does not cover the structure of the home

• Homeowners insurance does not cover personal possessions

• Renters insurance includes flood coverage

What is the purpose of umbrella insurance?

• To provide coverage for natural disasters

• To extend liability coverage beyond standard policies

• To cover the cost of home improvements

• To insure luxury items

Which of the following is a common cause of homeowners insurance claims?

• Pest control

• Mold

• Fire and lightning

• Sewer backups

Why is it important to regularly check your homeowners insurance coverage amount?

• To ensure you are not overpaying for insurance

• To adjust for changes in construction and material costs

• To increase your deductible

• To reduce your liability coverage