Ramsey - Chapter 9 - Lesson 3 (Quiz)

What does renters insurance primarily cover?

• Damage to the building structure

• Destroyed or stolen personal property for a renter

• Medical expenses for guests

• Auto accidents

What is umbrella insurance?

• Insurance for umbrellas

• Optional extended liability coverage

• Basic health insurance

• Coverage for natural disasters

What is a risk associated with homeowners insurance?

• Buying too much insurance

• Not buying enough insurance

• Insuring only the roof

• Insuring only the furniture

Why is it important to have enough homeowners insurance?

• To avoid paying taxes

• To ensure coverage for repairing or replacing your home

• To get discounts on other insurance

• To cover travel expenses

What is a common issue with homeowners insurance in the U.S.?

• Over-insurance

• Underinsurance

• Lack of availability

• High deductibles

What is covered under loss of use coverage?

• Medical expenses

• Additional living expenses

• Car repairs

• Legal fees

What is the average annual cost of homeowners insurance in the U.S.?

• $500

• $1,211

• $2,000

• $3,000

What is the national average cost of renters insurance per year?

• $100

• $180

• $300

• $500

How much coverage can you get with umbrella insurance for $150–300 a year?

• $500,000

• $1 million

• $2 million

• $5 million

What is the primary purpose of liability coverage in homeowners insurance?

• To cover damage to your own property

• To cover flood damage

• To pay for routine maintenance

• To protect against lawsuits for injuries or property damage