Understanding Renters Insurance

What is the primary reason renters insurance is necessary?

• To cover the physical building

• To protect personal belongings and liabilities

• To pay for rent

• To cover maintenance costs

Which type of coverage protects your belongings from theft or fire?

• Landlord's insurance

• Liability coverage

• Personal property coverage

• Additional living expenses

What does liability coverage in renters insurance typically cover?

• Damage to the building

• Routine maintenance

• Injuries to others and legal expenses

• Natural disasters

How can you determine the amount of coverage you need for your possessions?

• By using a standard amount for everyone

• By asking the landlord

• By making an inventory of items and their estimated value

• By guessing the value

What is the difference between actual cash value and replacement cost value policies?

• There is no difference

• Actual cash value is more expensive, replacement cost is cheaper

• Actual cash value pays the depreciated value, replacement cost pays the amount to buy new

• Actual cash value pays the original price, replacement cost pays the current price