Navigating Homeowners Insurance Limits

What is the primary reason for purchasing home insurance?

• To comply with legal requirements

• To protect against financial loss from damages

• To increase the market value of the home

• For aesthetic reasons

What is a policy limit?

• The minimum amount of coverage required by law

• The amount paid for monthly premiums

• The maximum amount paid by the insurance for a loss

• The deductible amount

What should be considered when determining the amount of insurance needed for a home?

• The cost to rebuild the home

• The home's market value

• The color of the home

• The age of the home

How can an insurance agent assist with determining the reconstruction cost of a home?

• By providing market analysis

• Using online real estate listings

• Through replacement cost estimators

• By consulting a contractor

What percentage of Coverage A is typically provided for other structures on your property?

• 20%

• 15%

• 10%

• 5%

Tags

CCSS.6.RP.A.3C

Why might someone purchase more coverage than their policy initially provides?

• For investment purposes

• Because it's required by the mortgage lender

• To cover the increased value of personal property

• To comply with neighborhood standards

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CCSS.RI.6.3

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.3

CCSS.RI.8.5

Why is creating a household inventory recommended?

• To assist in moving

• To have a record for tax purposes

• To ensure sufficient coverage

• For decorating purposes

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CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What is the limit for theft of unscheduled jewelry in most policies?

• $500

• $1,000

• $1,500

• $2,000

What does personal liability coverage pay for?

• Home repairs

• Damages caused to others

• Personal injuries

• Property taxes

What is the role of an independent agent in choosing home insurance?

• To help understand coverages and limits

• To provide legal advice

• To inspect the home

• To sell the most expensive policy

Tags

CCSS.RI.6.5

CCSS.RI.8.3

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5