Exam 10: Protecting Your Property

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A personal liability umbrella liability policy is designed to [replace | supplement] HO and car liability coverage.

To save premium costs,one should decrease her deductible and liability coverage on a homeowners' policy.

Carl and Alexandra purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages: Assume Carl and Alexandra have a standard HO-3 policy with personal property covered at 50% and landscaping covered for 10%.How much will the insurance pay for the losses of their personal property and landscaping?

A pure no-fault system insurance would not pay for medical expenses.

Section II of a homeowner's insurance policy covers personal property and personal liability.

Collision protection pays for damage to

HO coinsurance requires the insured to carry insurance protection equal to the market value of the house.

Some common liability risks include:

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most insurance companies [will | will not] offer good student discounts on car insurance premiums.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A HO-3 policy will protect your property from losses due to [all | listed] perils.

Connie rented a hotel room while on vacation.If someone breaks into her room,her HO-4 policy will cover her stolen property.

Section I of a homeowner's insurance policy covers all of the following except

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

If your insurance company makes a payment to you,subrogation is the right of the company to collect from the person causing the accident or from his/her insurance company.

Protection for personal property both at home and away from home is a provision of the homeowners' policy.

The asset most likely to be specifically itemized in a property insurance endorsement is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Research shows that people with [lower | higher] credit scores tend to file more insurance claims.

Property inventories are important to identify insurance needs and to substantiate claims.

Your standard HO policy will not include coverage for damage done by

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The personal property of your [boarder | visiting mother-in-law] would be covered by your HO policy.