Home Insurance Terms Quiz
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Questions and Answers

Which group of people is most likely to get sued and therefore may benefit from an umbrella liability policy?

  • Young professionals
  • Families with lower net worth
  • Families with higher net worth (correct)
  • Retirees

    • What should you consider when shopping for home and vehicle insurance?

  • Minimum coverage
  • Premium differences between carriers (correct)
  • Double the coverage
  • Credit score and driving record

    • Why is it important to assess your coverage needs every few years?

  • To save money on premiums
  • To update your driving record
  • To ensure you have enough liability protection (correct)
  • To adjust for changes in your credit score

    • Which coverage protects you if you're found responsible for others' injuries on your property or away from home?

    <p>Liability coverage (C)</p> Signup and view all the answers

    What is the purpose of a deductible in home insurance?

    <p>To be paid before insurance coverage kicks in (D)</p> Signup and view all the answers

    What is the purpose of the co-insurance clause in home insurance?

    <p>To penalize the insured's loss recovery if the limit purchased is not sufficient (D)</p> Signup and view all the answers

    Which part of home insurance covers injury treatment costs for guests who get hurt on your property or individuals you accidentally injure while away from home?

    <p>Part F - Medical Coverage (A)</p> Signup and view all the answers

    What does personal liability coverage in home insurance pay for?

    <p>Legal settlements and repairs for damage caused to someone else's person or property (C)</p> Signup and view all the answers

    What is the purpose of renters insurance?

    <p>To cover personal property only (C)</p> Signup and view all the answers

    What does collision coverage in auto insurance pay for?

    <p>Any damage to your car resulting from a collision with another car or object (A)</p> Signup and view all the answers

    Which of the following is NOT a standard coverage in home insurance?

    <p>Personal property coverage (C)</p> Signup and view all the answers

    What is the purpose of the co-insurance clause in home insurance?

    <p>To penalize the insured's loss recovery if the purchased limit is not sufficient (A)</p> Signup and view all the answers

    What is the purpose of an insurable interest in home insurance?

    <p>To ensure that a person would suffer a loss if the insured property is damaged (C)</p> Signup and view all the answers

    Which of the following is NOT a factor that can affect the premium for home and vehicle insurance?

    <p>Driving record/history (C)</p> Signup and view all the answers

    What is the purpose of an umbrella liability policy?

    <p>To protect against lawsuits for higher net worth individuals (D)</p> Signup and view all the answers

    Why is it important to have sufficient liability protection in home and vehicle insurance?

    <p>To protect against potential lawsuits (D)</p> Signup and view all the answers

    Which part of home insurance covers damages caused by theft or something other than a collision?

    <p>Part C - Personal Property (B)</p> Signup and view all the answers

    What does the term 'Liability' mean in the context of vehicle insurance?

    <p>You caused damage to someone else's person or property. Pays medical bills, legal settlements, and repairs (C)</p> Signup and view all the answers

    What is the purpose of Medical Payments or Personal Injury Protection (PIP) coverage in auto insurance?

    <p>Pays medical treatment of policyholder and passengers, regardless of fault (A)</p> Signup and view all the answers

    What is the purpose of an umbrella liability policy in vehicle insurance?

    <p>Covers liability over home/auto insurance limits (B)</p> Signup and view all the answers

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