Insurance Fundamentals: Understanding Perils

To increase the value of the assets over time

To protect against unexpected events that may cause loss or destruction (correct)

To guarantee a fixed return on investment

To ensure they remain functional throughout their expected lifetime

A type of insurance policy

A type of asset that is prone to damage

The cause of loss or an event that may cause a loss (correct)

The event itself that causes a loss

Because it is affected by natural disasters

Because it is affected by unexpected events (correct)

Because it is affected by predictable events

Because it is affected by human error

<p>A natural disaster, such as an earthquake</p> Signup and view all the answers

<p>Assets are destroyed or made non-functional</p> Signup and view all the answers