A) To protect your financial investment in a property from covered losses.
B) To increase the property's market value.
C) To pay for routine maintenance and repairs.
D) To guarantee a profit when selling the property.

A) Damage from fire and lightning.
B) Damage from earthquakes and floods.
C) Damage from vandalism and theft.
D) Damage from wind and hail.

A) The physical structure of your home.
B) Your liability if someone is injured on your property.
C) The land your home is built on.
D) Your personal belongings inside the home.

A) Your liability if someone is injured on your property.
B) Your belongings inside the home.
C) The physical structure of your home.
D) Detached structures like garages.

A) Coverage for personal belongings stolen from your car.
B) Protection if someone is injured on your property and you are found liable.
C) Protection for damage to your own property.
D) Coverage for earthquake damage.

A) The total amount the insurance company will pay for a claim.
B) The monthly premium you pay for insurance.
C) The amount you pay out-of-pocket before the insurance company pays.
D) The value of your property.

A) Faster claim processing.
B) Lower premiums.
C) More comprehensive coverage.
D) Higher premiums.

A) Replacement cost factors in depreciation, while ACV does not.
B) ACV factors in depreciation, while replacement cost does not.
C) ACV is always more expensive than replacement cost.
D) Replacement cost only covers appliances.

A) To document your belongings in case of a loss.
B) To determine the market value of your home.
C) To schedule home maintenance appointments.
D) To calculate your monthly premium.

A) Because policies expire annually regardless of payment.
B) To ensure your coverage still meets your needs and accurately reflects your property's value.
C) Because premiums automatically increase every year.
D) To file a claim every year, regardless of damage.

A) Covers additional living expenses if your home is uninhabitable due to a covered loss.
B) Covers the depreciation of your belongings.
C) Covers legal fees.
D) Covers the cost of landscaping repairs.

A) The age of your house.
B) Your claims history.
C) The color of your house.
D) The location of your house.

A) Covers only the perils specifically listed in the policy.
B) Covers only liability claims.
C) Covers only natural disasters.
D) Covers all perils except those specifically excluded.

A) Covers only man-made disasters.
B) Covers only the perils specifically listed in the policy.
C) Only covers your structure, not your belongings.
D) Covers all perils except those specifically excluded.

A) Flood insurance is only required in coastal areas.
B) Standard property insurance typically doesn't cover flood damage.
C) Standard property insurance always covers flood damage.
D) Flood insurance is included in your mortgage payment.

A) To lower your property taxes.
B) To increase your home's resale value.
C) To ensure you have adequate coverage to rebuild if your home is destroyed.
D) To make sure your belongings are insured.

A) Move out of the property permanently.
B) Throw away all damaged items.
C) Take steps to prevent further damage and notify your insurance company.
D) Start making repairs immediately without notifying your insurance company.

A) A government official who regulates insurance companies.
B) An insurance company employee who processes claims.
C) A building contractor.
D) An insurance professional you hire to represent you in a claim.

A) Covers the cost of legal fees if you are sued.
B) Covers the cost of landscaping repairs.
C) Covers the cost of replacing outdated appliances.
D) Covers the increased cost of rebuilding to comply with current building codes.

A) Wear and tear.
B) Flood.
C) Earthquake.
D) Fire.

A) The process of filing a claim.
B) A type of insurance fraud.
C) The insurance company's right to recover payment from a third party at fault for a loss.
D) A discount offered for bundling multiple insurance policies.

A) To prevent potential damage and avoid claim denials.
B) To increase your property's insurance premiums.
C) Because insurance companies require you to make weekly inspections.
D) Insurance companies will only provide coverage for new builds.

A) Discounts offered for being a long-term customer.
B) Additions to your policy that provide extra coverage for specific items or situations.
C) Standard property insurance policies.
D) Cancellation notices from the insurance company.

A) To perform a home inspection before purchasing property.
B) To determine the market value of your property when you buy it.
C) To calculate your insurance premium.
D) To determine the value of damaged property during a claim dispute.

A) Neglect.
B) Earth movement.
C) War.
D) Wind damage.

A) Filing too many insurance claims.
B) Having insurance coverage that is insufficient to cover the cost of rebuilding or replacing your property.
C) Paying your premiums late.
D) Having more insurance coverage than you need.

A) Your actual insurance policy document.
B) A receipt for your premium payment.
C) A document that summarizes your insurance coverage.
D) A claim form.

A) File more claims.
B) Decrease your coverage limits.
C) Increase your deductible.
D) Ignore home maintenance.

A) Flood insurance.
B) Earthquake insurance.
C) Life insurance.
D) Hazard insurance (property insurance).

A) The process of canceling an insurance policy.
B) The cost of your insurance premium.
C) The process of determining the value of insured property.
D) The process of filing a claim.