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

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

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

A) Your liability if someone is injured on your property.
B) The physical structure of your home.
C) Your belongings inside the 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) Coverage for earthquake damage.
D) Protection for damage to your own property.

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

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

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

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

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

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

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

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

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

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

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

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

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

A) Covers the cost of replacing outdated appliances.
B) Covers the cost of landscaping repairs.
C) Covers the cost of legal fees if you are sued.
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 insurance company's right to recover payment from a third party at fault for a loss.
B) The process of filing a claim.
C) A discount offered for bundling multiple insurance policies.
D) A type of insurance fraud.

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

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

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

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

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

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

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

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

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