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

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

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

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

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

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

A) Faster claim processing.
B) More comprehensive coverage.
C) Higher premiums.
D) Lower 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 determine the market value of your home.
B) To schedule home maintenance appointments.
C) To document your belongings in case of a loss.
D) To calculate your monthly premium.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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