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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 receipt for your premium payment.
D) A document that summarizes your insurance coverage.

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

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

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