Homeowners insurance gives you both property and liability protection. True or false 7. Which of these is the best description of the “special” (HO-3) homeowners insurance policy? 1.It offers extensive coverage for your home and also includes personal property and liability protection 2.It’s the most comprehensive policy available, covering even flood damage 8. True or False Liability protection covers both personal liability and the medical expenses of anyone accidentally injured on your property. 9. Which area is not protected by most homeowners insurance? 1.The home 2.Your view 3.Loss of use 4.Personal property 10. Which one of these is covered by a specific type of insurance policy? 1.Off-grid homes 2.Condominiums 3.Homes with more than two stories 4.Homes in rural areas
The correct answer and explanation is:
Answers:
- True
- 1. It offers extensive coverage for your home and also includes personal property and liability protection
- True
- 2. Your view
- 2. Condominiums
Explanations:
6. Homeowners insurance gives you both property and liability protection.
This statement is true. Homeowners insurance provides two primary types of coverage: property protection and liability protection. Property protection covers physical damage to your home and belongings caused by events like fire, theft, or certain natural disasters. Liability protection shields you from legal and financial responsibilities if someone gets injured on your property or if you unintentionally cause damage to someone else’s property. This dual nature of coverage makes homeowners insurance an essential safeguard for homeowners.
7. Best description of the “special” (HO-3) homeowners insurance policy.
The correct answer is 1. The HO-3 policy is the most common type of homeowners insurance. It offers broad protection for the structure of your home against all perils except those explicitly excluded, such as flooding or earthquakes. Additionally, it provides personal property and liability coverage, making it a versatile and reliable policy for most homeowners.
8. Liability protection covers personal liability and medical expenses for accidental injuries.
This statement is true. Homeowners insurance liability coverage protects against lawsuits resulting from bodily injury or property damage caused by you or your family. It also covers medical expenses for guests injured on your property, regardless of fault, ensuring financial support in unforeseen situations.
9. Area not protected by most homeowners insurance.
The correct answer is 2. Your view. Homeowners insurance does not cover intangible elements like your view. While it protects your home’s structure, personal property, and loss of use, the aesthetic value of a view is not insured.
10. Covered by a specific type of insurance policy.
The correct answer is 2. Condominiums. Condominiums require specialized insurance called condo insurance (HO-6). This policy covers the interior of the condo unit, personal property, and liability, while the condo association’s master policy typically covers the building’s exterior and common areas.