Exam 11: Auto and Homeowners Insurance

Underwriters for an insurance company do not

How much coverage would be provided under a standard homeowner's policy if during an unusually heavy rain the basement becomes full of water and an antique dresser from the 1860s was destroyed? The dresser was originally purchased for $1,300 10 years ago,was recently appraised for $2,600,and you recently received an offer from an antique collector for $3,100.How much would be received from your insurance company to cover this loss? (a)Zero (b)$1,300 (c)$2,600 (d)$3,100

Individuals who need additional protection often supplement their auto and homeowner's policy with a(n)________ personal liability policy.

The decision to obtain insurance should be determined by weighing its costs and benefits.

Renter's insurance covers your possessions and the structure of the house or condo you are renting.

Once drivers are labeled as "high risk," they will not be able to get automobile insurance at any price.