Test Scoring

Answers:

1) TRUE. Our coverage assures your insurance will pay what it costs (up to policy limits) to rebuild the house at today's prices.

2) FALSE. A valued coverage agreement means the insurer will pay you exactly the amount for which an item is insured. If the item or items increase in value, you'll still only get the agreed-upon coverage amount.

3) TRUE. These potential disasters are area-specific and not included in most standard policies. Flood insurance is usually a separate policy, while earthquakes can be covered by purchasing an endorsement to an existing policy.

4) TRUE. Most experts agree that renter's liability coverage should be comparable to that of a homeowner in today's lawsuit-filled society.

5) FALSE. Any damage or liability arising from a home-based business pursuit will likely not be covered under a standard policy. Additional coverage, called "incidental office occupancy" coverage can help in this situation.

6) d - all of the above. Many homeowners think about home insurance only at settlement or annual renewal, so they often forget to evaluate changing coverage needs. Others simply fail to read their policy in its entirety.

7) a - the living room. Although more fires start in the kitchen than any other room, more fatal fires begin in living rooms or family rooms. And careless smoking is often the culprit, according to The Journal of American Insurance.

8) c - size of lot. The land under your house isn't at risk from fire, windstorm, lightning, theft, and the other perils covered in your policy. Its value should not affect the amount of insurance you buy.

9) e - a & c above. This according to a survey of professional burglars published in Boardroom Classics' The Big Black Book of Secrets.

10) 1-e; 2-b; 3-d; 4-a; 5-c.

Scoring:

Questions 1-5: 1 point for each correct TRUE/FALSE answer;
Questions 6-9: 2 points for each correct multiple choice answer;
Questions 10: 1 point for each correct match.

If you scored 15-18, you're practically a home insurance expert (you may want to visit our upcoming Homesite job opportunities section).

If you scored 10-14, you're a pretty savvy homeowner with a thing or two to improve upon.

If you scored less than 9, you need some help. Fortunately, you've come to the right web site!

Sources: Independent Insurance Network; Journal of American Insurance; moneycentral.msn.com web site; Boardroom Classics' The Big Black Book.