|
Test
Your Insurance IQ
You
may be surprised by what you do and don't know
about homeowners' insurance policies and related subjects.
Jot your answers to these 10 questions down on a sheet
of paper. See how you score on our quick quiz, then feel
free to visit those areas on our web site where you can
add to your knowledge!
Question
1: TRUE or FALSE? Your policy covers 100% of the Dwelling
Coverage of your home. That means even if the cost of
rebuilding in your area exceeds the house's market value
by 20%, your insurance will still pay to rebuild your
home completely if it's destroyed by fire or some other
catastrophe.
Question
2: TRUE or FALSE? Your prized Beanie Baby collection
is worth twice what you paid for it. A "scheduled
coverage" policy endorsement means you'll receive
the current market value if it's lost in a fire.
Question
3: TRUE or FALSE? Flood and earthquake damage are
not covered under most standard homeowners insurance
policies.
Question
4: TRUE or FALSE? Ideally, renters should have the
same amount of liability coverage as someone who owns
their own home.
Question
5: TRUE or FALSE? You have a home-based financial
planning business. If a client you're entertaining slips
in your kitchen and sues for damages, your homeowners
policy will cover your liability up to policy limits.
Question
6: A common reason many homeowners are underinsured
is because...
| a) |
They
fail to update their policy as their assets and dwelling
increase in value |
| b) |
They
are unaware of internal limits which cover personal
property only up to a certain amount |
| c) |
Their
mortgage lender only requires insurance that will
cover the outstanding mortgage balance |
| d) |
all
of the above |
| e) |
only
a & b above |
Question
7: House fires resulting in fatalities occur most
often in which room?
| a) |
the
living room |
| b) |
the
bedroom |
| c) |
the
kitchen |
| d) |
the
laundry room |
| e) |
the
basement |
Question
8: Which of the following factors is not considered
when determining your homeowners' premium?
| a) |
type
of construction (brick, frame, etc.) |
| b) |
deductible
amount chosen |
| c) |
size
of lot |
| d) |
distance
to fire hydrant or fire station |
| e) |
age
of home |
Question
9: Which of the following statements is true, according
to a recent survey of convicted house burglars?
| a) |
burglars
are more likely to enter a home through a window rather
than a door. |
| b) |
most
burglars are not deterred by the sound of a radio
or TV inside the house |
| c) |
most
burglars are between the ages of 12-24 and live within
an eight-block radius of the target |
| d) |
all
of the above |
| e) |
only
a & c above |
Question
10: Match the term at left with the correct definition.
| Terms: |
Definitions: |
1.
Named Peril
2. Floater
3. Deductible
4. Umbrella Liability
5. All Risk |
| a) |
Insurance
to cover damages that exceed your policy limits |
| b) |
An
endorsement to a policy covering specific items |
| c) |
A
policy that covers all and any losses which
occur |
| d) |
The
amount you are responsible for in a claim |
| e) |
A
policy that covers only those losses listed
|
|
Proceed to the Answers and Scoring
page
|
