Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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The most common form of home insurance is…
a. | HO-1, the basic form. | c. | HO-3, the special form. | b. | HO-2, the broad
form. | d. | HO-4, the tenants
form. |
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2.
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The tenants form (HO-4) covers only a renter’s…
a. | fire-related damage. | c. | personal property. | b. | liability. | d. | replacement
coverage. |
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3.
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Calculating the cost of replacing a home and its contents requires
a(n)…
a. | appraisal. | c. | special form. | b. | contents form. | d. | umbrella
policy. |
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4.
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An umbrella policy is designed to…
a. | cover water-related damage. | c. | provide extensive property
coverage. | b. | eliminate the need for endorsements. | d. | supplement liability
coverage. |
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5.
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All of the following can help reduce home insurance rates EXCEPT…
a. | adding endorsements for valuable antiques. | b. | carrying a high
deductible. | c. | installing an alarm system. | d. | living near a fire
station. |
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