Common Homeowners Insurance Questions And Answers

70 Questions | Total Attempts: 57

SettingsSettingsSettings
Common Homeowners Insurance Questions And Answers - Quiz

Here are a few common homeowners insurance questions and answers that every homeowner planning to buy a home policy should know. Also, this quiz will help in solving some of your queries related to property insurance. Homeowners insurance is generally a form of property insurance that covers destruction and damages to an individual's house and assets in the home. So, if you want to know more about it in detail, don't skip this quiz. Take it up and increase your understanding regarding your property.


Questions and Answers
  • 1. 
    A building that does NOT contain enough personal property to be used for that purpose and no one was home at the time of the loss best describes which of the following terms?
    • A. 

      Uninsurable

    • B. 

      Unoccupied

    • C. 

      Empty

    • D. 

      Vacant

  • 2. 
    A devise which is used to minimize small nuisance claims, keep insurance premiums down and may reduce morale hazards is called
    • A. 

      Arbitration

    • B. 

      Deductible

    • C. 

      Coinsurance

    • D. 

      Appraisal

  • 3. 
    All of the following are elements necessary for a contract to be valid, EXCEPT:
    • A. 

      Legal Competent Parties

    • B. 

      Signature

    • C. 

      Consideration

    • D. 

      Agreement

  • 4. 
    All of the following are resident producer requirements EXCEPT:
    • A. 

      Submit an application to the Commission and have it evaluated

    • B. 

      Be over 21

    • C. 

      Be honest and trustworthy

    • D. 

      Pass the state licensing exam

  • 5. 
    All of the following will be listed on a written binder, EXCEPT:
    • A. 

      Insurer's name

    • B. 

      Policy limits

    • C. 

      Premium

    • D. 

      Effective dates

  • 6. 
    An insured responding to a question to the best of their knowledge would be
    • A. 

      Material Fact

    • B. 

      Concealment

    • C. 

      Representation

    • D. 

      Misrepresentation

  • 7. 
    An insured's indifference to a loss or attitude about safety can create a
    • A. 

      Physical Hazard

    • B. 

      Moral Hazard

    • C. 

      Morale Hazard

    • D. 

      Legal Hazard

  • 8. 
    An unendorsed homeowner policy will settle personal property for which valuation method?
    • A. 

      Replacement Cost

    • B. 

      Actual Cash Value

    • C. 

      Agreed Value

    • D. 

      Salvage Value

  • 9. 
    Changes or additions to a policy contract are referred to as:
    • A. 

      Exclusions

    • B. 

      Additional payments

    • C. 

      Supplemental payments

    • D. 

      Endorsements

  • 10. 
    Coverage D on an Homeowner's policy will NOT cover for which of the following claims>
    • A. 

      Loss of rental income following a covered loss

    • B. 

      The cost to stay at a hotel after the insured's home was damaged in a forest fire

    • C. 

      The cost of living in a camper on the insured's property due to a covered loss

    • D. 

      The cost of buying new cloths after the home caught on fire

  • 11. 
    Coverage D will cover which type of loss?
    • A. 

      Indirect

    • B. 

      Direct

    • C. 

      Sequential

    • D. 

      Optional

  • 12. 
    Coverage E on a homeowner policy covers which of the following?
    • A. 

      $100,000 per person

    • B. 

      $1,000 per person

    • C. 

      $100,000 per occurrence

    • D. 

      $1,000 per occurrence 

  • 13. 
    Damage to fishing equipment would be claimed under which homeowner policy coverage?
    • A. 

      Coverage A

    • B. 

      Coverage B

    • C. 

      Coverage C

    • D. 

      Coverage D

  • 14. 
    Each of the following must be present to establish negligent liability, EXCEPT
    • A. 

      An intervening cause

    • B. 

      A legal duty to act

    • C. 

      A breach of duty

    • D. 

      Resulting injury or damage

  • 15. 
    Giving someone sporting tickets in exchange for purchasing a policy is called
    • A. 

      Rebating

    • B. 

      Defamation

    • C. 

      Twisting

    • D. 

      Misrepresentation

  • 16. 
    Fire, lightning and hail are best used for which of the following terms?
    • A. 

      Loss

    • B. 

      Hazard

    • C. 

      Risk 

    • D. 

      Peril

  • 17. 
    How is the premium returned when the Named Insured cancels the policy?
    • A. 

      Flat Rate

    • B. 

      Pro-Rata

    • C. 

      Short Rate

    • D. 

      The Named Insured cannot cancel the policy because they are bound by the contract

  • 18. 
    The fire department service charge is how much?
    • A. 

      $100

    • B. 

      $500

    • C. 

      $1000

    • D. 

      $2500

  • 19. 
    How will your homeowner policy cover the insured when their pet bites someone?
    • A. 

      It is excluded

    • B. 

      They are covered under Coverage C

    • C. 

      They are covered under Coverage E and Coverage F

    • D. 

      They are covered under both Section I and Section II

  • 20. 
    If the insurance company cancels the policy, how will the unearned premium be returned to the policyholder?
    • A. 

      Short Rate

    • B. 

      Pro-Rata

    • C. 

      Flat Rate

    • D. 

      Cancellation Rate

  • 21. 
    If the Commissioner finds the person has violated insurance laws, it may issue a _______ requiring the offending party to stop the illegal activity
    • A. 

      Suspension

    • B. 

      Cease and Desist Order

    • C. 

      Warrant for arrest

    • D. 

      Complaint with their employer

  • 22. 
    In order to collect on an insurance claim
    • A. 

      I must have an insurable interest when I purchase the policy

    • B. 

      I need no insurable interest to collect

    • C. 

      I needed to have an insurable interest at one time

    • D. 

      I must have insurable interest at the time of loss

  • 23. 
    In some states if the injured party can be proven even partially responsible for the accident, they are barred from recovery, this is called
    • A. 

      Comparative Negligence

    • B. 

      Assumption of Risk

    • C. 

      Intervening Cause

    • D. 

      Contributory Negligence

  • 24. 
    Information about the premium and policy limits, the identity and address of the named insured, and the policy period is found in what part of an insurance policy?
    • A. 

      Declarations

    • B. 

      Insuring Agreement

    • C. 

      Conditions

    • D. 

      Exclusions

  • 25. 
    Installing an ADT alarm system is an example of which risk management technique?
    • A. 

      Transfer

    • B. 

      Share

    • C. 

      Retain

    • D. 

      Reduce

Back to Top Back to top