Midterm 2: Chapter 10

William Bennett owns a home in Oviedo, Florida. There was a fire in his home and he and his family had to move to a motel until his home could be fixed. What part of his homeowner's insurance policy would cover the cost of the motel?

Additional living expenses

Larry Foster has bought a car with front and side airbags and antilock brakes. How is Larry managing his risk?

Reduction

Self-insurance is the process of establishing a monetary fund that can be used to cover the cost of a loss.

True

High winds cause damage to trees, shrubs, and other plants. This insurance claim would be covered under the ____________ component of homeowner's insurance.

building and other structures

Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson.

true