NAIC Get Smart insurance quiz

Are you smart about Property Insurance?

Use this simple quiz to test your Property Insurance IQ. Choose your answers carefully, then use the form at the bottom of the page to get your results.

After you have finished, choose of another category.


1.	What does property damage coverage cover?
	a.	Repairs to your home and personal property when damaged by such perils as fire, lightning, windstorm, or hail.
	b.	Only the property that is inside the home when the home is damaged.
	c.	Only the physical home when it is damaged.
	d.	None of the above.


	2.	Most homeowners’ insurance policies cover damage from floods, earthquakes, and hurricanes — True or False?
		True
		False


3.	Why should you buy home insurance?
	a.	To protect both your house and personal property.
	b.	For protection against liability for accidents that injure other people while they are in your home or damage to their property.
	c.	To increase the value of your home.
	d.	Both A and B


4.	What can affect the price of your home insurance?
	a.	The type of construction of the house (i.e., brick or wood).
	b.	The age of the house.
	c.	The number of fire hydrants and fire departments in the area.
	d.	All of the above.


5.	What is actual cash value?
	a.	The amount it would take to repair or replace damage to your home after depreciation.
	b.	The amount it would take to rebuild your home with materials of similar kind and quality, without deducting for depreciation.
	c.	The amount of gold in the Federal Reserve that it takes to back a U.S. dollar.
	d.	The amount it would take to replace the physical money that was in your house at the time of a fire or natural disaster.


6.	What is replacement cost?
	a.	The amount it would take to repair or replace damage to your home after depreciation.
	b.	Amount to replace or rebuild your home or repair damages with similar materials, without deducting for depreciation.
	c.	The amount it would take to replace only the interior furnishings in your home.
	d.	None of the above.


	7.	If you rent, you are responsible for liability coverage and insuring your possessions, just as if you owned a house — True or False?
		True
		False


8.	What does medical payments insurance cover?
	a.	Your own injuries or those of family members living with you.
	b.	Injuries arising out of activities involving a business you operate out of your home.
	c.	Expenses for others accidentally injured on your premises or areas immediately adjoining your property (such as sidewalks or alleys).
	d.	Injuries arising out of rental use of your property.


9.	What protection does the personal liability coverage in my homeowner’s insurance policy provide?
	a.	It covers you against claims or lawsuits resulting from bodily injury or property damage.
	b.	It covers you and others living with you against claims resulting from bodily injury or property damage.
	c.	It covers your physical property in the home that was damaged.
	d.	None of the above.


10.	If you are having difficulty finding adequate and affordable home insurance, what should you do?
	a.	Eliminate signs of potential risk. Look around your home for problems that could cause damage or injury.
	b.	Keep your home well lit, install deadbolts and other security devices on doors and windows, and install a burglar alarm.
	c.	Maintain your home’s appearance. Replace any obvious signs of damage, and keep your yard neat and trim.
	d.	All of the above.