Have you ever wondered how much you really know about your home insurance policy? Now’s your chance to find out! Take our quick 10-question quiz to test your knowledge of key insurance terms and concepts. No peeking at the answers—getting there is half the fun!
Home Insurance Quiz
- The term “actual cash value” (ACV) means:
A) The amount you paid for an item
B) The replacement cost of an item
C) The depreciated cost of an item
D) The amount you can sell an item for online - A “deductible” is the amount you pay out of pocket before your insurance policy starts to pay a claim.
True or False? - “Loss of use” coverage can help cover living expenses if you have to move out of your house while repairs are made.
True or False? - What does “underwriting” mean?
A) The process an insurance company uses to determine your policy cost
B) The document outlining your insurance coverage agreement
C) The process of accepting or rejecting mortgage or rental applications
D) The document proving you have insurance - “Personal liability protection” covers:
A) Unintentional property damage and injuries you cause
B) Medical expenses for you and your family
C) Damage to your personal property and belongings
D) Intentional property damage and injuries you cause - The “Insured” on a policy refers to the insurance company.
True or False? - An insurance policy “exclusion” means:
A) Dangers or damages covered by the policy
B) Dangers or damages not covered by the policy
C) The maximum amount the insurance company will pay for a claim
D) Special coverage for exclusive policyholders - What are “special limits of liability” (sublimits)?
A) The maximum amount a policy will pay for certain types of property or losses
B) A special discount for clients with good credit
C) The total amount a policy will pay for all claims
D) A discount for being underinsured - A “rider” or “floater” means:
A) A way to cover other people driving your vehicle
B) Additional coverage for high-value items
C) A discount that reduces policy costs
D) Coverage for pest infestations - What is a “peril”?
A) The location of your property
B) The actual cash value of your home
C) A danger that causes loss or damage
D) The amount you must pay after your insurance pays a claim
Answer Key & Explanations
- C. ACV is the depreciated cost of an item, meaning it’s worth less than its replacement cost.
- True. A deductible is the out-of-pocket amount you pay before insurance kicks in. Adjusting your deductible can impact your premium.
- True. “Loss of use” coverage helps with temporary living expenses if your home is uninhabitable due to a covered peril.
- A. Underwriting is the process insurers use to evaluate risk and determine your policy cost.
- A. Personal liability protection covers unintentional damage or injuries you’re legally responsible for, such as a slip-and-fall accident on your property.
- False. The “Insured” is you—the policyholder. The insurance company is called the “Insurer.”
- B. Exclusions are specific situations or damages not covered by your policy, such as pest infestations.
- A. Sublimits cap how much your policy will pay for certain items, like jewelry or electronics. You can purchase additional coverage to increase these limits.
- B. A “rider” or “floater” adds extra coverage for high-value items, like jewelry or artwork.
- C. A “peril” is a specific risk or cause of loss, like fire, theft, or windstorms. Some perils require additional coverage.
How Did You Do?
Whether you aced it or learned something new, understanding your home insurance policy helps you make informed decisions. If you have questions or need to review your coverage, Bulger Insurance is here to help!
📞 Contact us today for expert advice and personalized coverage options.
