Chapter 15 - Property Insurance Basics

Question 1

condition

Answer 1

a requirement that must be met in order for insurance coverage to be valid

Question 2

exclusion

Answer 2

events that are not covered by an insurance policy

Question 3

insurance

Answer 3

a means of protection against possible financial loss

Question 4

insured

Answer 4

the individual or entity that is covered by insurance

Question 5

insurer

Answer 5

the company of entity that provides insurance coverage

Question 6

premium

Answer 6

the amount of money that the insured pays to the insurer for coverage

Question 7

property insurance

Answer 7

insurance that indemnifies the policyholder for direct and indirect property losses.

Question 8

FEMA flood hazard zones

Answer 8

zones outlined on a FEMA flood hazard map that show the likelihood that an area may flood

Question 9

liability insurance

Answer 9

insurance coverage that protects against claims that one’s negligence or inappropriate action resulted in a loss to another party

Question 10

endorsement

Answer 10

additional coverage that can be added onto an insurance policy

Question 11

unoccupied building exclusion

Answer 11

exclusion within homeowner insurance policies that reduces or stop coverage if a homeowner leaves their home unoccupied for extended periods of time.