When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________.
A)the liability arising from the insured's responsibility for property loss
B)the construction cost of the property
C)the home equity in the property
D)the excess compensation claim for loss to the property

Question

When insuring property,people need to consider not only replacing and restoring the actual property in the event of a loss,but also __________. ​
A)the liability arising from the insured's responsibility for property loss
B)the construction cost of the property
C)the home equity in the property
D)the excess compensation claim for loss to the property

Quizplus · Accepted Answer

When insuring property, people need to consider not only the replacement and restoration costs of the property but also the liability arising from the insured's responsibility for any property loss. This is important since the insured may be held liable for damage or loss caused to a neighbor's property or injury to someone else on their property. Therefore, liability coverage is a crucial part of property insurance. The other options in the given question are not relevant to the consideration of insurance coverage for property.

When Insuring Property,people Need to Consider Not Only Replacing and Restoring