Personal Finance 1st Edition by Jack R. Kapoor

Exercise 17

1?What main coverages are included in home insurance policies?

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2?What is the purpose of personal liability coverage?

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3?How does renter’s insurance differ from other home insurance policies?

Action Application To assist yourself or someone else who rents, contact an insurance agent to obtain information about the cost of renter’s insurance.

Step 1 of 3

(1) Main coverage’s are included in home insurance policies:

The main coverage included in home insurances are house and other structures, additional living expenses, personal property and personal liability. This insurance covers for any damage or destruction to the house. It gives the benefit of additional living expenses coverage by which the insured and his/her family living expenses will be paid by the insurance company if in case they are unable to access the home due various reasons like fire or so on. Usually a particular percentage of the home insurance covers for the properties like furniture, clothes etc., any damage occurring to these property will also be covered in the insurance.