Homeowners Quiz: How Well Do You Know Your Coverage?

When it comes to insurance, assumptions can cost you. Take some time to read your policies and learn about how homeowners insurance coverage works, then test your knowledge with this quiz.

Coverage Quiz:

1. You have homeowners insurance, and recent heavy rains caused flooding in your home. Are you covered?
   1. Yes
   2. No
   3. Maybe…
2. Overnight, a car drove through your privacy fence but the driver drove away and you have no idea who it was. Will your homeowners insurance cover this?
   1. Yes
   2. No
   3. Maybe…
3. A family member who lives in your household accidentally set the house on fire. Fortunately, nobody was hurt, but the house burned to the ground. Will your homeowners insurance cover this?
   1. Yes
   2. No
   3. Maybe…
4. An animal of some sort seems to have invaded your attic. It tore up your insulation, damaged your attic fan and more. Will your homeowners insurance cover this?
   1. Yes
   2. No
   3. Maybe…
5. You built a house high on a hill that overlooks a lake. It was in a subdivision on a cul-de-sac. The ground below the house began to shift, and professionals are saying the house will likely fall off the cliff soon. Will your homeowners insurance cover it if it does?
   1. Yes
   2. No
   3. Maybe…

Answers:
The answers to all of the above questions are C. Your individual coverage depends on what you bought, so be sure you understand your coverage. Read your policy thoroughly, and if you have any questions, discuss them with your agent. Speaking in general terms, however, the following answers may apply to the above situations:

1. B - Many people assume their home insurance policy will cover flood damage, but most do not.  You may also think that your house must be located in a high-risk flood zone to get flood insurance. However, since floods can happen anywhere, at any time, you may consider purchasing a federal flood insurance policy to protect your home or business.
2. B – General liability insurance for your business generally helps you pay if your business or employees accidentally caused an injury or damaged someone else's property. A business insurance policy likely covers property loss caused by someone else, including vehicles.
3. A – The key word in this scenario is "accidentally." If a house fire is caused by an accident (as defined in your policy) it will likely be covered. Although all policies cover some intentionally set fires, if the fire is intentionally set by or at the direction of the insured, the damage is not covered.
4. C – The answer to this varies from insurance company to insurance company. In many cases, Maybe on what type of animal it was. Most don't cover damage done by vermin or rodents and other similar critters.
5. B – Most insurance companies will not cover damage to patios, fences, foundations, walls, floors, ceilings or slabs if it is caused by any type of movement of the ground.

It's always a good idea to review your insurance policies with your agentto be sure you know what is covered and what isn't so you can avoid unpleasant surprises. You should also ask your agent to set up an annual review of your coverage. Marriage, divorce, the birth of a child, moving, remodeling a house, and buying big "toys" like ATVs or trampolines are all changes that may affect your coverage.

The product information contained in this article and on this website is informational only and not a statement of contract. All coverage options are subject to the provisions of the policy purchased and details of the policyholder's situation.