A Higher Deductible Reduces the Amount of Coverage Provided by Homeowner's

question 123

True/False

A higher deductible reduces the amount of coverage provided by homeowner's insurance, and therefore results in a lower insurance premium.

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Definitions:

Voluntary Association

An organization created by individuals who voluntarily unite to pursue a common interest or goal without necessarily seeking profit.

Business Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.

S Corporations

Corporations that elect a special tax status to pass income, losses, deductions, and credit through to their shareholders for federal tax purposes.

Separate Legal Entity

A legal structure that is distinct and independent from its owners, allowing it to own assets, incur liabilities, and enter into contracts.