Which of the Following Is NOT Correct About Renter's Insurance

question 59

Multiple Choice

Which of the following is NOT correct about renter's insurance?

• A) The broad form covers personal property against perils specified in the policy.
• B) Renter's insurance covers the building and other structures on the site.
• C) The comprehensive form protects personal property against perils not specifically excluded in the policy.
• D) Typical coverage pays only the actual cash value of one's losses.
• E) Renter's insurance is relatively inexpensive.

---

Definitions:

Product Quality

The characteristics and features of a product or service that bears on its ability to satisfy stated or implied needs.

Market Signaling

Process by which sellers send signals to buyers conveying information about product quality.

Asymmetric Information

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance in power and potentially unfair outcomes.

Product Quality

The measure of the perceived value, effectiveness, and reliability of a product as judged by the consumer.