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.

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Definitions:

Capital Stock

The total number of shares that a corporation is authorized to issue as stated in its corporate charter.

Assets

Economic resources controlled by a business from which future economic benefits are expected to flow to the business.

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of premiums and the provisions of coverage.