8
QuizMultiple Choice

Homeowners Insurance

Question 8 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Renters insurance is different than homeowners insurance in that _____.

Answer
A
unlike homeowner’s insurance, renter’s insurance will not cover items lost in a burglary.
B
homeowner’s insurance protects the building of residence while renter’s insurance does not.
C
renter’s insurance only applies to apartments when homeowner’s insurance only applies to houses.
D
additional living expenses are covered by renter’s insurance but not by homeowner’s insurance.

Explanation

Homeowners insurance generally covers both the home’s structure and the owner’s belongings. Renters insurance typically covers a tenant’s personal belongings and liability, but not the building itself, which is the landlord’s responsibility. Both types of policies may cover belongings lost in a burglary and additional living expenses, so those differences are not accurate.

AI-written and checked against the verified answer.

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