Question

1. Which statement is correct regarding homeowner’s insurance?

1. Replacement cost policy pays the homeowner the cost of replacing the damaged property with an item of a similar brand and quality.
2. Homeowner’s policy specifies a deductible that the homeowner is responsible for paying before any insurance coverage is provided by the insurer.
3. Homeowner’s insurance provides insurance in the event of property damage, theft, or personal and third-party liability relating to homeownership.
4. The mortgage lender typically requires that the homeowner’s insurance policy covers at least the mortgage.
5. All the above.

Answer 1

Answer e. All of the above

Reason. Replacement cost for homeowners insurance policy is the amount of money required to replace damaged or destoyed home with exact or similar home.

Homeowners are required to make make payments to avail the policy and only after payment of that amount policy is being provided.

Homeownership policy provide insurance benifts in the event of damage to the property by any means and any third party liability relating to home ownership.

Mortgage lender requires homeowners insurance policy to cover the entire mortgage in order to protect in the event anything happens to the property.