ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Homeowners insurance provides policyholders with coverage against loss and/or damage to their homes and possessions, also referred to as insured property.

Detailed explanation-2: -Personal possessions cover is an add-on that only a comprehensive car insurance policyholder can purchase. The insurer will provide coverage for any loss or damage to any of your personal possessions kept inside the car as per the insured declared value of your car insurance policy.

Detailed explanation-3: -Liability insurance policies cover the insured against any claims arising out of bodily injuries and damages to the property of any person. Besides covering the legal costs involved, liability insurance provides coverage for payouts that the insured is legally liable to pay.

Detailed explanation-4: -While purchasing the life insurance policy, the insured either pay the lump-sum amount or makes periodic payments known as premiums to the insurer.

Detailed explanation-5: -So, in that case, you first have to pay the remaining amount and then claim the insurance money. The extra amount to be paid under such circumstances is called ‘deductible’. You can pay lesser premiums and higher deductibles in an agreement with the insurer.