ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In short, homeowners insurance helps protect you, your home and your belongings from a variety of unexpected events. A standard policy includes four key types of coverage: dwelling, other structures, personal property and liability.

Detailed explanation-2: -Any intentional loss, like if the policyholder damages his property himself, the damages will not be covered by the insurance company. Any pre-existing damage like any wear and tear or any defects. There could be damaged because of rodents at home and most of the standard insurance policies will not cover this.

Detailed explanation-3: -Property insurance includes homeowners insurance, renters insurance, flood insurance, and earthquake insurance.

Detailed explanation-4: -Then we examine in greater detail the three most important types of insurance: property, liability, and life.