Frank and Jan recently married and purchased their first home together. What is an effective way for Frank and Jan to begin identifying the liability loss exposures associated with their new home?

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Frank and Jan recently married and purchased their first home together. What is an effective way for Frank and Jan to begin identifying the liability loss exposures associated with their new home?

A. Hire a professional risk manager

B. Determine the value of the home and contents

C. Purchase a homeowners insurance policy

D. Inspect the home for loss exposures

Answer: D

AINS Chapter 7

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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