4. The coverages and limitations of the homeowner's insurancepolicy What coverages are provided in a homeowner's policy? What is the term used to describe the dollar amount of a physical damage claim paid by the policyholder? O Floater O Coinsurance clause Deductible In general, the method of calculating the basic limits specified in Parts B through D of a homeowner's policy involves multiplying Part A limit by: 10%, 50%, and 10-20%, respectively O 10-20%, 10%, and 50%, respectively 25%, 10-20%, and 50%, respectively Which of the following could potentially reduce the annual premium on your homeowner's policy. Install smoke and burglar alarms Never review your coverage or policy O Carry less coverage than is really needed Suppose your garage and gardening were recently damaged by a thunderstorm. The buildings were built 4 years ago for $9,000, were expected to have a useful life of 12 years, and if built today would cost $12,000. Actual cash value, rather than, replacement cost coverage is carried on the structures, and the insured carries a $0 deductible. What is the maximum compensation available under your homeowner's policy for this loss? $6,000 $9,000 O $12,000 O $3,000 Which of the following describes a strategy that could increase your liability coverage? O Purchasing a personal liability umbrella policy O Decreasing Part E limit on your policy Purchasing an earthquake or flood insurance policy Regarding basic homeowners insurance coverage, identify policy modifications that could provide better protection during periods of inflation. Check all that apply. Increase the coverage on the dwelling to 100% of its replacement cost Add earthquake coverage Increase the coverage on your home computer equipment Add flood coverage Add an inflation rider