Assume you are a risk management consultant. Identify the major loss exposures that Fred faces.

Explain the major differences among the HO$-3,$ DP$-3,$ and DP$-1$ policies discussed by the agent.

To what extent will each of the coverage alternatives discussed by the agent cover the loss exposures identified in $($a$)?$

Assume that Fred buys a DP$-3$ policy. Do you recommend that he also purchase the personal liability supplement? Explain.

Assume that Fred obtains a DP$-1$ policy. Do you recommend that he also purchase flood insurance through the National Flood Insurance Program? Explain