This newsletter from the Louisiana Department of Insurance gives good tips that policyholders can use to educate themselves about their rights under typical insurance policies. Below is a quiz from the newsletter to help test your knowledge (answers at bottom).
Insurance Rights Quiz
“Am I covered for this?” That’s one thought you never want to have after an incident. But unless you’re familiar with the ins and outs of your insurance policies, that’s exactly what you could be left wondering. The purpose of insurance is to help protect your family and finances from life’s surprises. One way to make sure you’re covered from future losses is by periodically reviewing and updating your policy to fit your needs.
Below is a quick quiz to test your knowledge of standard homeowners, auto and health insurance policies. After you complete the quiz, scroll down to the end of the newsletter to see the correct answers.
1. Your friend borrows your car to go to the store. Your auto insurance will cover him/her if they are involved in an accident.
2. A tree from your neighbor’s yard fell on your house during the storm last night. Whose policy covers the damage?
b) Your neighbor’s
3. After a shopping spree at the mall, you put your purchases in your car and go back in to grab lunch. When you return to your car, you notice all your valuables have been stolen. Are you covered?
4. Your basement floods. Luckily, you have a separate flood insurance policy. What does it cover?
d) All of the above
5. If you rent a car for the weekend, does your existing auto insurance policy protect you in case of a wreck?
6. Your 18-year-old daughter goes away to college. Is she still covered under your health insurance?
7. You rent an apartment. There is no need to purchase a separate renters insurance policy because your landlord’s policy will cover any damages to your personal property.
8. Your son’s belongings are covered under your homeowners insurance policy while he’s living in a college dorm.
1. True. As long as he/she has a license and has your permission to drive the car.
2. Yours. Even though the tree was on your neighbor’s property, your homeowners insurance policy will cover the damages, not your neighbor’s.
3. Yes. Theft of personal property is covered under your homeowners or renters policy. Keep in mind that your insurer will probably want proof of loss, so you’ll have to come up with a different way to prove what you bought if your receipts were stolen with the merchandise.
4. Furnace. Flood insurance covers structural elements and essential equipment in a basement, but not living improvements made down there.
5. Yes. Your auto insurance will typically cover a car rental. You should double-check to be sure before denying the coverage offered by the rental company.
6. Yes. A provision of the Affordable Care Act requires insurers to let adult children up to age 26 stay on their parents health insurance policy. Since 2010, Louisiana has included this provision in state law.
7. False. Your landlord’s policy will only protect the building and his property, not your personal property.
8. True. This is true while living in a dorm. However, he may need to get his own renters insurance policy if he moves off-campus.