Multiple choice

Which of the following statements is correct regarding a home insurance policy?

  1. A named peril policy may be purchased as a less expensive alternative to a comprehensive coverage policy that tends to offer coverage to most perils.

  2. A comprehensive policy that tends to offer coverage to most perils may be purchased as a less expensive alternative to a named peril policy.

  3. A named peril policy and a comprehensive policy both come at the same price.

  4. Only a named peril policy can be bought and comprehensive policies are not available.
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A Correct answer
Explanation

For a home insurance policy, that only provides coverage on losses incurred to your property from hazards or events named on the policy, named peril policies may be purchased as less expensive alternatives to comprehensive coverage or broad policies, which are the policies that tend to offer coverage to most perils.

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