Pearson VUE: Property Insurance
Practice Exam, Study Questions
Insurance, Casualty FL Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
What does the term “replacement cost” mean in property insurance?
A. The current market value of the item
✔✔ B. The cost to replace the item with new of like kind and quality
C. The depreciated value of the item
D. The original purchase price of the item
Which of the following best describes actual cash value (ACV)?
A. The full cost of replacing damaged property
✔✔ B. Replacement cost minus depreciation
C. The appraised value of the property
D. The face value of the insurance policy
Which of the following would be covered under a dwelling policy but not a homeowners policy?
1
,A. Personal liability
✔✔ B. Rental property not owner-occupied
C. Medical payments to others
D. Additional living expenses
What is the main purpose of liability coverage in a homeowners policy?
✔✔ A. To protect the insured against claims from third-party injuries or property damage
B. To repair the insured's own home
C. To cover theft of personal property
D. To pay for fire department service charges
What does the personal articles floater provide?
✔✔ A. Scheduled coverage for valuable items like jewelry or fine art
B. Blanket coverage for all household items
C. Replacement cost coverage for a home
D. Medical payments to guests
Which of the following perils is generally excluded under a standard homeowners policy?
2
,A. Fire
B. Hail
✔✔ C. Flood
D. Vandalism
Which of the following is **not** typically covered under Coverage A of a homeowners policy?
✔✔ A. Detached garage
B. Attached garage
C. Walls and roof
D. Central heating system
What is the purpose of an insurance deductible?
✔✔ A. To require the insured to pay part of the loss, reducing small claims
B. To increase the insurer’s liability
C. To increase the premium
D. To eliminate all risk
3
, A policyholder has \$50,000 in coverage and suffers a \$10,000 loss with a \$1,000 deductible.
How much will the insurer pay?
A. \$10,000
✔✔ B. \$9,000
C. \$49,000
D. \$1,000
Under a personal auto policy, which part provides coverage for damage to the insured's car?
A. Part A – Liability
B. Part B – Medical payments
C. Part C – Uninsured motorist
✔✔ D. Part D – Physical damage
Which type of construction typically receives the **highest** fire rating from insurance
companies?
A. Frame
✔✔ B. Fire-resistive
C. Masonry veneer
4
Practice Exam, Study Questions
Insurance, Casualty FL Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
What does the term “replacement cost” mean in property insurance?
A. The current market value of the item
✔✔ B. The cost to replace the item with new of like kind and quality
C. The depreciated value of the item
D. The original purchase price of the item
Which of the following best describes actual cash value (ACV)?
A. The full cost of replacing damaged property
✔✔ B. Replacement cost minus depreciation
C. The appraised value of the property
D. The face value of the insurance policy
Which of the following would be covered under a dwelling policy but not a homeowners policy?
1
,A. Personal liability
✔✔ B. Rental property not owner-occupied
C. Medical payments to others
D. Additional living expenses
What is the main purpose of liability coverage in a homeowners policy?
✔✔ A. To protect the insured against claims from third-party injuries or property damage
B. To repair the insured's own home
C. To cover theft of personal property
D. To pay for fire department service charges
What does the personal articles floater provide?
✔✔ A. Scheduled coverage for valuable items like jewelry or fine art
B. Blanket coverage for all household items
C. Replacement cost coverage for a home
D. Medical payments to guests
Which of the following perils is generally excluded under a standard homeowners policy?
2
,A. Fire
B. Hail
✔✔ C. Flood
D. Vandalism
Which of the following is **not** typically covered under Coverage A of a homeowners policy?
✔✔ A. Detached garage
B. Attached garage
C. Walls and roof
D. Central heating system
What is the purpose of an insurance deductible?
✔✔ A. To require the insured to pay part of the loss, reducing small claims
B. To increase the insurer’s liability
C. To increase the premium
D. To eliminate all risk
3
, A policyholder has \$50,000 in coverage and suffers a \$10,000 loss with a \$1,000 deductible.
How much will the insurer pay?
A. \$10,000
✔✔ B. \$9,000
C. \$49,000
D. \$1,000
Under a personal auto policy, which part provides coverage for damage to the insured's car?
A. Part A – Liability
B. Part B – Medical payments
C. Part C – Uninsured motorist
✔✔ D. Part D – Physical damage
Which type of construction typically receives the **highest** fire rating from insurance
companies?
A. Frame
✔✔ B. Fire-resistive
C. Masonry veneer
4
