Future Business Leaders of America (FBLA) Business Calculations Practice Test

What type of insurance should Jane buy to protect her belongings in an apartment?

1. Renter's insurance

2. Liability insurance

3. Comprehensive insurance

4. Home owner's insurance

The correct answer is: Renter's insurance

Renter's insurance is specifically designed to protect individuals who are renting an apartment or a home. It provides coverage for personal belongings against risks such as theft, fire, and certain types of water damage. This type of insurance typically also includes liability protection, which covers damages that could occur if someone is injured while in the rented property. By purchasing renter’s insurance, Jane can ensure that her personal items, such as furniture, electronics, and clothing, are protected in the event of an unforeseen incident. This coverage is particularly important for renters who may not have the financial means to replace these items out of pocket. Other types of insurance mentioned do not fit Jane's needs as effectively. Liability insurance generally covers legal claims against an individual but does not cover personal property. Comprehensive insurance typically refers to auto insurance that covers vehicle damage but is not applicable to personal belongings in an apartment. Homeowner's insurance is designed for those who own a home and includes coverage for the dwelling itself, which does not apply to renters. Thus, renter's insurance is the most suitable option for Jane.