Question

In which situation should you purchase a property insurance?

A. You bought 100 shares of a stock and you’re afraid it may be stolen by your roommates.

B. You bought a new car and it may be destroyed in an auto accident.

C. You sold scaffolds to your customer and you’re afraid it may collapses and hurt people.

D. The head manager of your company has minor heart problems and may die prematurely because of a heart attack.

E. Both A and B.

Answer 1

B) You bought a new car and it may gets destroyed in an auto accident.

Explanation: Property insurance is an insurance bought against a physical good and not non physical good. Shares are non physical, so it cannot be bought against it.

In case of premature death, the person should buy a life insurance, i.e. for option D.

In case of scaffold, you don't have the ownership of it, so you don't need to buy property insurance.

Only in case of car, it is both physical property and we own it.