Florida Insurance Claims Adjuster License Practice Exam

What does Property Insurance ensure?

1. Payment is made directly to a third party

2. Payment is made directly to the insured

3. Coverage only for public properties

4. Coverage for life and health

The correct answer is: Payment is made directly to the insured

Property insurance ensures that in the event of damage or loss to a property, the insured person or entity will receive financial compensation. This compensation goes directly to the insured, as opposed to a third party or only covering public properties as seen in the other options. Property insurance does not provide coverage for life and health, as those would typically require separate insurance policies.