Question

laliah is evaluating homeowner insurance options to ensure coverage in her earthquake - prone area. below are the details from two different policies. policy e: annual cost of $1,500, covers natural disasters, $1,000 deductible, includes home appliance insurance policy f: annual cost of $1,200, covers only theft and fire, $1,200 deductible, does not include home appliance insurance if laliah also has expensive appliances, which policy should she choose to protect her assets best? policy f, because the higher deductible is manageable policy e, because it has a lower deductible policy e, because it covers natural disasters, including earthquakes, and includes home appliance insurance policy f, because it is less expensive annually

Explanation:

1. Laliah lives in an earthquake - prone area, so coverage for natural disasters (including earthquakes) is important. Policy E covers natural disasters while Policy F only covers theft and fire.
2. Laliah has expensive appliances, and Policy E includes home appliance insurance, which Policy F does not. Although Policy E has a higher annual cost and Policy F has a higher deductible, the key factors here are the relevant coverage (natural disasters and appliance insurance) that Policy E provides, which are crucial for protecting her assets.

Answer:

The third option (Policy E, because it covers natural disasters, including earthquakes, and includes home appliance insurance)