Question 10 • FL-2102373-Personal Finance and Money Management Honors
Read the scenario.Tom owns a rental property and fails to renew his insurance policy due to financial constraints. A fire broke out in the rental property, causing significant damage to the building and injuring one of the tenants. As he did not have insurance, Tom now faces significant financial liability for the damages and medical expenses. Why is it important for landlords to maintain insurance on their rental properties?
Answer
A
to qualify for a discount on energy-saving renovations
B
to ensure the rental property is in a safe, high-demand rental market
C
to ensure protection against losses due to property damage or claims
D
to guarantee they have the latest security systems installed in their rental units