W!SE Financial Literacy Certification Practice Test 2025 – Complete Exam Prep

Homeowners insurance is designed to protect against various risks associated with owning a home, including property damage and liability coverage. Damage to the home from fire, liability for injuries to others while on the property, and protection for personal property within the home are all typically covered under a standard homeowners insurance policy.

Losses that result from a work-related accident, however, fall outside the scope of homeowners insurance. Such incidents are generally covered by workers' compensation insurance, which is specifically designed to handle injuries and accidents that occur in the workplace, providing benefits to employees who are injured while performing their job duties. Therefore, identifying work-related accidents as not typically covered by homeowners insurance is accurate, as they are managed through a different type of insurance that focuses on employment-related risks.