Asked by Matthew Valenzuela on May 23, 2024
Verified
Without government subsidized property insurance, people are more likely to be cognizant of the risks of building and living in fire-prone or flood-prone areas because their insurance costs will be higher.
Government Subsidized Property Insurance
Insurance programs supported by the government to make coverage available and affordable, often in high-risk areas.
Insurance Costs
represent the expenses related to purchasing insurance coverage, which provides financial protection against potential future losses or damages.
- Acquire knowledge on the basic principles of risk management and the role of insurance in financial choices.
Verified Answer
TH
Taelor HildebrandMay 27, 2024
Final Answer :
True
Explanation :
Without government-subsidized property insurance, the cost of insurance in high-risk areas reflects the true risk of living there, making people more aware of the dangers and potentially reconsidering their decision to build or live in such areas.
Learning Objectives
- Acquire knowledge on the basic principles of risk management and the role of insurance in financial choices.