In risk management, the distinction between real and personal property is relevant because:
A)when compared to real property, personal property is highly valued.
B)real property is a non-depreciating property, whereas, personal property depreciates.
C)dissimilar properties are exposed to perils with dissimilar likelihoods.
D)insureds would be more concerned about loosing, or being compensated for, personal property than real property.
E)risks exposures associated with personal property are not insured.

Question

Quizplus · Accepted Answer

Dissimilar properties, such as real and personal property, are exposed to different types of perils with varying likelihoods, which affects how they are managed in risk management.

In Risk Management, the Distinction Between Real and Personal Property