Which of the following correctly completes the statement: 'The two standard renter's insurance policies are broad form and _____ form.'?

• A. special
• B. comprehensive
• C. named perils
• D. basic

Answer: (A)

Verified step by step guidance

1. Understand the context of the question: It is asking about types of renter's insurance policies, which are part of personal finance and risk management concepts.
2. Review the common types of renter's insurance policies. Typically, these include broad form, basic form, named perils form, and special form. Each type covers different levels of risk and perils.
3. Clarify the definitions: Broad form policies cover more perils than basic form policies, while special form policies provide the most comprehensive coverage, often covering all risks except those explicitly excluded.
4. Analyze the options provided: The question asks for the second type of standard renter's insurance policy alongside broad form. Based on industry standards, the correct answer is 'special form,' as it is commonly paired with broad form in renter's insurance.
5. Conclude that the correct completion of the statement is 'special form,' as it aligns with the standard terminology used in renter's insurance policies.