Question

For a consumer with a homeowner’s policy, installing smoke detectors helps to

avoid risk.
create risk.
reduce risk.
share risk.

Answer 1

The correct option is SHARE RISK.
Homeowner insurance policy is a type of property insurance that covers a private residence. The insurance policy usually offers coverage for damages caused by fires, lighting, windstorm, hail, etc. Insurance is a risk sharing business between the insurance company and the consumer, a consumer with a homeowner policy, who goes ahead to install smoke detectors is reducing the risk of having a fire incident in the house. Installing this kind of device usually lower the amount of insurance premiums that one is required to pay.

Answer 2

Answer: reduce risk.

For consumer with a homeowner’s policy installing smoke detectors helps reduce risk. The risk can be reduced by 2 major ways. First is that it will reduce the risks because of homeowner policy, the risk will be divided between the owner and the insurance company hence reducing that for the owner.

The other way it will be reduced is by minimizing the damage once the alarm is triggered. Any smoke that might cause a fire can be dealt with immediately