In the context of home price insurance, moral hazard and adverse selection represent two distinct challenges arising from asymmetric information. Moral hazard is a post-contract problem of 'hidden action,' where an insured homeowner has a reduced incentive to maintain their property. In contrast, adverse selection is a pre-contract problem of 'hidden attributes,' where individuals with private information suggesting their property is more likely to decline in value are the most eager to buy insurance. While both can undermine the insurer's financial viability, they stem from different information asymmetries and occur at different stages of the insurance relationship.