Homeowners’ Insurance Policy: Claim 1: Mrs. White accidently lost her diamond ring on a ski hill when she fell. Loss: $4,500?

Question

The following losses occur during the policy period. Fully explain which section their policy will address each of these 
situations; note any limitations or exclusions that may apply. Show all calculations and amount, if any, to be paid.

Claim 1: Mrs. White accidently lost her diamond ring on a ski hill when she fell. Loss: $4,500

Claim 2: Mr. White discovers that their freezer has malfunctioned and the food inside has spoiled. 
 Loss of food is $1,200 
Damage to the freezer is $1,500.
 
Claim 3: Mr. White leaves a space heater on in the detached garage one night by mistake. It catches fire and causes 
damage as follows. Garage $15,000 
 Garden tractor $6,000 
 Lawn furniture $1,200 
 Boat motor $1,400 
 
Claim 4: The Whites son Tim called them to let them know that someone had stolen his mountain bike from his 
residence at college. Loss: $750

Anonymous · Accepted Answer

This is very typical of the licensing tests.  The point is, that you should know how to apply special limits of coverage limitations to a claim - and know to what property types it applies.  You'd also have to remember that deductibles apply; and know what the automatic coverage amounts are under a homeowners policy.

Here's where to start:

1.  No coverage
2.  no coverage
3.  coverage
4.  coverage, if the deductible is less than the value of the bike.

good luck.  You really need to plow through this on your own, or you won't have a chance of passing the actual licensing exam.

car253 · Answer

The ring has nothing to do with the freezer or the heater or the mountain bike.   All are separate claims or could be.

Take a crash course at a local insurance school.   It really, really helps to past the test.

Judge Julie · Answer

We don't do homework!

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Homeowners’ Insurance Policy: Claim 1: Mrs. White accidently lost her diamond ring on a ski hill when she fell. Loss: $4,500?

3 Answers