Case Study Risk and Insurance

by Lincoln Gadberry, June 2014

300 words

1 page

essay

1. April 12th,2012: a water pipe burst in your kitchen while the dinner was being cooked and it produced $67,000 to your home and $4,000 to some small appliances and kitchen items.

From the Information provided, under cover A and B, the compensation provided will amount to Coverage A: $220,000 and Coverage B: $22,000, thus compensation will amount to 242,000 for damages Caused.

2. May 21st, 2012: you son driving back from school while raining loses control of the vehicle and hits a traffic signal knocking it down. The city sues you to repair the damage and is awarded by the court a judgment for $84,525. Your son did not suffer any injuries but the vehicle required $8,250 in repairs.

The city would be compensated an amount of $ 50,000.00 which is the maximum the payable under the cover as regards property damage. This would carry with it a deductible of $ 500.00 as collision deductible that is, Liability: Property Damage $50,000.

3. July 16th, 2012: Hurricane Jimmy barreled through South Florida and caused wind damage to your home in the amount of $114,000 in repairs and $91,500 to your personal property inside.

Compensation for the damage will make in full(i.e. $ 114,000.00) since the limit on the house is $220,000.00 but only $ 22,000.00 in respect of content will be made, as it is the maximum payable. The rest of $70,000.00 will be settled by the insured.

4. August 20th, 2012: After several days of constant very heavy rains in the afternoon in South Florida, waters level went up and caused extensive flooding in your neighborhood. The rise of these floodwaters caused $21,500 of damage to your home, $28,000 to your personal property, and $6,750 to your automobile.

The damage by floodwaters will be compensated in full ($ 21,500.00) but the personal property will not be compensated as the available limits were already used up in the previous claim. The amount on of damage for the automobile will be settling but the one in full subject to the comprehensive deductible

5. February 14th, 2012: while cooking a Valentine’s Dinner for spouse and the kids were away at a friend’s house your kitchen caught on fire but this time it caused a major short circuit that caused the flames to grow quickly and the house totally burned down with all your belongings being destroyed. The fire also spread to two neighbors properties who then successfully sued you in court for their losses: the first had damage to their home for the amount of $123,000 and their belongs for $97,000; the second for damage of $167,000 for their home, $98,000 for their belongs, and $49,000 for their car that was completely destroyed in the garage. It was necessary to spend $61,000 to rent another place while your home was being rebuilt.

All property neighbors’ property would be compensated to a limit of $ 300,000.00. The other liabilities would have to be settled in other ways. For alternative accommodation, compensation would go up to the limit of …

Download will start in 20 seconds

Disclaimer

Note that all papers are meant for inspiration and reference purposes only! Do not copy papers in full or in part. Papers are provided by other students, who hold the copyright for the content of those papers. All papers were submitted to TurnItIn and will show up as plagiarism if you try to submit any part of them as your own work. Assignment Lab can not guarantee the quality of the user generated content such as sample papers above.