Сase Study
We are going to indicate how much the insurance company is required to pay for the claims and under which coverage they are paid. According to the task’s conditions, the first event was in April 12th, 2012, when a water pipe burst in your kitchen and it produced $45,000 to your home and $6,000 to some small appliances and kitchen items. As it is known, the coverage A insures “the value of the dwelling itself, though it does not insure the land the dwelling is on” (Understanding Homeowners Insurance Policies). That is why the insurance company should pay $45000 under the coverage A and $6000 under the coverage C - Personal Property. As it is known, the coverage C is“insurance for personal possessions that are located on the property “(Understanding Homeowners Insurance Policies).
In the second case, according to the task’s conditions, your son, driving back from school while raining, loses control of the vehicle and hits a traffic signal, knocking it down. Therefore, the insurance company should pay $92,525 of repairing damage. However, it was a collision and you should pay $500, since you have the Collision Deductible: $500, as well as the insured company is required to pay the rest $7,750.
As it is known from the task’s conditions, in July 16th, 2012 Hurricane Jimmi barreled through South Florida and caused wind damage to your home in the amount of $68,000 in repairs and $87,000 to your personal property inside. Typically, a hurricane deductible is 2% of the coverage A. That is why, you should pay 2% of $195,000 and the insurance company is required to pay the rest. Therefore, you should pay $3,900 and the insurance company should pay $151,100.
The next case was in August 20th, 2012, when the level of water went up and caused extensive flooding in your neighborhood. The rise of these flood waters caused $19,500 of damage to your home, $16,000 to your personal property, and $3,750 to your automobile. Therefore, the insurance company should pay $19,500 under the Coverage A, $16,000 under the Coverage C, and $3,750, since your automobile is under personal injury protection. Also, you should pay $1,000, since you have the AOP Deductible of $1,000. As it is known, AOP “deductible is for non-hurricane related claims like fire, theft, vandalism, accidental water discharge and acts of The Lord God like lightning, tornados, hail to cite a couple” (What are the Significant Differences Between Your AOP and Hurricane Deductible?).
The next case was in February 14th, 2012, while cooking valentine’s dinner, your kitchen started on fire, which was caused by a major short circuit. Consequently, your home and all its belongings were burned. Also, the fire spread to neighbor’s properties. Then, they successfully sued you in court for their losses. Therefore, the summarized pay under the house owner policy is $351,000. However, the coverage E that insures personal liability of $300,000. Therefore, the insurance company should pay $300,000 under the coverage E and $39,000 under the coverage D. Although, your cost of …