Question

Benjamin has his home insured with Westfork Mutual under an policy for $100,000. He is the named insured on the policy. There are three other residents of the home: Maria, Benjamin's mother; Daniel, his nephew; and Cian, a family friend. An accidental fire causes damage to the home and to personal property of all four occupants. Benjamin reports the loss to Westfork and Fatima, a claim representative, is assigned the claim. What will most likely be Fatima's principal concern when analyzing coverage for the loss?

1) Determining the cause of the fire
2) Assessing the extent of the damage
3) Verifying Benjamin's policy coverage
4) Investigating the personal property damage

Answer 1

Benjamin has his home insured with Westfork Mutual under an policy for $100,000, Fatima's principal concern when analyzing coverage for the loss will most likely be 3) Verifying Benjamin's policy coverage

Step-by-step explanation:

When analyzing coverage for the loss in this situation, Fatima's principal concern would most likely be verifying Benjamin's policy coverage. As the claim representative, Fatima needs to ensure that Benjamin's policy covers the damages caused by the accidental fire. This involves reviewing the terms and conditions of the policy to determine if it provides coverage for the specific type of damage and the extent of the damage.

While determining the cause of the fire and assessing the extent of the damage are important factors to consider in the claims process, Fatima's primary concern would be to verify the policy coverage first. This is because if Benjamin's policy does not cover the damages, it may affect the eligibility of the claim.

Investigating the personal property damage would be a secondary concern for Fatima once she has confirmed the policy coverage. At that point, she would assess the extent of the damages to both the home and the personal belongings of all four occupants, including Maria, Daniel, and Cian. Therefore the correct answer is 3) Verifying Benjamin's policy coverage