37.7k views
2 votes
An applicant for property insurance owns a building in which combustive materials are stored in the furnace room. From an underwriting standpoint, this risk would likely be considered a:

A) Low-risk property
B) Standard-risk property
C) High-risk property
D) Moderate-risk property

User Rjcarl
by
7.6k points

1 Answer

5 votes

Final answer:

A building that stores combustive materials in the furnace room would be considered a C) high-risk property for property insurance.

Step-by-step explanation:

From an underwriting standpoint, a building that stores combustive materials in the furnace room would likely be considered a high-risk property for property insurance. Combustive materials pose a significant fire hazard, which increases the likelihood of a loss for the insurer. In such cases, insurance companies may charge higher premiums or impose stricter conditions to mitigate the risk.

User Shinra Tensei
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories