Question

92. Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will

(Choose from the following options)
1. Either pay or defend as it decides.
2. Pay the alleged damages.
3. Proceed according to your request.
4. Defend with the hopes of not paying damages.

Answer 1

The insurer will either pay or defend as it decides, according to the terms of the policy, when someone claims you've caused property damage.

Step-by-step explanation:

If another person alleges that you are responsible for damage to their property and you notify your homeowners insurer, the insurer will most likely either pay or defend as it decides. Insurers have the right, per the terms of the policy, to choose whether they will pay the alleged damages or provide legal defense against the claim. The method they choose depends on the specifics of the policy as well as the circumstances of the claim.

It's also worth noting that insurance policies typically involve cost-sharing mechanisms like deductibles, copayments, or coinsurance that require the policyholder to bear a portion of the costs associated with a covered event.