Question

Kylie lives in a condominium. A storm causes the brick façade of the building to collapse. If Kylie has a Homeowners policy, which of the following would represent the amount of her policy benefit?

Option 1: The current market value of her personal belongings.
Option 2: The cost to repair the brick façade of the building.
Option 3: The original purchase price of the condominium.
Option 4: The medical expenses incurred due to the storm.

Answer 1

Kylie's Homeowners policy would most likely cover the cost to repair the brick façade of the building, as Homeowners policies generally cover structural repairs rather than personal belongings, purchase prices, or medical expenses, unless specifically stated.

Step-by-step explanation:

When evaluating Homeowners policy benefits, it is important to understand the types of coverage provided by the policy. A Homeowners policy often covers the dwelling, which includes the structure of the condo, as well as personal belongings within the condo. In the context of Kylie's situation, where the storm has caused the brick façade of her building to collapse, the relevant coverage would likely be the cost to repair structural damages to her dwelling.

Therefore, the most appropriate policy benefit for Kylie, in this case, would be Option 2: The cost to repair the brick façade of the building. This is because a typical Homeowners policy is designed to cover losses related to the insured structure. However, this only applies if Kylie's policy includes the condominium's exterior in its coverage, which may differ depending on whether she has a single entity (walls-in) or all-inclusive condo policy. Medical expenses due to the storm could be covered if the policy includes personal liability and medical payments coverage, and if the injuries are related to Kylie's home or herself as the policyholder.