Below is a sample HO-5 Homeowner’s Insurance Policy
used to illustrate how an electrical fire claim might be view and settled by the insurance company.
- What Happened?: Electrical fire
- Caused $40,000 damage to dwelling
- Destroyed $5,000 of personal property
- What Was Covered?:
- Dwelling loss covered $40,000 minus deductible of $1,000 = claim paid of $39,000
- Personal property covered $5,000 minus deductible of $1,000 = claim paid of $4,000
- Explanation: In both cases the losses were within the policy limits and as such, claims were paid minus the policy deductible amounts.