Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."


 

Examples

 

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.

Example #1

  • 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.