Question

1. Establish How much Nchimunya, an insured page.
with Homeowner insurance will receive in the event of a claim
given the following; -Value of Home
K130,000 -Coverage Taken
Out K120,000 -A fat Deductible of K2,000 for sections
B,C,D & E applies on his contract A) In the event of
a total loss B) In the event that a tree falls on his car that is
parked in his garage causing damage of K10,000 to his car
and K3,000 to his garage. C) In the event that his tools shed catches fre
due to an electrical shor circuit given that the shed requires K5,000 to repair
and he had lawn mowers and other garden implements worh a
combined total of K3,000 D) In the event that a tree in Nchimunya’s yard
falls on his neighbours house causing damage worh K120,000 and
Injury expenses worh K1,200. E) In the event that a stereo is stolen from
Nchimunya’s daughter at college worh K1,200. (Assuming dependency, age, and
residency of the daughter) F) In the event that Nchimunya accidentally drops
his television set worh K4,000 while moving it from one
room to another. G) Nchumunya uses her living room as a tax and

Answer 1

1. the event of a total loss :
   
   Ans: Total amount of coverage taken i.e. K120, 000

1. In the event that a tree falls on his car that is parked in his garage causing damage of K10,000 to his car and K3,000 to his garage :
   
   Ans: In this case there will be below 2 scenario:

1. if it’s a comprehensive insurance covering the car as a commodity then the totals claim would be as follows :
                   (Value of Car + damage to Garage)-Deductibles
                   (10,000+3,000)-2,000 = 11000

1. if it’s an insurance covering only the household products then the totals claim would be as follows :
                   Damage to Garage-Deductibles
                   3,000-2,000 = 1,000
   
   

1. In the event that his tools shed catches fire due to an electrical short circuit given that the shed requires K5,000 to repair and he had lawn mowers and other garden equipments worth a combined total of K3,00 :

                Ans: in such a case total claim would be as follows:

                (Value of repair + equipment value) – Deductibles

                (5,000+3,000) – 2,000 = 6,000

1. In the event that a tree in Nchimunya’s yard falls on his neighbor’s house causing damage worth K120, 000 and injury expenses worth K 1,200.        

                Ans: In such a case as this is a 3^rd party claim hence would not be covered under the homeowner insurance.

1. In the event that a stereo is stolen from Nchimunya’s daughter at college worth K1,200:

                Ans: as this event occurs off the premise of home hence would not be eligible for claim.

1. In the event that Nchimunya accidentally drops his television set worth K4,000 while moving it from one room to another:

                Ans: as this event can be classified as personal negligence hence would depends on comprehensive coverage agreement. As it was an accident hence the coverage would be K4,000 for such a case.