1
QuizMultiple Choice

Insurance

Question 1 • Personal Finance - EL3403

In what circumstance would a property insurance claim be rejected?

Answer
A
The insurance company finds that a homeowner intentionally caused damage.
B
The property damage is caused by a natural disaster, such as a flood.
C
The insurance company changes its policies after property damage occurs.
D
The property damage is extensive and requires lengthy and expensive repairs.

Explanation

Property insurance generally does not cover damage a homeowner intentionally causes. The insurer can reject a claim if it finds the homeowner deliberately caused the damage. Flood damage may be excluded under some policies, but the question does not specify the policy; extensive repairs or later policy changes alone do not make a claim invalid.

AI-written and checked against the verified answer.

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