Arkansas Insurance Adjuster Practice Exam

Why was Janet's claim for the damages to her possessions denied?

1. Her policy covers wind but not flood damage

2. She failed to protect the property from further damages

3. Storm damage is not under a standard homeowner's policy

4. Homeowner’s insurance covers personal property at actual cash value, and her items were destroyed

The correct answer is: She failed to protect the property from further damages

Janet's claim for damages to her possessions was denied because she failed to protect the property from further damages. This means that when she initially experienced damage, she did not take the necessary steps to prevent additional damage from occurring. The other options are incorrect because A states that her policy did not cover the specific cause of the damage, C states that storm damage is not covered by a standard homeowner's policy, and D states that her insurance only covers the items at their current value rather than their replacement value. These options do not provide reasoning as to why her claim was denied, whereas B provides a valid reason that would result in a claim being rejected.