Insurance Case Analysis

A family purchases a home insurance policy with a coverage limit of $500,000. A fire breaks out in the house, causing damage worth $200,000. The family also has a health insurance policy with a deductible of $500 and a co-payment of 20%.

Task:

·       Identify the parties involved: Who is the insurer, the insured, and the beneficiary in this scenario?

·       Determine the insured risk: What is the specific risk covered by the insurance policy in this case?

·       Calculate the potential indemnity amount: How much compensation can the family expect to receive from the insurance company for the house fire?

·       Analyze the factors affecting the insurance premium : What factors might have influenced the premium for the home insurance policy?

·       Identify potential risks that might not be covered by the insurance policy: Are there any circumstances related to the fire that might not be covered by the policy?