Alicia Simmons purchased a standard fire insurance policy with an endorsement for extended coverage.She incurred damage due to nuclear radiation and filed a claim with her insurance company.Why would her insurance company refuse to cover her claim?

Question

Quizplus · Accepted Answer

Losses caused by nuclear radiation usually are excluded from extended-coverage endorsements. This is due to the high risk associated with nuclear radiation incidents and the potential for catastrophic losses, which insurance companies are not equipped to handle.

Alicia Simmons Purchased a Standard Fire Insurance Policy with an Endorsement