Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner of a nearby fuel station. Three months later, the motel catches fire from a fuel leak in the garage and Roger suffers severe damages. If Roger owns a standard fire insurance policy for years, the insurer can use the ________ to refuse covering the damage caused by the fire.

Question

Quizplus · Accepted Answer

The exclusions from coverage clause in a fire insurance policy refers to the list of specific risks or perils that are not covered by the policy. In this case, since the fire was caused by a fuel leak in the garage that was sublet to an owner of a fuel station, it is possible that the insurer may have listed fuel-related risks as an exclusion from coverage. The deductible clause refers to the amount that the policyholder must pay out of their own pocket before the insurer will start paying, the incontestability clause refers to a period of time during which the insurer cannot challenge the validity of the policy, and the copay clause refers to a sharing of the costs between the policyholder and insurer.

Roger Ray Runs a Motel in a Rented Property and Sublets