Mathematics, 07.12.2020 23:40 shondra20

Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood. Ben’s house is about 30 years old. It is made of wood framing and stucco texture. It has all of it’s original plumbing and electrical work. The brick wall at the back of his back yard separates his yard from a drainage wash. Which of the following is not a reasonable argument for the insurance company to use to justify Ben’s higher homeowners insurance premium? a. The age and outdated structural design of the house implies that remodeling is likely. This warrants a higher premium. b. Knowing that old plumbing has a tendency to break, there is a real possibility of internal flooding. This warrants a higher premium. c. Since Ben is right next to a drainage wash, there is a certain danger of flood damage should the wash overflow. This warrants a higher premium. d. Considering that the house is made of flammable materials and has the original wiring, there is a certain danger of fire. This warrants a higher premium.

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Ben just purchased a house in an older neighborhood. After talking to several neighbors across the s...