Question

maggie and home insurance
maggie called her insurance agent after estimating the
damages. she had already spent $2,000 on pumping out
the water and repairing the hot water heater, which had
corroded in places.
the agent was polite. he had been getting hundreds of
similar calls. . . .
\maam, im sorry, but according to our records, you do
not have flood insurance protections in your policy.\
what is most likely to happen to maggie? check all
that apply.
□ her insurance company will eventually pay the
damages.
□ she may have to pay thousands of dollars to repair
and replace her possessions.
□ she will convince the insurance company that she
has flood coverage.
□ she may lose her home.
□ she may go into debt.

Explanation:

• The insurance agent said Maggie doesn't have flood insurance. So her insurance company won't pay flood - related damages (so the first option is wrong). Since she has to cover the costs herself, she may have to pay thousands for repairs (second option), may lose her home if she can't afford repairs (fourth option), and may go into debt (fifth option). She can't convince the company she has flood coverage as records show she doesn't (third option wrong).

Answer:

B. She may have to pay thousands of dollars to repair and replace her possessions.
D. She may lose her home.
E. She may go into debt.