North Carolina Adjuster Practice Exam

Why was Jared's claim for hail damage to his sailboat denied?

1. The boat was not insured

2. The damage was not reported in time

3. The boat was not inside a building during the storm

4. The sailboat was over the weight limit

The correct answer is: The boat was not inside a building during the storm

The reason Jared's claim for hail damage to his sailboat was denied is that the boat was not inside a building during the storm. Many insurance policies have specific coverage terms that can include stipulations about the location of the insured property during certain events. In many cases, physical protection from severe weather conditions, such as hailstorms, is a requirement for coverage to apply. If the policy clearly states that the sailboat needed to be stored in a sheltered area to qualify for coverage during hail events, then being outside during the storm would render the damage outside of the policy's covered scenarios. Other possible factors that can influence claims, such as whether the boat was insured, whether the damage was reported in a timely manner, or compliance with weight limits, may not directly relate to the specific cause of denial in this particular situation. The focus here is on the location and protection of the sailboat during the hailstorm, which is crucial in determining eligibility for the claim.