Question

Jamie is hauling a load of hay from the market to her farm when a strong gust of wind tops over the trailer on the highway and scatters her hay everywhere. If Jamie has scheduled farm personal property coverage, why won't the insurer pay for her loss?

A. Scheduled farm personal property coverage always excludes hay and grain
B. The hay was being transported
C. The hay was not on the farm premises
D. Wind is not a covered peril

Answer 1

The insurer won't pay for Jamie's loss because wind is not covered under her scheduled farm personal property coverage.

Step-by-step explanation:

The reason the insurer won't pay for Jamie's loss is because of option D. Wind is not a covered peril. In insurance terms, a peril is an event that causes damage or loss. Different insurance policies cover different perils, and in this case, wind is not one of the perils covered under Jamie's scheduled farm personal property coverage. Therefore, the insurer is not obligated to pay for the loss caused by the gust of wind that toppled over the trailer and scattered the hay.