Jackie has a valued insurance policy on her antique square grand piano with a $35,000 limit. After thieves break into her house and steal her piano, she files a claim with her insurer. In an effort to support her claim, she provides her insurer with an article showing a similar piano that was recently sold at auction for $52,000. Ignoring any deductible, how much can Jackie expect to receive in indemnification for her claim?

Rationale

Jackie can expect to receive $35,000 in indemnification for her claim.

The insurance policy has a limit of $35,000, which sets the maximum amount Jackie can receive for her loss. Regardless of the higher sale price of a similar piano, the policy limit dictates the indemnification amount.

A ($17,000) YOUR ANSWER

This amount does not reflect any logical calculation based on the information provided. Since the policy limit is $35,000, indemnification cannot be lower than that unless there were specific deductibles or depreciation considered, which are not mentioned in the scenario.

B ($52,000) YOUR ANSWER

While the article shows a similar piano sold for $52,000, this figure does not affect Jackie's claim. Insurance policies typically compensate based on the established limit, not on market values. Therefore, Jackie cannot expect to receive this amount.

C ($0) YOUR ANSWER

This choice suggests that Jackie would receive no compensation, which is incorrect. Given that she has a valid insurance policy and has reported the theft, she is entitled to some level of indemnification up to the policy limit, which is $35,000.

D ($35,000) CORRECT

This is the maximum indemnification amount that Jackie can receive according to her insurance policy. The insurer is obligated to compensate her for her loss up to this limit, regardless of the auction price of a similar piano.

Conclusion

In summary, Jackie will receive $35,000 as indemnification for her stolen piano, aligning with the limit specified in her insurance policy. The market value of a similar piano does not influence the amount she can claim, as insurance contracts define compensation based on agreed limits rather than fluctuating market prices.

Jackie can expect to receive $35,000 in indemnification for her claim.

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