Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is considered an additional coverage some insurers may provide?

1. Cost of making repairs

2. Cost of premium discounts

3. Cost of customer outreach

4. Cost of improved security measures

The correct answer is: Cost of making repairs

The choice regarding the cost of making repairs is considered an additional coverage that some insurers may provide. This type of coverage typically helps policyholders manage unexpected expenses that arise when damages occur and makes it possible for insured individuals to expedite the restoration of their property. Repair costs can reflect the need to address various issues, from minor fixes to significant restoration efforts following a covered loss, thereby aiding in the smooth return to normalcy. In contrast, the costs of premium discounts, customer outreach, and improved security measures do not neatly fit into the category of additional coverage. Premium discounts relate to reductions in the cost of the insurance itself, customer outreach often pertains more to engagement strategies than to direct coverage provisions, and improved security measures are typically aspects of risk management rather than direct coverage offered by insurers. Thus, repair costs directly impact claims handling and recovery post-loss, making them a relevant option for additional coverage.