Property Ownership

A Kentucky property owner's house is destroyed by fire. Their homeowner's insurance will pay to rebuild. This insurance payment is an example of the legal concept of:

ASubrogation
BIndemnification✓ Correct
CContribution
DSalvage

Explanation

Indemnification is the principle that insurance restores the insured to their pre-loss financial position (makes them whole) without allowing them to profit from the loss. The insurance payment indemnifies the owner for the loss of the structure.

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