What is one potential outcome of filing a claim with homeowner's insurance?

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Study for the EverFi Financial Literacy Test. Test your knowledge with engaging flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Filing a claim with homeowner's insurance can lead to the homeowner receiving financial assistance for repairs. When a claim is made, the insurer assesses the damage or loss that has occurred and, if the claim is approved, provides funds to help cover the costs of repairs or replacement of damaged property. This aspect of homeowner's insurance is particularly important, as it helps protect the homeowner from significant financial burdens resulting from unexpected events such as natural disasters, theft, or accidents.

The ability to receive financial support is a fundamental purpose of insurance, as it offers peace of mind knowing that there is a safety net in place to assist with repairs and recovery from covered incidents.

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