Why might Keith have had his insurance claim settle for more than the value of the insured property?

Having an agreed value policy is a key factor in why Keith's insurance claim might have settled for more than the value of the insured property. In an agreed value policy, the insurer and the insured establish a predetermined value of the property at the inception of the policy. This value represents what both parties agree upon as the worth of the property, irrespective of its actual market value at the time of a claim. Therefore, if the market value of the property decreases for any reason, the insured can still receive the agreed value in a claim settlement.

This arrangement is particularly beneficial in situations where the properties insured may fluctuate in market value over time, as it provides certainty and protection to the insured against potential losses due to devaluation.

In contrast, considering the other options, insurer error in valuation or drastic market fluctuations could lead to discrepancies in settlements but do not inherently guarantee a higher payout than the actual value established in policy terms. Multiple incidents resulting in aggregated claims may also cover several occurrences but would not directly result in a higher settlement relative to the agreed value of the individual insured properties.