Which of the following is an example of supplementary payments related to property?

The correct answer highlights a specific component of supplementary payments that is designed to cover costs not directly tied to the primary coverage provided by an insurance policy. In this case, a fire department service charge exemplifies a supplementary payment because it pertains to additional expenses incurred when a covered loss occurs, particularly in scenarios involving fire incidents.

Insurance policies often include supplementary payments to ensure that the insured is not financially burdened by costs incurred as a result of a claim. Such costs can be above and beyond the typical claim payment and are intended to facilitate a smoother claims process. The inclusion of coverage for fire department service charges acknowledges the practical reality that, in the event of a fire, the insured may be held responsible for the costs associated with the fire department's response.

Other choices relate to different aspects of insurance payouts. For example, payment of claims constitutes the core compensation for damages sustained by the insured, while legal fees for defense involve expenses associated with defending against claims, which is typically a separate consideration. Interest on judgments reflects additional costs that may arise when a judgment has been rendered in favor of the insured. None of these options represent supplementary payments in the context of extra costs due to property incidents, as they either form part of primary coverage or involve other liability considerations rather