03 Application Timel Andrea (Alex wife, home hos a replacement value with a deductible. A couple of years ago she insured her home and the coverage ever increased even though the policy required coverage of 60% of the replacement cost. Last month, she had a kitchen fire, which caused damages. How much will she have to pay out of pocket? Step 1: Calculate the Amount Loss minus the Deductible Step 2: Calculate the Replacement Cost Step 3: Calculate the % Amount Covered Step 4: Calculate the Total Amount Reimbursed Step 5: What is the % she will pay(1 minus the amount covered) Step 6: What is the Total Amount she will pay? What observation do you see with this current coverage situation? What could be different? 58000000 $1600000 5050 $72.000.00 $0.10 58500.00 03 Application Timel Andrea (Alex wife, home hos a replacement value with a deductible. A couple of years ago she insured her home and the coverage ever increased even though the policy required coverage of 60% of the replacement cost. Last month, she had a kitchen fire, which caused damages. How much will she have to pay out of pocket? Step 1: Calculate the Amount Loss minus the Deductible Step 2: Calculate the Replacement Cost Step 3: Calculate the % Amount Covered Step 4: Calculate the Total Amount Reimbursed Step 5: What is the % she will pay(1 minus the amount covered) Step 6: What is the Total Amount she will pay? What observation do you see with this current coverage situation? What could be different? 58000000 $1600000 5050 $72.000.00 $0.10 58500.00