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2. Donna purchased an unendorsed ISO Homeowners 3 policy. Her Coverage A limit (insurance on the Dwelling) is $300,000. How will the following claims be

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2. Donna purchased an unendorsed ISO Homeowners 3 policy. Her "Coverage A" limit (insurance on the Dwelling) is $300,000. How will the following claims be settled? a. A spark from the fireplace started a fire in Donna's living room. The fire destroyed Donna's living room set - couch and two matching chairs. The living room set cost $4,500 when it was purchased, and it was worth $3,000 at the time of the loss because of depreciation. A comparable replacement living room set will cost $4,800. How much will the insurer pay to settle this claim? Assume a $500 deductible applies to this loss. (2 pts) b. The roof of Donna's home was damaged by strong wind. The replacement cost of the damage less depreciation was $9,000. The replacement cost of the damage was $12,000. Donna's home was valued at $400,000 at the time the roof damage occurred. Assume a $500 deductible applies to this loss. How much will the insurer pay Donna to settle this claim? (2 pts) 2. Donna purchased an unendorsed ISO Homeowners 3 policy. Her "Coverage A" limit (insurance on the Dwelling) is $300,000. How will the following claims be settled? a. A spark from the fireplace started a fire in Donna's living room. The fire destroyed Donna's living room set - couch and two matching chairs. The living room set cost $4,500 when it was purchased, and it was worth $3,000 at the time of the loss because of depreciation. A comparable replacement living room set will cost $4,800. How much will the insurer pay to settle this claim? Assume a $500 deductible applies to this loss. (2 pts) b. The roof of Donna's home was damaged by strong wind. The replacement cost of the damage less depreciation was $9,000. The replacement cost of the damage was $12,000. Donna's home was valued at $400,000 at the time the roof damage occurred. Assume a $500 deductible applies to this loss. How much will the insurer pay Donna to settle this claim? (2 pts)

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