2. Donna purchased an unendorsed ISO Homeowners 3 policy. Her Coverage A limit (insurance on the Dwelling) is $200,000. How will the following claims be settled?

b. The roof of Donnas home was damaged by strong wind. The replacement cost of the damage less depreciation was $8,000. The replacement cost of the damage was $12,000. Donnas home was valued at $300,000 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)