2. Karen 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. The roof of Karen'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. Karen's home was valued at $400,000 at the time the roof was damaged. Assume a $500 deductible applies to this loss. How much will the insurer pay Karen to settle this claim? (2 points) b. A spark from the fireplace started a fire in Karen's living room. The fire destroyed Karen's living room set - a couch and two chairs. The living room set cost $3,000 when it was purchased, and it was worth $2,000 at the time of the loss because of depreciation. A comparable replacement living room set will cost $3,600. How much will the insurer pay to settle this claim? Assume a $500 deductible applies to this loss. (2 points) 2. Karen 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. The roof of Karen'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. Karen's home was valued at $400,000 at the time the roof was damaged. Assume a $500 deductible applies to this loss. How much will the insurer pay Karen to settle this claim? (2 points) b. A spark from the fireplace started a fire in Karen's living room. The fire destroyed Karen's living room set - a couch and two chairs. The living room set cost $3,000 when it was purchased, and it was worth $2,000 at the time of the loss because of depreciation. A comparable replacement living room set will cost $3,600. How much will the insurer pay to settle this claim? Assume a $500 deductible applies to this loss. (2 points)