Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Martin and Carrie Jones insured their home and personal property under an unendorsed Homeowners 3 policy. The home has a current replacement cost of
2. Martin and Carrie Jones insured their home and personal property under an unendorsed Homeowners 3 policy. The home has a current replacement cost of $300,000. The policy contains the following limits: Coverage A: $240,000 Coverage B: $24,000 Coverage C: $120,000 Coverage D: $72,000 The home was badly damaged in a fire, and the Jones family was forced to live in a motel for 60 days while their home was being rebuilt. Undamaged personal property was stored in a rental unit during the period of reconstruction. What dollar amount, if any, is payable under their Homeowners 3 policy for the following (ignore any deductible)? a. Three bedrooms were totally destroyed in the fire. The replacement cost of restoring the bedrooms is $80,000. The actual cash value of the loss is $50,000. b. Monthly mortgage payment of $1,500 on their home. c. Rental of motel room at $100 daily for 60 days. d. Meals eaten in the motel restaurant for 60 days at an average cost of S60 daily (food costs at home average $20 daily). e. Rent for storing undamaged furniture in a rental unit while the home is being rebuilt, $200 monthly
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started