21. Jim had a homeowners policy with a dwelling limit of $1 million and Coverage B, C, and D limits of $100,000, $500,000, and $300,000, respectively. Attached to his policy was an Additional Limits of Liability for Coverages A, B, C, and D (HO 04 11) endorsement. At the time of the loss, the detached garage's actual cash value was $75,000. A wildfire destroyed Jim's garage, but his home was spared. When Jim learned that a contractor was going to charge $200,000 to replace the garage, he decided not to replace it. Ignoring deductibles, and assuming Jim has met all relevant conditions, what is the insurer obligated to pay Jim? a. $75,000 ob. $100,000 OC. $150,000 od. $200,000 22. Alfred had a homeowners policy with a dwelling limit of $1 million and Coverage B, C, and D limits of $100,000, $500,000, and $300,000, respectively. Attached to his policy was an Additional Limits of Liability for Coverages A, B, C, and D (HO 04 11) endorsement. At the time of the loss, the detached garage's actual cash value was $75,000. A wildfire destroyed Alfred's garage, but his home was spared. Because demand surge drove up contractors' charges, Alfred ultimately spent $200,000 to replace the garage with a new one just like it. Ignoring deductibles, and assuming Alfred has met all relevant conditions, what is the insurer obligated to pay Alfred? a. $75,000 ob. $100,000 OC. $150,000 od. $200,000 23. The fire that destroyed Susie's sofa was apparently caused by careless smoking. Fortunately, she and a friend managed to carry the smoldering sofa out of the house and onto her lawn before the fire could spread to other items. At the time of the loss, it would cost $2,000 to replace the sofa, but its current actual cash value was only $1,000. Susie's standard HO 3 homeowners policy has no relevant endorsements. Ignoring applicable deductibles, how much is her insurer obligated to pay for the sofa? o a. Nothing; a sofa burning on the lawn is not covered as contents. ob. $1,000 minus depreciation oc. $1,000 d. $2,000