3. james has his home and personal property insured under a homeowners 3 (special form) policy. the dwelling is insured for $120,000. the replacement cost of the home is $200,000. indicate the extent to which each of the following losses would be covered under james's homeowner's 3 policy. (ignore any deductible).

1. Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $10,000, and it will cost $16,000 to replace the damaged portion.

2. A living room window is broken in a hailstorm. The drapes are water stained and must be replaced. The actual cash value of the damaged drape is $400. Replacement cost is $600.

3. The water heater explodes and damages some household contents. The actual cash value of the damaged property is$2000, and the cost of replacing the property is $3200.