3. Types of homeowner's insurance policies Insuring a Standard Home Maria is the owner of a 15-year-old home, and is looking to buy a homeowner's insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so on, she also wants insurance for damage caused by malfunctioning of internal structures like air conditioning or plumbing. Based on the peril coverage it offers, she purchases an insurance policy. Her home has a replacement value of $300,000, therefore she insures her home for the minimum legal requirement of 5 Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: $ $ Damage to personal property: Detached buildings: Loss of Use (Additional living expenses): Comprehensive personal liability: $ $ Insuring While Away at College Maria's son, Kevin, is a college student living in a campus dormitory. He drives a car that she parks on the street and wants to make sure the full value is insured. Which of the following statements regarding Kevin's insurance needs are true? Check all that apply. Kevin should purchase an H0-4 broad form insurance policy because he is not covered under his parents' policy. His property is covered up to 10% of the coverage on the home He should tell the insurance agency that he parks in a garage to save money on premiums Insuring an older Home Maria's parents live in the home a Brownstone style home built in 1875. Although the house is still standing, it has fallen into disrepair, and the cost of rebuilding it with the original style and quality would be extremely high. If their home were destroyed, Maria's parents would choose to rebuild a much more modest structure rather than try to restore it to it's original state, therefore they purchase a form policy to provide protection. 3. Types of homeowner's insurance policies Insuring a Standard Home Maria is the owner of a 15-year-old home, and is looking to buy a homeowner's insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so on, she also wants insurance for damage caused by malfunctioning of internal structures like air conditioning or plumbing. Based on the peril coverage it offers, she purchases an insurance policy. Her home has a replacement value of $300,000, therefore she insures her home for the minimum legal requirement of 5 Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: $ $ Damage to personal property: Detached buildings: Loss of Use (Additional living expenses): Comprehensive personal liability: $ $ Insuring While Away at College Maria's son, Kevin, is a college student living in a campus dormitory. He drives a car that she parks on the street and wants to make sure the full value is insured. Which of the following statements regarding Kevin's insurance needs are true? Check all that apply. Kevin should purchase an H0-4 broad form insurance policy because he is not covered under his parents' policy. His property is covered up to 10% of the coverage on the home He should tell the insurance agency that he parks in a garage to save money on premiums Insuring an older Home Maria's parents live in the home a Brownstone style home built in 1875. Although the house is still standing, it has fallen into disrepair, and the cost of rebuilding it with the original style and quality would be extremely high. If their home were destroyed, Maria's parents would choose to rebuild a much more modest structure rather than try to restore it to it's original state, therefore they purchase a form policy to provide protection
