308 PART 3 Income and Asset Protection Jable 10-1 Summary of Homeowner's Insurance Policies per item HO-3 (Special Form) HO-1 (Basic Form) HO-2 (Broad Form) Perils 1-16 All perils except those Perils covered Peris 1-4, 6, 8-12 specifically excluded (descriptions are given below) for buildings. perils 1-16 on personal property (does not include glass breakage) Amount based on House and any other Amount based on Amount based on replacement cost attached buildings replacement cost. replacement cost minimum 520,000 minimum $15,000 minimum $15.000 10 percent of insurance on Detached buildings 10 percent of insurance on 10 percent of insurance on the home (minimum) Cappurtenant structures) the home (minimum) the home (minimum) Trees, shrubs, plants, etc. 5 percent of insurance on 5 percent of insurance on 5 percent of insurance on the home, $500 mandimum the home, 5500 maximum the home, $500 maximum per item per item Personal property 50-70 percent of insurance on 50-70 percent of insurance on 50-70 percent of insurance on the home (minimum) the home (minimum) the home (minimum) Loss of use and/or additional 10 percent of insurance on 20 percent of insurance on 20 percent of insurance on living expense the home the home the home Credit card, forgery $1,000 $1,000 $1,000 counterfeit money Liability coverage/limits Special limits of liability (for all policies) Comprehensive personal $300,000 For the following classes of personal property, special limits liability apply on a per-occurrence basis (eg.. per fire or theft); No-fault medical payments $1,000 money, colns, bank notes, precious metals (gold, silver, etc.) No-fault property damage $500 $200, computers, $5,000, securities, deeds, stocks, bonds, tickets, stamps, $1,000; watercraft and trailers, including furnishings, equipment, and outboard motors, $1,000; trailers other than for watercraft, $1,000; jewelry, watches, furs, $1,000; silverware, goldware, etc., $2,500, guns, $2,000. List of perils covered 1. Theft 10. Riot or Civil Commotion 2. Fire or Lightning 11. Damage caused by Aircraft 3. Explosion 12. Vandalism or Malicious Mischief 4. Smoke 13. Damage due to weight of Ice, Snow, or Sleet 5. Freezing 14. Sudden & Accidental Tearing Apart, Cracking, Burning, or 6. Vehicles Bulging 7. Falling Objects 15. Sudden & Accidental Damage from Artificially Generated 8. Volcanic Eruption Electric Current 9. Windstorm or Hail 16. Accidental Discharge or Overflow of Water from Plumbing, Air conditioning etc. 308 PART 3 Income and Asset Protection Jable 10-1 Summary of Homeowner's Insurance Policies per item HO-3 (Special Form) HO-1 (Basic Form) HO-2 (Broad Form) Perils 1-16 All perils except those Perils covered Peris 1-4, 6, 8-12 specifically excluded (descriptions are given below) for buildings. perils 1-16 on personal property (does not include glass breakage) Amount based on House and any other Amount based on Amount based on replacement cost attached buildings replacement cost. replacement cost minimum 520,000 minimum $15,000 minimum $15.000 10 percent of insurance on Detached buildings 10 percent of insurance on 10 percent of insurance on the home (minimum) Cappurtenant structures) the home (minimum) the home (minimum) Trees, shrubs, plants, etc. 5 percent of insurance on 5 percent of insurance on 5 percent of insurance on the home, $500 mandimum the home, 5500 maximum the home, $500 maximum per item per item Personal property 50-70 percent of insurance on 50-70 percent of insurance on 50-70 percent of insurance on the home (minimum) the home (minimum) the home (minimum) Loss of use and/or additional 10 percent of insurance on 20 percent of insurance on 20 percent of insurance on living expense the home the home the home Credit card, forgery $1,000 $1,000 $1,000 counterfeit money Liability coverage/limits Special limits of liability (for all policies) Comprehensive personal $300,000 For the following classes of personal property, special limits liability apply on a per-occurrence basis (eg.. per fire or theft); No-fault medical payments $1,000 money, colns, bank notes, precious metals (gold, silver, etc.) No-fault property damage $500 $200, computers, $5,000, securities, deeds, stocks, bonds, tickets, stamps, $1,000; watercraft and trailers, including furnishings, equipment, and outboard motors, $1,000; trailers other than for watercraft, $1,000; jewelry, watches, furs, $1,000; silverware, goldware, etc., $2,500, guns, $2,000. List of perils covered 1. Theft 10. Riot or Civil Commotion 2. Fire or Lightning 11. Damage caused by Aircraft 3. Explosion 12. Vandalism or Malicious Mischief 4. Smoke 13. Damage due to weight of Ice, Snow, or Sleet 5. Freezing 14. Sudden & Accidental Tearing Apart, Cracking, Burning, or 6. Vehicles Bulging 7. Falling Objects 15. Sudden & Accidental Damage from Artificially Generated 8. Volcanic Eruption Electric Current 9. Windstorm or Hail 16. Accidental Discharge or Overflow of Water from Plumbing, Air conditioning etc. Question 2 1.36 pts How Much of Fire Loss Will Be Covered? Toula and lan Miller of Gainesville, Florida, recently suffered a fire at their home. The fire, which began in a crawl space at the back of the house, caused $50,000 of damage to the dwelling itself. Their garage, valued at $20,000, was totally destroyed but did not contain a car at the time of the fire. Replacement of the Millers' personal property damaged in the home and garage amounted to $23,000. In addition, $350 in cash and a stamp collection valued at $3,215 were destroyed. While the damage was being repaired, the Millers stayed in a motel for one week and spent $1,350 on food and lodging. The house had a value of $195,000 and was insured for $150,000 under an HO-3 policy with a $250 deductible. Use Table 10-1 (pgs. 304-311; section 10.3b) to answer the following questions. (Hint: You must first determine whether the Millers have adequate dwelling replacement coverage and, if not, what percentage of the necessary 80 percent coverage they do have. The resulting answer will determine the percentage of the loss to the dwelling covered, and consequently, the amount to be reimbursed by the insurance company.) (b) How much will the Millers have to pay out of pocket for the losses to the dwelling? $12,220 $25,076 $3,276 $2,164