4. Harold purchased an unendorsed Homeowners 3 policy with $200,000 in coverage on his dwelling. Harold renewed the coverage each year, but never changed the dwelling coverage amount, even though the replacement cost of his home increased. A fire damaged his home when the replacement cost of the home was $375,000. The actual cash value (ACV) of the loss (replacement cost less depreciation) was $8,500. The replacement cost of the damaged property was $12,000. Assuming a $250 deductible, how will this loss be settled? 5. Valerie, a medical doctor, purchased a Homeowners 3 policy. She increased the Coverage E- Liability limit to $250,000 per occurrence. She also purchased a personal umbrella policy with a $1 M (million) limit and a $5,000 self-insured retention. a. Valerie has a deck off the back of her home. A guest was visiting Valerie and leaned against the deck railing. The railing gave way, and the guest fell eight feet to the ground below the deck. He suffered a cervical spine injury. He sued Valerie and was awarded a $600,000 judgment. How will this claim be settled? Clearly indicate how much each policy would pay, if anything. b. One of Valerie's patients claims that she misdiagnosed her condition. As a result, cancer treatment was delayed and the cancer spread. She sued Valerie, and she was awarded $750,000. How will this claim be settled? Clearly indicate how much each policy would pay, if anything