4. Hubert purchased an unendorsed ISO Homeowners 3 policy. Her Coverage A limit is $200,000. How will the following claims be settled?

A spark from the fireplace started a fire in Huberts living room. The fire destroyed Huberts living room set a couch and two matching chairs. The living room set cost $5,000 when it was purchased, and it was worth $3,000 at the time of the loss because of depreciation. A comparable replacement living room set will cost $5,400. How much will the insurer pay to settle this claim? Assume a $500 deductible applies to this loss.

The roof of Huberts home was damaged by strong wind. The replacement cost of the damage less depreciation was $6,000. The replacement cost of the damage was $8,000. Huberts home was valued at $300,000 at the time the roof damage occurred. Assume a $500 deductible applies to this loss. How much will the insurer pay to settle this claim?