Adonis and Eustacia Andino are planning to buy a $200,000 home near Bethel Corners, New York. The home is in "snow country," about a mile from Lake Ontario and is situated on the Salmon River, which overflows its banks about every two years. They estimate that their personal property is worth $150,000, but they really aren't sure. This includes nearly $25,000 of computer and other electronic equipment, a $20,000 coin collection inherited from Adonis's father, and $40,000 in irreplaceable artwork. The Andinos' net worth, including their current $250,000 home, is about $750,000. The Andinos has asked their insurance agent to find them the best coverage, taking advantage of all possible cost-saving measures. They do not want a lot of out-of-pocket expenses if their home or personal property is damaged or lost, and they want their insurance to keep pace with increasing costs. a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? b. What is the minimum amount of Coverage A that the Andinos should purchase on their new home? What risks do they face if they purchase only the minimum required coverage? How much insurance should they purchase in order to reduce their financial risks? c. Given the value and nature of their personal property and the restrictive Coverage C limits, what other supplemental coverages would you recommend that the Andinos purchase? Document your recommendations in terms of both the protection offered and the cost of the coverage. d. Given the winter snow and ice common to upstate New York, what recommendations would you make for their Section II coverage? e. Should the Andinos buy flood insurance? If so, how do they go about purchasing it? If not, explain why. f. Should the Andinos consider purchasing an umbrella policy? Why or why not? a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? (Select the best answer below.) A. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the least comprehensive form available because it only covers any winter weather perils, such as "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance". The HO-3 provides protection from all winter weather perils on the structure and personal property. B. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers all perils except those that are specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure; however, personal property coverage is limited to the 17 named perils. C. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers any and all perils, even those normally excluded, such as earthquake and war. Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure and personal property. D. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers only the perils that most insurance specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. However, the HO-3 does not provide personal property coverage. b. The minimum amount of insurance required to receive full payment for partial losses is $ (Round to the nearest dollar.)