Alec took some of your advice and bought an HOB policy that covered 100% replacement costs and had $500,000 in liability coverage. He purchased a business endorsement for the apartment but did not file or buy any other special coverage endorsements, or list, appraise/schedule key property. He did not buy an umbrella policy. 3 months later, his house is broken into, set on fire to cover the break-in, and burned to the ground. The home is a total loss with all belongings inside destroyed or stolen. The garage sustained significant damages of $50,000 to the structure and $10,500 to Brandons belongings inside the apartment. Alecs friend, Brandon, was renting the apartment over the garage for which they had a valid renters contract. The BMW was outside in the driveway because Alecs friend, Colin, left it out with the keys in it. The BMW was found a week later destroyed in a creek bed 10 miles away. The police determined it was used as one of the get-away vehicles.

How much will Alecs homeowners insurance policy cover? How much will Alec be responsible for paying out of his pocket (excluding deductible)?