all parts please!!
Tools Scenariet You own a home with a market value of $175,000 of this amount, $50,000 is apportioned to the land and $125,000 is apportioned to the house. It is estimated that the house would cost $135,000 to rebum. The personal property in your home is worth $55,000, including a $3,500 diamond ring and a $4,500 computer system. You also own a car worth $25,000. You live in a state where there is a high risk for earthquakes. You have $100,000 in savings and investments that could be drawn on in case of emergency. You currently have a standard HD-3 homeowner's policy with a $1,000 deductible, which Insures your house for $175,000 and your personal belongings for $85,000, and you carry the minimum requirements of your state for car insurance. You have been advised to adjust your insurance coverage based on the large-loss principle. According to the large-loss principal, you should Transfer all risks posible to insurance. O Insure your property for minimum amounts only. O Insure your property for the maxmum amount available. O Insure only those risks that you cannot afford to cover using your own financial resources Based on the targe-los principle and your particular situation, s most appropriate for your homeowner's policy Given your current insurance coverage, in the event of a mre, your House and Household belongings are over-Insured by If you were to reduce the coverage on your home to its replacement value of $135,000, then your personal property coverage could also be reduced This is because the minimum personal coverage available on a HO-3 policy is of the home coverage to In what area is the coverage on the home itse severely lacking? Earthquake damage, which is not induced in a standard homeowners solicy. O Fire damage, which is not included in a standard homeowner's policy. o Volcano damage, which is not included in a standard homeowner's policy The deductible should be reduced In what area is the coverage of your personal property particularly inacealate? You need a special rider on the computer system, since the standard maximum $2,000 per occurrence Your poney can be improved by adding additional des for both your ring and your computer system You need a special rider to protect your camorring, since the standard maumum coverage is 51,000 per occurrence Your personal property coverage is not inadequate your HO-3 policy fully protects both your morning and your computer system. If your personal belongings are all reduced to ashes in a fire, what is the best way to document your hous? O Provide from your memory a list of your belongings and their worth. Provide the report from the nre department. Show pictures of the ashes from the fire and request the full amount of coverage. O Prepare and safeguard a visual (video or photographic) Inventory that is kept in a safe deposit box. In addition to coverage for your house and personal property, the standard HO-3 homeowner's policy also covers: Check all that apply. Each tree, shrub, or plant is covered up to 5% of the value of the home. Loss of use and/or additional living expense coverage up to 20% of the value of your home. Comprehensive personal liability coverage up to $300,000 per occurrence. Money, coins, currency, and precious metals are covered up to $20,000 for a calendar year, If you have a small loss, why might you decide to not report it to your insurance? Because ... Check all that apply. The amount of the loss is less than your deductible. You don't have the necessary documentation to prove the loss. Your Insurance premium may increase for the next several years, which may. In the long run, cost you more than the amount of the loss Think about the liability coverage provided by your homeowner and automobile policies. If you ascribe to the large-loss principal, then you should Keep your coverage at the minimum levels that you currently carry Plead with your agent to increase your coverage even though insurance companies sont provide additional coverage beyond the standard Umit. Hire an insurance consultant to help identity ways to reduce your ability exposure. Significantly increase your liability coverage beyond the minimum limits that you currently carry You are thinking about adopting a guard dog, believing that the dog witlower the risk of a thert, Vanqanism, or malicious mischief insurance claim. You should remember that: You are not required to report the dog ownership to your insurance, but an agent or company representative may ask if you have a dog the next time you renew your coverage or interew policy If you report the dog ownership, your insurer may immediately crop you O Approximately one-third of homeowner's insurance abutycams are associated with dog bites There is a special discount for dog owners. If you were to total your car in an acadent at which you are at fault, your Insurance company aty to pay to repair your car. The because Assume your state's minimum ability limits for an automobile policy are 25/50/10. Net assume that you cause an accident that involves multiple injuries to three people, each with medical expenses of 5225,000. The maximum body injury payout that could be made on your behalf by your Insurance company for this accidents Based on the large loss principle, should you modify your existing automobile Insurance coverage! O No, dont change your existing policy. Yes, but only add comprehensive and collision coverages to the existing policy Yes, but only increase the amount or ability coverage to the existing policy. Yes, Increasing both the amount of liability coverage carried and the comprehensive and colision coverages added to the policy
