Alyssa's parents own a condominium that they fully insured for the replacement value of $300,000. Last year a portion of their roof collapsed due to the weight of snow after a severe storm, rendering the condo uninhabitable for the month that it took to complete repairs. Based on the coverage details of their condominium form insurance policy, the additional living expenses they incur as a result of the damage (such as the cost of stayino in a hotel durino 1 2. Types of homeowner's insurance policies There are six types of standard homeowner's policies, commonly referred to as HO-1 through HO-4, HO-6, and HO-8. Each provides coverage for damage due to certain perils, or events that cause damage to homes and other related property, as well as liability coverage for accidents that occur on one's property. Apply your knowledge of the different policy types and features to the three scenarios below. Insuring a Standard Home Alyssa is the owner of a 30-year-old home and is looking to buy a homeowner's insurance policy. The previous home she owned was severely damaged by a tree falling through the roof, a peril that was not covered by her basic-form policy; therefore, she is looking to buy a comprehensive policy that covers damage from all perils (except those specifically excluded). Based on the peril coverage it offers, she should purchase an ice policy. Her home has a replacement value of $500,000; therefore, she insures her home for the standard minimum legal requirement of $ Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: Insuring While Away at College Madeline's son, Felix, is a college student living in a campus dormitory. He drives a car that he parks on the street and wants to make sure the full value is insured. Which of the following statements regarding her son's insurance needs are true? Check all that apply. He should tell the insurance agency that he parks in a garage to save money on premiums. He should purchase an HO-4 broad form insurance policy because he is not covered under his parents' policy. His property is covered up to 10% of the coverage on his parents' home