Amber has a Homeowners 3 policy. The dwelling is insured for $150,000 and the replacement cost of the home is $250,000. Indicate whether or not each of the following losses is covered. If possible, determine the dollar amount of the loss that will be covered by Amber's H03 insurance policy. Clearly identify what section of the policy is controlling and why the event is either covered or not covered.

(c) During a windstorm, a picket fence with a replacement cost of $10,000 and an actual cash value of $7,000 is destroyed. An oak tree was blown over. It will cost $300 to remove the tree from the property and $250 to replace the tree. Amber wants the tree to be removed quickly because it fell on her driveway and she cannot drive her car into her garage.

(d) Amber's son is smoking crack in the basement of their home. He falls asleep and starts a fire. The fire damages furniture with a replacement cost of $6,000 and an actual cash value of $3,500, and ceiling beams supporting the first floor. The beams will cost $13,000 to replace and have an actual cash value of $9,000. Until the beams are replaced, the family can move in with friends at no cost. However The family must eat out every meal, costing $900 per week, when their normal grocery bill at home is only $400 per week. Amber's mortgage payment is $1,700 per month.