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. 

 

 

Amber had a huge party to celebrate a big job promotion. The day after the party Amber realizes that an expensive piece of jewelry is missing from her nightstand. The jewelry is valued at $3,000. A candle was dropped during the party, causing a small fire. The wall to wall carpeting in Amber's family room was destroyed. The carpeting will cost $2,800 to replace and has an actual cash value of $1,600. The fire also damaged a painting Amber has insured on a personal articles policy for $5,000. The cost to restore the painting is $2,000. One of Amber's guests also reports that her fur coat from stolen from the bedroom. The coat will cost $600 to replace.

 

 Lightning causes a fire in the attic. Damage to the house is extensive. The replacement cost of the damaged part of the house is $88,000 and the actual cash value is $52,000. Amber is forced to move to a furnished apartment for three months while the house is being repaired. She spends $1,000 per month to rent the apartment. Amber's detached garage also suffers significant fire damage. The replacement cost of the garage is $20,000 and the actual cash value is $16,000. Amber's car must be cleaned and repainted at a cost of $5,000. 

 During a windstorm, a picket fence with a replacement cost of $10,000 and an actual cash value of $7,500 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.

  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. The fire also damages the living room floor. The floor will cost $18,000 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 $800 per week, when their normal grocery bill at home is only $400 per week. Amber's mortgage payment is $1,700 per month.