Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An insured has a home with a $300,000 replacement cost and an HO-3 with a Coverage A limit of $270,000. A smaller tornado pulls out

An insured has a home with a $300,000 replacement cost and an HO-3 with a Coverage A limit of $270,000. A smaller tornado pulls out the AC unit and damages it beyond repair. The unit replacement cost is $7,500 and is 3 years old. Assume the AC has a useful life of 10 years. Q1. How much money would the insured receive to replace the AC unit? Q2. What happens if theHO-3 Coverage A limit is $150,000 instead of $270,000? How much money would the insured receive to replace the AC unit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dividend Policy Its Impact On Firm Value

Authors: Ronald C. Lease, Kose John, Avner Kalay, Uri Loewenstein, Oded H. Sarig

1st Edition

ISBN: 0875844979, 978-0875844978

More Books

Students also viewed these Finance questions

Question

Could a project's MIRR ever exceed its IRR?

Answered: 1 week ago

Question

4. How are relationships transacted and maintained?

Answered: 1 week ago