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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?
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