Assume James owns a HO3 policy with the following limits:

Coverage A: $120,000

Coverage B: $ 12,000

Coverage C: $ 60,000

Coverage D: $ 36,000

Coverage E: $100,000

Coverage F: $ 5,000

The replacement cost of James home is $130,000, and depreciation on the home is set at 30%. Assume that the policy has 80% coinsurance requirement. Indicate the extent to which each of the following losses would be covered under James Homeowners 3. Assume there is no deductible.

1. To meet the coinsurance requirement, how much should the policy limit be for the dwelling? Show your work.
2. Did James meet the coinsuranace requirement? Show your calculation.
3. Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $11,200, and it will cost $16,000 to replace the damaged portion.