Assume Leslie Lenard owns the ISO HO-3 policy described in this chapter. The limits are as follows:

A = $250,000

B = $25,000

C = $125,000

D = $75,000

E = $100,000

F = $1,000

The replacement cost of Ashley’s home is $260,000, the contents are valued at $120,000,

Your assignment is to compute the amount Ashley will collect in each of the following circumstances. (Assume each event occurs separately.) Be sure to state the coverages A,B,C,D,E,or F and the amount of money that would be paid.

1. Leslie’s house and all its contents are destroyed by a fire. It takes 6 months to rebuild the home, and Ashley’s additional living expenses amount to $22,000.

2. Leslie’s unattached garage burns, destroying the garage (damage = $20,000) , the lawn-care equipment inside (damage = $2,500) ,and her car (ACV=15,000)

3. There is a blizzard in the winter. The weight of ice and snow causes $30,000 damage to her home. It costs her an additional $225 a day for 30 days for her family to live in a hotel while her home is being repaired. Her mortgage is $1,500 a month. It costs her family $100 a day to eat out while meals at home cost $30 a day. Her 15 year old son slips on the ice on the driveway and sprains his ankle. The emergency room visit costs 1,200.

4. Leslie’s husband Robert is burning leaves in the backyard and causes his neighbor's house to burn. A judgment is made for $150,000. Legal expenses are $30,000.

5. Leslie has guests at her house . A guest trips on the stairs and breaks her leg. The guest has a judgment against Leslie for $12,000 medical expenses, $5,000 in lost wages, and $30,000 for pain and suffering. It costs an additional $15,000 to provide Leslie with a legal defense.

6. While her 22 year old son, Alex, a full-time student, is on vacation his watch (ACV=$200), passport, and $500 cash is stolen from his dorm room. It costs him $500 to get his passport replaced.

7. Sewage backs up into Leslie’s basement. The damage to the floor is $6,000. The contents in the basement that are destroyed have an ACV=$5,000.

8. Leslie is taking care of 5 children at her house. The parents of each child pays her $500 a month to care for the child. One of the children suffers from food poisoning and the parents successfully get a judgment against Ashley for $20,000.