Question
Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below: Type Coverage A Coverage B
Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below:
| Type | Coverage A | Coverage B | Coverage C | Coverage D | Coverage E | Coverage F |
|---|---|---|---|---|---|---|
| Limit | $120,000 | $12,000 | $60,000 | $24,000 | $100,000 | $5,000 |
A $350 deductible applies to Section 1, Coverages A, B, and/or C. The replacement cost of Sandra's home is $132,000, the contents are valued at $75,000, and the home is 30 percent depreciated. Compute the amount that Sandra will collect in each of the following circumstances and assume that each event occurs independently. Note: a deductible will only apply if losses are less than the coverage limit.
- A storm ripped through Sandra's neighborhood, destroying her house and all of its belongings. Rebuilding the house will take six months, and Sandra will have to pay an additional $12,000 in living expenses during that time.
Step by Step Solution
3.39 Rating (171 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the amount that Sandra will collect in this circumstance we need to determine the amount of coverage available for each type of loss and ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
