assume that you have a Homeowners policy (HO-3) with the following limits. Assume the policy limits exceeds 80% of the replacement cost of the house. Ignore any deductibles. Coverage A-Dwelling: $100,000 Coverage B-Other structure: $ 10,000 Coverage C-Personal property: $ 50,000 Coverage D-loss of use: $ 30,000 Coverage E-Personal liability: $100,000 per occurrence Coverage F-Medical payments: $ 1,000 per person

1) When playing basketball in the backyard of your home, you accidentally injure another player. The player incurs medical bills of $1400 and decides not to sue you. Your homeowner policy will pay:

A) $0 B) $1400 C) $1000 D) None of the Above

2) Assume the home is damaged in a fire, and the family is forced to live in a motel for 30 days while their home is being rebuilt. The additional living expenses are $1500. You homeowner policy will pay

A) $0 B) $1,500 C) $30,000 D) None of the above

3)Your attached storage shed catches fire and burns to the ground. Your lawnmower and some tools were in the shed. It costs $9000 to replace the shed (with an actual cash value of $6000) and $4000 to replace the lawnmower and tools (with an actual cash value of $3000). Your homeowner policy will pay

A) $13,000 B) $12,000 C) $9,000 D)$10,000 E) None of the above