Assume the Finch family of Charlotte, North Carolina, purchased their home in 1966 for $50,000. Since then, comparable homes in their neighborhood have most recently sold for $150,000. The cost to replace the home would be $169,500. It is estimated that the house is one third (1/3) depreciated. The Finch’s have a $135,600 (Coverage A) Homeowners policy in force, similar to the policy shown in the Appendix. Answer the following questions as if each question were a separate event. (Assume no deductible)

1) How much will the Finch’s collect for a total covered fire loss under coverage A?

2) How much will be collected for a $20,000 partial loss under coverage A?

3) What would be your answer to questions 1 above if the Finch’s had only $101,700 of insurance for Coverage A?

4) What would be your answers to question 2 above if the Finch’s had only $101,700 of insurance for Coverage A?