Do the Math 10-1 How Much of Fire Loss Will Be Covered? Toula and Tan Miller of Gainesville, Florida, recently suffered a treat their home. The fire, which began in a crawl space at the back of the house, caused $46,000 of damage to the dwelling itself. Their garage valued at $22,000, was totally destroyed but did not contain a car at the time of the fire Replacement or the Millers personal property damaged in the home and garage amounted to $25,000. In addition, $350 in cash and a stamp collection valued at $3,235 were destroyed. While the damage was being repaired, the Millers stayed in a motel for one week and spent $1,350 on food and lodging. The house had a value of $193,000 and was insured for $150,000 under an HO-3 policy with a $250 deductible. Use Table 10-1 to answer the following questions. (Hint: You must first determine whether the Millers have adequate dwelling replacement coverage and not what percentage of the necessary 80 percent coverage they do have. The resulting answer will determine the percentage of the low to the dwelling covered, and consequently the amount to be reimbursed by the insurance company.) a. Assuming that the deductible was applied to the damage to the dwelling, calculate the amount covered by Insurance and the amount that the Milers must pay for each loss listed: the dwelling, the garage, the cash and stamp collection, and the extra expenses. Enter all amounts as positive numbers. Leave no cells blank. Enter "o" wherever required. Round your answers to the nearest dollar Amount covered by Amount that the Insurance Millers must pay The weiling 5 The garage 5 $ Stamp collection 5 5 The extra expenses much of the amount of the personal property to would be covered by the policy Assume that the Merspolicy includes contents replacement cost protection Enteral amounts De banner o wherevermored Round your answers to the nearest dla 5 er by the is that they have contro-correction on the personal property, whatent and percentage of the total must be paid by the enter the values as positive your one for mount to the heart door and for percentage to the decimal places Check Sty Work Table 10-1 Summary of Homeowner's Insurance Policies Perils covered (descriptions are given below) House and any other attached buildings Detached buildings (appurtenant structures) Trees, shrubs, plants, etc. HO-1 (Basic Form) HO-2 (Broad Form) HO-3 (Special Form) Peris 1-4, 6, 8-12 Perils 1-16 All penis except those specifically excluded for buildings, perils 1-16 on personal property (does not include glass breakage) Amount based on Amount based on Amount based on replacement cost replacement cost, replacement cost, minimum $15,000 minimum $15,000 minimum $20,000 10 percent of insurance on 10 percent of insurance on 10 percent of insurance on the home (minimum) the home (minimum) the home (minimum) 5 percent of insurance on 5 percent of insurance on 5 percent of insurance on the home, 5500 maximum the home, 5500 maximum the home, 5500 maximum per item per item per item 50-70 percent of insurance on 50-70 percent of insurance on 50-70 percent of insurance on the home (minimum) the home (minimum) the home (minimum) 10 percent of insurance on 20 percent of insurance on 20 percent of insurance on the home the home the home $1,000 $1,000 $1,000 Personal property Loss of use andor additional living expense Credit card, forgery. counterfeit money Liability coverage/limits for all policies) Comprehensive personal Tiability Notault medical payments No fault property damage $300,000 $1,000 5500 Special limits of liability For the following classes of personal property. Special limits apply on a per-occurrence basis (e.g.. per fire or theft): money, coins, bank notes, precious metals (gold, silver, etc.), $200, computers, 55,000, securities, deeds, stocks, bonds, tickets, stamps, 51,000, watercraft and trailers, induding furnishings, equipment, and outboard motors, $1,000, trailers other than for watercraft, 51,000, jewelry, watches, furs, $1.000, Silverware, goldware, etc. $2,500: guns, 52,000 List of perils covered 1.Theft 2. Fre of Lightning 3. Explosion 4. Smoke 5. Freezing 6. Vehicles 7.Faling Objects 8. Volcanic Eruption 9. Windstorm or Halil 10. Riotot CM Commotion 11. Damage caused by Aircraft 12. Vandalism or Malicious Mischief 13. Damage due to weight of Ice, Snow, or Slee! 14. Sudden & Accidental Tearing Apart Cracking, Burning, or Bulging 15. Sudden & Accidental Damage from Artificially Generated Electric Current 16. Accidental Discharge or Overflow of Water from Plumbing Alt conditioning etc