Homeowners Insurance Assignment

Assume James owns a HO3 policy with the following limits:

Coverage A: $120,000

Coverage B: $ 12,000

Coverage C: $ 60,000

Coverage D: $36,000

Coverage E: $100,000

Coverage F: $5,000

The replacement cost of James' home is $130,000, and depreciation on the home is set at 30%. Assume that the policy has 80% coinsurance requirement. Indicate the extent to which each of the following losses would be covered under James' Homeowners 3. Assume no deductible.

1.To meet the coinsurance requirement, how much should the policy limit be for the dwelling? What is the calculation?

2.Did James meet the co-insurance requirement? What is the calculation?