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Homeowners Insurance Assignment Assume James owns a HO3 policy with the following limits: Coverage A: S120,000 Coverage B: $ 12,000 Coverage C: $ 60,000 Coverage

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Homeowners Insurance Assignment Assume James owns a HO3 policy with the following limits: Coverage A: S120,000 Coverage B: $ 12,000 Coverage C: $ 60,000 Coverage D: S 36,000 Coverage E: S100,000 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 there is no deductible. 7. A living room window is broken in a hailstorm. The curtain (personal property) is water stained and must be replaced. The actual cash value of the damaged curtain is $200. Replacement cost is $300. a) Is hailstorm a covered peril here? Circle one: Yes (go to part b) No (go to parte) b) If yes, how much would the insurer pay? Circle one: S200 $300 c) If no, explain why. 8. The hot water heater explodes and damages some household contents. The actual cash value of the damaged property is $1000, and the cost of replacing the property is $1600. a) Is explosion a covered peril here? Circle one: Yes (go to part b) No (go to parte) b) If yes, how much would the insurer pay? Circle one: S1000 S1600 c) If no, explain why. 1. To meet the coinsurance requirement, how much should the policy limit be for the a Show your work 2. Did James meet the coinsurance requirement? Show your calculation. 4. Assume the house burns to the ground. How much would the insurer pay for the dwelling portion? Homeowners Insurance Assignment Assume James owns a HO3 policy with the following limits: Coverage A: S120,000 Coverage B: $ 12,000 Coverage C: $ 60,000 Coverage D: S 36,000 Coverage E: S100,000 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 there is no deductible. 7. A living room window is broken in a hailstorm. The curtain (personal property) is water stained and must be replaced. The actual cash value of the damaged curtain is $200. Replacement cost is $300. a) Is hailstorm a covered peril here? Circle one: Yes (go to part b) No (go to parte) b) If yes, how much would the insurer pay? Circle one: S200 $300 c) If no, explain why. 8. The hot water heater explodes and damages some household contents. The actual cash value of the damaged property is $1000, and the cost of replacing the property is $1600. a) Is explosion a covered peril here? Circle one: Yes (go to part b) No (go to parte) b) If yes, how much would the insurer pay? Circle one: S1000 S1600 c) If no, explain why. 1. To meet the coinsurance requirement, how much should the policy limit be for the a Show your work 2. Did James meet the coinsurance requirement? Show your calculation. 4. Assume the house burns to the ground. How much would the insurer pay for the dwelling portion

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