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 there is no deductible. 1. To meet the coinsurance requirement, how much should the policy limit be for the dwelling? Show your work. 2. Did James meet the soinsuranase requirement? Show your calculation. 3. Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $11,200, and it will cost $16,000 to replace the damaged portion. a) Is lightning a covered peril here? Circle one: Yes (go to part b) No (go to parte) b) If yes, how much would the insurer pay? a. Lightening is an covered peril. Damage caused by lightening is covered under insurance so you can claim the damages. c) If no, explain why, 4. Assume the house burns to the ground. How much would the insurer pay for the dwelling portion