Question
Homeowners Insurance Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below: Type Coverage A
Homeowners Insurance
Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below:
| Type | Coverage A | Coverage B | Coverage C | Coverage D | Coverage E | Coverage F |
|---|---|---|---|---|---|---|
| Limit | $120,000 | $12,000 | $60,000 | $24,000 | $100,000 | $5,000 |
A $350 deductible applies to Section 1, Coverages A, B, and/or C. The replacement cost of Sandra's home is $132,000, the contents are valued at $75,000, and the home is 30 percent depreciated. Compute the amount that Sandra will collect in each of the following circumstances and assume that each event occurs independently. Note: a deductible will only apply if losses are less than the coverage limit.
- Sandra's son, Jack, has his PlayStation stolen from his dorm room when he is away at college. This results in $500 of damage.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
