Homework Assignment/due Tuesday April 12, 2022 Risk Management & Insurance, Homeowner's Unit Please place your response on a separate document submitting that answer sheet as your assignment completion. Assume Bill owns an HO-3 policy found in your textbook Appendix. Limits apply as follows: (first problem here, calculate the limits of liability A = $240,000 = E = $500,000/occurrence B = D = F = $5,000/person A $250 deductible applies to Section 1, Coverage A through D. (Assume each event occurs separately) 1. Bill's house and all its contents are destroyed by a tornado. It takes 6 months to rebuild the home and Bill's additional living expenses amount of $12,000. 2. A neighbor's 8 year old child accidentally releases the brakes on his family's pick up truck sending it crashing into Bill's home. Damage to the home amounts to $15,000 The truck is destroyed. It's actual cash value before the loss was $22,000 3. Bill's unattached tool shed burns, destroying the shed (damage = $7,000) and the law care equipment inside damage = $3,000 4. Bill negligently starts a fire while cooking. His home and all the contents are a total loss. It costs Bill an additional $14,000 to live in a rental home while his is being rebuilt. 5. While his daughter is away at college, her stereo is stolen from her dorm room (damage $3,500) 6. While carrying his portable color TV to the basement, he drops it. It is a total loss. Damage $850 7. Firefighters used water from an adjacent pond which was pumped out of the pond and into P's home. Damages to the interior walls cost $8,020 to repair, replace and/or repaint. The fabric of all furnishings was embedded with pond water. Furnishings were 10 years old but in good condition cost $12,000 to replace. 8.Hot ash floated over to the neighbor's property and set their roof on fire. Good news, fire fighters were on the scene and able to extinguish the flames promptly. 9.As the flames were being fought, P was able to enter the home and take a few things out, a manuscript he was working on---interesting subject matter which he had done a lot of research on---he valued at $10000.00, a set of dueling pistols which his father had left to him, a small, but valuable collection ($5,000.00) of US Coins, a unique diamond stickpin owned by his Aunt Florence and who he hoped to give someday to his wife ($8,000). People walking by thought it was a yard sale, and left a few dollars in a shoe box for a couple of the items. Other stuff was simply stolen as the people thought the property abandoned by its owner. Homework Assignment/due Tuesday April 12, 2022 Risk Management & Insurance, Homeowner's Unit Please place your response on a separate document submitting that answer sheet as your assignment completion. Assume Bill owns an HO-3 policy found in your textbook Appendix. Limits apply as follows: (first problem here, calculate the limits of liability A = $240,000 = E = $500,000/occurrence B = D = F = $5,000/person A $250 deductible applies to Section 1, Coverage A through D. (Assume each event occurs separately) 1. Bill's house and all its contents are destroyed by a tornado. It takes 6 months to rebuild the home and Bill's additional living expenses amount of $12,000. 2. A neighbor's 8 year old child accidentally releases the brakes on his family's pick up truck sending it crashing into Bill's home. Damage to the home amounts to $15,000 The truck is destroyed. It's actual cash value before the loss was $22,000 3. Bill's unattached tool shed burns, destroying the shed (damage = $7,000) and the law care equipment inside damage = $3,000 4. Bill negligently starts a fire while cooking. His home and all the contents are a total loss. It costs Bill an additional $14,000 to live in a rental home while his is being rebuilt. 5. While his daughter is away at college, her stereo is stolen from her dorm room (damage $3,500) 6. While carrying his portable color TV to the basement, he drops it. It is a total loss. Damage $850 7. Firefighters used water from an adjacent pond which was pumped out of the pond and into P's home. Damages to the interior walls cost $8,020 to repair, replace and/or repaint. The fabric of all furnishings was embedded with pond water. Furnishings were 10 years old but in good condition cost $12,000 to replace. 8.Hot ash floated over to the neighbor's property and set their roof on fire. Good news, fire fighters were on the scene and able to extinguish the flames promptly. 9.As the flames were being fought, P was able to enter the home and take a few things out, a manuscript he was working on---interesting subject matter which he had done a lot of research on---he valued at $10000.00, a set of dueling pistols which his father had left to him, a small, but valuable collection ($5,000.00) of US Coins, a unique diamond stickpin owned by his Aunt Florence and who he hoped to give someday to his wife ($8,000). People walking by thought it was a yard sale, and left a few dollars in a shoe box for a couple of the items. Other stuff was simply stolen as the people thought the property abandoned by its owner