Hubert is a doctor with a standard HO-1 policy with $425,000 worth of insurance on his home, an auto insurance policy with liability limits of 100/300/50, and an additional professional liability policy that protects him against negligence and mistakes made only in his professional activities with a $500,000 limit. His daughter recently took a course in personal finance and wants to make sure her father is adequately protected from potential losses. Although she knows her father has all the standard policies, she describes a number of situations that aren't always covered under standard policies. For each of the scenarios that follow, indicate either (1) which of Hubert's current coverages already protect him or (2) the correct type of coverage that would protect him against the loss described. How to Protect Against This Loss? An earthquake destroys the deck of the home, causing $20,000 worth of damage. A burglar steals a piece of art (valued at $85,000) from his living room. While he is on vacation, his laptop is stolen out of his hotel room. In addition to these policies, Hubert is considering an umbrella liability insurance policy with a limit of $1 million. Which of the following statements regarding umbrella policies is true? The cost of the additional umbrella policy is extremely high; therefore, it is worth it only if Hubert is extremely wealthy. If Hubert causes an automobile accident and the total of other driver's medical bills and the other driver's passenger's bills is $110,000 ($80,000 for the driver and $30,000 for the driver's passenger), the umbrella policy will be used to pay for $10,000. If Hubert causes an automobile accident and the other driver's medical bills total $110,000, his umbrella policy will pay the $10,000 not covered by his auto insurance