In addition to medical, home, and auto-insurance policies, you can choose to purchase additional policies to protect against other types of losses. Consider Brian, a doctor with a standard HO-1 policy with $450,000 of insurance on his home, an auto insurance policy with liability limits of 100/300/50, and a professional liability policy 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. She knows her father has all the standard policies, so she reviews a number of situations that aren't always covered under standard policies. For each of the following scenarios, indicate the type of coverage-one Brian already has or one he should purchase-that would protect against the loss described. How to Protect Against This Loss A flood destroys the basement of the home, causing $20,000 in damage. \begin{tabular}{|c|} \hline Buy floater policy \\ \hline Buy flood insurance policy \\ \hline Already covered under HO-1 \\ \hline Buy comprehensive personal liability insurance \\ \hline Already covered under professional liability policy \\ \hline \end{tabular} The cell phone he uses for work matters is stolen when he accidentally leaves it at a restaurant. He fails to extinguish his campfire before leaving the site; the fire gets out of control and causes $56,000 of damage (both to people and property) in the neighboring campsite. \begin{tabular}{|l|c|} \hline Already covered under HO-1 Buy comprehensive personal liability insurance \\ \hline \end{tabular} Already covered under professional liability policy Buy floater policy Buy comprehensive personal liability insurance In addition to these policies, he is considering an umbrella liability insurance policy with limits of $1 million. Which of the following statements regarding umbrella policies are true? Check all that apply. If Brian's house is destroyed by a peril not listed under the HO-1's named perils, the umbrella policy will cover the cost of rebuilding (up to $1 million). The cost of the additional umbrella policy is high and is only worth that cost if Brian is wealthy. If Brian 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