Insuring a Standard Home Amy is the owner of a 15-year-old home, and is looking to buy a homeowner's insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so on, she also wants insurance for damage caused by malfunctioning of internal structures like air conditioning or plumbing. Based on the peril coverage it offers, she purchases an HO-4 insurance policy. Her home has a replacement value of $300,000, therefore she insures her home for the minimum legal requirement of $240,000. Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: Damage to personal property: Medical payments to others: Loss of Use (Additional living expenses): Property damage: Insuring While Away at College Amy's son, Nick, is a college student living in an off-campus apartment where he resides year round. He owns an expensive computer and wants to make sure the full value is insured. Which of the following statements regarding Nick's insurance needs are true? Check all that apply. Nick should purchase an HO-2 broad form insurance policy because he is not covered under his parents' policy. His computer is covered under his parents' policy. If he purchases an HO-4 policy, he can choose the value of the property he wishes to insure. Insuring a Standard Home Amy is the owner of a 15-year-old home, and is looking to buy a homeowner's insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so on, she also wants insurance for damage caused by malfunctioning of internal structures like air conditioning or plumbing. Based on the peril coverage it offers, she purchases an HO-4 insurance policy. Her home has a replacement value of $300,000, therefore she insures her home for the minimum legal requirement of $240,000. Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: Damage to personal property: Medical payments to others: Loss of Use (Additional living expenses): Property damage: Insuring While Away at College Amy's son, Nick, is a college student living in an off-campus apartment where he resides year round. He owns an expensive computer and wants to make sure the full value is insured. Which of the following statements regarding Nick's insurance needs are true? Check all that apply. Nick should purchase an HO-2 broad form insurance policy because he is not covered under his parents' policy. His computer is covered under his parents' policy. If he purchases an HO-4 policy, he can choose the value of the property he wishes to insure
