James and Megan Webb recently purchased a home for $300,000. The home is insured under an HO-3 policy for $250,000 with no endorsements attached. Megan collects antiques for a hobby. James has a stamp collection that contains several rare

stamps. The couple also owns a 30-foot sailboat that they use on weekends.

a.) Assume you are a risk management consultant who has been asked to evaluate the couple's HO-3 policy. Identify

three endorsements that James and Megan may wish to purchase to modify their HO-3 policy.

b.) Explain how the above HO-3 policy would be modified by each endorsement identified in your answer (a) above.

c.) For each of the following losses, indicate whether section 2 of the homeowner's policy would provide full coverage

for the loss. If full coverage would not be provided, explain why.