James has his home and personal property insured under a Homeowners s (special formy policy . The dwelling is insured for $120 000 . The replacement cost of the home is $200 000 Indicate the extent to which each of the following losses would be covered under James's Homeowners 3 policy . ( Ignore the deductible . ) Lightning strikes the roof of the house and severely damages it . The actual cash value of the damaged roof is $10 000 , and it will cost $16 090 to replace the damaged portion . A living room window is broken in a hailstorm . The drapes are water stained and must be replaced . The actual cash value of the damaged drapes is $ 400 Replacement cost is $600 The water heater explodes and damages some household contents . The actual cash value of the damaged property is $2000 , and the cost of replacing the property is $3200