Jennelle's home has a replacement value of $350,000. Due to an explosion, all of her windows were shattered. The replacement value of the windows is $100,000, but there was only half of the life remaining in the windows due to depreciation.

If at the time of loss Jennelle has $270,000 of insurance, how much will she be able to recover of her costs to replace the windows? Show your work. (8 marks)

What could Jennelle do to protect herself due to inflation in building costs and therefore fluctuations in the replacement cost of her home? (2 marks)