Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last year Paul and Joanna Stillman bought a home with a dwelling replacement value of $200,000 and insured it (via an HO-5 policy) for $180,000.

Last year Paul and Joanna Stillman bought a home with a dwelling replacement value of $200,000 and insured it (via an HO-5 policy) for $180,000. The policy reimburses for actual cash value and has a $250 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a 2-year-old television set with a current replacement value of $600 and an estimated useful life of 7 years. They also took jewelry valued at $2,000 and silver flatware valued at $2,700.

Assuming a 50% coverage C limit, calculate how much the Stillman would receive if they filed a claim for the stolen items. Round the answer to two decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory and Practice

Authors: Eugene F. Brigham, Michael C. Ehrhardt

16th edition

1337902608, 978-1337902601

More Books

Students also viewed these Finance questions