Respond to the critical thinking questions as relates to the Scott's decision:

The Scott$$s Homeowners$$ Insurance Decision

Levi and Riley Scott, ages $30$ and $28,$ were recently married in Denver. Levi is an electrical engineer with Bright Solutions, a computer component design firm. Riley has a master$$s degree in education and teaches at a local middle school. After living in an apartment for six months, the Scotts have negotiated the purchase of a new home in a rapidly growing Denver suburb. Denver City Savings and Loan Association has approved their loan request for $$369,000,$ which represents $90$ percent of the $$410,000$ purchase price. Before closing the loan, the Scotts must obtain homeowner$$s insurance for the home. The Scotts currently have an HO$-4$ renter$$s insurance policy, which they purchased from Levi$$s bridge partner, Henry Adams, who is an agent with the King Insurance Company. To learn about the types of available homeowner$$s insurance, Levi has discussed their situation with Henry, who has offered them several homeowner$$s policies for their consideration. He has recommended that the Scotts purchase an HO$-5$ policy because it would provide them with comprehensive overage.

Critical Thinking Questions

$1.$ What forms of homeowner$$s insurance are available? Which forms should the Scotts consider?

$2.$ What are the perils against which the home and its contents should be insured?