Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased,

Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages.

Step 1: Calculate the Replacement Cost

Step 2: Calculate the % Amount Covered

Amount of Loss - $75,000

Deductible - $500

Amount of Insurance Actually Carried - $150,000

% Percentage Amount Needed - 80%

Replacement Value - $200,000

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

Multinational Finance

Authors: Kirt C. Butler

3rd Edition

0324177453, 978-0324177459

More Books

Students also viewed these Finance questions

Question

4. Devise an interview strategy from the interviewers point of view

Answered: 1 week ago