Scenario: You own a home with a market value of $245,000. Of this amount, $30,000 is apportioned to the land and $215,000 is apportioned to the house. It is estimated that the house would cost $190,000 to rebuild. The personal property in your home is worth $70,000, including a $2,000 diamond ring and a $3,000 computer system. You also own a car worth $20,000. You live in a state where there is a high risk for earthquakes. You have $100,000 in savings and investments that could be drawn on in case of emergency. You currently have a standard HO-3 homeowner's policy with a $500 deductible, which insures your house for $245,000 and your personal belongings for $130,000, and you carry the minimum requirements of your state for car insurance. You have been advised to adjust your insurance coverage based on the large-loss principle