Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Steve and Charlene have a Homeowners' Insurance policy-HO-3 policy (replacement value and open perils endorsement with a $250 deductible, a dwelling value of $500,000, an

image text in transcribed
Steve and Charlene have a Homeowners' Insurance policy-HO-3 policy (replacement value and open perils endorsement with a $250 deductible, a dwelling value of $500,000, an 80% coinsurance requirement, and a currently yearly premium of $3,200. There is a $200,000 ability coverage per occurrence. The home is worth $625,000 and the separate land value is worth $200,000 for a total of $825,000. What is your recommendation to Steve and Charlene given the tables below based on what will it cost them if they raise the deductible to $2.000 and increase the coverage to $650,000, with an 80% coinsurance requirement? In addition, what will it cost them to satisfy the private liability umbrella policy (PLUP) carrier requirement to increase the liability insurance to $1,000,000? Homeowners Insurance HO2 per $100,000 dwelling use $50/month HO3 per $100.000 dwelling use $60/month ($2000 deductible) HO3 endorsed for open perils and RV" use $200 per year HO4 per $25,000 coverage use $20/month HO6 per $25,000 coverage use $40/month All homeowners' policies assume a $500 deductible unless otherwise stated Personal Liability Umbrella Policy (PLUP) $1,000,000 use $250 per year $2.000.000 $350 per year $3,000,000 use $400 per year $4,000,000 use $450 per year Steve and Charlene have a Homeowners' Insurance policy-HO-3 policy (replacement value and open perils endorsement with a $250 deductible, a dwelling value of $500,000, an 80% coinsurance requirement, and a currently yearly premium of $3,200. There is a $200,000 ability coverage per occurrence. The home is worth $625,000 and the separate land value is worth $200,000 for a total of $825,000. What is your recommendation to Steve and Charlene given the tables below based on what will it cost them if they raise the deductible to $2.000 and increase the coverage to $650,000, with an 80% coinsurance requirement? In addition, what will it cost them to satisfy the private liability umbrella policy (PLUP) carrier requirement to increase the liability insurance to $1,000,000? Homeowners Insurance HO2 per $100,000 dwelling use $50/month HO3 per $100.000 dwelling use $60/month ($2000 deductible) HO3 endorsed for open perils and RV" use $200 per year HO4 per $25,000 coverage use $20/month HO6 per $25,000 coverage use $40/month All homeowners' policies assume a $500 deductible unless otherwise stated Personal Liability Umbrella Policy (PLUP) $1,000,000 use $250 per year $2.000.000 $350 per year $3,000,000 use $400 per year $4,000,000 use $450 per year

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

More Books

Students also viewed these Accounting questions