Steve and Kelly own a single$-$family home insured under an Insurance Services Office $($ISO$)$ Homeowners $3$ Special Form $($HO$-3)$ policy. One evening, a fire destroys the home$$s living room and several adjoining rooms. The structural damage to the home because of the fire is $$75,000.$ The family$$s television is damaged. Cash $($$$375),$ which Steve kept in a countertop cookie jar for food shopping trips, was also destroyed. Steve and Kelly are insured under an unendorsed HO$-3$ policy with a $$300,000$ dwelling limit and a $$500$ deductible. For the purposes of this case, assume that Steve and Kelly are in compliance with all policy conditions, including Coverage A replacement cost provisions.

$1.$ Identify the component of the HO$-3$ policy that would be used to determine whether coverage applies to Steve and Kelly at the time of the loss.

$2.$ Identify the component of the HO$-3$ policy that would be used to determine whether the policy applies to Steve and Kelly$$s loss.

$3.$ Steve and Kelly$$s HO$-3$ contains a provision in the Special Limits of Liability portion of its Conditions section that states that a limit applies to $$money$.$ Assuming their loss is covered under their HO$-3,$ how, if at all, would this condition affect the amount that Steve and Kelly receive from the insurer?

$4.$ Assuming their loss is covered under their HO$-3$ and accounting for the deductible, how much will Steve and Kelly receive for fire damage to their home under Coverage A$?$

$5.$ Steve and Kelly$$s television, destroyed in the fire, was five years old but had a useful life of ten years. A new television equivalent to the destroyed model costs $$600.$ The insurer$$s claim representative determines that it would cost $$400$ to repair the damage. Assuming Steve and Kelly$$s loss is covered under their HO$-3,$ how would compensation for the television be settled under Coverage C$?$