Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for $178,000, Colton bought a $160,000 homeowner's insurance policy. He still owns that policy, even though the replacement cost of the home is now $300,000. From Textbook, 10.3c R = (L - D) x [I / (RV x 0.80 or 1.00)] where R = Reimbursement payable L = Amount of loss D = Deductible, if any I = Amount of insurance actually carried RV = Replacement value of the dwelling (a) If Colton suffered a $20,000 fire loss to the home, what percentage and dollar amount of the loss would be covered

2. Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for $178,000, Colton bought a $160,000 homeowner's insurance policy. He still owns that policy, even though the replacement cost of the home is now $300,000. From Textbook, 10.3c R=(LD)[1/(RV0.80or1.00)] where R= Reimbursement payable L= Amount of loss D= Deductible, if any I = Amount of insurance actually carried RV= Replacement value of the dwelling (a) If Colton suffered a $20,000 fire loss to the home, what percentage and dollar amount of the loss would be covered by his policy? Please include calculation using formula included above with your answer. (b) How much insurance on the home should Colton carry now to be fully reimbursed for a fire loss? 3. Coverage on a One-Vehicle Accident. Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $17,500 in damage. The truck has a book value of $40,000. Bill carried collision insurance with a $500 deductible. (a) How much will Bill be reimbursed by his policy? (b) How much will Bill be reimbursed by his policy if the truck has a book value of $10,000