Question
The Thomsons' house burned to the ground! They lost all their belongings inside the home. Their coverage specified replacement costs. Their brand new $40,000 car
The Thomsons' house burned to the ground! They lost all their belongings inside the home. Their coverage specified replacement costs. Their brand new $40,000 car was in the garage and was totally destroyed, the day after they bought it. How much will the Thompsons be reimbursed from their homeowners policy?
| Cost to rebuild house per approved contractor | $80,000 |
| Estimated current value of personal items | $20,000 |
| Cost to buy all new items lost in fire. | $50,000 |
| Automobile Kelly Blue Book value | $30,000 |
| Deductible | $300 |
| a. | $129,700 | |
| b. | $180,300 | |
| c. | $99,700 | |
| d. | $130,300 | |
| e. | $159,700 |
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Interpreting and Analyzing Financial Statements
Authors: Karen P. Schoenebeck, Mark P. Holtzman
6th edition
978-0132746243
