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Tom and Sammie insured their home and personal property under an unendorsed HO-3 Policy with Farm Bureau Ins. Co. The home has a current replacement

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Tom and Sammie insured their home and personal property under an unendorsed HO-3 Policy with Farm Bureau Ins. Co. The home has a current replacement cost of $300,000. The policy contains the following limits: Coverage A: $240,000 Coverage B: $24,000 Coverage C: $120,000 Coverage D: $72,000 The home was badly damaged in a fire and Tom and Sammielwere forced to live in a motel for 60 days while their home was being rebuilt. Undamaged personal property was stored in a rental unit during the period of reconstruction. What dollar amount, if any, will Farm Bureau pay under the HO-3 policy for the following items (ignore any applicable deductibles): a. Three bedrooms were totally destroyed in the fire. The replacement cost of restoring the bedrooms is $80,000. The Actual Cash Value (ACV) of the loss is $50,000. b. Monthly mortgage payments of $1,500 on the home. C. Rental of a motel room at $100/day for 60 days. d. Meals eaten in the motel restaurant for 60 days at an average cost of $60/day (food costs at home average $20/day). e. Rent for storing undamaged furniture in a rental unit while the home is being rebuilt, $200/monthly

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