Types of homeowner's insurance policies

Insuring a Standard Home

Amy is the owner of a $2-$year$-$old home, and is looking to buy a homeowner's insurance policy. She is primarily concerned with protection from

standard property damaging perils that she has no way of preventing, such as those due to fire, vandalism, windstorms, and so on$,$ and less

concerned about those that she feels she can prevent through frequent maintenance $($such as damage caused by malfunctioning of internal structures

Her home has a replacement value of $$300,000,$ therefore she insures her home for the minimum legal requirement of

$.$ Assuming

she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of

reimbursement she can receive for each of the following:

Damage to personal property:

$$120,000$

Medical payments to others:

Loss of Use $($Additional living expenses$)$:

Comprehensive personal liability:

Insuring While Away at College

Amy's son, Van, is a college student living in an off$-$campus apartment where he resides year round. He owns an expensive computer and wants to

make sure the full value is insured. Which of the following statements regarding Van's insurance needs are true? Check all that apply.

If he purchases an $HO-4$ policy, he can choose the value of the property he wishes to insure

His computer is covered under his parents' policy

Van should purchase an HO$-2$ broad form insurance policy because he is not covered under his parents' policy.

Insuring an Older Home

Amy's parents live in the home a Georgian style home built in the early $1800$ s$.$ Although the house is still standing, it has fallen into disrepair, and the

cost of rebuilding it with the original style and quality would be extremely high. If their home were destroyed, Amy's parents would choose to rebuild a

much more modest structure rather than try to restore it to it's original state, therefore they purchase $\frac{?}{\text{b}\text{a}\text{r}}(c)$

form policy to provide

actual$-$cash$-$value $$ protection.