Your client rents a home and has a renter's insurance policy with a deductible of $$500.$ In the most recent storms, the roof of your client's home was damaged causing $$4,000$ of damage $($to the roof$).$ Water then leaked into the house causing damage to an expensive computer that was purchased for $$4,000$ last year. The current value of the computer is $$2,400.$

Do not forget about the deductible in your calculation!

Part $1$

Attempt $\frac{1}{1}$

If the definition of coverage for the personal effects is a Replacement Value definition, then how much did the insurance company pay to your client in total for this incident?

Part $2$

Attempt $\frac{1}{1}$

If the definition of coverage for the personal effects is an Actual Cash Value definition, then how much did the insurance company pay to your client in total for this incident?

Part $3$

Your client rents a home and has a renter's insurance policy with a deductible of $$500.$ In the most recent storms, the roof of your client's home was damaged causing $$4,000$ of damage $($to the roof$).$ Water then leaked into the house causing damage to an expensive computer that was purchased for $$4,000$ last year. The current value of the computer is $$2,400.$

Do not forget about the deductible in your calculation!

Part $1$

Attempt $\frac{1}{1}$

If the definition of coverage for the personal effects is a Replacement Value definition, then how much did the insurance company pay to your client in total for this incident?

Part $2$

Attempt $\frac{1}{1}$

If the definition of coverage for the personal effects is an Actual Cash Value definition, then how much did the insurance company pay to your client in total for this incident?Attempt $\frac{1}{1}$

Unfortunately, your client did not pay attention to the contract terms and found that his Renter's policy only covers a computer up to $$1,000.$ If the client wanted the full amount of the value of the computer to be insured, what could havt been done to cover it$?$

Add it to a Homeowner's policy instead of a renter's policy.

Add it through Scheduled Coverage on the renter's policy.

Decrease the deductible