Craig owns a home with a replacement cost of $200,000 that is subject to a $100,000 mortgage held by First Federal as the mortgagee. Craig has the home insured for $160,000 under the HO-3 policy, and First Federal is named as mortgagee under the Mortgage Clause. Assume there is a covered fire loss to the dwelling in the amount of $50,000. To whom would the loss be paid? Explain your answer.
Answer to relevant QuestionsIdentify the basic types of homeowner’s policies that are used today.List the major exclusions that are found in Section I of the Homeowners 3 policy.Explain whether each of the following losses would be covered under Section II in the homeowner’s policy. If the loss is not covered, explain how coverage can be obtained.a. The insured owns a restaurant in a large city. ...Homeowner’s insurance premiums are based on a number of factors. Identify the major factors that determine the cost of a homeowner’s policy.Janet has a PAP with the following coverages:Liability coverages: $100,000/$300,000/$50,000 Medical payments coverage: $5000 each person Uninsured motorists coverage: $25,000 each person Collision loss: $250 deductible ...
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