$3.$ Jack purchased an unendorsed ISO Homeowners $3$ policy $$ the policy we covered in class. How will the following claims be settled?

a$.$ A spark from the fireplace started a fire in Jack$$s living room. The fire destroyed Jack$$s living room set $$ a couch and two matching chairs. The living room set cost $$5,000$ when it was purchased, and it was worth $$3,000$ at the time of the loss because of depreciation. A comparable replacement living room set will cost $$5,400.$ How much will the insurer pay to settle this claim? Assume a $$500$ deductible applies to this loss.

b$.$ Jack purchased $$300,000$ of insurance coverage on his home $($the $$Coverage A$$ limit$).$ The roof of Jack$$s home was damaged by strong wind. The actual cash value of the damage $($replacement cost less depreciation$)$ was $$12,500.$ The replacement cost of the damage was $$20,000.$ Marco$$s home was valued at $$500,000$ at the time the roof was damaged. Assume a $$500$ deductible applies to this loss. How much will the insurer pay to settle this claim?