Bill negligently starts a fire while cooking. His home and all the contents are a total loss. It costs Bill an additional $14,000 to live in a rental home while his house is being rebuilt.

Assume Bill Clanton owns the ISO HO-2 policy described in this chapter and reproduced in Appendix A. The limits are as follows:

A = $ 120,000

B = $ 12,000

C = $ 60,000

D = $ 24,000

E = $ 100,000

F = $ 5,000

A $250 deductible applies to Section I, Coverages A through D. The replacement cost of Bill’s home is $130,000, the contents are valued at $70,000, and the home is 30 percent depreciated.