Question: Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a

Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000.
She feels that the ring is adequately insured because she purchased a Homeowners 3 (special form) policy. Is Sarah correct in her thinking? If not, what would you advise her concerning proper protection of the ring?

Step by Step Solution

★★★★★

3.35 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

No The homeowners policy does not provide complete coverage for valuable jew... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

399-B-C-F-R-A-M (639).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Susan owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000. She feels that the ring is adequately...

Q:

A five-year-old defender has a current market value of $4,000 and expected O&M costs of $3,000 this year, increasing by $1,500 per year. Future market values are expected to decline by $1,000 per...

Q:

What effect do changes in the current market value of the asset being depreciated or amortized have on depreciation or amortization estimates?

Q:

Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000. She feels that the ring is adequately...

Q:

Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000. She feels that the ring is adequately...

Q:

Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000. She feels that the ring is adequatley...

Q:

Principles of Risk Management and Insurance Sarah owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current make value of...

Q:

Susan owns a valuable diamond ring that has been in her family for generations. She is told by an appraiser that the ring has a current market value of $50,000. She feels that the ring is adequately...

Q:

How is LVMH attempting to unlock value at Tiffany? -by leveraging and transferring Tiffany's competencies into its organization -by opening super high-end Tiffany stores in USA and Canada -by...

Q:

Case13 Blue Nile, Inc. "Stuck in the Middle" of the Diamond Engagement Ring Market Alan N. Hoffman Bentley University Built on the premise of making engagement ring selection simpler, Blue Nile, Inc....

Q:

On January 1, 2009, Cermack National Bank loaned $5,000,000 under a two-year, zero coupon note to a real estate developer. The bank recognized interest revenue on this note of approximately $400,000...

Q:

Suppose that =1 = -3 and y = -2 when x = 1. What is the approximate value of when x = 0.99? () 2.03 (b) 1.97 () 5 (d) 0.03 (e) none of these

Q:

In a defensive climate, workers communicate to strategically control others and reinforce company hierarchy True False

Q:

What is the purpose of organizational communication? Regarding this form of communication, please answer the following questions: a. What are the advantages and disadvantages of the various types of...

Q:

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I), and a levered plan (Plan II). Under Plan I, Kyle would have 700,000 shares of stock outstanding. Under...

Q:

Discuss the role of personal selling in the promotion mix. In what situations is it more effective than advertising?

Q:

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 900,000 shares of stock outstanding. Under Plan...

Q:

Anteium Company owes $80,000 on a note payable that is currently due. The note is held by a local bank and is secured by a mortgage lien attached to three acres of land worth $48,000. The land...

Q:

Summarise the disclosure requirements related to fundraising. 1 List the five main types of disclosure documents in order from least information to most informative. 2 What is meant by the term...

Q:

If the Japanese yenU.S. dollar exchange rate is 104.30> $, and it takes 25.15 Thai bahts to purchase 1 dollar, what is the yen price of the baht?

Q:

As a foreign exchange trader, you see the following quotes for Canadian dollars (CAD), U.S. dollars (USD), and Mexican pesos (MXN): USD0.7047/ CAD, MXN6.4390/CAD, and MXN8.7535/USD. Is there an...

Q:

The Mexican peso has weakened considerably relative to the dollar, and you are trying to decide whether this is a good time to invest in Mexico. Suppose the current exchange rate of the Mexican peso...

Q:

Hello, can this be answered before 12:00am Calvert Corporation expects an EBIT of $25,700 every year forever. The company currently has no debt, and its cost of equity is 15.5 percent. The company...

Q:

Suppose you buy a 8 percent coupon, 19-year bond today when it's first issued. If interest rates suddenly rise to 4 percent, the value of your bond . Will increase Will decrease Will stay the same...

Q:

:=3F ExIASM Homework - Unanswered - Due Nov 1st, 11:59 PM The present value of a perpetuity-due with annual payments of 1,000 is 39,610.04. Determine i. (use a percentage number, rounded to the...