Adonis and Eustacia Andino are planning to buy a $200,000 home near Bethel Corners, New York....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Adonis and Eustacia Andino are planning to buy a $200,000 home near Bethel Corners, New York. The home is in "snow country," about a mile from Lake Ontario and is situated on the Salmon River, which overflows its banks about every two years. They estimate that their personal property is worth $150,000, but they really aren't sure. This includes nearly $25,000 of computer and other electronic equipment, a $20,000 coin collection inherited from Adonis's father, and $40,000 in irreplaceable artwork. The Andinos' net worth, including their current $250,000 home, is about $750,000. The Andinos has asked their insurance agent to find them the best coverage, taking advantage of all possible cost-saving measures. They do not want a lot of out-of-pocket expenses if their home or personal property is damaged or lost, and they want their insurance to keep pace with increasing costs. a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? b. What is the minimum amount of Coverage A that the Andinos should purchase on their new home? What risks do they face if they purchase only the minimum required coverage? How much insurance should they purchase in order to reduce their financial risks? c. Given the value and nature of their personal property and the restrictive Coverage C limits, what other supplemental coverages would you recommend that the Andinos purchase? Document your recommendations in terms of both the protection offered and the cost of the coverage. d. Given the winter snow and ice common to upstate New York, what recommendations would you make for their Section II coverage? e. Should the Andinos buy flood insurance? If so, how do they go about purchasing it? If not, explain why. f. Should the Andinos consider purchasing an umbrella policy? Why or why not? a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? (Select the best answer below.) A. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the least comprehensive form available because it only covers any winter weather perils, such as "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance". The HO-3 provides protection from all winter weather perils on the structure and personal property. B. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers all perils except those that are specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure; however, personal property coverage is limited to the 17 named perils. C. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers any and all perils, even those normally excluded, such as earthquake and war. Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure and personal property. D. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers only the perils that most insurance specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. However, the HO-3 does not provide personal property coverage. b. The minimum amount of insurance required to receive full payment for partial losses is $ (Round to the nearest dollar.) Adonis and Eustacia Andino are planning to buy a $200,000 home near Bethel Corners, New York. The home is in "snow country," about a mile from Lake Ontario and is situated on the Salmon River, which overflows its banks about every two years. They estimate that their personal property is worth $150,000, but they really aren't sure. This includes nearly $25,000 of computer and other electronic equipment, a $20,000 coin collection inherited from Adonis's father, and $40,000 in irreplaceable artwork. The Andinos' net worth, including their current $250,000 home, is about $750,000. The Andinos has asked their insurance agent to find them the best coverage, taking advantage of all possible cost-saving measures. They do not want a lot of out-of-pocket expenses if their home or personal property is damaged or lost, and they want their insurance to keep pace with increasing costs. a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? b. What is the minimum amount of Coverage A that the Andinos should purchase on their new home? What risks do they face if they purchase only the minimum required coverage? How much insurance should they purchase in order to reduce their financial risks? c. Given the value and nature of their personal property and the restrictive Coverage C limits, what other supplemental coverages would you recommend that the Andinos purchase? Document your recommendations in terms of both the protection offered and the cost of the coverage. d. Given the winter snow and ice common to upstate New York, what recommendations would you make for their Section II coverage? e. Should the Andinos buy flood insurance? If so, how do they go about purchasing it? If not, explain why. f. Should the Andinos consider purchasing an umbrella policy? Why or why not? a. What type of homeowner's insurance policy is best for the Andinos? Which covered perils would be of greatest interest living in their location? (Select the best answer below.) A. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the least comprehensive form available because it only covers any winter weather perils, such as "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance". The HO-3 provides protection from all winter weather perils on the structure and personal property. B. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers all perils except those that are specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure; however, personal property coverage is limited to the 17 named perils. C. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers any and all perils, even those normally excluded, such as earthquake and war. Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. The HO-3 provides protection from all perils on the structure and personal property. D. The HO-3 (Special Form) of homeowner's insurance is the best choice for the Andinos. It is the most comprehensive form available because it covers only the perils that most insurance specifically excluded (e.g., flood, earthquake, war, and nuclear accident). Given the winter weather, "weight of ice, snow, or sleet," or "freezing of plumbing, heating, air-conditioning, fire sprinkler, or appliance" may be of particular interest to the Andinos. However, the HO-3 does not provide personal property coverage. b. The minimum amount of insurance required to receive full payment for partial losses is $ (Round to the nearest dollar.)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The e-commerce business in China has entered a golden period, with transaction volume of online trading reaching 21.86 billion yuan (US$2.64 billion) in 2004. With 94 million Internet users, more...
-
The switch in the circuit in figure has been closed for a long time and is opened at t = 0. Find i(t) for t > 0, using Laplacetransforms. 0.5 H i(t) t = 0 12 V 2 F
-
Why do firms have to be careful with cash flow and project life span estimates made by employees?
-
Use the graphs shown to determine whether the sequence of vertices \(d ightarrow b ightarrow c ightarrow f ightarrow e ightarrow d\) is a Hamilton cycle, an Euler circuit, both, or neither. C m n d e...
-
Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2011: On January 1, 2011, Highlight acquired on the...
-
find the values of x,y,z that maximize xyz subject to the contraint 120-x-5y-2z=0
-
Birch Company normally produces and sells 49,000 units of RG-6 each month. The selling price is $30 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $160,000 per...
-
What is the most important sensor on a drone?
-
State the specific audit objectives that apply to the financing cycle.
-
What is the smartest part of a drone?
-
What are three examples of product innovation using robots?
-
What factors pertain to determining the acceptable level of detection risk for long-term debt transactions?
-
When collecting data on behavior frequency, it is important to: A. Rely on the self-report for all data B. Only focus on baseline data that was collected C. Define the behavior operationally D....
-
In the simple quantity theory of money, what will lead to an increase in aggregate demand? In monetarism, what will lead to an increase in aggregate demand?
-
The Effect of Reductions in Inventory Quantities} Hanna Motor Company, one of the country's largest automobile manufacturers, disclosed the following information about its inventory in the notes to...
-
Using the information for Obras, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, days sales uncollected, inventory turnover, days inventory on hand, payables...
-
Using the information for Obras, Inc., in SE 4 and SE 5, compute the profit margin, asset turnover, return on assets, and return on equity for 20x6 and 20x7. In 2005, total assets were $200,000 and...
Study smarter with the SolutionInn App