Assume Leslie Lenard owns the ISO HO-3 policy described in this chapter. The limits are as follows:
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Question:
Assume Leslie Lenard owns the ISO HO-3 policy described in this chapter. The limits are as follows:
A = $250,000
B = $25,000
C = $125,000
D = $75,000
E = $100,000
F = $1,000
The replacement cost of Ashley’s home is $260,000, the contents are valued at $120,000,
Your assignment is to compute the amount Ashley will collect in each of the following circumstances. (Assume each event occurs separately.) Be sure to state the coverages A,B,C,D,E,or F and the amount of money that would be paid.
- Leslie’s house and all its contents are destroyed by a fire. It takes 6 months to rebuild the home, and Ashley’s additional living expenses amount to $22,000.
- Leslie’s unattached garage burns, destroying the garage (damage = $20,000) , the lawn-care equipment inside (damage = $2,500) ,and her car (ACV=15,000)
- There is a blizzard in the winter. The weight of ice and snow causes $30,000 damage to her home. It costs her an additional $225 a day for 30 days for her family to live in a hotel while her home is being repaired. Her mortgage is $1,500 a month. It costs her family $100 a day to eat out while meals at home cost $30 a day. Her 15 year old son slips on the ice on the driveway and sprains his ankle. The emergency room visit costs 1,200.
- Leslie’s husband Robert is burning leaves in the backyard and causes his neighbor's house to burn. A judgment is made for $150,000. Legal expenses are $30,000.
- Leslie has guests at her house . A guest trips on the stairs and breaks her leg. The guest has a judgment against Leslie for $12,000 medical expenses, $5,000 in lost wages, and $30,000 for pain and suffering. It costs an additional $15,000 to provide Leslie with a legal defense.
- While her 22 year old son, Alex, a full-time student, is on vacation his watch (ACV=$200), passport, and $500 cash is stolen from his dorm room. It costs him $500 to get his passport replaced.
- Sewage backs up into Leslie’s basement. The damage to the floor is $6,000. The contents in the basement that are destroyed have an ACV=$5,000.
- Leslie is taking care of 5 children at her house. The parents of each child pays her $500 a month to care for the child. One of the children suffers from food poisoning and the parents successfully get a judgment against Ashley for $20,000.
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