Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy
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Question:
Assume that Sandra Rice owns a HO-3 policy for his home. The limits set in his policy are provided below:
| Type | Coverage A | Coverage B | Coverage C | Coverage D | Coverage E | Coverage F |
|---|---|---|---|---|---|---|
| Limit | $120,000 | $12,000 | $60,000 | $24,000 | $100,000 | $5,000 |
A $350 deductible applies to Section 1, Coverages A, B, and/or C. The replacement cost of Sandra's home is $132,000, the contents are valued at $75,000, and the home is 30 percent depreciated. Compute the amount that Sandra will collect in each of the following circumstances and assume that each event occurs independently. Note: a deductible will only apply if losses are less than the coverage limit.
- A storm ripped through Sandra's neighborhood, destroying her house and all of its belongings. Rebuilding the house will take six months, and Sandra will have to pay an additional $12,000 in living expenses during that time.
Expert Answer:
To calculate the amount that Sandra will collect in this circumstance we need to determine the amount of coverage available for each type of loss and ... View the full answer
Related Book For 
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
