Chapter 10 Financial Planning Exercise 2 Evaluating homeowner's policy coverage Last year, Brett and Amber Walsh bought a home with a dwelling replacement value of $200,000 and insured it (via an H0-5 policy) for $164,000. The policy reimburses for actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a 4-year-old television set with a current replacement value of $1,500 and an estimated useful life of 6 years. They also took jewelry valued at $3,200 and silver flatware valued at $2,700. a. If the Walsh's policy has an 80% co-insurance clause, do they have enough insurance? Yes b. Assuming a 50% coverage C limit, calculate how much the Walshes would receive if they filed a claim for the stolen items. Do not round intermediate calculations. Round the answer to two decimal places. $ C. What advice would you give the Walshes about their homeowner's coverage? Feedback Check My Work Partially correct