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 $270,000 and insured it (via an HOS policy) for $235,000. The policy reimburses for actual cash value and has a $500 deductible, standard ints for coverage 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 $1,400 and an estimated useful life of 7 years. They also took jewelry valued at $2,000 and silver flatware valued at $2,700. a. Ir the Wally policy has an 80% co-insurance cause, 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 tems. 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? blank Marc Rose has a PWP with coverage of $25,000/550,000 for bodily injury liability, $25.000 for property damage liability, $2,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations wil he have any out-of-pocket costs Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "on" wherever required. a. Marc loses control and skids on ice, running into a parked car and causing $2,540 damage to the unoccupled vehide and $3,570 damage to his own car. Total paid by the insurance company $ Mare's out-of-pocket costs $ b. Marc runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $22,000 each. Total paid by the insurance company $ Marc's out-of-pocket costs (for both $ victims) C. Marc's 18-year-old son borrows his car. He backs into a telephone pole and causes $325 damage to the car. Total paid by the insurance company $ Marc's out-of-pocket costs $ 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 $270,000 and insured it (via an HOS policy) for $235,000. The policy reimburses for actual cash value and has a $500 deductible, standard ints for coverage 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 $1,400 and an estimated useful life of 7 years. They also took jewelry valued at $2,000 and silver flatware valued at $2,700. a. Ir the Wally policy has an 80% co-insurance cause, 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 tems. 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? blank Marc Rose has a PWP with coverage of $25,000/550,000 for bodily injury liability, $25.000 for property damage liability, $2,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations wil he have any out-of-pocket costs Round your answer to the whole dollar, if necessary. Leave no cells blank, be sure to enter "on" wherever required. a. Marc loses control and skids on ice, running into a parked car and causing $2,540 damage to the unoccupled vehide and $3,570 damage to his own car. Total paid by the insurance company $ Mare's out-of-pocket costs $ b. Marc runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $22,000 each. Total paid by the insurance company $ Marc's out-of-pocket costs (for both $ victims) C. Marc's 18-year-old son borrows his car. He backs into a telephone pole and causes $325 damage to the car. Total paid by the insurance company $ Marc's out-of-pocket costs $