Daniel owns a house in and last week suffered some damage to his house. Specifically, a...

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Daniel owns a house in and last week suffered some damage to his house. Specifically, a portion of his home was damaged by a fire and the damage to the structure and his personal property is expected to have a replacement cost of $4,000. The same items, which had an original cost of $2,000 when he'd bought them five years ago, had an estimated useful life of ten years. After calling his insurance agent, Daniel was reminded that he carries full insurance on, or 80% of the replacement cost value of the house. However, to save $60 per year in his premium, he'd only covered his possessions for their actual cash value. Given this information, Daniel can expect to receive only in compensation for his loss. In contrast, if he had carried replacement cost, instead of actual cash, coverage, then he would have received Property insurance companies retain several rights and can impose several requirements on its policyholders. Among them are: •After it has paid a claim, the right of the that person's insurance company. This is called the right of •The requirement of which the The for to request reimbursement from either the person who caused the loss or Julien's two insurance policies a policyholder to buy insurance in an amount equal to a specified percentage of of the property. dause, which states that if a person has more than one insurance policy, then each company is liable amount of the loss based on its proportion of the total insurance covering the property. Julien owns a house in Winchester and carries two insurance policies on it. The first policy carries a policy limit of $125,000; the second carries a limit of $95,000, Given a covered loss of $6,000, the first policy will pay a mamum amount of , and the second policy will pay a maximum of Daniel owns a house in and last week suffered some damage to his house. Specifically, a portion of his home was damaged by a fire and the damage to the structure and his personal property is expected to have a replacement cost of $4,000. The same items, which had an original cost of $2,000 when he'd bought them five years ago, had an estimated useful life of ten years. After calling his insurance agent, Daniel was reminded that he carries full insurance on, or 80% of the replacement cost value of the house. However, to save $60 per year in his premium, he'd only covered his possessions for their actual cash value. Given this information, Daniel can expect to receive only in compensation for his loss. In contrast, if he had carried replacement cost, instead of actual cash, coverage, then he would have received Property insurance companies retain several rights and can impose several requirements on its policyholders. Among them are: •After it has paid a claim, the right of the that person's insurance company. This is called the right of •The requirement of which the The for to request reimbursement from either the person who caused the loss or Julien's two insurance policies a policyholder to buy insurance in an amount equal to a specified percentage of of the property. dause, which states that if a person has more than one insurance policy, then each company is liable amount of the loss based on its proportion of the total insurance covering the property. Julien owns a house in Winchester and carries two insurance policies on it. The first policy carries a policy limit of $125,000; the second carries a limit of $95,000, Given a covered loss of $6,000, the first policy will pay a mamum amount of , and the second policy will pay a maximum of

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Daniels Compensation for Loss Daniel can expect to receive only 3200 in compensation for his loss be... View the full answer