Eric and Susan just purchased their first home, which cost $136,000. They purchased a homeowner's policy to
Fantastic news! We've Found the answer you've been seeking!
Question:
- Eric and Susan just purchased their first home, which cost $136,000. They purchased a homeowner's policy to insure the home for $126,000 and personal property for $78,000. They declined any coverage for additional living expenses. The deductible for the policy is $500. Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $18,500. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $380.
- Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof?
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Posted Date: