Question: Kurt has 2 5 / 5 0 / 2 5 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car

Kurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. The damage to the parked car was $8,900, and the damage to the store was $19,800.
a. What amount will the insurance company pay for the damage?
Amount paid
b. What amount will Kurt have to pay?
Amount paid
Eric and Susan just purchased their first home, which cost $170,000. They purchased a homeowner's policy to insure the home for $160,000 and personal property for $95,000. 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 $27,000. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $720. Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof?
Insurance covered amount
 Kurt has 25/50/25 auto insurance coverage. One evening he lost control

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!