question 5

Jerry Carter's home is currently valued, on a replacement cost basis, at $461,000. When he last checked his policy, his home was insured for $361,266 and he did not have an inflation guard sement If he has a $40,911 claim due to a kitchen fire, how much will his homeowner's insurance policy pay? How much would be paid if his home were totally destroyed? In order to obtain full replacement coverage much insurance should Jerry cany on his house? If he has a $40,911 claim due to a kitchen fire. his homeowner's policy would pay $ 40075 25 . (Round to the nearest dollar.) How much would be paid if his home were totally destroyed? In order to obtain full replacement coverage, how much insurance should Jerry carry on his house? (Select the best answer below ) O A. If Jerry's home was totally destroyed, the maximum he could collect is $368,800, or 80 percent of the $461,000 current value of the home, He should probably have 100 percent coverage to protect against a total loss of $461,000, and perhaps consider an inflation guard endorsement to protect against future changes in the market value of his home. O B. If Jerry's home was totally destroyed, the maximum he could collect is $361,266, or the face value of his policy. He should maintain at least 80 percent coverage and probably 100 percent coverage to protect against total loss of $461,000, and perhaps consider an inflation guard endorsement to protect against future changes in the market value of his home. O C. If Jerry's home was totally destroyed, the maximum he could collect is $461,000, or 100 percent of the $461,00\\\\ current value of the home. He should probably consider an inflation guard endorsement to protect against future changes in the market value of his home