Question: Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased,

Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages.

Step 1: Calculate the Total Amount Reimbursed

Step 2: What is the % she will pay? (1 minus the % amount covered)

Amount of Loss - $75,000

Deductible - $500

Amount of Insurance Actually Carried - $150,000

% Percentage Amount Needed - 80%

Replacement Value - $200,000

Step by Step Solution

★★★★★

3.47 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the total amount reimbursed and the percentage Sam will pay follow these steps Step 1 C... View full answer

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!

What new initiatives is Vancity Credit Union undertaking right now for its employees and members?

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...

Due on 05/02/2022 at 11:59 CT Q3 Application Time! Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased,...

Application Time! Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his hame and the coverage never increased, even though the policy required...

Inform your insurance company Q3 Application Time! Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased,...

Application Time! Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required...

The diagram given below represents boiling point composition diagram of solution of component A and B, which is/are incorrect among the following? TA T(K) XB (a) The solution shows negative deviation...

Explain why the contents of a business case might change, depending on the project.

C: 2 - 3 1 Control Requirement. In which of the following independent situations is the Sec. 3 5 1 control requirement met? a . Olive transfers property to Quick Corporation for 7 5 % of Quick stock,...

The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 1.85 percent and on 10-year Treasury bonds is 3.35 percent. Assume that the maturity risk premium is zero. Calculate...

A shirt manufacturer knows that, on the average, 2% of his product will not meet quality specifications. Find the greatest number of shirts constituting a lot that will have, with probability 0.95,...

Coca-Cola Enterprises is the largest bottler of Coca-Cola in North America. The company purchases Coke and Sprite concentrate from The Coca-Cola Company, dilutes and mixes the concentrate with...

Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of...

Why do so many projects end up terminated as a result of termination through starvation? Discuss the role of ego, power, and politics in this form of project termination.

Conglomerates are:Group of answer choicesLarge bureaucracies serving multiple related businessesHighly diversified firms, often created around multiple and unrelated acquisitionsLarge firms, but with...

1. A year ago, George Jetson, from Orbit City, Texas, invested $1000 by buying 100 shares of the Cant Lose Mutual Fund, an aggressive growth no-load mutual fund. George reinvested his dividends, so...

1. Explain how purchasing an umbrella liability insurance policy applies the large-loss principle. 2. Are you preparing for a professional career that might expose you to liability losses? How might...

(a) What advice might Maria give Teresa about managing her student loan debt? (b) If next year Teresa were to consolidate her loans into one loan at 6percent interest, what advice might Maria give...

Given the following null and alternative hypotheses H0: p1 p2 0.0 HA: p1 p2 0.0 and the following sample information Sample 1 Sample 2 n1 60 n2 80 x1 30 x2 24 a. Based on a 0.02 and the...

The following dependent samples were randomly selected. Use the sample data to construct a 95% confidence interval estimate for the population mean paired difference. Sample 1 Sample 2 Sample 1...

The following samples are observations taken from the same elements at two different times: Unit Sample 1 Sample 2 1 15.1 4.8 2 12.3 5.7 3 14.9 6.2 4 17.5 9.4 5 18.1 2.3 6 18.4 4.7 a. Assume that the...