Steve and Charlene have an HO-3 policy (replacement value and open perils endorsement) with a $250...

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Steve and Charlene have an HO-3 policy (replacement value and open perils endorsement) with a $250 deductible, a dwelling value of $500,000, an 80% coinsurance requirement, and a currently yearly premium of $3,200. There is a $200,000 liability coverage per occurrence. The home is worth $675,000 and the separate land value is worth $200,000 for a total of $875,000. What is your recommendation to Steve and Charlene given the tables below based on what will it cost them if they raise the deductible to $2,000 and increase the coverage to $675,000, with an 90% coinsurance requirement. In addition, what will it cost them to satisfy the private liability umbrella policy (PLUP) carrier requirement to increase the liability insurance to $2,000,000. Homeowners Insurance • HO2 per $100,000 dwelling use $50/month • HO3 per $100,000 dwelling use $60/month ($2000 deductible) • HO3 endorsed for "open perils and RV" use $200 per year • HO4 per $25,000 coverage use $20/month • HO6 per $25,000 coverage use $40/month • All homeowners policies assume a $500 deductible unless otherwise stated Personal Liability Umbrella Policy (PLUP) • $1,000,000 use $250 per year • $2,000,000 use $350 per year $3,000,000 use $400 per year • $4,000,000 use $450 per year Steve and Charlene have an HO-3 policy (replacement value and open perils endorsement) with a $250 deductible, a dwelling value of $500,000, an 80% coinsurance requirement, and a currently yearly premium of $3,200. There is a $200,000 liability coverage per occurrence. The home is worth $675,000 and the separate land value is worth $200,000 for a total of $875,000. What is your recommendation to Steve and Charlene given the tables below based on what will it cost them if they raise the deductible to $2,000 and increase the coverage to $675,000, with an 90% coinsurance requirement. In addition, what will it cost them to satisfy the private liability umbrella policy (PLUP) carrier requirement to increase the liability insurance to $2,000,000. Homeowners Insurance • HO2 per $100,000 dwelling use $50/month • HO3 per $100,000 dwelling use $60/month ($2000 deductible) • HO3 endorsed for "open perils and RV" use $200 per year • HO4 per $25,000 coverage use $20/month • HO6 per $25,000 coverage use $40/month • All homeowners policies assume a $500 deductible unless otherwise stated Personal Liability Umbrella Policy (PLUP) • $1,000,000 use $250 per year • $2,000,000 use $350 per year $3,000,000 use $400 per year • $4,000,000 use $450 per year

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