Question: Why is it important to insure your dwelling for at least 80 percent of its replacement cost? How does the coinsurance clause operate?

Why is it important to insure your dwelling for at least 80 percent of its replacement cost? How does the coinsurance clause operate?

Step by Step Solution

★★★★★

3.35 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The coinsurance clause requires the homeowner to provide coinsurance when the ... View full answer

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

Document Format (1 attachment)

Word file Icon

432-B-A-L (4876).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

a. Why is it important to keep paid-in capital separate from earned capital? b. As an investor, is paid-in or earned capital more important? Why? c. As an investor, are basic or diluted earnings per...

Q:

Why is it important to have separate sales returns and allowances and sales discounts accounts? Wouldnt it be much easier to directly reduce the sales revenue account for these adjustments?

Q:

Why is it important to use systems analysis and design methodologies when building a system? Why not just build the system in whatever way seems to be quick and easy? What value is provided by using...

Q:

The Section I Conditions of the Homeowners 3 policy deal with the payment of losses to an insured. The coinsurance formula referred to in the answers is: amount of insurance carried 80% replacement...

Q:

Helen Caldicott raises a family and then begins a career as a caterer. As her business grows, she hires several employees and rents space near downtown that has a retail space, parking, and a garage...

Q:

Instructor: Prof. Jia Liu Name 1. Please state the three aspects of a vehicle purchase that should be negotiated? In what order? (Explain your answer in detail). (10 pts) 2. Rent vs. Buy. Alex has...

Q:

Which of the following statements are true about the RCBAP coinsurance clause? A . It only applies to building coverage. B . The building must be insured to at least 8 0 % of the full replacement...

Q:

your insurance policy's coinsurance clause requires you to insure for at least 80% ($800,000) of the replacement cost ($1 million) of your building. However, you want a lower premium so you insure...

Q:

Business math 42. Randy's store is valued at $120,000. He insured it for $100,000 under a policy containing an 80% coinsurance clause. If a re causes a $20,000 loss to the store, how much does Randy...

Q:

eco105 A risk-averse invertor with W, to invest has two sets available. One is risk fr and pays a return p, while the other is risky and pays & random return of r. Assume that the investor chooses a,...

Q:

Verify that the following pdfs have the indicated hazard functions (see Exercise 3.25). (a) If T ~ exponential(β), then hÐ(t) = 1/0. (b) If T ~ Weibull(γ, β),...

Q:

Briey explains why it is more efcient to extract vanillin from an organic solution using an aqueous solution containing KHCO3 at a concentration of 0.5 M, rather than pure water.

Q:

0 heotulaleniret Qubuten 1 7 - Conetpst Asseswment 2 - Conrect Assessment 2 ( i ) Help Save 8 Exit Submit Which step in securing customer data ensures proper management of firewalls and routers?...

Q:

explain the disadvantages of a callable and prepayable security to an investor.

Q:

Your firm has an average collection period of 29 days. Current practice is to factor all receivables immediately at a 1.25 percent discount. What is the effective cost of borrowing in this case?...

Q:

Iron Man Products has projected the following sales for the coming year: Sales in the year following this one are projected to be 15 percent greater in each quarter. a. Calculate payments to...

Q:

The Torrey Pine Corporations purchases from suppliers in a quarter are equal to 75 percent of the next quarters forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20...

Q:

A poll reported that 62% of adults were solisted with the others were on Septed a wonder (a) through (e) below In 100 randomly sampled survey of 15 dots, exactly out of the 15 dus word erpecid to be...

Q:

Effective income tax rate 50% After-tax MARR 12% EOY BTCF Depreciation Taxable Income Income Taxes ATCF 0 $ (95,000.00) - - - $ (95,000.00) 1 $ 37,000.00 $ 23,750.00 $ 13,250.00 -$6,625.00 $...

Q:

You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your office. He is interested in an 8-year loan to expand the company's operations....