5. The Smiths are insured under an unendorsed Homeowners 3 policy. The home has a...
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5. The Smiths are insured under an unendorsed Homeowners 3 policy. The home has a current replacement cost of $500,000. The policy contains the following limits and retentions: Coverage A: $350,000 ($5,000 retention)
Coverage B: $25,000 ($2,500 retention)
Coverage C: $200,000 ($2,000 retention)
Coverage D: $100,000 ($1,000 retention)
a. The homes structure (e.g., roof, windows, walls) was severely damaged by a combination of windstorm, lightning, and fire. The replacement cost of restoring everything is $200,000. The actual cash value is $150,000.
1. Coverage Section?
2. Dollar Amount (show your work)?
b. Personal property inside the home (e.g., furniture, appliances, electronics) was damaged by the same event and perils. The Smiths filed a proof-of-loss which itemized recovery at an additional $90,000.
1. Coverage Section?
2. Dollar Amount (show your work)?
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