5. Todd has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,000. The replacement cost of the home is $200,000. Indicate the extent to which each of the following losses would be covered under Toddâs Homeowners 3 policy. (Ignore the deductible.)

Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $10,000, and it will cost $16,000 to replace the damaged portion. A living room window is broken in a hailstorm. The drapes are water stained and must be replaced. The actual cash value of the damaged drape is $400. Replacement cost is $600. The water heater explodes and damages some household contents. The actual cash value of the damaged property is$2000, and the cost of replacing the property is $3200.

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Milton

Business

4 October, 20:55

5. Todd has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,000. The replacement cost of the home is $200,000. Indicate the extent to which each of the following losses would be covered under Toddâs Homeowners 3 policy. (Ignore the deductible.)

Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $10,000, and it will cost $16,000 to replace the damaged portion. A living room window is broken in a hailstorm. The drapes are water stained and must be replaced. The actual cash value of the damaged drape is $400. Replacement cost is $600. The water heater explodes and damages some household contents. The actual cash value of the damaged property is$2000, and the cost of replacing the property is $3200.

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Willow · Answer 1

Given Data;

The dwelling is insured for $120,000

The replacement cost of the home is $200,000

The question is answered based on home owners 3 policy.

a) All risk form

b) Protection against all perils except flood, earthquake, war and nuclear accident.

1) The sum of $10,000 is the receivable amount for loss

2) The sum of $400 which is the cash value of damaged drape is the payable loss.

3) The sum of $2000 which is the actual cash value of the damaged property is the payable loss.