Please answer A,B,C,D,E Jack and Jane are married and own a home insured for $15
ID: 2737097 • Letter: P
Question
Please answer A,B,C,D,E
Jack and Jane are married and own a home insured for $150,000 under an unendorsed HO-3 policy. The replacement cost of the home is $250,000. Personal property is insured for $75,000. Jane has jewelry valued at $10,000. Jack has a coin collection valued at $15,000 and a motorboat valued at $20,000. a. Assume you are a financial planner who is asked to evaluate the couple's HO-3 policy. Based on the above facts, do you believe that their present coverages are adequate? If not, make several recommendations for improving the coverage. b. A fire damaged one bedroom of the home. The actual cash value of the loss is $10,000. The cost of repairs is $16,000. How much will the insurer pay for the loss? c. A burglar broke into the home and stole a new television, jewelry, and several paintings. The actual cash value of the stolen property is $4000. The cost of replacing the property is $9000. In addition, the coin collection was taken. Indicate the extent, if any, to which an unendorsed HO-3 policy will cover these losses. d. Assume that Jack and Jane have a disagreement with their insurer concerning the value of the above losses. How would the dispute be resolved under their HO-3 policy? e. Assume that Jane operates an accounting business from her home. Her home business office contains a computer used solely for business, office furniture, file cabinets, and other business personal property. Explain whether her HO-3 policy would cover business personal property used in a home business.Explanation / Answer
Answer:a Based on the given information the couple is insured for $75,000 for personal property but there exist appropriate limits of liability within the policy. The definite limits of coverage of jewellary in the policy are only $1500 and for coin collections it is $200. A recommendation for both would be to receive reasonable coverage for the items would be to schedule and insure the items against a specific amount of insurance.
Answer:b They have insured the house, and the bedroom gets gutted down, then they will get the cost of repairs which is $16000. That is because the replacement cost of the house and the value insured do not meet the 80% threshold.
Answer:c In the case of the burglary, all the items lost such as the television set and the paintings will all be paid at their replacement cost and that will not apply to the cash collection box since the items are to be covered on a named perils basis.
Answer:d According to the appraisal clause, either party can demand that the dispute be resolved by an appraisal. Each party selects a competent and impartial appraiser. The appraisers select an umpire. If they cannot agree on an umpire after 15 days, a judge in a court will appoint one.If the appraisers fail to agree on the amount of the loss, only their differences are submitted to the umpire. An agreement in writing byany two of the three is then binding on both parties.
Answer:e Personal business property owned or used by an insured is covered up to $2500.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.