Eric and Susan just purchased their first home, which cost $146,000. They purchased a homeowner's policy to insure the home for $136,000 and personal property for $83,000. They declined any coverage for additional living expenses. The deductible for the policy is $500. Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $21,000. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $480. Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof? Insurance covered amount

Eric and Susan just purchased their first home, which cost $146,000. They purchased a homeowner's policy to insure the home for $136,000 and personal property for $83,000. They declined any coverage for additional living expenses. The deductible for the policy is $500. Soon after Eric and Susan moved into their new home, a strong windstorm caused damage to their roof. They reported the roof damage to be $21,000. While the roof was under repair, the couple had to live in a nearby hotel for three days. The hotel bill amounted to $480. Assuming the insurance company settles claims using the replacement value method, what amount will the insurance company pay for the damages to the roof? Insurance covered amount

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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