Mr. Han has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage, and a $500 deductible. The dwelling is 50% depreciated. Sewage backs up into the basement and destroys the furnace, which will cost $8,000 to replace. How much of the damage insurer pays to Han? Provide explanation to your answer.
Mr. Han has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage, and a $500 deductible. The dwelling is 50% depreciated. Sewage backs up into the basement and destroys the furnace, which will cost $8,000 to replace. How much of the damage insurer pays to Han? Provide explanation to your answer.
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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Transcribed Image Text:Mr. Han has an HO-3 contract with $100,000
dwelling coverage, $50,000 personal
property coverage, and a $500 deductible.
The dwelling is 50% depreciated. Sewage
backs up into the basement and destroys the
furnace, which will cost $8,000 to replace.
How much of the damage insurer pays to
Han? Provide explanation to your answer.
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