Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages. Step 1: Calculate the Total Amount Reimbursed Step 2: What is the % she will pay? (1 minus the % amount covered) Amount of Loss - $75,000 Deductible - $500 Amount of Insurance Actually Carried - $150,000 % Percentage Amount Needed - 80% Replacement Value - $200,000
Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages. Step 1: Calculate the Total Amount Reimbursed Step 2: What is the % she will pay? (1 minus the % amount covered) Amount of Loss - $75,000 Deductible - $500 Amount of Insurance Actually Carried - $150,000 % Percentage Amount Needed - 80% Replacement Value - $200,000
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter10: Protecting Your Property
Section: Chapter Questions
Problem 2FPE: Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and...
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Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages.
Step 1: Calculate the Total Amount Reimbursed
Step 2: What is the % she will pay? (1 minus the % amount covered)
Amount of Loss - $75,000
Deductible - $500
Amount of Insurance Actually Carried - $150,000
% Percentage Amount Needed - 80%
Replacement Value - $200,000
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