Chapters 13 and 14.docx - Homework Chapter 13 Multirisk Management Contracts Homeowners 1 Bill has a homeowners policy with form HO-3 His home has a

Chapters 13 and 14.docx - Homework Chapter 13 Multirisk...

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Homework - Chapter 13: Multirisk Management Contracts: Homeowners 1. Bill has a homeowners policy with form HO-3. His home has a replacement value of $80,000, and the contents are worth $45,000 at replacement cost or $35,000 at actual cash value. He has a detached greenhouse with heat and humidity control that houses his prized collection of exotic flowers. The flowers are valued at $11,000, and the greenhouse would cost $7,500 to replace at today’s prices. His policy has the following coverages: Dwellings $60,000 Unscheduled personal property $30,000 Personal liability, per occurrence $25,000 A property coverage deductible of $250 per occurrence applies. Analyze each of the following situations in light of the above information. Determine all applicable coverage(s) and limit(s), and explain all factors that might affect the coverage provided by the policy. a. A windstorm causes $20,000 in repair cost damages to the house, and subsequent wind-blown rain causes damage to the contents of the house—$18,000 in replacement cost or $11,000 at actual cash value. The greenhouse is a total loss, as are the exotic plants. Debris removal of the greenhouse to satisfy the city’s health laws costs $350, and further debris removal to clear the way for repairs costs another $280. Two maple trees valued at $600 each are blown down, and their removal costs another $400. Bill must move his family to a nearby rental home for two months while repairs are made to the house.
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  • Fall '19
  • actual cash value, Barney, Insurance terms, following coverages

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