a A windstorm causes 20000 in repair cost damages to the house and subsequent

A a windstorm causes 20000 in repair cost damages to

This preview shows page 2 - 4 out of 5 pages.

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. Rental costs are $600 per month, utilities at the rental house are $150 more per month, and the mortgage payments of $550 per month continue to be payable. It costs Bill another $80 per month to commute to work and to drive his children to school. The telephone company charges him $50 to change his telephone to the rental unit and back to his home again. (Amount of Insurance carried / 80% of replacement cost) × Loss = payment ($30,000 / $60,000) × $25,000 = $12,500 It will cost Bill an additional $5,090 in repairs and fees for the damages to his home. b. After Bill and his family return to their home, faulty wiring installed during repair causes a short and a small fire. All the family clothing has to be washed because of smoke
Image of page 2
Patrick Felder FIN 352 HOMEWORK WEEK 3 Chapter 13, 14, 15 damage, at a cost of $1,200. Repair to the walls requires an additional $4,700. What might be the effect of subrogation in this case? A subrogation action allows your insurance provider to sue the party responsible for your injury on your behalf. Since Bill’s loss was due to faulty wiring, he does have a claim of subrogation against the persons who performed the faulty wiring in his home. Multi-risk Management Contracts - Auto Chapter 14 1 & 7 from Ch. 14 1. What is considered a loss under the liability in the PAP?
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 5 pages?

  • Summer '19
  • Patrick Felder, form policy, Multi-risk Management Contracts, broad form policy

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture