Carmen Viers lost everything to a fire and has spent the last eight weeks living
ID: 2777038 • Letter: C
Question
Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $9,659. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $388,944. Prior to the loss, her home was valued at $431,000, her detached garage and poolhouse were valued at $51,506, and her personal property had an actual cash value of $169,521. To make matters worse she sustained $10,000 in injuries while trying, unsuccessfully, to save her three Greyhound dogs valued at $6,000 each. How much of her total losses and expenses will be reimbursed if she has a $1,000 deductible? The amount of total losses and expenses she will be reimbursed if she has a $1,000 deductible is (Round to the nearest dollar.)Explanation / Answer
Total amount which can be reimbursed net of $ 1000 deductible is $ 606,018
Covered Item
Amount of coverage
Additional Expenses on living in a Motel
$9,659
Dwelling : Appraised value = $431,000, Coverage under policy $ 388,944 % of coverage 90.24% - paid upto coverage amount
$ 388,944
Detached garage and Pool House Value $ 51,506
Coverage is limited to 10% of main dwelling or actual whichever is less– Min (10% * $388944, $51506)= Min ($38894.40, $51506)
$ 38,894.40
Personal Property – Cash Value $ 169,521
Coverage limited to 50% of Dwelling or actual value whichever is less Min (50%*$388944, $169,521) = Min ($194472, $169521)
$ 169,521
Injuries sustained by policy holder trying to save her pets
Not Covered
Total Amount
$ 607,018.40
Less : Deductible
$ 1000
Total amount which can be reimbursed
$606,018.40
Covered Item
Amount of coverage
Additional Expenses on living in a Motel
$9,659
Dwelling : Appraised value = $431,000, Coverage under policy $ 388,944 % of coverage 90.24% - paid upto coverage amount
$ 388,944
Detached garage and Pool House Value $ 51,506
Coverage is limited to 10% of main dwelling or actual whichever is less– Min (10% * $388944, $51506)= Min ($38894.40, $51506)
$ 38,894.40
Personal Property – Cash Value $ 169,521
Coverage limited to 50% of Dwelling or actual value whichever is less Min (50%*$388944, $169,521) = Min ($194472, $169521)
$ 169,521
Injuries sustained by policy holder trying to save her pets
Not Covered
Total Amount
$ 607,018.40
Less : Deductible
$ 1000
Total amount which can be reimbursed
$606,018.40