Carmen Viers lost everything to a fire and has spent the last eight weeks living
ID: 2793371 • 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 $6,525. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $435, 278. Prior to the loss, her home was valued at $480,000 her detached garage and poolhouse were valued at $52,073, and her personal property had an actual cash value of $188,032. 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?
Question- 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
a.) Total loss due to lightining strike:
Home: $480,000
Detached garnage and poolhouse: $52073
Personal Property: $188,032
Total loss due to injuries: $10,000
Greyhound dogs: $18,000
Total Loss: $480,000 + $52073 + $188,032 + $10,000 + $18,000 = $748,105
Since the cost of dwelling is more thank amount insured i.e $435,278.
Carmen is eligible to get full amount minus deductibles i.e. $435,278 - $1,000 = $434,278