Carmen Viers lost everything to a fire and has spent the last eight weeks living
ID: 2796650 • 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 $6,459. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $312,561. Prior to the loss, her home was valued at $346,000 her detached garage and poolhouse were valued at $43,224 and her personal property had an actual cash value of $96,050. 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
Covered Item
Amount of coverage
Additional Expenses on living in a Motel
$6,459
Dwelling : Appraised value = $346,000 Coverage under policy $ 312,561 % of coverage 90.34% - paid upto coverage amount
$312,561
Detached garage and Pool House Value $ 43,224
Coverage is limited to 10% of main dwelling or actual whichever is less– Min (10% * $312561,$43224)= Min ($31256.1, $43224)
$31,256.10
Personal Property – Cash Value $ 96,050
Coverage limited to 50% of Dwelling or actual value whichever is less Min (50%*$312561, $96050) = Min ($156280.5, $96050)
$96,050
Injuries sustained by policy holder trying to save her pets
NIL
Total Amount
$446,326.10
Less : Deductible
$1000
Total amount which can be reimbursed
$445,326.10
Covered Item
Amount of coverage
Additional Expenses on living in a Motel
$6,459
Dwelling : Appraised value = $346,000 Coverage under policy $ 312,561 % of coverage 90.34% - paid upto coverage amount
$312,561
Detached garage and Pool House Value $ 43,224
Coverage is limited to 10% of main dwelling or actual whichever is less– Min (10% * $312561,$43224)= Min ($31256.1, $43224)
$31,256.10
Personal Property – Cash Value $ 96,050
Coverage limited to 50% of Dwelling or actual value whichever is less Min (50%*$312561, $96050) = Min ($156280.5, $96050)
$96,050
Injuries sustained by policy holder trying to save her pets
NIL
Total Amount
$446,326.10
Less : Deductible
$1000
Total amount which can be reimbursed
$445,326.10