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If the market value of your home is $250000, but the replacement cost of the structure is $190000, how much homeowner's insurance should you have?

If the market value of your home is $250000, but the replacement cost of the structure is $190000, how much homeowner's insurance should you have?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If the market value of your home is $250000, but the replacement cost of the structure is $190000, how much homeowner's insurance should you have? • S60000 O $250000 O $190000 O $440000 Kimberly has a homeowner's insurance policy. Her home was broken into, and $5200 worth of possessions were stolen. If her deductible is $2200, how much coverage will her insurance company pay for the loss? O so • $3000 O $5200 O s2200 Dorothy Taylor has a personal auto policy with coverage limits of 20/40/15. Dorothy has collision coverage with a $250 deductible. She runs a red light and causes an auto accident in which three people are injured. Each of them sues her for $19900 in personal injury and $5000 for vehicle damage (there is no injury to Dorothy or her car). How much will Dorothy have to pay out of pocket, and how much will her insurer pay? Dorothy pays $19700 and insurer pays $55000 O Dorothy pays $5000 and insurer pays $59700 O Dorothy pays $0 and insurer pays $64700 O Dorothy pays $19950 and insurer pays 54450
Transcribed Image Text:If the market value of your home is $250000, but the replacement cost of the structure is $190000, how much homeowner's insurance should you have? • S60000 O $250000 O $190000 O $440000 Kimberly has a homeowner's insurance policy. Her home was broken into, and $5200 worth of possessions were stolen. If her deductible is $2200, how much coverage will her insurance company pay for the loss? O so • $3000 O $5200 O s2200 Dorothy Taylor has a personal auto policy with coverage limits of 20/40/15. Dorothy has collision coverage with a $250 deductible. She runs a red light and causes an auto accident in which three people are injured. Each of them sues her for $19900 in personal injury and $5000 for vehicle damage (there is no injury to Dorothy or her car). How much will Dorothy have to pay out of pocket, and how much will her insurer pay? Dorothy pays $19700 and insurer pays $55000 O Dorothy pays $5000 and insurer pays $59700 O Dorothy pays $0 and insurer pays $64700 O Dorothy pays $19950 and insurer pays 54450
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