Jonathan bought a house for $450,000 three years ago; at the time, he purchased a $400,000 homeowner's insurance policy. He kept the same policy since then, even though the replacement cost of the home is now $675,000. If Jonathan suffers a $85,000 loss to the home, what percentage of the loss would be covered by this policy? O 81.39% 64.91% 86.65% 56.17% O 74.07%
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- Please help me understand this question?Kevin recently purchased a board form HO-2 policy with no deductible. The policy value is $174,000. A year later, his roof is damaged by vandalism and he suffers a loss of $139,200. If the replacement value of Kevin’s house is $290,000 and the insurance policy includes a replacement cost requirement of 80%, he will receive a reimbursementLO.2 Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness. After paying $18,300 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $125,000. When Alfred died 18 months later, the company collected the face amount of the policy, $150,000. As a result of the sale of the policy, how much is Alfred required to include in his gross income?Howie Homeowner has owned his home for 8 years. He purchased it for $250,000 and the insurance company required a policy with 80% minimum coverage so Howie bought a $200,000 HO-3 homeowner's insurance policy. He has a $2,500 deductible on his policy. He still owns that policy, even though the replacement cost of the home is now $320,000. If Howie suffer a $40,000 fire loss to the home, what is the dollar amount: 1. The loss that would be covered by his policy (paid by the insurance company) 2. The amount Howie must pay out of pocket 1) $29,297; 2) $10,703 1) $31,250; 2) $2,500 1) $40,000; 2) 0 1) $37,500; 2) $2,500 1) $20,000; 2) $20,000
- Will purchased a home for $350,000 five years ago. He did significant renovations and additions increasing the value to $425,000. He forgot to update his original policy limits of $280,000. He incurred a $100,000 loss by fire. He has a $2,500 deductible. How much will he be responsible for after accounting for the amount his insurer will pay? In other words, how much of the loss will his insurer not pay?Barbara has homeowner’s insurance with $100001 face amount.She recently incurred fire damage of $50000 during the policy period. If the insurer values the home to be $150000, what would her insurance benefit before the deductible? Choices: $33334 $100000 $0 $50001Andre has an unendorsed HO-3 policy. His roof is torn off by a tornado. His limit on Coverage A is $100,000. RC of the roof is $25,000, and ACV of the roof is $22,000. RC of the covered contents damaged is $65,000, and ACV of the contents is $55,000. Ignoring the effect of any deductible, how much will his insurer pay for this loss? Please show your work.
- When Carolina's house burned down, she lost household items worth a total of $55,000. Her house was insured for $160,000 and her homeowner's policy provided coverage for personal belongings up to 55 percent of the insured value of the house. (a) Calculate how much insurance coverage Carolina's policy provides for her personal possessions. Amount of insurance coverage (b) Will Carolina be reimbursed in full for her household items? O Yes O NoMr. Ali purchased a fire insurance policy with a Sum Assured RO. 10,000. The value of his house is RO 20,000. A fire happened in his house and the estimated loss is RO 15,000. How much Mr. A can claim from the insurance company?34. Two years ago, your client, Tim, purchased a $100,000 whole life insurance policy on the life of his wife. He has made all of the premium payments from his separate checking account. The beneficiary of the policy is their only child. If Tim dies within the next few months, what is the value of the policy that will be included in his gross estate? A) The cash surrender value of the policy because he will have purchased the policy within three years of his death B) The full death benefit value of the policy because the proceeds are paid to a family member C) The face value of the policy because he paid the premiums from his separate checking account D) The replacement value of the policy because he will have an incident of ownership at death
- Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the amount of $200,000, and therefore does not meet the 80% rule. If Mary's deductible is $3,000 and a BBQ fire caused $75,000 worth of damage, how much will Mary have to pay herself?Sam (Jessica's husband) home has a replacement value with a deductible. A couple of years ago he insured his home and the coverage never increased, even though the policy required coverage of 80% of the replacement cost. Last month, he had a kitchen fire, which caused damages. Step 1: Calculate the Total Amount Reimbursed Step 2: What is the % she will pay? (1 minus the % amount covered) Amount of Loss - $75,000 Deductible - $500 Amount of Insurance Actually Carried - $150,000 % Percentage Amount Needed - 80% Replacement Value - $200,000The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a quarter for this purpose and expects to earn APR of 7.65 percent. How long will it be until the family can purchase a home? 13.45 years 14.11 years 14.85 years 59.39 years 56.43 years