Stan and Stella are married and own a home insured for $250, 000 (Coverage A limit) under an unendorsed HO-3 policy. The policy period is January 1st Dec. 31st. The non- windstorm deductible is $1,000. The windstorm deductible is 2%. Answer the following question based on the above policy information: Stan and Stella's house is completely destroyed by a hurricane winds on September 1st during Hurricane Chucky. The replacement cost of the home at the time of loss is $250, 000. How much will their insurance company pay them for their damages?
Stan and Stella are married and own a home insured for $250, 000 (Coverage A limit) under an unendorsed HO-3 policy. The policy period is January 1st Dec. 31st. The non- windstorm deductible is $1,000. The windstorm deductible is 2%. Answer the following question based on the above policy information: Stan and Stella's house is completely destroyed by a hurricane winds on September 1st during Hurricane Chucky. The replacement cost of the home at the time of loss is $250, 000. How much will their insurance company pay them for their damages?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 5BCRQ
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Stan and Stella are married and own a home insured for $250, 000 (Coverage A limit) under an unendorsed HO-3 policy. The policy period is January 1st Dec. 31st. The non- windstorm deductible is $1,000. The windstorm deductible is 2%. Answer the following question based on the above policy information: Stan and Stella's house is completely destroyed by a hurricane winds on September 1st during Hurricane Chucky. The replacement cost of the home at the time of loss is $250, 000. How much will their insurance company pay them for their damages?
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