Insuring a Standard HomeDeborah is the owner of a 2-year-old home and is looking to buy a homeowner's insurance policy. She is primarily concerned about getting protectionfrom standard property-damaging perils that she has no way of preventing (those due to fire, vandalism, windstorms, and so forth) and lessconcerned about damages that she feels she can prevent through frequent maintenance (those caused by malfunctioning of internal structures such asair conditioning or plumbing). Based on the peril coverage it offers, she should purchase aninsurance policy.Her home has a replacement value of $200,000; therefore, she insures her home for the standard minimum legal requirement of $Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollarvalue of reimbursement she can receive for each of the following:Damage to personal property:$Detached buildings:$Additional living expenses:$Comprehensive personal liability:$

c. Damage to Personal Property:HO-1 policies typically cover damage to personal property caused by…

Answered: Insuring a Standard Home Deborah is the…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter11: Planning For Health Care Expenses

Section: Chapter Questions

Problem 2FPC

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Eleanor is the owner of a 15-year-old home, and is looking to buy a homeowner’s insurance policy. She feels it would be overly cautious to purchase protection from all perils, but in addition to protection from fire, vandalism, windstorms, and so on, she also wants insurance for damage caused by malfunctioning of internal structures like air conditioning or plumbing. Based on the peril coverage it offers, she purchases an _________ insurance policy. Her home has a replacement value of $250,000, therefore she insures her home for the minimum legal requirement of __________________. Assuming she does not purchase any additional coverage beyond the legal minimums, complete the following table indicating the maximum dollar value of reimbursement she can receive for each of the following: Damage to personal property: $ _____________________ Detached buildings: $_____________________ Loss of Use (Additional living expenses): $____________________ Property…
Juanita is the owner of a 30-year-old home, and is looking to buy a homeowner’s insurance policy. The previous home she owned was severely damaged by a tree falling through the roof, a peril that was not covered by her basic-form policy, therefore she is looking to buy a comprehensive policy that covers damage from all perils (except those specifically excluded). Based on the peril coverage it offers, she purchases an insurance policy.
Which of the following situations describes a risk exposure that can be most appropriately insured against with an individual disability income policy? A)A self-employed bookkeeper earns $40,000 a year out of a small office located in her neighborhood, and wants to protect her income. B)A lawyer wants to make sure his business overhead expenses are covered if he becomes disabled. C)A couple with a military retirement income manages a self-storage business, and they are compensated with a place to live that is on the premises of the business. D)An accountant's spouse owns the building in which the accounting office is located. All of the practice’s income is used to pay rent and other business expenses, so the accountant has no compensation from the business.
Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future? A) Purchase renter's insurance and add a personal articles floater. B) Take out personal property replacement cost coverage. C) Take a written and video tape inventory of your property. D) Only B and C above E) A, B, and C above
Can you help me with some tips Question? Imagine you are a deciding Judge for the following scenario. Decide who should win the case including the reasoning for the decision? 1. Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused “by or through an earthquake.” When an earthquake struck, Chip’s house suffered no fire damage but the earthquake caused a building some blocks away to catch on fire. That fire ultimately spread to Chip’s house, burning it down. 2. Is Insurance Co. liable to Chip? 3. Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been no earthquake, Chip’s house would still be standing. The policy does not cover his loss. Argument for Chip: His house was not damaged by an earthquake, it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.
Felix is a property claims adjuster for a large property insurer. Janet is a policyholder who recently notified the company that the roof of her home incurred substantial damage because of a recent hailstorm. Janet owns her home and has a standard Homeowner's policy with no special endorsements. What questions should Felix ask before the claim is approved for payment by his company.
Antoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had homeowner's insurance, what was the probable reason he was not covered? A) His home was probably too expensive. B) His policy excluded flood-related damages. C) This is a personal liability issue. D) Older homes are excluded from flood-related damages. 29) Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.
21) Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future? A) Purchase renter's insurance and add a personal articles floater. B) Take out personal property replacement cost coverage. C) Take a written and video tape inventory of your property. D) Only B and C above E) A, B, and C above 22) Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move? A) Section I coverage C, $350 B) Section I coverage C, $700 C) Section I coverage D, $350 D) Section I coverage D, $700 E) Section II coverage, $350 23) On your home owners policy ________ protects any personal property that's owned or used by the…
An insured is purchasing a Building and Personal Property Coverage Form (BPP) to cover her business. She asks the agent to explain how her property will be valued in the event of a loss. Which one of the following statements made by her agent accurately describes how the covered property will be valued in the event of loss? The insurer is obligated to pay replacement cost regardless of whether or not the property has actually been repaired or replaced. The insurer is obligated to pay the cost to replace the damaged or destroyed property with new property of like kind and quality without any deduction for depreciation or obsolescence. Insurers underwrite the coverage carefully because some items that can be difficult to value, such as manuscripts, works of art, antiques, and rare articles, are covered for replacement cost. If the insured elects to accept an ACV claim settlement, the insured is barred from later requesting payment of replacement cost.
Chris, a good buddy or yours, is learning about personal automobile policies. He just received his policy from the insurance company. There is an item listed that he wants to take off because he doesn't think he needs it. This coverage will provide additional coverage that will pay his medical and property damage expenses above what someone else's policy pays. What policy is he referring to and does he need it? Question 6 options: Uninsured Motorist Coverage / No Uninsured Motorist Coverage / Yes Comprehensive Insurance / No Comprehensive Insurance / Yes Give typing answer with explanation and conclusion
Graduate students Romeo and Juliet settled into an apartment close to the school. Juliet wants to purchase renter's insurance, but Romeo believes they don't need it because their stuff isn't very valuable. They have some pricey computers and sound equipment, among other things, Juliet points out. To assist the Romeo in solving their problem, offer them some options for obtaining a policy, and recommend a strategy for choosing how much insurance to purchase
Mary owns an older home, which she's looking to sell in the near future. She's worried that there may be asbestos located throughout the house, so she decides to hire a professional to test for and remove any asbestos found. Where may asbestos be found in Mary's house? O Roofing shingles, floor tiles, and wall insulation. O Exterior paint, windows, and roof rafters. O Any wood stud partition wall. O Foundation walls and floor joists.

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