5. Todd has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,000. The replacement cost of the home is $200,000. Indicate the extent to which each of the following losses would be covered under Toddâs Homeowners 3 policy. (Ignore the deductible.)

Lightning strikes the roof of the house and severely damages it. The actual cash value of the damaged roof is $10,000, and it will cost $16,000 to replace the damaged portion. A living room window is broken in a hailstorm. The drapes are water stained and must be replaced. The actual cash value of the damaged drape is $400. Replacement cost is $600.The water heater explodes and damages some household contents. The actual cash value of the damaged property is$2000, and the cost of replacing the property is $3200.

Explanation:

a). The highest point of the house was hurt. It will be made sure about under Part A . The most outrageous proportion of game plan is $120,000. The cash estimation of hardship is $10,000. In this manner, the dollar whole receivable for adversity is $10,000.  

b). The damage of window of the parlor will be made sure about under Part A course of action. The cash estimation of the damages is $400. From this time forward, the dollar proportion of mishap payable is $400.  

c). The damages on account of impact of water radiator will be made sure about under Part C, singular property hurt. The most outrageous proportion of hardship will be half of inclusion A. The most extraordinary proportion of consideration will be $60,000 (half of $120,000). In any case, the genuine cash estimation of the incident is $2,000. In this way, the dollar proportion of setback will be $2,000

Explanation:

Given Data;

The dwelling is insured for $120,000

The replacement cost of the home is $200,000

The question is answered based on home owners 3 policy.

a) All risk form

b)Protection against all perils except flood, earthquake, war and nuclear accident.

1) The sum of $10,000 is the receivable amount  for loss

2)The sum of $400 which is the cash value of damaged drape is the payable loss.

3) The sum of $2000 which is the actual cash value of the damaged property is the payable loss.