Homeowners Insurance Jewelry Coverage
help me with my personal finance hw?
I need to answer this question. and im SO confused.
Last year, Steve and Jessica Moran bought a home with a dwelling replacement value of $250,000 and insured it (via an HO-3 policy) for $210,000. The policy reimburses for actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a 2 year old television set with a current replacement value of $600 and an estimated useful life of 8 years. They also took jewelry valued at $1,850 and silver flatware valued at $3,000.
Questions: If the Morgan’s policy has an 80% coinsurance clause, do they have enough insurance?
Assuming a 50% coverage C limit, calculate how much the Morgans would receive if they filed a claim for the stolen items.
What advice would you give the Morgans about their homeowner’s coverage?
Do the math and see if they meet the 80% coinsurance clause. That’s easy.
Review the standard limits coverage for Coverage C items. It will probably limit cash to $500 and silver to the same but I don’t have one to refer to. It should be in your text.
Then add up the values allowed and subtract the deductible. If this type policy requires depreciated value for the TV rather than replacement value, you’ll need to do that math, too.
Ask The Insurance Agent Part 2 – Jewelry coverage… My engagement ring needs extra insurance?
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