Question

5. John and Sylvia Smith have an ML3 Homeowner's Policy with a limit of $300,000 on the dwelling. There are no added endorsements except for a Personal Injury Liability. Endorsement. 5a. Based upon the dwelling amount how much coverage do they have for: (3 points) a. Other structures b. Contents c. Additional Living Expense/ Loss of Use Their Homeowner's Section I deductible is $500. Their Personal Liability Limit is $300,000. The Medical Payments Limit is $5,000. Based upon the above information and calculations, how much would be paid under the following situations. a. An overheated fry pan is removed from the stove and placed on the kitchen counter. The counter is scorched and it will cost $2,500 to replace the entire counter. ( 3points) b. Their dog escapes from their fenced-in yard and bites a neighbor who lives two houses from the premise of John and Sylvia. The neighbor sues for $60,000. (3 points) c. A nearby creek overflows during a severe storm and floods the Smith's basement causing $15,000. In flood damage. (3 points)

Answer 1

Answer: Given data: → John and sylvia smith have an ML3 Home owner's policy. With a limit of $ 3,00.000 → These ade no added endorsements except for a personal injvay liability. → Homne owner's section deduction is $500. s personal liability is $ 3,00.000 (limit) → Medical payments limit is $5000. A) Given data: → An overheated fry pan is removed from the stove and placed on the kitchen counter → The counter is scorched. → It will cost $2500 to replace the entire counter Answers → According to the given case the Pan is overheated and placed on the kitchen counter and it was damaged

> have an ML3 John and sylvia smith Home ownevis policy. Therefore, they can Coverage of amounts claim dwelling to $ 2500 Bj Given data. * The dog escapes from theisy fenced. in- yard and bites a neighbour → who lives two houses away from - the premises of John and sylvia. → The neighbouer sues for $60,000. Answear → According to the given case, a dog bites the neighbour Of John and sylvia smith → Away from two houses from theios poremises → John and sylvia are personally liable because, the neighbours Grote R were face difficulty from their dog Therefore, John and sylvia were liable to pay $ 60,000 to the neighbour → personal liability.

c) Given data: > A nearby creek Overflows during a Severe stoom → flood's causing the damage amounts to $15.000 Answer! > Accouding to the given case Creek overflow during a severe starm and floods. → the basement of smith causing a damage Of $15,000 + Theorefore, it is a natural calanity → we can claim insurance of $15.000 from the loss caused 5a) Based upon the dwelling amounts Smith's and John can get coverage as: a. otheon Structures - $15.000 [damage of basement) odeduction o contents: $ 2000 ($2500 - $500) home (damage of Kitchen counter] policy. C. Additional living expense I loss $ 60,000 (for dog bite of neighbous It comes under personal liability. I owners