Question

5Doug s stereo was stolen from his home. The stereo cost $1,500 new but has a replacement cost of ,250 and has suffered $500 depreciation. If Doug has a Homeowners policy that covers losses for personal property for Acy with a $500 deductible, what amount is Doug entitled to recover? a. $200. b. $700. c. $750 d. $1,250. 6. Doug's stereo was stolen from his home. The stereo cost $1,500 new but has a replacement cost of $1,250 and has suffered $500 depreciation. If Doug has a Homeowners policy that covers losses for personal property for Replacement Cost with a $500 deductible, what amount is Doug entitled to recover? a. $200 b. $700. c. $750 d. $1,250 7. Homeowners policies have limits for items such as rare coins and jewelry. Which of the following should an insured homeowner consider obtaining if they have significant investments in these items? a. A personal liability insurance riders. b.A professional liability insurance riders. c.A personal articles floater policy. d. An agreed to value separate policy.

Answer 1

5:

ACV = Replacement Cost - Depreciation = 1250 - 500 = 750
Deductible = 500

Actual Recovery = ACV - Deductible = 750 - 500 = 250

[No option matches, but 250 should be the correct answer]

6. Replacement Cost = 1250
Deductible = 500

Actual Recovery = 1250 - 500 = 750

Hence Option C is correct