Question

Use the table at the right to answer Problems 1 and 2.1. The Kimbroughs' home has a replacement valueof $82,700. They are insuring it for 80% of thereplacement cost.a. What is the amount of insurance?b. What is the amount of coverage forpersonal property?c. What is the amount of coveragefor loss of use?d. What is the amount of coverage for the garage?CoveragePersonal PropertyLoss of UseGarage andOther StructuresPercent ofCoverage50%20%10%

Answer 1

Amount of Insurance= $66,160

Coverage for Personal Property = $33,080

Coverage for Loss of Use = $13,232

Coverage for Garage and Other: $6,616

Replacement value of the home: $82,700

Percentage of insurance: 80%

Percentage breakdown:

Personal property: 50%

Loss of use: 20%

Garage and other: 10%

Amount of Insurance:

Amount of Insurance = Replacement Value ×
`(percentage)/(100)` = 82,700 x
`(80)/(100)` = $66,160

Amount of Coverage for Personal Property:

Coverage for Personal Property=Amount of Insurance×
`(percentage of personal property)/(100)` = 66,160 x
`(60)/(100)` = $33,080

Amount of Coverage for Loss of Use:

Coverage for Loss of Use=Amount of Insurance×
`(percentage)/(100)` = 66,160 x
`(20)/(100)` = $13,232

Amount of Coverage for Garage and Other:

Coverage for Garage and Other=Amount of Insurance×
`(percentage)/(100)`= 66,160 x
`(10)/(100)` = $6,616

Answer 2