Reference no: EM132037473
Ken and Mary Claire Powell, both age 40, own their own home, with the land valued at $80,000 and the dwelling with a replacement value of $150,000. They have a total net worth of $550,000. They have the following property/liability insurance coverages:
Homeowners Insurance
The Powells currently have an HO-3 policy with a replacement value endorsement on contents. The policy provides open-perils coverage. The deductible is $250, and the premium is $533.60 per year.
The dwelling coverage is $100,000, contents $50,000, and liability $100,000.
Automobile Insurance
The Powells have full coverage on both cars, including:
$100,000 bodily injury for one person
$300,000 bodily injury for all persons
$50,000 property damage
$100,000 uninsured motorist
Deductibles
$500 comprehensive
$1,000 collision
This insurance includes medical payments, car rentals, and towing.
The cost of the auto insurance is $2,123.50 per year because of the number of speeding tickets Mary Claire has received.
The Powells suffer a burglary and lose personal property items purchased for $20,000 and having a replacement value of $27,000. How much will the insurance company pay?
If a fire destroys two-thirds of their house and the loss is $100,000, how much will the insurance company pay?
Do the Powells have adequate liability coverage?
What would you recommend regarding their liability coverage?
While Mary Claire’s car was parked in a parking lot next to a school playground, a young student missed a ball being thrown and it dented the hood of Mary Claire’s car. The damage was estimated to cost $1,840 to repair. How much will the insurer pay?