Home with dwelling replacement value

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Reference no: EM131900683

Last year, Brett and Amber Walsh bought a home with a dwelling replacement value of $300,000 and insured it (via an HO-5 policy) for $243,000. 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 4-year-old television set with a current replacement value of $900 and an estimated useful life of 6 years. They also took jewelry valued at $1,800 and silver flatware valued at $3,700.

1. If the Walsh's policy has an 80% co-insurance clause, do they have enough insurance?

2. Assuming a 50% coverage C limit, calculate how much the Walshes would receive if they filed a claim for the stolen items. Do not round intermediate calculations. Round the answer to two decimal places.

Reference no: EM131900683

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