3)Amber has a Homeowners 3 policy. The dwelling is insured for $70,000 and the replacement cost of the home is $100,000 . Indicate whether or not...

3)          Amber has a Homeowners 3 policy. The dwelling is insured for $70,000 and the replacement cost of the home is $100,000. Indicate whether or not each of the following losses is covered. If possible, determine the dollar amount of the loss that will be covered by Amber's insurance policy. Clearly identify what section of the policy is controlling and why the event is either covered or not covered.

a)          Amber accidently tips over a bucket full of cleaning solution in her second story bedroom, ruining the wall to wall carpet. The actual cash value of the carpet is $1,000 and the replacement cost of the carpet is $2,700. Amber is late for a date, so she doesn't clean up the mess until the next day. By then the chemicals have seeped through the floor and damaged the plank ceiling on the floor below her bedroom. The replacement cost of the ceiling is $1,200 and the actual cash value is $800.

b)          Amber is on vacation, and a thief breaks into her hotel and steals a suitcase containing jewelry appraised at $2,900, $400 cash, clothes with an actual cash value of $800, and a cell phone that Amber had borrowed from her neighbor that's worth $400.

c)           lightning causes a fire in the attic. Damage to the house is extensive. The replacement cost of the damaged part of the house is $35,000 and the actual cash value is $25,000. Amber is forced to move to a furnished apartment for three months while the house is being repaired. She spends $1,100 per month for the apartment

d)          during a windstorm, a mail box with a replacement cost of $2,000 and an actual cash value of $1,000 is destroyed. An elm tree was blown over. It will cost $200 to remove the tree from the property and $150 to replace the tree.

e)          Amber's son is attending college but is home for Christmas break. His television is stolen from his dorm room. The replacement cost of the television is $400, but the actual cash value is only $150. Amber's son admits to police that he left his dorm room unlocked.

f)           Amber goes on vacation with two of her friends. They rent a three bedroom condo in Orlando. Amber has too much to drink one night and starts a fire while trying to light a candle. Damage to the condo itself is $2,000 and damage to the furniture in the condo is $1,000. The actual cash value of the losses are $1,500 and $800 respectively.

g)           A neighbor's child climbs over Amber's fence and is bitten by the family dog. There are "beware of dog" signs on the fence. The child's medical expenses are $450.

h)          Amber's husband accidentally injures another player while playing softball at the local high school. The other player has medical expenses of $1,500.

i)            A fire damages part of a detached garage. The actual cash value of the loss is $7,000 and the replacement cost is $10,000. Part of the garage is rented to a neighbor to park his car. The neighbor pays Amber and her husband $45 per month. It takes two months to get the garage fixed.

k)           Amber's son is smoking heroin in the basement of their home. He falls asleep and starts a fire. The fire damages the following items: antique jewelry worth $5,000 that Amber paid $3,500 for several years earlier. The jewelry is insured on a personal articles policy for $4,000; furniture with a replacement cost of $6,000 and an actual cash value of $2,300; and ceiling beams supporting the first floor. The beams will cost $8,000 to replace and have an actual cash value of $6,000. Until the beams are replaced, the family must eat out every meal, costing $700 per week, when their normal grocery bill at home is only $300 per week. Amber's mortgage payment is $1,500 per month.