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Case Study #2 Answers

To determine the base amount of coverage on B, C, and D, use the $280,000 of the dwelling coverage (A) as a starting point. Coverage B (other structures) is limited to 10 percent of the dwelling coverage and is calculated as ($280,000 * 10%) = $28,000. Coverage C (personal property) is limited to 50 percent of the home’s coverage and is calculated as $280,000 * 50% = $140,000. And coverage D (loss of use) is limited to 20 percent of the home’s coverage and is calculated as ($280,000 * 20%) = $56,000.

 



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