Question

Keith and Dena Diem have personal property coverage with a​ $250 limit on​ currency, a​ $1,000 limit on​ jewelry, and a​ $2,500 limit on​ gold, silver, and pewter. They do not have a personal property floater. If ​$270 ​cash, ​$1,734 of​ jewelry, and ​$1,666 of pewterware were stolen from their​ home, what amount of loss would be covered by their​ homeowner's policy? If the​ Diems' deductible is ​$500​, how much will they receive on their​ claim?

Answer 1

Answer:

Total Claim = $2416

Explanation:

The coverage on the currency = $250

The coverage on the jewelry = $1000

The limit on the gold, pewter, and silver = $2500

The amount that is stolen:

The amount of cash = $270

The worth of jewelry = $1734

Pewterware = $1666

The miximum coverage = 250 + 1000 + 2500 = $3750

Actual loss = 270 + 1734 + 1666 = $3670

Reimbursement amount = 250 + 1000 + 1666 = $2916

Total Claim = Total Amount Covered – Deductible  

Total Claim = $2916 - $500 = $2416