Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of ​$4,597. Her​ dwelling, which was destroyed as a result of a lightning​ strike, was insured with an​ HO-2 policy for ​$357 ,791. Prior to the​ loss, her home was valued at ​$392,000​, her detached garage and poolhouse were valued at ​$50,687​, and her personal property had an actual cash value of ​$142,261. To make matters worse she sustained​ $10,000 in injuries while trying  without success to save her three Greyhound dogs valued at​ $6,000 each. How much of her total losses and expenses will be reimbursed if she has a​ $1,000 deductible

To determine how much Carmen Viers will be reimbursed, we need to analyze her losses and expenses, taking into account the insurance policy limits, deductibles, and the type of coverage provided by the HO-2 policy.

### Breakdown of Losses and Expenses:

1. **Dwelling Loss:**
   - Insurance coverage for the dwelling: $357,791
   - Value of the dwelling before the loss: $392,000
   - Since the insurance coverage is less than the value, she can claim the full insured amount.
   - Deductible: $1,000

   **Reimbursed amount for dwelling = $357,791 - $1,000 = $356,791**

2. **Detached Garage and Poolhouse:**
   - Value of detached garage and poolhouse: $50,687
   - HO-2 policies typically cover these structures up to 10% of the dwelling’s insured value (if not specifically mentioned otherwise).
   - 10% of $357,791 = $35,779.10
   - Since $35,779.10 is less than the actual value of $50,687, the insurance will pay up to the policy limit of $35,779.10.

   **Reimbursed amount for detached garage and poolhouse = $35,779.10**

3. **Personal Property:**
   - Actual cash value of personal property: $142,261
   - HO-2 policies cover personal property based on its actual cash value.
   - No information about specific limits, so we'll assume the policy fully covers this amount.
   
   **Reimbursed amount for personal property = $142,261**

4. **Living Expenses (Motel):**
   - Cost of living in a motel for eight weeks: $4,597
   - HO-2 policies typically provide coverage for additional living expenses if the home is uninhabitable due to a covered loss. Assuming no specific limit is mentioned, and the expense is reasonable, the full amount should be covered.

   **Reimbursed amount for living expenses = $4,597**

5. **Medical Expenses:**
   - Injury expenses: $10,000
   - HO-2 policies usually have limited coverage for medical payments, often restricted to others and not the policyholder. Therefore, these expenses might not be reimbursed under typical coverage.

   **Reimbursed amount for medical expenses = $0**

6. **Loss of Dogs:**
   - Value of three Greyhound dogs: $6,000 each × 3 = $18,000
   - Pets are generally not covered under HO-2 policies as personal property, so it is unlikely that the insurance would reimburse for this loss.

   **Reimbursed amount for loss of dogs = $0**

### Total Reimbursement:

\[
\text{Total Reimbursement} = 356,791 + 35,779.10 + 142,261 + 4,597 = 539,428.10
\]

### Conclusion:
Carmen Viers will be reimbursed **$539,428.10** for her total losses and expenses, based on the information provided and assuming standard coverage terms of an HO-2 policy.

Would you like further details or clarifications?

### Related Questions:
1. How does an HO-2 policy differ from other types of homeowners' insurance policies?
2. What is the purpose of a deductible in an insurance policy, and how does it affect payouts?
3. Are there any additional coverages that Carmen could have added to ensure reimbursement for the loss of her pets?
4. What is the difference between actual cash value and replacement cost in insurance?
5. How can one determine the appropriate amount of coverage for detached structures?

### Tip:
Always review your insurance policy to understand the limits of coverage, especially for unique or high-value items like pets, collectibles, or structures. Consider adding endorsements if needed.

Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $4,597. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $357,791. Prior to the loss, her home was valued at $392,000, her detached garage and poolhouse were valued at $50,687, and her personal property had an actual cash value of $142,261. To make matters worse she sustained $10,000 in injuries while trying without success to save her three Greyhound dogs valued at $6,000 each. How much of her total losses and expenses will be reimbursed if she has a $1,000 deductible?

Analyze the reimbursement calculation for Carmen Viers, who lost her home and belongings in a fire. Learn how an HO-2 policy covers dwelling losses, personal property, and additional expenses, along with how deductibles and coverage limits impact the total reimbursement. Suitable for students and individuals learning about insurance mathematics.

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