To calculate how much Carmen Viers will be reimbursed for her total losses and expenses, we will break down each aspect of the problem:

Given Information:

• Insurance Policy: HO-2 policy coverage is $407,396.
• Value of Home Before Loss: $495,000.
• Value of Detached Garage and Poolhouse: $62,476.
• Personal Property Actual Cash Value: $184,701.
• Medical Expenses from Injuries: $10,000.
• Value of Dogs: 3 dogs at $6,000 each = $18,000.
• Living Expenses for Motel: $5,908.
• Deductible: $1,000.

Step 1: Dwelling Loss

Carmen's home was valued at $495,000, but the insurance policy coverage is only $407,396. Therefore, the insurance company will cover the maximum amount on the policy: $\text{Covered for dwelling loss} = 407,396$

Step 2: Detached Garage and Poolhouse

The detached garage and poolhouse were valued at $62,476. HO-2 policies typically cover other structures at 10% of the dwelling coverage, which means: $\text{Maximum coverage for other structures} = 0.10 \times 407,396 = 40,740$ Therefore, the maximum amount reimbursed for the garage and poolhouse is $40,740.

Step 3: Personal Property

The personal property has an actual cash value of $184,701. HO-2 policies typically cover personal property up to 50% of the dwelling coverage, which is: $\text{Maximum coverage for personal property} = 0.50 \times 407,396 = 203,698$ Since the actual loss is less than the limit, Carmen will be reimbursed the full $184,701 for her personal property.

Step 4: Medical Expenses

Medical expenses due to injuries amount to $10,000. Medical payments coverage in homeowners' policies often have limits, typically $1,000 to $5,000. Since the specific limit isn't provided, let's assume Carmen has the typical $5,000 coverage: $\text{Reimbursement for medical expenses} = 5,000$

Step 5: Loss of Dogs

The value of the three dogs is $18,000. Pets are usually not covered under standard HO-2 policies, so Carmen will not be reimbursed for this loss: $\text{Reimbursement for pets} = 0$

Step 6: Additional Living Expenses (Motel)

The living expenses for the motel total $5,908. HO-2 policies typically cover additional living expenses if the home is uninhabitable. Carmen will likely be reimbursed the full $5,908.

Step 7: Deductible

Carmen has a $1,000 deductible, which will be subtracted from the total reimbursement.

Total Reimbursement Calculation:

$\text{Total Reimbursement} = (\text{Dwelling}) + (\text{Garage/Poolhouse}) + (\text{Personal Property}) + (\text{Medical Expenses}) + (\text{Living Expenses}) - \text{Deductible}$ $\text{Total Reimbursement} = 407,396 + 40,740 + 184,701 + 5,000 + 5,908 - 1,000$ $\text{Total Reimbursement} = 642,745$

Conclusion:

Carmen Viers will be reimbursed $642,745.

Would you like any further details or explanations?

Here are 5 related questions:

1. What factors affect homeowners insurance coverage?
2. How is personal property value assessed for insurance claims?
3. How do deductibles influence total reimbursement amounts in insurance?
4. What are the different types of HO-2 policy coverages?
5. What expenses are typically covered under "additional living expenses" in insurance?

Tip: Always review your policy limits and coverage annually to ensure they are adequate for your home's value and personal belongings.