Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of ​$5 comma 283. Her​ dwelling, which was destroyed as a result of a lightning​ strike, was insured with an​ HO-2 policy for ​$337 comma 019. Prior to the​ loss, her home was valued at ​$359 comma 000​, her detached garage and poolhouse were valued at ​$47 comma 044​, and her personal property had an actual cash value of ​$118 comma 387. 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 calculate how much Carmen Viers will be reimbursed for her total losses and expenses, we need to break down the coverage provided by her HO-2 policy and take into account the $1,000 deductible. 

### 1. Dwelling Coverage:
- The dwelling was insured for **$337,019**.
- The value of the destroyed dwelling was **$359,000**, but the policy only covers **$337,019**.
- Therefore, the insurance will cover **$337,019** for the dwelling.
  
### 2. Detached Garage and Poolhouse:
- The garage and poolhouse were valued at **$47,044**.
- HO-2 policies typically cover structures such as garages and poolhouses. Assuming full coverage, the insurance will cover the **$47,044**.

### 3. Personal Property:
- The actual cash value of her personal property was **$118,387**.
- HO-2 policies usually cover personal property, so she would be reimbursed for **$118,387**.

### 4. Motel Living Expenses:
- Carmen spent **$5,283** on temporary living expenses (motel).
- HO-2 policies typically cover loss of use, meaning additional living expenses caused by the damage to her home. Therefore, **$5,283** will be reimbursed.

### 5. Injuries:
- Carmen sustained **$10,000** in injuries.
- HO-2 policies also provide liability or medical payments coverage for injuries on the property. If Carmen has medical payments coverage, she would be reimbursed for the **$10,000**.

### 6. Loss of Pets:
- Carmen's three Greyhound dogs, valued at **$6,000 each**, total a loss of **$18,000**.
- Unfortunately, HO-2 policies generally do not cover the loss of pets, so **$18,000** would not be reimbursed.

### 7. Deductible:
- Carmen has a **$1,000 deductible**, which will be subtracted from the total reimbursement.

### Summary of Covered Expenses:
\[
\text{Dwelling coverage} = 337,019 \\
\text{Detached garage and poolhouse} = 47,044 \\
\text{Personal property} = 118,387 \\
\text{Motel living expenses} = 5,283 \\
\text{Injuries} = 10,000 \\
\text{Total covered} = 337,019 + 47,044 + 118,387 + 5,283 + 10,000 = 517,733
\]

### After Deductible:
\[
\text{Reimbursement} = 517,733 - 1,000 = 516,733
\]

Therefore, Carmen Viers will be reimbursed **$516,733** for her total losses and expenses.

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Would you like more details on any part of this explanation?

Here are five questions related to this:

1. How do HO-2 policies differ from other homeowners insurance policies?
2. What is the importance of understanding replacement cost versus actual cash value in insurance claims?
3. Could Carmen claim for emotional damages or mental health costs due to losing her pets under this policy?
4. How does the deductible affect different types of insurance claims (property vs. personal injury)?
5. Are there ways Carmen could have insured her pets against such losses?

**Tip:** Always review the specific terms of your insurance policy to understand what is covered, including exclusions like pet loss.

Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $5,283. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $337,019. Prior to the loss, her home was valued at $359,000, her detached garage and poolhouse were valued at $47,044, and her personal property had an actual cash value of $118,387. 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?

Calculate how much Carmen Viers will be reimbursed for her fire losses, including dwelling, personal property, and medical expenses under an HO-2 policy. This step-by-step solution includes insurance coverage calculations, deductible application, and coverage limitations.

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