Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of ​$4 comma 597. Her​ dwelling, which was destroyed as a result of a lightning​ strike, was insured with an​ HO-2 policy for ​$357 comma 791. Prior to the​ loss, her home was valued at ​$392 comma 000​, her detached garage and poolhouse were valued at ​$50 comma 687​, and her personal property had an actual cash value of ​$142 comma 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?
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Part 1
The amount of total losses and expenses she will be reimbursed if she has a​ $1,000 deductible is ​$

enter your response here.  ​(Round to the nearest​ dollar.)

To calculate the total amount Carmen will be reimbursed under her HO-2 insurance policy, we'll follow these steps:

### 1. Dwelling
- The dwelling (house) was insured for **$357,791**, but the value before the fire was **$392,000**.
- Since the dwelling was insured for **$357,791**, that's the maximum amount she can be reimbursed for the dwelling loss (ignoring depreciation, which isn't mentioned).
  
### 2. Detached Garage and Poolhouse
- The detached garage and poolhouse were valued at **$50,687**.
- HO-2 policies typically cover **10%** of the dwelling amount for "other structures" (garage and poolhouse), which would be **10% of $357,791 = $35,779**. Thus, she can claim **$35,779**.

### 3. Personal Property
- The personal property was valued at **$142,261** (actual cash value).
- HO-2 policies generally cover personal property at the actual cash value (since it's specifically mentioned here).
  
### 4. Loss of Use (Living Expenses)
- Carmen spent **$4,597** for eight weeks of living in a motel due to the fire.
- Most HO-2 policies cover "loss of use" expenses, which include temporary living costs. Therefore, she can claim **$4,597** for living expenses.

### 5. Injuries and Dogs
- She sustained **$10,000** in injuries and lost **three dogs valued at $6,000 each (total $18,000)**.
- Personal injury coverage under HO-2 policies generally applies to liability claims, so Carmen likely won't be reimbursed for her own injuries.
- Pets are usually not covered under standard HO-2 policies, so her loss of the dogs will also likely not be reimbursed.

### 6. Deductible
- The deductible is **$1,000**, which will be subtracted from the total reimbursed amount.

### Summary of Covered Losses:
1. **Dwelling:** $357,791
2. **Detached Garage/Poolhouse:** $35,779
3. **Personal Property:** $142,261
4. **Living Expenses:** $4,597

### Total before Deductible:
\[
357,791 + 35,779 + 142,261 + 4,597 = 540,428
\]

### Subtract the Deductible:
\[
540,428 - 1,000 = 539,428
\]

### Final Reimbursement:
\[
\boxed{539,428}
\]

Thus, Carmen will be reimbursed **$539,428** for her losses and expenses.

Would you like further details or have any other questions?

---

Here are 5 related questions:
1. What items are typically not covered by a standard HO-2 policy?
2. How do insurance companies determine the actual cash value of personal property?
3. What are the benefits of upgrading to an HO-3 policy?
4. How is "loss of use" coverage calculated in homeowners' insurance policies?
5. How does the deductible affect insurance reimbursements for large losses?

**Tip:** Consider reviewing your insurance policy to ensure that pets or unique items are adequately covered, as standard homeowners' policies often exclude certain valuables.

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. 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?

Learn how to calculate an insurance claim based on an HO-2 policy for Carmen Viers, who lost her home in a fire. This case study explores dwelling coverage, detached structure coverage, personal property valuation, and the impact of deductibles on total reimbursement. Suitable for Grades 10-12.

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