Unit 4 - Lesson 2
An insured has an HO-3, no endorsements, with following limits: A - $70,000, B - $7,000, C - $35,000, D - $14,000. The policy has a $500 deductible ($500 deductible for windstorm/hurricane).
What is the amount payable (if any) when: "A vacation residence in North Carolina owned by the insured burned down. All the furniture, with an ACV of $5,000 was destroyed"?
Ans. $_____ is payable - $5,000 loss less $____ deductible, but the limit on property usually located at a secondary residence is limited to 10% of the Coverage C limit.
I thought it was $3,500 which is 10% of C since the loss was at a secondary residence. However, the correct answer was $4,500 ($5,000-$500 deductible). Why?