Question

Jacob's home burns to the ground, despite the fire department's attempts to save it. His home was fully insured under his DP-3 policy for $150,000. How much can Jacob expect to receive from his insurer to cover the loss and any bills he may receive from the fire department?

A. $120,000
B. $150,000
C. $100,000
D. $150,500

Answer 1

Jacob can expect to receive the full $150,000 from his insurer under his DP-3 policy to cover the loss of his home's structure, but he should check his policy or consult his agent for potential additional coverages.

Step-by-step explanation:

If Jacob's home is fully insured under his DP-3 policy for $150,000 and it burns to the ground, Jacob can expect to receive the full policy amount, since DP-3 is a special form of homeowner insurance which typically covers the home to its replacement value. Therefore, the correct answer is B. $150,000. This amount should cover the loss of the home's structure. However, Jacob's policy may or may not cover additional costs such as bills from the fire department, which can vary by policy. Jacob should review the specifics of his insurance contract or speak with his insurance agent to determine if such auxiliary expenses are included in his coverage.

Answer 2

Jacob can expect to receive the full $150,000 from his insurer under his DP-3 policy to cover the loss of his home's structure, but he should check his policy or consult his agent for potential additional coverages.

Step-by-step explanation:

If Jacob's home is fully insured under his DP-3 policy for $150,000 and it burns to the ground, Jacob can expect to receive the full policy amount, since DP-3 is a special form of homeowner insurance which typically covers the home to its replacement value. Therefore, the correct answer is B. $150,000. This amount should cover the loss of the home's structure. However, Jacob's policy may or may not cover additional costs such as bills from the fire department, which can vary by policy. Jacob should review the specifics of his insurance contract or speak with his insurance agent to determine if such auxiliary expenses are included in his coverage.