Assuming your client's mortgage payments are $900 per month, which one of the following amounts will his/her Homeowners policy pay towards the cost of renting the temporary house (... Assuming your client's mortgage payments are $900 per month, which one of the following amounts will his/her Homeowners policy pay towards the cost of renting the temporary house (ignore application of deductible)?
Understand the Problem
The question is asking to calculate the total amount that a Homeowners insurance policy will cover towards temporary housing costs after a fire causes damage. The family has to rent another house for three months at a rent of $1,000 per month while their home is being repaired. The total rent for three months is asked to be calculated.
Answer
$3000$
Answer for screen readers
The total amount that the insurance policy will cover towards temporary housing costs is $3000.
Steps to Solve
- Calculate the total rent for three months
To find the total amount of rent the family has to pay for temporary housing, multiply the monthly rent by the number of months.
The formula for total rent is:
$$ \text{Total Rent} = \text{Monthly Rent} \times \text{Number of Months} $$
Substituting the values:
$$ \text{Total Rent} = 1000 \times 3 $$
- Perform the multiplication
Now, multiply the numbers:
$$ 1000 \times 3 = 3000 $$
Thus, the total amount that the insurance will cover for temporary housing costs for the three months is $3,000.
The total amount that the insurance policy will cover towards temporary housing costs is $3000.
More Information
In situations like these, homeowners insurance often covers additional living expenses incurred due to home damage, ensuring families have a place to stay while repairs are made. Temporary housing costs can be crucial for families during a difficult time.
Tips
- Forgetting to multiply by the correct number of months.
- Mistaking the monthly rent for the total amount. To avoid these errors, always double-check the values you are using and ensure you're applying the formula correctly.
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