Homeowners Policy

You are a married individual with a 12-year-old child. You own your home, or let's say you and the bank own it. Coverage on your home is provided by a homeowner's insurance policy with a business pursuit's endorsement. There are no other endorsements on your policy.

A three-day weekend is coming up and you have planned to go to an exclusive resort. The resort offers boating, hang-gliding, radio-controlled model airplane flying, golfing, snowmobiling, etc.

It is Friday and you are rushing around so that you will be ready to leave that evening with your family. As you are rushing down the stairs at National Graduate University (you are an instructor and a partner), you collide with a student and he falls d6wn a flight of stairs resulting in the student breaking his arm. The broken arm can be settled for $3,500.

You call an ambulance for the student and inform your partner, the president of the university, of what happened.

Now, you start looking around campus for the two students that had agreed to rent your home for the three days that you are gone. The students had told you that they looked forward to getting away from the dorms and to be able to enjoy your pool, jacuzzi, and some privacy. Over the weekend, one of the students decided to add more water to the pool. The student forgot about the hose, which was filling the pool. The next day, your neighbor called and informed the student that during the night, water from your pool flooded their living room. The damage came to $15,000.

Once you got home, you put everything in the trunk of the car, including the golf clubs you borrowed from your neighbor. You child and spouse both got in the car. Now, you are off for the weekend. You are going to have to drive carefully because you were not sure the safety chain on the snowmobile trailer was put on correctly. You can just imagine going around a corner and losing the trailer and the $12,000 snowmobile you bought last year.

It's Saturday morning and of course everything that could go wrong will go wrong.

While you are out golfing, your spouse has taken the family's snowmobile up into the mountains. Unfortunately, your spouse did not see the snowmobile ahead conic to a stop. The reason your spouse did not see the person stop was because your spouse was enjoying the beauty of the mountains and was not watching the trail. Of course an accident resulted, and the snowmobiler was severely injured. The accident resulted in causing the snowmobiler to become a quadriplegic. This injury resulted in a jury award against you and your spouse of $500,000. At the ninth hole, you accidentally drove the ball 250 years and shattered the windshield of a Corvette. Damage to the windshield came to $300. One of the other golfers stated that if you could do that again, he/she would give you $100.

You were so upset when you saw that the windshield broke that you jumped into the golf cart and started to drive toward the Corvette, but the wheel drove over the two irons causing it to flying through the air and hit a tree a few feet away. The $80 two irons Is bent. You stopped and examined the two irons, then got back into the golf cart, and backed it over the $600 set of clubs destroying them.
After the ninth hole, you decided to drive the golf cart about a mile away from the golf course to get some aspirin since you did not think they had any at the clubhouse. While driving down the road to the store, you ran into a pedestrian with the golf cart. The pedestrian ultimately brought a lawsuit against you and received a jury verdict of $130,000 for his broken leg, broken ribs and psychiatric treatment.

You have had it; so you rent a gorgeous 24-foot self-contained sailboat and, while you are out sailing, you dream of being out on the ocean sailing to Hawaii rather than on this particular lake. Well, while you were daydreaming, you collided with a 68-foot sailboat, which was anchored in the middle of the lake. You could not believe that you collided with it. The damage to the 68-foot sailboat came to SI 00,000. The damage to the 24-foot sailboat came to $25,000.

Everything has not been a total loss. As you were being taken back to shore in the rescue boat, you can see your child flying a radio-controlled airplane. Your child appears to be having a great time. Your child sees you and points to a detached garage. The next thing you know is that your child is intentionally causing the plane to dive into the garage. Well, your child was accurate. The plane collided with the garage and it started on fire. The damage to the garage came to only $1,000. This model of airplane cost $500.
Your child becomes upset and starts to rim toward you, but accidentally kicks a radio-controlled airplane. The damage to the model plane your child kicked came to $600.

Your spouse comes back and explains the accident in the mountains. After all of this, you decide life is not worth it, so you decide to go hang-gliding. You had always hit that anyone who went hang-gliding was suicidal. The next thing you know is that you are falling of a mountain, and hang-gliding is fun! You feel as if you are as free as a bird with no worries at all. Or, should I say, until you see where you are about to land.

You landed right next to the resort's corporate jet. Since you were this close, you decided to climb on the jet and look in the window. You lost your balance and landed on the wing. Boy did that hurt, but no bones broken. The jet sustained $5,000 worth of damage.
Your homeowner's insurance policy has the following limits and a one million dollar umbrella: 100,000/300,000/100,000.

Answer the following questions and explain your answers.

1. Will your insurance cover you for the student's broken arm? Why or why not? If yes, then what dollar amount is covered?

2. Is the flooding of your neighbor's home covered? Why or why not? If yes, then what dollar amount is covered?

3. Is the injury to the snowmobiler covered? Why or why not? If yes, then what dollar amount is covered?

4. Is the broken windshield covered? Why or why not? If yes, then what dollar amount is covered?

5. Is the damage to the two irons covered? Why or why not? If yes, then what dollar amount is covered?

6. Is the set of clubs covered? Why or why not? If yes, then what dollar amount is covered?

7. Is the injury to the pedestrian covered? Why or why not? If yes, then what dollar amount is covered?

8. Is the damage to the 68-foot sailboat covered? Why or why not? If yes, then what dollar amount is covered?

9. Is the damage to the 24-foot sailboat covered? Why or why not? If yes, then what dollar amount is covered?

10. Is the damage to the garage covered? Why or why not? If yes, then what dollar amount is covered?

11. Is the damage to the radio-controlled airplane, which your child kicked, covered? Why or why not? If yes, then what dollar amount is covered?

12. Is the damage to the radio-controlled airplane your child was flying covered? Why or why not? If yes, then what dollar amount is covered?

13. Is the damage to the jet covered? Why or why not? If yes, then what dollar amount is covered?