Question

Susana has home insurance that covers the items inside her. He has a computer that he bought 3 years ago for $ 17,680 and has a 8-year lifespan. The policy covers items at their current value and a computer with similar characteristics costs 25% more expensive today. You have a small fire and your computer is damaged. How much will you receive from the insurer?

Write the unsigned answer in pesos and use two decimal places, if necessary.

Answer 1

In Home insurance there are two types of insurance covers one is indemenity cover and one is new for old cover

Under Indemenity cover company replaces items based on their value at the time of a claim

The current value of new computer is 17680 + 25% = 22100. since the computer was already used for three years the value received from insurance company will be propotionate of remaining life in total life i.e. 22100*5/8 = 13,812.

Under New for old cover same item is replaced