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Ken and Beverly Austin continue to run into unfortunate incidents. Upon returning home from their New York
City vacation, the Austin’s discovered that the apartment building had a fire. The apartment building firm
destroyed all of their personal property. Although their personal property had been depreciated or the actual
cash value of all their property was $5,000, it will cost the Austin’s about $37,000 to replace all of their lost
items. How much will the insurance company pay for their loss? Using the Home Insurance Needs Worksheet
calculate how much insurance the Austin family should have had.
