If Diana suffers $5,200 in losses from a fire, how much can she expect to receive under her DP-2 policy, assuming coverage limits of $150,000 for Coverage A?

In the context of a DP-2 policy, commonly known as a Dwelling Fire policy that provides broad coverage, the insured is typically eligible to receive compensation for covered losses up to the policy limits, provided that the loss is not subject to any deductibles.

Diana has suffered losses amounting to $5,200 from a fire, and her Coverage A limit is set at $150,000. In this scenario, since the loss is within the coverage limit and assuming no deductibles apply, she can expect to receive an amount equivalent to her losses, which is $5,200.

The significance of understanding policy limits is crucial here. The fact that the coverage limit is much higher than her actual loss means that the policy will adequately cover her losses in this instance. Therefore, she is entitled to receive the total loss amount without any reduction, given that it falls within the coverage limits set by her policy.