PERSONAL CASUALTY LOSS: EXAMPLE 1 (1 OF 2)
01.Core Concepts
• Dwight owned a home in New Orleans that was severely damaged by a hurricane. • Dwight had purchased the home for $200,000, and the fair market value of the home prior to the hurricane was $400,000. • His homeowner's insurance polic y had lapsed one month before the hurricane hit, and Dwight had not obtained any other insurance. • After the hurricane, the property had a fair market value of $90,000. • The president declared the hurricane a disaster under Section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.