Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds.

Jorge and his wife own a beachfront vacation home in
Savannah, Georgia. During the year, high winds from a tropical storm shatter a
sliding glass door and rain from the storm causes extensive water damage to the
kitchen. Fortunately, during a calm in the storm, Jorge is able to board up the
door, which limits the water damage to the kitchen. The items damaged in the
storm are:

In addition, Jorge pays $625 to replace the sliding glass
door. The insurance company will not reimburse him for the cost of the new door
because the old sliding glass door did not meet the company’s standards for
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Jorge and his wife own a beachfront vacation home in
Savannah, Georgia. During the year, high winds from a tropical storm shatter a
sliding glass door and rain from the storm causes extensive water damage to the
kitchen. Fortunately, during a calm in the storm, Jorge is able to board up the
door, which limits the water damage to the kitchen. The items damaged in the
storm are:

In addition, Jorge pays $625 to replace the sliding glass
door. The insurance company will not reimburse him for the cost of the new door
because the old sliding glass door did not meet the company’s standards for a
hurricane area. What is the amount of Jorge’s casualty loss before considering
any annual limitations that may apply?

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