Q2. Jay rents a room in his house to a college student. In the event that the house is seriously damaged by a fire or other peril, what kind of loss(es), in addition to the actual cash value of the damaged home, is Jay likely to encounter? A2. (At least one loss exposure; and inappropriate explanation will make deduction) Solution Jay Loses his Rental Income which he can earn when the house exists This is a Oppurtunity Cost for JAy.