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Mr. Xavier has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage, ...

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Mr. Xavier has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage, ...

Mr. Xavier has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage, and a $500 deductible. The dwelling is 50% depreciated. Sewage backs up into the basement and destroys the furnace, which will cost $8,000 to replace. The policy will pay:
A) nothing because of the water damage exclusion
B) nothing because the property is not covered
C) $7,500 because of replacement cost coverage
D) $3,500 because of actual cash value and the deductible

Textbook

Introduction to Risk Management and Insurance

Edition: 10^th

Authors: Dorfman, Cather

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national

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More solutions for this book are available here

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medulla Author

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6 years ago

Thanks for your help!!

Mcb

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Just got PERFECT on my quiz

annielin111

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Good timing, thanks!

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