In: Finance
How should the owner of a detached home determine the amount of coverage to purchase in a homeowners' policy?
a. | Based on the replacement cost of the house. | |
b. | Based on the market value of the house. | |
c. | Based on the actual cash value of the house. | |
d. | Based on the owners' annual income. |
The Correct Answer is (A) that is Based on the replacement cost of the house .
The owner of a detached home determine the amount of coverage to purchase in a homeowners' policy Based on the replacement cost of the house .
Replacement cost covers the cost of repairing or replacing property at the same or equal value.