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.

Expert Solution

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.

jeff jeffy answered 3 years ago

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