1. Your home insurance provides for replacement value for personal property loss

Question

1. Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $336 two years ago and has an expected life of six years. A comparable microwave costs $448 today. What amount will the insurance company pay?

2. Thad Joslin was judged at fault in an automobile accident. Three others were awarded damages of $149,000, $80,000, and $71,000. Thad has 100/300 bodily injury liability coverage. What amount, if any, would not be covered by his insurance?

3. What type of coverage in a home insurance policy is designed to pay for legal action taken against a homeowner who may be legally responsible for injury or property damage of others?

Explanation / Answer

1) In replacement cost coverage, the insurance company will pay what it costs to repair or replace your damaged possessions at today's prices without deducting for depreciation.

So the amount that insurance company will pay today is $ 448.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.