Question

4. A home has a replacement value of $324,000. What is the amountof the insurance if the coverage is:a. 100% of the replacement value?b. 90% of the replacement value?c. 80% of the replacement value?

Answer 1

Given the question, the following is the solution steps to answer the question.

STEP 1: Define insurance coverage

Insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance—or more exotic forms, such as hole-in-one insurance—is issued by an insurer in the event of unforeseen occurrences.

STEP 2: find the insurance for a